Federal agencies streamline process for PPP loan forgiveness

A new form has been released to streamline the process for applying for forgiveness of loans of $50,000 or less issued through the Paycheck Protection Program.

The U.S. Small Business Administration joined with the Treasury Department in announcing the action. SBA and Treasury also have eased burdens on lenders to enable them to process forgiveness applications more quickly.

SBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on Oct. 2. 

The PPP provided 5.2 million loans worth a total of $525 billion to businesses in response to the effects of the coronavirus pandemic.

“Today’s action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly,” said Treasury Secretary Steven Mnuchin. “We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds. We continue to favor additional legislation to further simplify the forgiveness process.”

SBA Administrator Jovita Carranza said her agency continues to support small businesses in the aftermath of the pandemic.

“The Paycheck Protection Program has been an overwhelming success and served as a historic lifeline to America’s hurting small businesses and tens of millions of workers,” Carranza said. “The new form introduced today demonstrates our relentless commitment to using every tool in our tool belt to help small businesses and the banks that have participated in this program.”