Question of the Week
SBA Releases One-Page PPP Loan Forgiveness Application
The Small Business Administration (SBA) released a slew of PPP guidance and updates this week, including the new simplified, one-page application for borrowers of loans for $150,000 or less – Form 3508S. Before the program reopened that threshold covered about 4.6 million of the program’s total 5.2 million loans.
Small loans predominate in the new round of PPP loans opened up last week, too. According to the information released on Tuesday, the SBA approved 60,000 paycheck protection loans submitted to nearly 3,000 lenders for over $5 billion between Monday January 11th and Sunday January 17th. That was the week set aside for community financial institutions that specialize in serving underserved communities. As of yesterday, PPP was open to all lenders.
These figures suggest that, overall, smaller borrowers are having an easier time getting funds. The new forgiveness application make PPP even more attractive to struggling businesses by streamlining the process for getting loans forgiven. Here’s a in depth look at the app.
Quote of the Week
“Everything should be as simple as possible, but not simpler.” – Albert Einstein
Task of the Week
Just a little more patience. The new application is significantly simpler, but there are still several things to keep in mind. So if this applies to you, make sure to review my borrower beware section. It will take a little longer still before lenders have updated their processes to conform with the new application, but this is a huge step forward in making the forgiveness process easier for a lot of borrowers.