Over 1.1 million small business loans canceled by recently reopened paycheck protection program
WASHINGTON, DC (WWTI) – More than a million loans have already been canceled for small businesses across the country.
The Small Business Administration of the United States announced that it canceled more than 1.1 million Paycheck Protection Program loans during the recently opened first draw period. According to the SBA, this has totaled more than $ 100 million in critical relief for small businesses across the country.
So far, during the PPP loan period that opened on January 11, the SBA has received 1,346,125 forgiveness requests for a total amount of approximately $ 170.5 billion. The Administration said it made payment on almost 85% of the claims and for smaller borrowers, with loans up to $ 50,000, 88% were approved for forgiveness.
Small Business Administration Administrator Jovita Carranza commented on the recent data.
“Today’s news is a key indicator that P3 is working for all small businesses in our country. For any eligible small business that continues to struggle due to the coronavirus pandemic, the program has reopened for new and some existing PPP borrowers, and we encourage you to take advantage of the PPP to keep your employees on the payroll, regardless of any local economy. restrictions on your operations. The SBA continues to work tirelessly to cancel existing PPP loans and implement the next phase of this vital program. “
The recently reopened Paycheck Protection Program results from the Economic Assistance to Small Businesses, Nonprofits, and Hard-Affected Sites Act, enacted by President Trump on December 27, 2020. The law has been enacted by President Trump on December 27, 2020. added operational expenses, some property damage costs, supplier costs and worker protection. expenses, such as drive-thru areas, ventilation and sneeze guards, are also eligible expenses.
The Small Business Administration said it is currently continuing to review loan forgiveness requests. The program’s second small business draw officially opened on Wednesday, January 13, 2021.