Altimetrik introduced a Paycheck Protection Program forgiveness solution for banks and other lenders to ease the burden of the loan forgiveness system.
This new solution is intended to help lenders deal with the impending crush of loan forgiveness applications expected in the next phase of the PPP. The PPP has provided more than $511 billion in emergency relief loans to as many as 4.5 million loan applicants through 5,400 lenders as of June 7.
Altimetrik’s PPP forgiveness solution is a self-service tool meant to solve the complexities of 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 Small Business Administration 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,” Raj Sundaresan, COO of Altimetrik, said. “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 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. PPP loan recipients will soon apply for loan forgiveness before the six month deferral date.
Through a four-step guided form, an applicant can apply for forgiveness and get a summary understanding of the contributing factors that impact their loan forgiveness amount. Altimetrik’s 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 updated. The solution is automatically updated to keep up with any changes announced by the SBA or the U.S. Department of Treasury.
Altimetrik is a business and IT transformation accelerator.