WASHINGTON—The Small Business Administration reported it has made 367,321 payments to Paycheck Protection Program (PPP) borrowers, forgiving more than $38 billion in PPP loans so far.
The SBA's newly released data show that 595,144 forgiveness decision summaries have been submitted by lenders totaling $83.2 billion.
The PPP's authorization expired Aug. 8 with roughly $134 billion of allotted funds remaining. Since the program launched in April, it provided more than 5 million loans to small businesses for roughly $525 billion dollars.
PPP borrowers can submit a loan forgiveness application at any point before the maturity date of the loan, which is either two years or five years from loan origination. After the 10-month deferment period, borrowers must begin making payments on the loan if they have not yet applied for forgiveness.
The PPP forgiveness application portal launched Aug. 10 and the SBA said it began processing applications Oct. 2. There are three forgiveness applications: A standard one, an EZ version for borrowers meeting certain criteria, and a simplified version for loans under $50,000.
HUD Publishes Proposed Rulemaking
Separately, the Department of Housing and Urban Development (HUD) has published a proposed rulemaking allowing private flood insurance for mortgages insured by the Federal Housing Agency (FHA).
The proposal would allow for more consumer choice, may offer more affordable options for consumers, and would reduce regulatory restrictions for FHA-insured loans, NAFCU said.
As part of the proposal, HUD included a compliance aid to help mortgagees evaluate whether a flood insurance policy meets the definition of “private flood insurance.”
Federal regulators, including NCUA, recently finalized an interagency rule that requires mortgage lenders to accept both private and government-backed flood insurance policies in 2019.