Keeping Pace with Lending Changes caused by COVID-19

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On April 16th, the fed closed applications to for new SBA PPP loans.
When the PPP loans were first introduced, banks were taken by surprise and could not keep up with the surge in applications. First, banks used secure mail to have customers send applications. Second, back office processes were not setup for underwriting. Third applications were uploaded to SBA system incorrectly.
The surge of applications has at best created confusion for financial institutions and their customers. Customers were led to believe their applications had been accepted, when in fact they had not yet gone through underwriting and SBA approval.
Banks were not able to setup underwriting processes and missed deadlines to upload the forms to SBA. This will create reputation and financial risk for financial institutions. Processes that were setup did not fully consider compliance requirements around timing and document collection required around loan forgiveness.
Now, banks need to prepare for another round of SBA PPP Loans as Washington gets ready to approve additional funding of $310 Billion. Banks can mitigate these problems in round 2:
  1. Source interim digital tools to enable employees to work remotely.
  2. Implement process automation to ensure steps are not missed.
  3. Deploy digital compliance tools to ensure timelines and requirements are being met.
FINBOA Workplace can be setup to take SBA PPP forms, create process automations and monitor all compliance requirements. FINBOA gives your staff the flexibility to work remotely and provides customers a great digital experience without additional IT resources. SBA PPP Loans, Reg E Disputes and other paper based requests can be initiated remotely instead of at a branch.

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