The good news for small business: The U.S. Small Business Administration announced Wednesday morning that it already has forgiven more than 1.1 million Paycheck Protection Program loans totaling more than $100 billion. It also said that a large majority of applications — mostly from small businesses — have been approved.
The better news: The process is just beginning. In fact, there is a six-month window to get a decision. So, if you haven’t heard on your application, there’s a good chance it’s still going through the system, an SBA spokesperson told ROI-NJ.
Here are the numbers in what is the first large-scale reporting by the SBA.
The SBA said it has so far received 1,346,125 forgiveness applications totaling approximately $170.5 billion. The SBA said it has made payment on nearly 85% of the applications, forgiving over $100 billion. For the smallest borrowers — those with loans up to $50,000 — the SBA said it approved 88% for forgiveness.
Here’s how the process works:
- Companies that received PPP submit an application for forgiveness to their lender;
- The lender has 90 days to review the application — and can suggest complete forgiveness, partial forgiveness or no forgiveness to the SBA;
- The SBA, using guidelines from the Treasury, has 90 days to affirm the decision of the lender or adjust it (the SBA is essentially a second review).
And, while the process can take up to six months, SBA officials said they are working to reach decisions as soon as possible.
The applications to date that have reached the SBA but not been approved fall into one of two categories: They were denied, or they have not been acted upon.
SBA Administrator Jovita Carranza said Wednesday’s announcement shows the success of the PPP initiative.
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 Trump on Dec. 27. 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 & Payment Metrics, as well as Paycheck Protection Program reports, online at www.sba.gov/ppp.