A minimum of $ 20 billion in Paycheck Protection Program (P3) loans have been canceled – with many small businesses worried they will not be able to spend the money to qualify for loan cancellation, calculations data from the Small Business Administration (SBA) by Bloomberg find. SBA reports show $ 510.5 billion in net approvals on Thursday, May 28, about $ 2.7 billion less than for the period ending May 16.

Program officials, the Treasury Department and the SBA, did not offer a full picture of the cancellations. Some of these are from large, publicly traded companies that have returned hundreds of millions of dollars after criticizing the withdrawal of small business aid and the potential for an audit for loans over $ 2 million. .

Small business advocates, however, predict that the largest share of cancellations will come from businesses repaying their loans because they don’t know if they can spend the money within the eight-week forgiveness period, worry. an audit or are unsure of the situation. rules.

Businesses that received funding when the program rolled out on April 3 have the option to start applying for loan cancellation starting Friday with a sophisticated process that lenders, as well as small business advocates, want to see become. less complex.

The news is a measure that would make it easier for small businesses to receive a federal forgivable loan. erased home easily. The bill responds to a demand from entrepreneurs who wanted lawmakers to reduce the portion of the PPP loan that should be used on the payroll from 75% to 60%.

A second change allows borrowers to take up to half a year to use the funds, which is higher than the two months proposed in the first bill passed in March. Small businesses said the original legislation didn’t make sense as many needed money for rent and other expenses caused by the pandemic.