While the applications for PPP loans closed in August 2020, recent revisions to the CARES Act provisions now allow businesses to apply for new PPP loans or for PPP loan forgiveness in 2021. The new deadline for applicants is March 31, 2021.
As the deadline approaches, banks may find themselves inundated with more loan requests than they can process. But using automation tools, Saxony can help.
A PPP Loan Automation Success Story
Saxony Partners has been working with banks on PPP loan automation since the CARES Act was passed on March 27, 2020.
As banks quickly became overwhelmed by loan origination requests, Saxony stepped in to help with vetting and processing loans, as well as PPP loan forgiveness.
Using unique automation technology, Saxony helped one bank triple its typical monthly loan volume. First Saxony deployed a team onsite to map out the workflow involved in processing, fulfilling, and closing a loan application with a goal to quickly identify bottlenecks and find a solution to avoid them. Our team then built out a system in which data could be aggregated and checked, automating the process of loan creation and funding.
Typically, a project of this nature takes weeks or months – but this one had to be completed in a matter of days. Saxony’s team put in long hours, late nights, and weekends to deliver the solution, which consolidated data from multiple systems, reported inconsistencies and inaccuracies in the data, and automated tedious workflows. The project was finished in just 10 days.
The bank typically processed about 1,500 loans per month before the CARES Act was passed. As the first round of PPP funding came to a close, the bank reported funding 4,600 loans over a two week period – nearly three times its typical monthly loan volume. More than 3,300 of them were processed using Saxony’s PPP loan automation tool.
PPP Loan Automation in 2021
With a new wave of PPP loan origination and forgiveness requests on the horizon, Saxony is committed to helping banks as they continue to process and forgive these critical lifelines for local businesses.
“We were in a great position to help our clients respond to the PPP initiative,” said Saxony Partners’ Director of Financial Services Angel Armendariz. “Our delivery team was able to help our clients automate processes and integrate systems to support the flood of loan applications. Additionally, we uncovered areas of improvement and risk mitigation involving data management and governance.”
As Saxony’s financial services experts know all too well, both originating and forgiving these loans requires following very specific guidelines from the SBA. Put your faith in a consulting firm that will improve your workflow while maintaining regulatory compliance.
If you are a lending institution working with PPP, Saxony can help automate the process of PPP loan origination and forgiveness. Fill out our contact form or connect with Angel Armendariz on LinkedIn to learn more.