Get your PPP loan faster with this new portal
This week, the US Small Business Association launched a portal designed to speed up loan cancellation for small business owners who borrowed $ 150,000 or less from the Paycheck Protection Program (PPP) during the pandemic. If you are a business owner who spent 60% of your loan on payroll, you probably qualify. Here’s what you need to know.
Which companies can benefit from a PPP loan discount?
Under the CARES Act, the $ 953 billion paycheck protection program provided small business loans with generous terms: loan can be canceled (more details on cancellation eligibility PPP loan can be found here).
The portal can process these complaints in less than 72 hours
The portal was created to respond to a glut of loan cancellation requests from small business owners, the vast majority of whom have loans under $ 150,000. Since many borrowers have complained that the process is too complicated and too long, the portal is meant to be a one-stop-shop to expedite forgiveness to under 90 days – and in some cases less than 72 hours.
Instead of documents, if you are a second borrower with loans under $ 150,000, you can use the “COVID health score ‘: an automated process that verifies your business’s revenue using public and proprietary data from sources such as foot traffic and business-to-business expenses, by Inc.com. If your complaint is reported through this automated process, you will need to upload documents proving that your business lost 25% of its revenue in 2020 compared to 2019.
There is however a catch with the portal. While the Small Business Administration (SBA) is working on on behalf of banks to process these debts, many large banks have unsubscribed from the portal because they prefer to process loans directly, according to the New York Times. If you cannot find your lender in the portal, you will need to apply directly through them. Your lender should be able to provide you with guidance on completing SBA Form 3508, SBA Form 3508EZ, SBA Form 3508S, or a lender equivalent.