There is still time to apply for PPP loan forgiveness for many recipients

As of April 24, 2022, 96% of the 2020 PPP loans and 81% of the 2021 PPP loans have been canceled in whole or in part. This is according to the latest SBA Forgiveness Platform Lender Submission report.

23% still have not applied for PPP loan forgiveness

One very important point to remember about the PPP loan program is that you can still apply for a PPP loan waiver. In fact, as a borrower, you can request forgiveness at any time up to the maturity date of the loan.

According to SBA statistics, there were 11,405,032 PPP loans for a total loan value of $788,715,731,312. Of these, 88% or 10,044,882 made requests for forgiveness asking for $725,054,117,468. This is 92% of the total loan value of all PPP loans.

Of all forgiveness requests, 9,992,437 or 88% have been forgiven in whole or in part for a total of $721,041,288,424.

The SBA wants small businesses to apply for the loan waiver and constantly encourages applicants not to pass up the opportunity.

As SBA administrator Isabel Casillas Guzman said, “The vast majority of businesses awaiting forgiveness have loans of less than $150,000. These entrepreneurs are busy running their businesses and are challenged by an overly complicated forgiveness process. We need to forgive more efficiently so they can enliven our high streets, nurture our neighborhoods, and fuel our nation’s economy.”

Companies that have received loans of less than $50,000 have the lowest loan forgiveness submissions. In 2020, 95.8% of them asked for forgiveness, compared to 99% for those with $50,000 to $149,999 in approved loans. For 2021, the number is much higher for the $50,000 group, dropping all the way to $80.3%.

This means that 19.7% of these small businesses have to apply to get their loans waived.

Forgiveness of PPP Loans and Economy for Small Business

The PPP program has literally helped millions of companies survive and weather the pandemic wave. While not everyone made it through, many are still open to business. For those who were lucky enough to get the loan, it is equally important to apply for the loan’s forgiveness.

If the loan is waived, it means that your small business will avoid the monthly payments it has to make to repay the loan. Instead, this money can help your business move forward as the economy tries to free itself from the high inflation and supply chain problems facing the world.

Image: Depositphotos

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