PPP lender information

SBA is working to streamline the PPP forgiveness application process. Beginning in March 2024, all borrowers applying for forgiveness can use SBA's Direct Forgiveness Portal (DFP). This will ensure a more accessible process for borrowers, no matter loan size.

All lenders will be required to decision forgiveness applications received through the portal. Lenders who have an established internal process may continue to use it. However, they must also accept DFP applications. When a borrower submits an application their PPP lender will get a notice.

Biden Administration takes steps to promote equitable access to SBA relief

On February 22, 2021, President Biden announced the following changes to SBA's COVID-19 relief programs to ensure equity:

Specifically, from February 24 to March 9, 2021, SBA had a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees. This gave lenders and community partners more time to work with the smallest businesses to submit their applications, while also ensuring that larger PPP-eligible businesses would still have plenty of time to apply for and receive support before the program expired on March 31, 2021.

SBA also made four additional changes to open the PPP to more underserved small businesses than ever before. SBA is working with community partners to improve the emergency relief “digital front door” and conduct extensive stakeholder outreach. And, SBA is strengthening its relationships with lender partners to advance equity goals, deliver funding efficiently, and prevent fraud, waste, and abuse. With the PPP Interim Final Rule and FAQ issued at the end of July, 2021, SBA:

• Allowed sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants
• Eliminated an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal
• Eliminated PPP access restrictions on small business owners who have struggled to make student loan payments by eliminating student loan debt delinquency as a disqualifier to participating in the PPP
• Ensured access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP

A critical goal from Congress for the 2021 round of PPP was to reach small and low- and moderate-income (LMI) businesses who have not received the needed relief a forgivable PPP loan provides. Congress set a $15 billion set-aside for small and LMI First Draw borrowers. With existing policies, the current round has only deployed $2.4 billion to small LMI borrowers, in part because a disproportionate amount of funding in both wealthy and LMI areas is going to firms with more than 20 employees. The less-than-20 exclusivity period combined with the changes to expand access for sole proprietors, ITINs, returning citizens, and student loan debt will help us achieve congressional goals.

Interim final rules

SBA has issued the following Interim Final Rules related to PPP: