Promissory Note – Banking & Finance Insights, Volume 2, Issue 10 | Spilman Thomas & Battle, PLLC | Techy Kings

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Almost All PPP Loans Have Been Forgiven with Limited Scrutiny –

“More than two years later, the vast majority of these loans have turned into government grants, as 91% have been fully or partially forgiven.”

Why this matters: One of the most popular economic relief measures is the Payroll Protection Program (“PPP”) which allows loans to small businesses to empower them to keep their workers employed (and wages funded) during mandatory shutdowns caused by the COVID-19 outbreak. Borrowers are assured that the loan can be forgiven, as long as certain conditions are met. About 11.5 million loans have been issued through the PPP program, using all $800 billion in allocated funding. In the latest report from data released by the Small Business Administration, the program appears to have been very successful – with 91 percent of loans having completed the process to be fully (or partially) forgiven. Of the 1 million loans that are still in process, the delay is caused by various factors, including loans issued during the next round of the program, issued through online banking systems or Fintech, rather than traditional banks, and mainly issued to the only one. -owner. The SBA expects to see these loans also qualify for total or partial forgiveness in the coming months. Some critics of the PPP program argue that the initial round of loan disbursements is full of fraudulent credentials. Investigations are still underway for them. These results from the SBA data appear to indicate that the PPP program has been administered prudently and efficiently by all lenders, and accepted responsibly by borrowers in dire economic need.

Please see the full Newsletter below for more information.

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