Fintech company unveils P3 loan forgiveness tool as federal government unveils new guidelines
FinTech Jack Henry & Associates Unveiled Tool to Help Lenders Manage Paycheque Protection Program, or PPP, loan forgiveness. The announcement came days after the Small Business Association released guidelines on the forgiveness process.
According to the release, the tool will automate many processes for lenders by minimizing data entry. The whole process can be marked by the lender and will be available to all financial institutions.
The company said it has already advised around 300 financial institutions in processing 60,000 PPP loan applications. Founded in 1972, the company serves more than 6,000 financial institutions and businesses by creating tools to streamline processes.
“The job is not done,” said Terry Renoux, president of the Jack Henry Lending group. “While we are still waiting for the SBA to offer its final advice on the forgiveness process, it is important that we provide our strategy and tools early on, thereby helping banks and credit unions position themselves for a successful follow-up. and allowing businesses to get back on their feet faster.
Last Friday, the Treasury Department relaxed the requirements for converting a PPP loan into a grant and released a condition sheet setting out guidelines for borrowers. The conditions seemed to relax the requirement that companies rehire a certain percentage of employees. The requirement that companies spend at least 75% of the loan on payroll and the rest on rent and utilities remains.
The finalized guidelines were not released by the SBA, although Jack Henry Lending said he expects companies to start asking for a rebate in June, eight weeks after the first round of funding.
Congress allocated $ 349 billion to the PPP program under the $ 2 trillion CARES law passed on March 27. Funding dried up in less than two weeks, with critics saying the program favored large lenders over small community banks. Congress then replenished the program with an additional $ 310 billion and imposed restrictions that required more funds to be directed to smaller lenders.