October 27, 2020
Hot Topic Tuesday — New Study Reveals High Level PPP Forgiveness Application Data
Since the PPP forgiveness portal opened on August 10, 2020, Numerated, a Fintech focused on creating digital tools for small business lenders, has observed a 20% growth in forgiveness applications submitted through its platform each week until October 11, 2020, when the Form 3508S was announced. The new form created a lull in applications as lenders were telling their borrowers to wait to submit until the SBA’s forgiveness platform was accepting the new form. In total, Numerated’s digital tools have helped lenders process over 250,000 PPP forgiveness applications. As a result, the company has some of the most complete data on PPP forgiveness to date.
Here are the key findings based on Numerated’s data:
- 11% of borrowers have started the forgiveness process, but have not yet submitted their application to their lender.
- In total, less than a third of all started loan forgiveness applications have been submitted to the SBA for review.
- Of the Forgiveness applications that have been successfully submitted to the SBA, about 21% have been fully forgiven, less than 1% require additional information from the lender or borrower, and 79% are still being reviewed by the SBA.
- 79% of PPP forgiveness responses from the SBA have been for loans under $50,000 and an additional 20% of the responses are for loans between $50,000-$150,000.
- As of one week ago, a full 96% of all PPP loans submitted and acted upon by the SBA were using Form 3508EZ.
- 18% of PPP loans have a remaining balance after the SBA submits their forgiveness decision. Of those loans with a remaining balance, 96% were caused by an EIDL Advance.
Numerated is continuing to process and analyze its PPP forgiveness data. At the time when this study was conducted, the 3508S was not yet being processed in SBA’s forgiveness platform. Since SBA has begun accepting the 3508S, the number of successful forgiveness applications using that form is expected to grow. More conclusive data on the impact of the new form will be published on Numerated’s website in the coming weeks.