As of early April 2021 the SBA has disbursed $746 billion of the $813.5 billion so far appropriated by Congress for the Paycheck Protection Program. This program has helped save millions of jobs and keep small businesses open, but added an immense number of challenges to the SBA lending teams supporting the loans.
Now that (PPP) 1 and 2 have dramatically increased the number of PPP loans, how will SBA lenders handle PPP Forgiveness as well as their normal 7A and 504 Business?
Soon PPP 1 and PPP 2 borrowers will be filing for forgiveness. That's why it’s critical to understand how we got here, more importantly, to know what PCFS Solutions has built to help and support our lending community. PCFS Solutions has created a comprehensive solution for PPP lending. Our web service, Forgiveness Portal was a success in (PPP) 1 and ready to support your influx of (PPP) 2 forgiveness requests. We pulled together a simple workflow highlighted below that outlines the ten easy steps lenders need to take to forgive a PPP loan and service your PPP Portfolio.
1) Once the PPP Loan reaches the 7th week since disbursement it is eligible to apply for Forgiveness. The loan will be populated to the Borrower Portal list in Loan Manager.
2) Loan manager sends email to the borrower to register for PPP Forgiveness Borrower Portal.
3) Borrower will register and login to the PPP forgiveness website with two-factor authentication.
4) Borrower automatically enters either the 3508S 3508 EZ, or 3508 data and uploads supporting documentation for each qualified forgiveness expense and agrees to Certifications Statements.
5) Borrower submits all necessary to the Lender Reviewers.
6) Lender Reviewers are unlimited in number and can work with the borrower to collect data, review documentation, and approve loans for Forgiveness and submission to Loan Manager.
7) Once approved, Loan Manager downloads certification data and documents from Borrower Portal and is populated on the SBA Tab-PPP Loan Forgiveness Tab.
8) SBA Form 3508S, 3508EZ, or 3508 will be created and sent to the borrower via DocuSign. Once complete, the form is received in Loan Manager's Document Library with all supporting documentation in case of audit.
9) The loan will be placed in a queue to be submitted through a web-service API to the SBA's Forgiveness Portal and automatically appear on the 1502 Report. Our system Loan Manager will also automate the receipt of payment from SBA and account for full forgiveness, partial forgiveness, or if the loan(s) are not forgiven.
10) The PPP Portfolio will re-amortize based on the SBA's forgiveness decision. The loans will appear on a 1502 Report and behave similar to a 7A loan on the banks portfolio. Also as forgiveness payments come in from SBA, Loan Manager will automatically post those payments to your PPP loan.
As an end-to-end SBA-specific software used for servicing SBA 7A and PPP portfolios—PCFS Solutions is a system that provides lender servicing teams, portfolio managers, loan operations, and executive teams with the confidence needed to meet SBA-specific requirements.
Our PPP loan forgiveness solution creates scalability, increasing the number of PPP Forgiveness requests completed accurately and automates communication with the borrowers and the SBA. Designed to be flexible, scalable and easy to use, our PPP Forgiveness solution delivers a seamless solution to document, approve and submit the appropriate forms (All versions of the 3508’s) to ensure the forgiveness request is accepted the first time by the SBA.
If you would like to learn more about how PCFS Solutions can help your team manage PPP loans, feel free to reach out to us for a demo.