The U.S. Small Business Association (SBA) on Wednesday issued loans for $ 150,000 or less, designed to ease and accelerate the non-profit and non-profit forgiveness process.

S.B.A. He also announced the launch of a new application portal that allows borrowers to apologize directly to the agency instead of going through their creditors. More than 600 banks have agreed to bring in more than 2.17 million borrowers.

In the 29-page Interim Final Regulation (IFR), SBA has announced that it will record the required income reduction for second lot PPP loans, which can be used as an amnesty. The new IFR will set up a direct debtor pardon process for lenders who choose to apply for debt relief.

In addition, the IFR extends the debt delay for PPP loans when the borrower appeals the final SBA loan decision.

P.P.P. It provided more than $ 11.7 million in loans to small businesses and other eligible individuals affected by the COVID-19 epidemic. About $ 400 billion has been pardoned.

Loans of $ 150,000 or less are 93% of the PPP.

Although they have already moved to facilitate the pardon process for those loans, many small PPPs are not. Lenders have told the SBA that they do not have the technology or manpower to develop efficient electronic loan forgiveness platforms.

Many small lenders are restricted from receiving pardons under the 60-day legal requirement for SBA to grant pardons if they have been hit by a large number of PPP loans. This policy makes sure that creditors are not sure if they should start repaying their PPP loans until they have filed their pardons.

In addition, the SBA said it had heard concerns from PPP lenders of varying degrees, and that the requirement for borrowers to submit and review lenders’ income reduction documents was delaying the PPP loan process by $ 150,000 or less. .

To address these issues and alleviate the payoff, the SBA is making the following two significant changes. Further instructions for both changes will be available soon, SAB.

1. Introduction to Covide Income Outcome

In order to facilitate a pardon of $ 150,000 or less, the SBA will provide an alternative income deduction for a second debt that the borrower did not submit income reduction documents to during the loan application.

Each secondary PPP loan of 150,000 or less is classified as the result of a separate, third-party SBA contractor’s CVD income reduction, based on a variety of inputs, industry, geography, and business size, and current economic data to economic recovery and Return to working condition.

The point is expected in the SBA Credit Forgiveness Forum and it will be up to lenders to take advantage of the reduction. In addition, using the direct debtor pardon process described in the next section, it will be visible to borrowers who submit their loan pardons through the forum.

When the result meets or exceeds the borrower’s value to ensure a reduction in income, the use of the result meets the borrower’s requirement to file a deduction. If the point is that the borrower does not meet the required value of the deduction, and the borrower does not provide the borrower with a deductible in advance, the borrower must provide the documents directly to the lender (those lenders). Do not submit the document directly to the lender who does not go directly into the borrower’s pardon process) or upload it to the forum.

2. Initiate a direct debtor pardon process

S.B.A. PBA will launch a new direct amnesty process that will allow creditors to apply for a SBA loan directly through the new portal, beginning August 4.

P.P.P. When the lender enters the debtor’s pardon process, the new portal integrates with the SBA PPP platform and allows borrowers to apply for loans of $ 150,000 or less. 3508 S. When a borrower receives a notice of apology through the forum, the lenders review the loan apology application and issue an apology to the SBA at the forum.

The SBA’s new amnesty process offers lenders lower costs, increased efficiency, and more timely pardons than the embassy, ​​reducing borrowers’ ability to submit loan pardons directly through the forum and the unreliability associated with purchasing through their lenders.

Once the direct debtor’s pardon process has begun, borrowers should continue to file loan applications with their creditors rather than in the following circumstances.

  • P.P.P. The lender does not choose the direct borrower to use the pardon process.
  • The borrower’s PPP loan exceeds $ 150,000.
  • The borrower does not agree with the information provided by the SBA registration system, or cannot verify their identity in the forum (for example, if there is an unregistered ownership change); Or
  • For whatever reason the forum failed to deliver to the borrower.

Term extension for OHA appeals

The current law requires the PPP to appeal the final SBA loan review decisions on PPP loans. The borrower agrees to the PPP lender (or SBA) the amount of the loan repayment to the PPP lender (or notifies the lender that any loan pardon is not allowed). IFBA amends the appeal rule, extending the delay for PPP loan until the borrower makes a final decision on the appeal of the final SBA loan review decision. The amended OHI law allows the borrower to notify the creditor of the appeal, which may extend the delay. Under the revised OHA regulation, the appellant must file an appeal with OHA within 30 calendar days of receiving the final SBA credit decision.

The new SBA direct loan process and portal are discussed extensively in two recent AICPA Town Hall webmasters related to other PPP pardons and calculations. Webcast replays are available for free AICPA TV.

AICPA experts discuss the latest in PPPP and other small business assistance programs each week during the Virtual City Hall. The websites that offer CPE credits are free for AICPA members and $ 39 for non-39 members. Go to AICPA City Hall Series Website for more information and to register. Recordings of City Hall events are available for free viewing AICPA TV.

Of AICPA Wage Protection Program Resources Page Resources and equipment developed by AICPA to address the economic impact of coronavirus.

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Jeff Drew (Jeff.Drew@aicpa-cima.com) A Jofa A. Advanced Editor.