Here’s some hard evidence that small businesses nationwide need help: 1 million of them have applied for a Paycheck Protection Program (P3) loan forgiveness from the US Small Business Administration.
This rush of requests comes less than two months after the federal agency opened its SBA PPP direct forgiveness portal. The platform is designed to make the process easier for businesses with a loan of $ 150,000 or less.
The SBA reports that the portal has received requests for financial assistance of more than $ 17 billion since its launch in early August. Loan cancellation is a big deal because it means it means homeowners, especially those hard hit by the COVID 19 pandemic, can start rebuilding their business. They can also use the monthly payments to invest in purchasing inventory, paying rent or other operating functions without having to pay the loan.
“We are committed to keeping the promise of forgiveness for our eligible PPP borrowers,” SBA administrator Isabelle Casillas Guzman declared. “Our innovative direct forgiveness portal is helping our P3 borrowers get back to doing what they do best: creating jobs and boosting our country’s economy.”
To help speed up the process, the number of lenders participating in direct forgiveness is now over 1,400, more than double the 600 when the portal opened.
Yet more than 5 million businesses with loans of less than $ 150,000 still have not submitted their 2021 PPP loan forgiveness request.
The SBA encourages eligible PPP borrowers who have not requested loan cancellation to do so here or contact their lender. The SBA has established a customer service line at (877) 552-2692 to help answer questions about pardon requests.
The loan cancellation is linked to an effort to end one of the largest US government relief programs in history. Almost $ 800 billion in forgivable loans were made between April 2020 and May 2021. The PPP was primarily set up to help small businesses stay open during the COVID-19 pandemic.