Community financial institutions have been swamped with requests from borrowers for loans under the SBA Payment Protection Program. This program became available in a “fast and furious” mode. Lenders have needed to quickly understand guidance, collect information from applicants, and fund the originated loans to their borrowers.
We also know that originating these loans is only the first step. Next, there will be collecting documentation, determining the amount of loan forgiveness, and potentially servicing loans if a portion is not forgiven. Much of this is still awaiting final guidance from the SBA. There is only a short window of time before this second phase of managing these new loans will begin, starting 8 weeks after the loan has been disbursed.
Suntell’s Documentation Tracking area of the Square 1 Credit Suite is perfectly designed for this type of ongoing portfolio management. Financial institutions can easily add new ticklers for the requirements of their PPP loans, such as:
- Payroll Reports for each pay period
- Health Insurance Premiums paid by the company
- Copies of all lease agreements and proof of payment
- Evidence of utilities paid
Community banks and credit unions could also leverage Documentation Tracking to identify the calculation of PPP forgiveness. If a portion of the loan is not forgiven and requires ongoing servicing, it could continue to be monitored through Documentation Tracking.
With the volume of loans that may have originated in such a short time, it is important that financial institutions quickly develop an efficient means of tracking what is required by the SBA. The Square 1 Credit Suite is a robust tool in not only creating the necessary tracking quickly, but also has the reporting and notifications to ensure that bankers are able to effectively manage these loans.