Aug 28 — Those who have received Payment Protection Program loans and don’t want to be stuck on repayments will want to submit forgiveness requests to their lenders or through the Small Business Administration’s Direct Borrower Forgiveness Portal.
Deadlines for pardon applications are set on an individual basis.
“From the day the PPP loan was created and signed and funded, 10 months from that day, the first payment is due on this note,” said Terry Lockhart, director of loans at Bank of Cherokee County. . “Basically, they have eight to 24 weeks to spend the money and distribute the funds. At the end of those eight to 24 weeks, they have 10 months from when they signed up to request a rebate without having to make a rebate. of payment.”
So, for example, if the period covered – eight to 24 weeks – for the PPP loan ended on October 30, 2020, the deadline for requesting forgiveness would be August 30, 2021. About 85 to 90% of BCC borrowers already have their loans have been canceled entirely.
“I know a lot of banks aren’t that high,” Lockhart said. “There’s a ton that are close by, but we’ve got a pretty good process, and we started really early.”
Those who are unsure of when to submit their forgiveness requests should contact their bank or lender. This will save them from having to return the catastrophic dollars, and it will also benefit the bank.
“From a banking standpoint, we want to make him forgive and take him off the books because we loaned him out at 1%,” Lockhart said. “The sooner we get that loan canceled, the quicker we can lend that money at 4, 5, or 6 percent and make a better return to the bank.”
Lockhart’s advice is that borrowers complete their forgiveness requests and become their lender as soon as possible.
“Because right now the pandemic and everything that’s going on is still fresh,” he said. “I would only think that in time, yes, they will forgive them, but I would like to be in the foreground and not wait for the end, hoping mine is forgiven.”
People who have received a PPP loan can also go through the SBA’s Direct Borrower Forgiveness Portal, which opened on August 4. Borrowers can submit forgiveness forms using a computer or smartphone. On average, users submit claims within six minutes and receive their remittance decisions within a week of submitting them. Thus, borrowers do not have to go through their local lenders that they used to compete with their loans.
“We are extremely pleased that in just two weeks, the Direct Borrower Forgiveness Portal is giving small businesses a simplified and user-friendly way to request a rebate and get relief on these essential PPP loans,” said Patrick Kelley. , associate administrator of the SBA. Capital access office. “Already, we’ve seen hundreds of thousands of borrowers navigate the process quickly and easily, and we continue to proactively help borrowers apply through in-depth training and webinars.”
Of the 340,000 claims submitted through the portal, half have already been approved for full or partial remission, for a total of more than $ 2.4 billion. Borrowers whose loans are made through banks that have chosen not to enroll in the SBA’s direct remittance portal should request a remission through their lender.
For more information on the SBA’s Forgiveness Portal, visit www.sba.gov.