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SBA forgave 80% of PPP loans

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The Small Business Administration announced that it has canceled 80% of the $791 billion in Paycheck Protection Program loans it began issuing in 2020 to businesses across the country to help them survive the recession. pandemic.

Nearly 3,000 registered investment advisers, broker-dealers and industry salespeople have taken out PPP loans, according to the Treasury Department.

The latest SBA pardon report stated the following:

• 81% of all PPP loan recipients submitted requests for forgiveness.
• 80% of all PPP loans have been fully or partially cancelled.
• Forgiveness was requested for 85% of the total value of all PPP loans.
• 83% of the total value of the PPP loan has been cancelled, in whole or in part.

In 2020, about 95% of PPP loan applicants submitted forgiveness requests and 93% of 2020 PPP loans, worth a total of $520 billion, were fully or partially forgiven. Overall, about 94% of the value of 2020 PPP loans have been forgiven, the SBA reported.

In 2021, 68% of loans totaling about $270 billion were forgiven, the SBA said.

The last deadline to apply for PPP assistance passed in May and there is no indication that Congress will pass additional PPP legislation.

The PPP program was designed as a direct incentive for small businesses to keep their employees on the payroll, but given the significant stock market rally, most paying consultancies only saw declines in revenue at short term.

The government is now focusing on investigating fraudulent activity surrounding PPP loans. Some $36 million in PPP loans received by RIAs allegedly violated lending limits, according to a recent study, which found that nearly a quarter of SEC-registered investment advisers eligible for PPP funds – 2,999 out of 12,643 – received loans totaling more than $590 million.

According to the report, advisors received loans well in excess of payroll needs, and advisors abusing the program were also “significantly more likely” to disclose a history of fraud and/or regulatory misconduct, according to the report. .