SBA Loan Forgiveness Program
The U.S. Small Business Administration introduced The SBA PPP Direct Forgiveness Program on August 1st. The Program offers small business owners who borrowed PPP Loans of $150,000 or less to bypass the lenders and seek forgiveness directly from the SBA in a streamlined / pre-filled online application.
The Direct Forgiveness Portal went live August 4th. The SBA reported 340,000 applications in the first two weeks of the launch with over half the applicants fully or partially forgiven to-date. Lakeside Bank encourages its clients with PPP loans of $150,000 or less to promptly take advantage of the Program.
- To start your direct forgiveness request or access the portal visit: https://directforgiveness.sba.gov
- Attached are step by step guides, in English, Spanish, Simplified Chinese, and Polish. The link below has additional step by step guides in several other languages: https://dfussbaforgiveness.zendesk.com/hc/en-us/articles/4405857645083-Direct-Forgiveness-User-Guide-in-Additional-Languages
- The first several pages of the application is the business/personal information and loan details. The majority of the fields are pre-filled, however, please confirm all information is correct before proceeding.
- Once the application is finished, the next page/tab will show a complete summary or a missing items summary. Missing items will be outlined prior to submission, and the submission button will be inactive until corrected.
- After the complete summary, the next page/tab is the application signing. All applications will be signed electronically via DocuSign. Please do not exit the portal at this time as the executed signatures will be null and void.
- If there are any issues or concerns with the final documents, DocuSign will prompt at the final document step via a “decline to sign” option. Applicants that decline to sign will experience a brief waiting period before they can make corrections. This should take no more than 5 minutes. Applicants can then return to All Requests or Exit Wizard to regain access to their application and make necessary edits.
- Once the final version is signed, the application is fully submitted and the progress/status of the application can be viewed through the portal at any time.
- The SBA will email the applicant with confirmation of the forgiveness, and the applicant will receive a letter titled “Notice of Paycheck Protection Program Forgiveness Payment”.
NOTE: If the SBA finds an error during the evaluation period. The applicant will receive an email from the SBA notifying them, and the application will be withdrawal. The applicant will then have to fix the errors/issues and have to resubmit their forgiveness application.
If you have any questions or need further assistance, please reach out to your Lakeside Loan Officer or the SBA customer service line (877) 552-2692.