Fintech Today curates the latest news and trends in the financial technology industry. In this roundup, we focus on the Paycheck Protection Program (PPP). Specifically, we’re covering the newest PPP application, how to accommodate it, and PPP myths.
A NEW PAYTECH PROTECTION PROGRAM FORGIVENESS APPLICATION IS OUT: WHAT YOU NEED TO KNOW
Earlier this month, the Small Business Administration (SBA) launched a third PPP loan forgiveness application. The new application, titled Form 3508S, doesn’t require applicants to show their forgiveness amount calculation. It also removes three certifications found on Form 3508EZ. According to Forbes, “there are approximately 3.57 million outstanding PPP loans of $50,000 or less, totaling approximately $62 billion of the $525 billion in PPP loans. In addition, approximately 1.71 million PPP loans of $50,000 or less were made to businesses that reported having zero employees (presumably not counting the owner as an employee) or one employee. So hopefully this new application makes it simpler for a lot of people.”
Read the full article here.
SMALL BUSINESSES ANTICIPATE A REVAMPED PAYCHECK PROTECTION PROGRAM
To accommodate the next round of the PPP, ultimately what’s needed are upgraded digital solutions. “Moving toward digital processes helps to better organize, ingest, and streamline information,” explained Jack Leach, commercial banking practice leader at Cognizant. “This doesn’t necessarily mean eliminating all traditional and manual processes, but digitization is critical as both banks and businesses work to navigate, another PPP process and effectively compete in the post-COVID-19 environment.”
Read the full article here.
3 MYTHS AND FIXES FOR THE PAYCHECK PROTECTION PROGRAM’S NEXT PHASE
Despite Form 3508EZ having just been released, there are still many myths about loan forgiveness.. These myths include that loan forgiveness is a short, well-defined process, technology is the cure-all, and that PPP is a responsibility.
As much as PPP is a responsibility, it’s also an opportunity.
“Our guidance is to take a long-term view emphasizing advocacy for borrowers. Technology is an important part of advocacy. For example, self-service in the form of real-time loan status will help lower borrowers’ stress and reduce the load on banks’ resources. Equally important is the human touch. For example, some banks tell us they’re hosting webinars for phase two applicants, educating them on the documents they’ll need to maximize the amount of their loan that’s forgiven. Some are also providing in-depth training for associates on the forgiveness process. The common thread among all these efforts is a customer-first approach.”
Read the full article here.
