52% of small businesses did not ask for forgiveness for a PPP loan

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Overall, 52% of small businesses did not ask for forgiveness for a PPP loan. This is the total number of applicants in 2020 and 2021 as of August 15, 2021. And as the time draws near for a quick payment of the first installment for loan recipients, it is a timely reminder to quickly apply for a PPP loan forgiveness.

Small Business Administration PPP Loan Forgiveness Portal makes it easier than ever when you apply for a loan of less than $ 150,000. If the loan amount is higher, you should follow the standard path with your lender.



52% did not ask for forgiveness on a PPP loan

According to the Small Business Administration (SBA) weekly summary, 48% of all PPP loans applied for forgiveness. This includes applications for 2020 and 2021, a total of 5,604,139 applicants. To date, 46% of all PPP loans totaling $ 471.137 billion have been written off in full or in part.

A total of 11,492,021 loans totaling $ 792.654 billion more, small business have the ability to get forgiven loans. The distribution for 2020 and 2021 is as follows:

PPP Loans in 2020

In 2020, 5,135,675 loans worth $ 521,570 billion were disbursed. To date (15 August) 84% of the applicants, or 4,331,360 people, have applied for forgiveness. And almost all or 83% of PPP loans for 2020 are fully or partially written off. Thus, the total cost of the forgiven loan is $ 438.632 billion out of the requested $ 456.519 billion.

Second drawing of PPP loans in 2021

In 2021, 6,356,346 loans were issued in the amount of $ 271.083 billion. And as of August 15, 1,272,779 people, or 20% of applicants, applied for a loan forgiveness. The amount of forgiveness they asked for is $ 41.99 billion, or 15% of the total loan for 2021.

To date, 17% of PPP loans have been written off in full or in part, bringing the total amount of forgiveness paid to $ 35.148 billion, or 13% of the total number of loans for 2021.

High percentages of forgiveness on loans under PPP

The data shows that small businesses forgive a lot of forgiveness. The discrepancy between 2020 and 2021 is the timing of the loan. Once the business is approved for a loan and you receive funds in your account, you will have eight to 24 weeks of a covered period.

After the end of the insurance period, you will have 10 months before the lender asks for payment. And you can apply for a loan forgiveness at any time. This means that businesses that applied in 2021 are still in that 10-month period. Again, it’s worth mentioning that you don’t have to wait for 10 months to finish. In fact, it is best to start the process early because lenders and the SBA have a total of 150 days to evaluate applications.

In a volatile economy, as a small business owner, you must apply for forgiveness before you start making payments on your PPP loan. You can get more information about PPP loan with detailed answers to frequently asked questions, and if you are looking for other financing options, take a look at SBA Grants for Low-Income Communities

Take a look at the rest of the SBA forgiveness data below:

summary2020 gps loan to the population

2021 gps loan to the population

Images: SBA, Depositphotos




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