The challenges that many lenders had in processing PPP loans are well documented. These same lenders will now be overwhelmed by what has become an equally challenging loan forgiveness system with guidelines from the Small Business Association (SBA) changing constantly. Now, Altimetrik, a business and IT transformation accelerator, today announced a PPP Forgiveness solution for banks and other lenders to ease this burden FinTech News.
This new solution, an easy-to-use, turnkey solution, is intended to help lenders deal with the impending crush of loan forgiveness applications expected in the next phase of the Paycheck Protection Program (PPP). The program has provided more than $511 billion in emergency relief loans to as many as 4.5M loan applicants through 5,400 lenders as of June 7, 2020.
Altimetrik has developed an easy and intuitive PPP Forgiveness self-service solution for banks and lenders that can be deployed rapidly. This is meant to solve the complex loan forgiveness paperwork, which is expected to overwhelm banks and lenders that recently struggled to handle the massive surge of PPP loan applications in April and May. This process will be further complicated by the constant updates being made to the guidelines set by the SBA for loan forgiveness.
“The COVID-19 pandemic changed the world overnight, with small and mid-size banks trying to keep up with the implementation of the Cares Act,” said Raj Sundaresan, COO of Altimetrik. “The CARES Act was signed into law on March 27, and the first PPP loans were disbursed beginning April 3. Many lenders discovered they lacked the resources to respond that quickly for the launch of PPP, and now this second wave of PPP loan forgiveness applications promises to overwhelm them again.”
Intended to save small businesses and jobs affected by the COVID-19 pandemic, and part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the PPP SBA will forgive PPP loans if all employees are kept on the payroll for eight weeks and the funds are used for payroll, rent, mortgage interest, or utilities. The overwhelming majority of the PPP loan recipients will soon rush to apply for loan forgiveness before the six-month deferral date.
Through a four-step guided form, the applicant can apply for forgiveness and get a summary understanding of the contributing factors that impact their loan forgiveness amount. The PPP Forgiveness solution incorporates E-Signing, Excel processing of applicant’s employee records, and banker workflow and review. Business rules and calculations are modular and can be easily updated.
Most importantly, the PPP Forgiveness solution is automatically updated to keep up with any changes announced by the SBA or the U.S. Department of Treasury. The SBA posted “interim final rules” nearly every week throughout April and May, complicating the process for lenders and borrowers.
To learn more about Altimetrik’s PPP Loan Forgiveness Solution, click here.