The Small Business Administration has released its platform user guide for forgiveness applications, and the forgiveness portal will be up and running on Monday, Aug. 10.
Several bankers have called us and said they are ready to start submitting the forgiveness applications they’ve already processed on Monday, especially those working with companies like OBA’s endorsed vendor Abrigo, where approved applications have been warehoused.
As you might imagine, banks are going to be right in the middle of the forgiveness process and, for all practical purposes, you’re going to have to “underwrite” the loan while looking in the rear view mirror.
Briefly, here’s how it’s intended to work:
- The process is limited to 150 days total.
- Borrower submits a Loan Forgiveness Application (SBA Form 3508/3508EZ or lender equivalent) to the lender servicing their loan.
- Lender reviews and issues to both the borrower and the SBA a decision on the loan forgiveness. [Note: within 60 days or less).
- SBA remits the appropriate forgiveness amount to the lender, plus any interest accrued through the date of payment. [90 days or less].
Click here for a link to the forgiveness platform user guide.
We will continue to make sure you’re up to date on the SBA requirements, as well as any progress that might be made with Congress’ two bills calling for automatic forgiveness of all PPP loans of $150,000 or less (85 percent of all PPP loans).