Small businesses will now have a simpler loan forgiveness process for the Payment Protection Program (PPP).
The U.S. Small Business Administration (SBA) is streamlining the forgiveness process for entities that have PPP loans of $50,000 or less. This process, developed alongside the U.S. Treasury Department, is designed to “provide financial and administrative relief to America’s smallest businesses.”
Approvals for PPP forgiveness applications began Oct. 2, along with remitting forgiveness payments to PPP lenders for borrowers.
According to the most recent SBA report, there have been 5,212,128 PPP loans made since the beginning of the pandemic, total $525,012,201,124. This sum has been issued by 5,460 lenders.
The majority of PPP loans were made by lenders with less than $10 billion in Thirty-four lends with more than $50 billion in assets loaned $190.2 billion in PPP funds, accounting for 36 percent of the total loan amount.
“The PPP has provided 5.2 million loans worth $525 billion to American small businesses, providing critical economic relief and supporting more than 51 million jobs,” Treasury Secretary Steven T. Mnuchin said in a statement. “Today’s action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly,” he continued. “We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds. We continue to favor additional legislation to further simplify the forgiveness process.”
A PPP loan forgiveness application can be found here.