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This week the US Small Business Association launched a portal designed to expedite lending for small business owners who borrowed $ 150,000 or less from the Paycheck Protection Program (PPP) during the pandemic. If you’re a business owner who has spent 60% of your loan on payroll, you will likely qualify. Here’s what you need to know.
Which companies qualify for PPP loan waiver?
As part of the CARES Act, the Paycheck Protection Program provides 953 billion loan waivers (for more details on eligibility for PPP loans, see here).
The portal can process these claims in less than 72 hours
The portal was created to handle a flood of loan waiver requests from small business owners, the vast majority of whom have loans under $ 150,000. With many borrowers complaining that the process was too complicated and time consuming, the portal is meant to be a one-stop shop to expedite forgiveness to less than 90 days – and in some cases less than 72 hours.
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In lieu of documentation, as a secondary borrower with loans below $ 150,000, you can use the portal’s “COVID Health Score” – an automated process that reviews your company’s revenue against public and proprietary data from sources such as pedestrian traffic and corporate-business spending , per Inc.com. If your claim is flagged through this automated process, you will need to upload documentation showing that your company lost 25% of its sales in 2020 compared to 2019.
The portal has a catch, however. While the Small Business Administration (SBA) processes these claims on behalf of the banks, many larger banks have left the portal because they prefer to process the loans directly. according to the New York Times. If you cannot find your lender on the portal, you will have to apply for it directly. Your lender should be able to assist you with completing the SBA Form 3508, SBA Form 3508EZ, SBA Form 3508S, or an equivalent lender.
How to apply for a loan waiver through the portal
You can access the portal here, and there is an instruction manual for use here. You can also call or visit (877) 552-2692 www.sba.gov/relief for more informations.