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Small Businesses Still Face $28 Billion of Unforgiven PPP Loans

That lingering debt is creating a burden for the smallest businesses, including many run by minority entrepreneurs.

RF house cleaner cleaning domestic worker

Photographer: Ashish Kumar/EyeEm/Getty Images

Almost 350,000 loans made to small businesses in 2020 during the Covid-19 pandemic haven’t been forgiven, according to a Bloomberg News analysis of Paycheck Protection Program data, and most of them are for less than $25,000. 

That lingering debt — about $28 billion, the analysis shows — is creating a burden for the smallest businesses, including many run by minority entrepreneurs, say advocacy groups, community leaders and business owners. Many are struggling with the process of seeking forgiveness under terms of the loan program that distributed more than $800 billion over two years.