There are happy birthdays and less happy birthdays.
The first week of April marks the two-year anniversary of the Paycheck Protection Program (PPP) administered by the Small Business Administration (SBA). While memories of that stressful time might fall into the “not so happy” category, the results — for millions of small businesses — weren’t all that bad.
PPP Loans Mark 2-Year Anniversary
The PPP helped save businesses and American jobs, said Chris Hurn, Fountainhead founder and CEO. Fountainhead is a national, non-bank commercial lender.
“We have processed more than 300,000 PPP loans, with 2020 and 2021 combined,” said Hurn. “The loans totaled more than $5 million in funding and we helped save 430,000 American jobs.”
Fountainhead processed the loans in all US states and in 6 US territories. Fountainhead is one of only 14 SBA-approved commercial lenders in the US.
“It was quite extensive and cost a lot of all of us,” said Hurn. “But we have a team with experience in the SBA industry. We felt privileged to be able to help.”
The latest on PPP loan forgiveness
Fountainhead’s percentage of obtaining PPP loan forgiveness is approximately 85%. The remaining 15% of those who have received PPP loans have failed to respond, despite numerous attempts by Fountainhead employees.
On a national scale, according to the SBA’s general statistics (until February 2022), the figures are comparable:Total number of loans: 11,427,757Number of requests for forgiveness: 9,758,832Payments made on requests: 9,679,431
“If it’s undetected fraud with some loans, it’s a big problem,” Hurn said. “It’s heartbreaking — fraudsters took money from other small businesses.”
The latest PPP data
Let’s take a look at the SBA stats for the PPP in dollar amounts. These are the latest figures, as of February 2022.Total Dollars: $789,776,462,485.00 Requests: 703.344,518,431.00Payments: 695,581,269,282.00
What happens if the PPP loans are not repaid?
“The lender has to provide that information to the SBA, and the SBA buys the loan,” explains Hurn. “The company will not be able to obtain another government loan and will be reported by credit bureaus.”
The last PPP money was to be funded in June 2021. After that date, Fountainhead’s staff began to focus on PPP forgiveness.
“As the two-year anniversary approaches, about 10 to 15% of the workforce remains committed to helping customers seek forgiveness,” Hurn said. “And we focus on SBA loans — that’s what we do best.”
Even during the pandemic, as the company processed PPP loans, it also funded 27 SBA 7(a)/504 loans totaling $55 million.
“Banks and credit unions were focused on helping existing customers,” Hurn said. “Strong marketing and strong media outreach meant that we were busy with so many requests in 2020 and 2021.
“We worked insane hours for months,” he added. “I think I slept an average of 4 hours a night.”
Customer feedback kept the staff going. Hurn said customers uploaded photos, commented and sent cards.
The company received more than 2,300 5-star reviews. Customers used phrases like “highly recommend, exceptional service, responsive, great work ethic, loyal and happy to have this team helping me.”
Paycheck Protection Program turns into Post Pandemic Positives.
Hurn noted national reports of a three-decade high in business startups.
“There were companies that did downsize and forced people to re-examine things,” Hurn said. “There was a lot of reappraisal – can I take that hustle, that hobby, to the next level.
“It’s a new era of small business owners and entrepreneurs.”
Image: DepositphotosMore in: PPP Loans
This post Marking the 2nd Anniversary of the Small Business PPP Loan was original published at “https://smallbiztrends.com/2022/04/2nd-anniversary-for-ppp-loans.html”