PPP Loan Forgiveness Information and Other Options for Your Small Business

North Florida District Office  - July 24, 2020

u s small business administration

Paycheck Protection Program


PPP Loan Forgiveness Procedural Notice

The SBA has released a procedural notice covering details on how lenders can submit Paycheck Protection Program loan forgiveness applications/decisions and how PPP loan forgiveness reviews will be done.

60-day turnaround

After receipt of a borrower’s complete PPP forgiveness application, lenders have no more than 60 days to complete the review and issue a decision to the SBA, along with the required documents.

The PPP Forgiveness Platform:

  1. Goes live August 10, 2020, pending any legislative amendments on forgiveness
  2. Will only be open to lenders (not borrowers)
  3. Instructions will be emailed from PPPForgivenessRequests@sba.gov to Authorizing Officials, who can create 10 additional users
  4. Will have APIs for multiple submissions via an automated method

 

Read the Full Notice


SBA EIDL for Businesses

COVID-19, coronavirus, CDC

SBA’s Economic Injury Disaster Loans Available for Eligible Small Businesses and Non-Profits Impacted by COVID-19 Pandemic.

SBA’s COVID-19 Economic Injury Disaster Loan (EIDL) 

  • The SBA is offering low interest federal disaster loans for working capital to small businesses and non-profit organizations that are suffering substantial economic injury as a result of COVID-19 in all U.S. states, Washington D.C., and territories.
  • These loans may be used to pay debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact.The interest rate is 3.75% for small businesses.  The interest rate for non-profits is 2.75%.
  • To keep payments affordable for small businesses, SBA offers loans with long repayment terms, up to a maximum of 30 years. Plus, the first payment is deferred for one year.

For additional information, please visit the SBA disaster assistance website at SBA.gov/Disaster.


SBA Debt Relief Options

The SBA will pay 6 months of principal, interest, and any associated fees that borrowers owe for all current 7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020. This relief is not available for Paycheck Protection Program loans or Economic Injury Disaster loans. Borrowers do not need to apply for this assistance. It will be automatically provided as follows:

  • For loans not on deferment, SBA will begin making payments with the next payment due on the loan and will make six monthly payments.
  • For loans currently on deferment, SBA will begin making payments with the next payment due after the deferment period has ended, and will make six monthly payments.
  • For loans made after March 27, 2020 and fully disbursed prior to September 27, 2020, SBA will begin making payments with the first payment due on the loan and will make six monthly payments.

Borrowers should contact their lender if they have any questions regarding this payment relief.

Additional Debt Relief for Disaster Loans

For current SBA Serviced Disaster (Home and Business) Loans: If your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.

If you have questions about your current loan and whether or not your loan is automatically deferred, please contact your Loan Servicing Office directly using the following information:

  • Birmingham Disaster Loan Servicing Center:
    • Phone: 800-736-6048
    • Email: BirminghamDLSC@sba.gov
  • El Paso Disaster Loan Servicing Center:
    • Phone: 800-487-6019
    • Email: ElPasoDLSC@sba.gov