The effects of the COVID-19 pandemic are still widespread throughout the United States. Earlier this year, the Small Business Administration (SBA) relaunched the Paycheck Protection Program (PPP) to help overcome challenges.
‘PPP Fatigue’ Sends Lenders to Customers Bank’s White-Label Service
Customers Bank’s white-label service allows for PPP origination, funding, and forgiveness to overcome the delays and challenges from the past year. With this service, PPP-fatigued banks are able to participate and create their own platform. Sam Sidhu, Vice Chair and COO at Customers Bank, said that over 300 banks are currently taking advantage of their white-label service.
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Small Businesses Anticipate a Revamped Paycheck Protection Program
While PPP loans helped many businesses, “there were issues with the Small Business Administration’s E-Tran platform as well as unclear guidelines, and even several high-profile companies that received funding but did not fit the profile of the small businesses that were the intended target. There were also issues with fraud which is always the case when large sums of money are involved,” said Jack Leach, commercial banking practice leader at Cognizant.
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Banks Press Treasury, SBA to Fix ‘Systemic’ Small Business Loan Glitches
With $284 billion in new funding, the SBA launched the second iteration of the forgivable load program on January 11th. Rob Nichols, American Bankers Association President and CEO, wrote to the SBA and the Treasury Department and alerted the organizations of a “technical error” in the software portal where lenders must use to submit applications for businesses seeking Paycheck Protection Program loans.
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