Approximately 21% of PPP borrowers have submitted applications to the SBA, with roughly 15% receiving full or partial Forgiveness
BOSTON (January 4, 2021) -- Numerated, the business lending technology company, is releasing insights on the Forgiveness process for the Small Business Administration (SBA) Paycheck Protection Program (PPP) as of January 4, 2021.
The following statistics are based on a sample of more than 250,000 PPP loans processed by Numerated for 100 lenders across the U.S., representing $34.5 billion in relief funds.
PPP Forgiveness Funnel
The table below is a comprehensive look at Forgiveness applications as they make their way from the borrower, to lenders, to the SBA and back, through the Numerated platform.
|
PPP Loan Forgiveness Progress |
As of |
As of |
As of |
As of |
Weekly change from |
|
Borrowers who have begun a Forgiveness application thus far |
36% |
39% |
41% |
43% |
10% |
|
Borrowers who have submitted their Forgiveness application to lenders |
31% |
34% |
35% |
38% |
12% |
|
Forgiveness applications submitted by lenders to SBA for review |
16% |
18% |
20% |
21% |
17% |
|
Forgiveness applications the SBA has responded to |
12% |
13% |
14% |
15% |
7% |
SBA Forgiveness Responses by Loan Amount
This table breaks down Forgiveness applications which have received a final response from the SBA, based on loan amount.
|
Percentage of SBA Responses |
New for the Week of |
Lifetime of Program |
|
<$50k |
54% |
57% |
|
$50k-$100k |
16% |
13% |
|
>$100k |
30% |
30% |
Borrowers Applying for Full vs Partial Forgiveness
This table breaks down Forgiveness applications based on how much Forgiveness a borrower is applying for, categorized by those that have applied full Forgiveness and those who have applied for partial Forgiveness.
|
Full vs Partial Forgiveness Applications |
New for the Week of |
Lifetime of Program |
|
Borrowers applying |
79% |
79% |
|
Borrowers applying for |
21% |
21% |
Borrowers Applying for Partial Forgiveness
For borrowers applying for partial Forgiveness, this table breaks down the percentage of partial Forgiveness requests due to EIDL Advances vs uncovered use of funds.
|
Partial Forgiveness Applications |
New for the Week of |
Lifetime of Program |
|
Borrowers applying for partial Forgiveness due to EIDL Advances |
77% |
91% |
|
Borrowers applying for partial Forgiveness due to uncovered use of funds |
23% |
9% |
Applications by Form Type
This table breaks down Forgiveness applications that borrowers have started on the Numerated platform, based on the SBA form they’ve chosen.
|
Forgiveness Applications |
New for the Week of |
Lifetime of Program |
|
3508 |
12% |
10% |
|
3508S |
55% |
41% |
|
3508EZ |
33% |
49% |
Takeaways
- Borrowers and lenders took the holiday break to start and submit their Forgiveness applications, as we saw an increased rate of activity toward the top of the Forgiveness funnel. While Borrowers started applications at a faster rate and lenders got them to the SBA at an equally accelerated clip, the SBA maintained their pace of responses.
- The percentage of borrowers applying for partial Forgiveness due to EIDL Advances is up to 77 percent from 59 percent in our previous report. This tracks with the larger overall trend where the large majority of Forgiveness gaps are caused by EIDL Advances. The recently passed stimulus legislation will likely impact this trend.
- New applications started by borrowers continue to be weighted towards the light-weight Form 3508S. As this trend continues we expect to see this form account for more than the current 41% of all applications that have been started by borrowers.
Read previous PPP Forgiveness Data reports:
