Waiting to see what Congress does about PPP loan forgiveness is a risky choice for financial institutions. Large banks and credit unions are already communicating with their borrowers about how to prepare for loan forgiveness and are going to start processing applications in a couple of weeks.
Borrowers are getting impatient -- and there will be tax implications for carrying loans into 2021. The SBA is ready, your borrowers are ready, we have a portal to streamline the whole process for you. Let’s get started.
Hoping and praying for PPP loan forgiveness is leaving many borrowers on edge. Businesses that have adhered to the loan provisions are eager to see that loan come off their bank statement. Now that the money is gone, many companies want to complete the 3508 or 3508EZ form rather than wait for (possible) auto-forgiveness. Processing these loans for forgiveness now, is a sure-fire way to bring a little bliss to these borrowers.
Stimulus and Sales
Lenders tempted to wait on direction from Congress regarding PPP loan forgiveness should consider the following:
- Still in the throes of COVID-19, many businesses are struggling to survive -- including those that were granted PPP loans.
- With the possibility of a second round of PPP stimulus, it’s likely that businesses won’t be eligible without first applying for forgiveness of the original loan.
- With a lack of clarity from both the SBA and Treasury Department regarding forgiveness, borrowers looking to sell businesses with PPP loans on the books may be out of luck.
Applying now, through Epic River’s loan forgiveness portal, puts borrowers in a better position regardless of the scenario.
Plan for Success
Even if Congress passes PPP loan auto-forgiveness legislation, chances are, it only forgives loans for lower amounts. As such, financial institutions must be ready to assist those borrowers who don’t qualify. Putting a process in place now to handle larger loans, leaves more time to review and submit mistake-free forgiveness applications.
Financial institutions care about and cater to the needs of their communities. Right now, lenders all over the nation are ensuring that businesses are maintaining cash flow, providing a lifeline to customers and their families.
Epic River's electronic loan closing platform -- now includes PPP Loan Forgiveness -- and is in use at more than 1,500 banks, nationwide.
Built from decades of loan application, document exchange, and e-sign experience, Epic River’s SBA Loan Forgiveness workflow includes:
- Easy step-by-step walk-through of SBA Forgiveness Application
- Intelligent document preparation and SBA submission
- Supports both the 3508EZ and full 3508 forms
- Automated request and storage of supporting documentation
- E-sign SBA forms as well as any supporting custom documents
- Loan presentation for legal review and diligence
- Secure long-term storage of loan data, e-signed SBA application form, and supporting documents
Paycheck Protection Program Loan forgiveness requirements are complicated, but we’re here to help you navigate the process.
Don’t wait. The SBA is ready, borrowers are ready, and Epic River is ready. Request a demo of our PPP loan forgiveness portal today.