October 2021 Update
The SBA Paycheck Protection Program (PPP) expired on May 31, 2021. However, loan applications were processed through June. At this point, providers that received a PPP loan need to apply for forgiveness (which is what turns the “forgivable loan” into a grant). Providers can apply for forgiveness as soon as all the loan funds are spent. Borrowers need to apply for forgiveness within 10 months of spending the money (in order to qualify for forgiveness).
The SBA Paycheck Protection Program (PPP) Online Forgiveness Portal
In August 2021, the SBA opened a new online PPP loan forgiveness portal for loans of $150,000 or less. This means that businesses that received a PPP loan can apply online through the SBA instead of going through their lender that approved the loan.
The SBA created the new online forgiveness portal to help expedite forgiveness approval, which turns the loan into a grant (i.e., borrowers will not have to repay it). The new online portal is designed to speed up the approval of forgiveness for small loans ($150,000 or less).
How the SBA Online Forgiveness Portal Works
The online portal requires borrowers to submit the same information that they otherwise would have filled out on a bank form. It can be faster for borrowers to receive forgiveness because they won’t have to depend on their bank queue of review for approval, which could include both large and small loans. Because the online portal is designed only for small loans, the process could be faster.
In order to use the SBA online portal, your bank must opt-in (which is a bank process partnering with the SBA). More than 1,400 banks have opted in as of September 23. Check here to see if your bank has opted in. Because the portal is new, it is expected that many more banks will be opting in over the next few weeks.
Be prepared! Review the form below of required information (the same information is required through the online portal as would be required through a bank form).
SBA Form 3508S. This form is for borrowers of $150,000 or less. It’s a short one page form. No calculations are required. Borrowers do not need to submit documentation. However, the SBA requires retaining all records for Form 3508S for four years (in case borrowers are subject to a random audit).
SBA Online Forgiveness Portal Tips! When you first visit the online portal, you will be required to set up an account (with your email) and create a password. Write down the password to save it! You will receive an email to verify that you want to create an account. It’s quick, just click on the link and confirm. Once your account is set up (which is really fast), you will need to have this information ready to submit through the portal:
- EIN, SSN, or ITIN
- SBA Loan #
- Gross Receipts 2019
- Gross Receipts 2020
- # of employees at time of application (remember: family child care providers need to claim themselves as an employee, so your answer would be “1” unless you have an employee, and then your answer is “2”, which includes yourself)
- # at time of forgiveness (same as above)
- Amount of PPP spent on payroll
SBA Portal User Guide! The portal is really simple. However, reading through the user guide can make the portal submission process much faster and may help answer any questions you have. If you do have questions, the SBA has set up a hotline where a team of SBA staff are ready to answer any question! If you have two PPP loans (a first draw loan and a second draw loan, you must apply for forgiveness for each loan separately).
SBA Hotline: 877-552-2692