- SBA announces that it has made payment on 1.1 million PPP forgiveness applications and forgiven more than $100 billion
- The initial program distributed $523 billion to approximately 5.2 million businesses
- The SBA continues to process forgiveness applications as a new round of PPP gets underway
The U.S. Small Business Administration has forgiven more than $100 billion of the loans distributed last year under the Paycheck Protection Program.
The SBA announced that it has made payment on 1.1 million of the approximately 1.35 million applications for forgiveness it has received so far, totaling $170.5 billion. Eighty-eight percent of loans under $50,000 were approved for forgiveness.
The tally is only a fraction of the total number of loans and disbursement amount of the original PPP allocations. That program distributed $523 billion to approximately 5.2 million businesses.
Borrowers who received money under PPP are eligible for full forgiveness if they spent 60 percent of the money on payroll and met other conditions; partial forgiveness is also available. However, borrowers were often urged to hold off on submitting an application for forgiveness as the program’s rules continued to be updated, including the announcement of a simplified forgiveness process for smaller loans.
SBA Administrator Jovita Carranza says the administration is “continuing to work around the clock” to process forgiveness applications as well as implement new loans after PPP was revived with $284.5 billion in funding under a stimulus bill approved last month. The newly updated program is open to qualifying small businesses, including those applying for the first time and those seeking a second loan after receiving one in the first round of funding.
