Celebrating the 2nd Anniversary of the PPP Loan for Small Businesses
Celebrating the 2nd Anniversary of the PPP Loan for Small Businesses

There are happy birthdays and less happy birthdays.

The first week of April marks the second anniversary of the Paycheck Protection Program (PPP) administered by the Small Business Administration (SBA). While memories of this stressful time may fall into the “not so happy” category, the results – for millions of small businesses – weren’t nearly as bad.

PPP loans mark 2nd anniversary

The PPP has helped save American businesses and jobs, said Chris Hurn, founder and CEO of Fountainhead. Fountainhead is a national non-bank commercial lender.

“We’ve processed over 300,000 PPP loans, with 2020 and 2021 combined,” Hurn said. “The loans totaled more than $5 million in funding and we helped save 430,000 American jobs.”

Fountainhead processed loans in all US states as well as 6 US territories. Fountainhead is one of 14 SBA-approved commercial lending companies in the United States.

“It was quite long and it was very demanding on all of us,” Hurn said. “But we have a team that has experience in the SBA industry. We felt privileged to be able to help.

The Latest on PPP Loan Forgiveness

Fountainhead’s PPP loan forgiveness rate is around 85%. The remaining 15% of those who got PPP loans did not respond, despite numerous attempts by Fountainhead staff.

Nationally, according to SBA Global Statistics (through February 2022), the numbers are similar:

  • Total number of loans: 11,427,757
  • Number of pardon requests: 9,758,832
  • Payments made on the applications: 9,679.431

“If it’s undiscovered fraud with certain loans, that’s a big deal,” Hurn said. “It’s heartbreaking – fraudsters have taken money from other small businesses.”

The latest PPP data

Let’s look at the SBA statistics for PPP dollars. These are the latest figures, as of February 2022.

  • Total amount : $789,776,462,485.00
  • Applications: 703,344,518,431.00
  • Payments: 695,581,269,282.00

What happens if PPP loans are not repaid?

“The lender has to submit that information to the SBA, and the SBA purchases the loan,” Hurn explained. “The company will not be able to get another loan from the government and there will be reports to the credit bureau.”

The last PPP money was due to be funded by June 2021. After that date Fountainhead staff began to focus on pardoning the PPP.

“As the second anniversary rolls around, about 10-15% of staff remain dedicated to helping clients seek forgiveness,” Hurn said. “And we’re focused on SBA lending — that’s what we do best.”

Even during the pandemic, while the company was processing PPP loans, it also funded 27 SBA 7(a)/504 loans totaling $55 million.

“Banks and credit unions have been focused on helping existing customers,” Hurn said. “Thanks to strong marketing and strong media outreach, we have been busy with so many requests in 2020 and 2021.

“We worked crazy hours for months,” he added. “I think I slept an average of 4 hours a night.”

Customer feedback kept staff going. Hurn said customers were uploading photos, making comments and sending cards.

The company has received over 2,300 5-star reviews. Customers have used phrases such as “highly recommend, amazing service, responsive, great work ethic, loyal, and lucky to have this team to help me.”

The Paycheck Protection Program is turning into post-pandemic positives.

Hurn noted national reports of a three-decade high in business start-ups.

“There were companies that downsized, and that forced people to re-examine things,” Hurn said. “There’s been a lot of reassessment – ​​can I take this hustle, this hobby, and take it to the next level.

“It’s a new era of small business owners and entrepreneurs.”

Image: Depositphotos

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