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Started By
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100B in PPP loans forgiven
Posted on 1/13/21 at 9:18 am
Posted on 1/13/21 at 9:18 am
The Small Business Administration has forgiven 1.1 million Paycheck Protection Program loans amounting to over $100 billion, the agency announced Tuesday evening.
“Today’s news is a key indicator that the PPP is working for all small businesses across our Nation,” said SBA Administrator Jovita Carranza.
The PPP was a central COVID-19 economic relief program in March's CARES Act, offering small businesses forgivable loans to keep workers on the books and stay afloat.
The program was renewed last month as part of the year-end COVID-19 $900 billion relief package, and opened the door for some businesses to apply for a second loan.
But the number of businesses seeking forgiveness was surprisingly low. Of 4.9 million loans made, SBA said that it has only received forgiveness applications for about 1.3 million of the loans, totaling $170.5 billion.
The SBA was focused on forgiving smaller loans, creating a simpler application process for loan forgiveness for loans under $50,000. LINK
“Today’s news is a key indicator that the PPP is working for all small businesses across our Nation,” said SBA Administrator Jovita Carranza.
The PPP was a central COVID-19 economic relief program in March's CARES Act, offering small businesses forgivable loans to keep workers on the books and stay afloat.
The program was renewed last month as part of the year-end COVID-19 $900 billion relief package, and opened the door for some businesses to apply for a second loan.
But the number of businesses seeking forgiveness was surprisingly low. Of 4.9 million loans made, SBA said that it has only received forgiveness applications for about 1.3 million of the loans, totaling $170.5 billion.
The SBA was focused on forgiving smaller loans, creating a simpler application process for loan forgiveness for loans under $50,000. LINK
8
Posted on 1/13/21 at 9:23 am to Jbird
quote:
The Small Business Administration has forgiven 1.1 million Paycheck Protection Program loans amounting to over $100 billion
Sure. The SBA forgave the PPP with taxpayer money.
Posted on 1/13/21 at 9:27 am to Jbird
quote:
But the number of businesses seeking forgiveness was surprisingly low
this is b/c the rules kept changing for the forgiveness. I work HR for a business that will but has not yet applied for forgiveness. We have put together packages of documents 3 times only to be told by our bank to hold off until a new set of rules gets finalized. New rules do state that businesses have 6 months to apply.
Posted on 1/13/21 at 9:27 am to Jbird
Shocker
Posted on 1/13/21 at 9:30 am to Mickey Goldmill
quote:
Shocker
the forgiveness was always part of the package that was passed.
Posted on 1/13/21 at 9:31 am to Chanman8
Did the IRS forgive it to?
Posted on 1/13/21 at 9:36 am to Jbird
quote:
Of 4.9 million loans made, SBA said that it has only received forgiveness applications for about 1.3 million of the loans, totaling $170.5 billion.
Wonder how many of these are from companies that knew they would not get majority of the loan forgiven but took advantage of banks just shelling out the loan so they can get the 1% interest rate.
I know a company that has 12 employees that fell into the $1-2M loan category. Even if every employee makes over 6 figures, the loan should have limited to ~$350k.
Posted on 1/13/21 at 9:46 am to Jbird
Favorite part...
Approved using 2019 taxes...
Forgiven using 2019 taxes.
And the fact you could pay yourself salary with the money and it is not taxable income.
Approved using 2019 taxes...
Forgiven using 2019 taxes.
And the fact you could pay yourself salary with the money and it is not taxable income.
This post was edited on 1/13/21 at 9:48 am
Posted on 1/13/21 at 9:48 am to LSUBanker
quote:
Did the IRS forgive it to?
this was a treasury loan
IRS tried to get their hands in it too and didnt work. They wanted to tax the forgiven portion as income.
Posted on 1/13/21 at 9:49 am to Jbird
BuT sTuDeNT LoAn ReLieF iS uNFaiR aNd eXPenSiVe
Posted on 1/13/21 at 10:37 am to Tiguar
quote:
BuT sTuDeNT LoAn ReLieF iS uNFaiR aNd eXPenSiVe
My favorite uneducated response, thanks for playing.
You have NO idea the amount of taxes small businesses pay. It is so high, it is ALMOST not worth it to the owner.
It is INSANE.
Student loans are an agreement between you and a bank to pay for your college assuming you'll make enough money in your chosen field to pay it back over time with interest.
Student loans are a LOAN you sign for. You get like 10+ years to pay it off. You didnt have to take it.
PPP money was a disaster relief effort
This post was edited on 1/13/21 at 10:38 am
Posted on 1/13/21 at 10:59 am to Jbird
I just got notification that my bank is now accepting loan forgiveness applications. Took long enough!!
Posted on 1/13/21 at 12:17 pm to Chanman8
quote:
this is b/c the rules kept changing for the forgiveness
This- I have our forgiveness apps filled out (short form- they were small loans). I wanted to get first round taken care of before we applied for 2nd round, but our banker said to wait because the forgiveness process was fixing to get even easier.
Posted on 1/13/21 at 12:19 pm to Jbird
They'll need every bit of it.
China doesn't like competition.
China doesn't like competition.
Posted on 1/13/21 at 12:20 pm to Chanman8
quote:
We have put together packages of documents 3 times only to be told by our bank to hold off until a new set of rules gets finalized. New rules do state that businesses have 6 months to apply.
Same here.
Posted on 1/13/21 at 12:27 pm to Tiguar
quote:
BuT sTuDeNT LoAn ReLieF iS uNFaiR aNd eXPenSiVe
The difference would be student loans are applied for willingly so people could get an education that they wanted.
The PPP money was to help businesses who were shuttered or locked down because of some stupid arse governmental overreach.
Posted on 1/13/21 at 12:30 pm to Tiguar
quote:
BuT sTuDeNT LoAn ReLieF iS uNFaiR aNd eXPenSiVe
What a stupid thing to say.
Posted on 1/13/21 at 12:44 pm to alphaandomega
quote:
The PPP money was to help businesses who were shuttered or locked down
technically it was also for businesses that doubted the ability to run their business due to the pandemic, which was a major topic of argument between SBA, Banks, Congress, and small business. There was a massive lawsuit building if this "doubt" clause had been retroactively removed from the wording of the PPP funding. MASSIVE.
This post was edited on 1/13/21 at 12:46 pm
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