What to Know About PPP Forgiveness Before Applying Through the SBA Portal

The Paycheck Protection Program (PPP) program provided the relief many companies needed to stabilize their financial position and see them through the pandemic-created economic crisis. The capital was intended to help business owners pay employees, pay outstanding rent and other bills, and invest in reopening and getting back to business.  The PPP program offered 5-year loans carrying a 1% interest rate making it some of the lowest cost financing small businesses were able to find.

The Small Business Administration (SBA) recently announced that on August 4 it will open a portal for small businesses that obtained loans of $150,000 or less to seek PPP loan forgiveness directly, assuming that the bank or financial institution that the small business applied through agrees to allow the SBA to process forgiveness applications on their behalf. Approximately 600 financial institutions have agreed to participate thus far.  There are a few important things small businesses will need to…