Small borrowers make up vast majority of forgiveness applicants
The U.S. Small Business Administration has already forgiven more than 1.1 million Paycheck Protection Program (PPP) loans for more than $100 billion, providing what it called an “extraordinary amount of critical relief to America’s small businesses just three months since the earliest PPP borrowers’ covered periods ended.”
“Today’s news is a key indicator that the PPP is working for all small businesses across our nation,” SBA Administrator Jovita Carranza said. “For any eligible small business continuing to struggle due to the coronavirus pandemic, the program has reopened for new and certain existing PPP borrowers, and we encourage you to take advantage of the PPP to keep your workers on payroll, regardless of any local economic restrictions on your operations. SBA is continuing to work around-the-clock to forgive existing PPP loans and implement the next phase of this vital program.”
The SBA has, so far, received 1,346,125 forgiveness applications for approximately $170.5 billion. SBA has made payment on nearly 85% of the applications, forgiving over $100 billion. For the smallest borrowers with loans up to $50,000, 88% have been approved for forgiveness.
The new data comes as the Paycheck Protection Program has recently reopened as a result of the Economic Aid to Hard Hit Small Businesses, Nonprofits and Venues Act, signed into law by President Donald Trump on Dec. 27, 2020. The act added operational expenditures, certain property damage costs, supplier costs and worker protection expenditures, such as drive-through areas, ventilation and sneeze guards, as eligible expenses, as well.
The SBA provides PPP forgiveness submission and payment metrics, as well as Paycheck Protection Program reports, online at www.sba.gov/ppp.