The Small Business Administration’s (SBA) PPP Forgiveness Platform opened to lenders on Aug. 10, paving the way for borrowers to begin getting their loans taken off the books of lenders if they have met all requirements.
Lenders can manually enter forgiveness applications into the PPP Forgiveness Platform, but many plan to use PPP forgiveness software that connects via an API (Application Programming Interface) to send the decisions in batch.
The good news is that unlike the PPP origination phase, which closed on Aug. 8, lenders aren’t dealing with a race against funding running out, so they should not face the same scramble as they submit forgiveness decisions to the SBA. As a reminder of the PPP forgiveness timeline, once a borrower submits a completed loan forgiveness application to the lender servicing their loan, the lender has 60 days to issue a decision on loan forgiveness to the borrower and the SBA. At that point, the lender can request payment from the SBA. The SBA has 90 days to reimburse the lender for the forgiven amount plus interest that has accrued through the payment date (but less any Economic Injury Disaster Loan Advance amounts).
Indeed, with Congress still negotiating on potential changes to the Paycheck Protection Program, some borrowers might be reluctant to get a lender decision until details are clear on such industry-backed proposals as simplified forgiveness applications or so-called “blanket forgiveness” for loans under $150,000. Through Aug. 6, $523.4 billion in PPP loans had been approved through 5,461 lenders, according to the SBA’s latest data. The average loan size was $101,459.