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Delinquent PPP loans are on the rise. Here's what it means for businesses. - Silicon Valley Business Journal

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The pace of PPP forgiveness has slowed in recent months. The number of delinquent loans it has purchased has more than doubled.

What happens to delinquent PPP loans?

After 60 days of nonpayment, PPP lenders can submit those loans to the SBA for purchase, and the lenders will be made whole. back in May that, while she did not know exactly how many PPP loans the agency will end up having to purchase from lenders if businesses don’t make payments, the agency was ready to handle them.

According to lawmakers and supporters of rescinding the rule, the average good faith error with the program is more than $12,000 — a significant amount for many small businesses.

 

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