PPP 2 Loan Forgiveness
If your business took out a 2nd draw PPP loan of $150k or less, please read on...
SBA is making is easier to apply for forgiveness if your loan was $150k or less:
COVID REVENUE REDUCTION SCORE
Each second-draw PPP loan of $150,000 or less will be assigned a COVID Revenue Reduction Score created by an independent, third-party SBA contractor, based on a variety of inputs, including industry, geography, and business size, and current economic data on the economic recovery and return of businesses to operational status. When the score does not meet the value required for validation of the borrower’s revenue reduction, and if the borrower has not already provided documentation to the lender that validates the borrower’s revenue reduction, the borrower must provide documentation either directly to the lender (for those lenders that do not opt in to the direct borrower forgiveness process) or provide documentation to the lender by uploading it to the platform.
LOAN FORGIVENESS ON-LINE PORTAL
The SBA is launching a new direct forgiveness process that allows you to apply for loan forgiveness directly to the SBA through the new portal that will launch Aug. 4. Website address to be announced shortly. Upon receipt of notice that you have applied for forgiveness through the platform, your bank will review the loan forgiveness application and issue a forgiveness decision to the SBA inside the platform.
If you have questions, please let me know.