As of April 24, 2022, 96% of PPP loans in 2020 and 81% of PPP loans in 2021 have been forgiven in whole or in part. This is according to the latest SBA forgiveness platform lender submission report.
23% have not yet applied for PPP loan forgiveness
A very important point to remember about the PPP loan program is that you can still apply for a PPP loan forgiveness. In fact, as a borrower, you can apply for forgiveness at any time until the due date of the loan.
According to SBA metrics, there were 11,405,032 PPP loans for a total loan amount of $ 788,715,731,312. Of these, 88% or 10,044,882 have filed $ 725,054,117,468 for forgiveness. This represents 92% of the total loan value of all PPP loans.
Of all forgiveness requests, 9,992,437 or 88% were forgiven in whole or in part with a total of $ 721,041,288,424.
The SBA wants small businesses to apply for loan forgiveness and continually encourages applicants not to pass up the opportunity.
As SBA Administrator Isabel Casillas Guzman put it, “The vast majority of companies waiting for forgiveness have loans of less than $ 150,000. These entrepreneurs are busy running their businesses and are challenged by a forgiveness process. “We need to offer forgiveness more efficiently so that they can revitalize our main streets, maintain our neighborhoods, and feed our nation’s economy.”
Companies that received loans under $ 50,000 have the lowest loan forgiveness filings. In 2020, 95.8% of them applied for forgiveness compared to 99% of those with between $ 50,000 and $ 149,999 in approved loans. By 2021, the figure is much higher for the $ 50,000 group, which drops to 80.3%.
This means that 19.7% of these small businesses have to apply for forgiveness of their loans.
PPP loan forgiveness and small business economy
The PPP program has literally helped millions of businesses stay afloat and overcome the pandemic wave. Although not everyone has succeeded, many are still open to business. For those who were lucky enough to get the loan, it is just as important to apply for the loan forgiveness.
Forgiving your loan means that your small business will avoid the monthly payments you have to make to pay off the loan. Instead, this money can be used to help your business further as the economy tries to get out of the high inflation and supply chain problems facing the world.
More at: PPP Loans