![]() ![]() ![]() ![]() “Under the terms of the PPP (Paycheck Protection Program), certain amounts of the loan may be forgiven if they are used for qualifying expenses as described in the CARES Act.” “The company intends to use the entire loan amount for qualifying expenses,” Potbelly Sandwich Works LLC said in an SEC filing. RELATED: Sides close to agreement on replenishing the PPP program While it is heartening to see that an additional $310 billion in PPP funding is about to be approved, in order to work for restaurants, this time we need to do it better.” “We are an industry of 660,000 restaurants with nearly 16 million employees. “We urge Congress to ensure that all restaurants no matter their size have equal ability to get back on their feet and hire back their teams,” the Shake Shack officers added. "We're thankful for that and we've decided to immediately return the entire $10 million PPP loan we received last week to the SBA so that those restaurants who need it most can get it now," Danny Meyer and Randy Garutti, executives of Shake Shack, said in a open letter on LinkedIn Sunday. The figure for 2021's loans trailed behind, at 85%, but Kelley told NPR he expects most of the remaining loans to be forgiven this fall.One big company, however, is saying it will return the $10 million it obtained in Paycheck Protection funds. NPR contacted dozens of these tiny businesses with outstanding loans and heard all sorts of additional reasons why they remain unforgiven, ranging from missed emails or botched applications to bad advice from accountants.īut the SBA says some of these PPP borrowers simply have not yet applied for forgiveness, since many of them can wait to apply for up to five years after their loan was issued.Īt a Senate committee hearing in August, Kelley said the SBA has already processed forgiveness decisions for about 97% of loans issued in the first year of the program, 2020. One fintech, called Kabbage, is facing a class-action lawsuit over claims it failed to process loan forgiveness applications quickly and properly. Many of these businesses that got their loans through financial technology companies, rather than traditional banks, told NPR they've had great difficulty getting them forgiven.įintechs, as they're known, are businesses that use newer technology to offer financial services. The SBA uses computer models to review all 11.4 million loans, according to Patrick Kelley, a senior official with the agency, but he says auditors have manually reviewed only about 215,000 loans, or roughly 2% of the total number issued. Meanwhile, the SBA is closely scrutinizing just a tiny portion of the millions of PPP loans for fraud and forgiveness eligibility. The SBA disputes these findings, but its own inspector general has estimated that at least 70,000 loans were potentially fraudulent. That's despite claims from University of Texas researchers that about 1.4 million PPP loans show signs of possible fraud, like suspiciously high payrolls and multiple businesses listed at the same residential address. The SBA expects that figure to grow to nearly 100% as more forgiveness requests are processed this fall. More than two years later, the overwhelming majority of these loans have transformed into government grants, as 91% have been either fully or partially forgiven, according to an NPR analysis of data released by the Small Business Administration on Oct. The program was designed to help small businesses keep workers employed during the uncertain early days of the pandemic. government began issuing nearly $800 billion in potentially forgivable Paycheck Protection Program loans. Small businesses were in limbo as the coronavirus outbreak raged and the first round of the government's multibillion-dollar Paycheck Protection Program drew to a close.Īs COVID-19 shutdowns threatened businesses back in 2020, the U.S. A closed barbershop in Cleveland in May 2020. ![]()
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