Numerated Paycheck Protection Program Loan Forgiveness Data - Week of Feb. 1

Written by Sal Trifilio | February 01, 2021

Approximately 24% of PPP borrowers have submitted applications to the SBA, with roughly 22% receiving full or partial Forgiveness

BOSTON (February 1, 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 February 1, 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. 11, 2021	As of Jan. 18, 2021	As of Jan. 25, 2021	As of Feb. 1, 2021	Weekly change from Jan. 25 - Feb. 1, 2021
Borrowers who have begun a Forgiveness application thus far	45%	41%	44%	45%	+4%
Borrowers who have submitted their Forgiveness application to lenders	39%	36%	38%	39%	+4%
Forgiveness applications submitted by lenders to SBA for review	23%	22%	23%	24%	+5%
Forgiveness applications the SBA has responded to	19%	18%	20%	22%	+6%

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. 25 - Feb. 1, 2021	Lifetime of Program
<$50k	56%	59%
$50k-$100k	14%	14%
>$100k	30%	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. 25 - Feb. 1, 2021	Lifetime of Program
Borrowers applying for full Forgiveness	78%	79%
Borrowers applying for partial Forgiveness	22%	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. 25 - Feb. 1, 2021	Lifetime of Program
Borrowers applying for partial Forgiveness due to EIDL Advances	60%	89%
Borrowers applying for partial Forgiveness due to uncovered use of funds	40%	11%

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. 25 - Feb. 1, 2021	Lifetime of Program
3508	5%	9%
3508S	66%	45%
3508EZ	29%	46%

Takeaways

While the SBA’s response rate slowed week-over-week, they were able to bump total loans responded to by another two percentage points. The SBA’s response rate is in line with the pace at which borrowers started new Forgiveness applications, and at which lenders submitted those applications to the SBA.
The stimulus bill passed at the end of 2020 included legislation for “simplified Forgiveness” for loans up to $150,000. This has caused many borrowers to delay the Forgiveness process. We expect Forgiveness submission rates to increase once official guidance and forms are released by the SBA for simplified Forgiveness.
Form 3508S--the form that is likely to be used or modified for simplified Forgiveness--accounted for two-thirds of all Forgiveness apps started 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:

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