Numerated Paycheck Protection Program Loan Forgiveness Data - Week of Jan. 25

Written by Sal Trifilio | January 25, 2021

Approximately 23% of PPP borrowers have submitted applications to the SBA, with roughly 20% receiving full or partial Forgiveness

BOSTON (January 25, 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 25, 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 more than $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.

Editor’s Note: As of our Jan. 11 report, dozens of new customers have added their PPP loans to the Numerated platform to process Forgiveness for their borrowers. These additional loans have somewhat suppressed reported percentages in the funnel below, however trends in week-over-week change remain consistent.

PPP Loan Forgiveness Progress	As of Jan. 4, 2021	As of Jan. 11, 2021	As of Jan. 18, 2021	As of Jan. 25, 2021	Weekly change from Jan. 18 - Jan. 25, 2021
Borrowers who have begun a Forgiveness application thus far	43%	45%	41%	44%	+6%
Borrowers who have submitted their Forgiveness application to lenders	38%	39%	36%	38%	+5%
Forgiveness applications submitted by lenders to SBA for review	21%	23%	22%	23%	+5%
Forgiveness applications the SBA has responded to	15%	19%	18%	20%	+13%

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 by Loan Amount	New for the Week of Jan. 18 - Jan. 25, 2021	Lifetime of Program
<$50k	55%	59%
$50k-$100k	13%	14%
>$100k	32%	27%

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 Jan. 18 - Jan. 25, 2021	Lifetime of Program
Borrowers applying for full Forgiveness	79%	79%
Borrowers applying for partial Forgiveness	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 Jan. 18 - Jan. 25, 2021	Lifetime of Program
Borrowers applying for partial Forgiveness due to EIDL Advances	79%	90%
Borrowers applying for partial Forgiveness due to uncovered use of funds	21%	10%

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 by Form Type	New for the Week of Jan. 18 - Jan. 25, 2021	Lifetime of Program
3508	8%	10%
3508S	65%	43%
3508EZ	27%	47%

Takeaways

The SBA more than doubled their response rate on Forgiveness request over the last week. The current response rate is likely to improve as new, simplified Forgiveness guidance is implemented by lenders.
The SBA has also significantly closed the gap between apps submitted to the Administration vs those that have received a full response.
Form 3508S accounted for nearly two-thirds of all Forgiveness requests started by borrowers last week. The light-weight form is favored by borrowers and on average can be completed about 33 percent faster than the 3508EZ application.

Numerated will release updated PPP Forgiveness data every Monday. For more information on Numerated or these insights, please contact marketing@numerated.com.

Read previous PPP Forgiveness Data reports:

View full post