Learn how FINSYNC’s easy-to-use tools are making it easier to apply for PPP loan forgiveness.
The Department of the Treasury and The SBA released the official Paycheck Protection Program (PPP) forgiveness application form just under two weeks ago. While many small businesses hoped this would clear up the questions around the programs, ambiguity remains. In fact, some have compared the forgiveness application form to a tax return in its complexity.
At FINSYNC, we have been working to help small businesses with their PPP loan application since the first round. Now we are taking the same approach to the PPP forgiveness program.
Portal for PPP Loan Applications
FINSYNC is no stranger to handling loan applications. We have been a provider of electronic business loan applications that support multiple types of loans since long before COVID-19. A big part of the process of handling loan applications is the multi-user portal to which loan applications are submitted. This portal helps small businesses and lenders communicate, review, and process various types of loans.
When the PPP rolled out, we saw an opportunity to help small businesses with the application process. We followed SBA guidance and quickly adapted our tools for PPP intake and underwriting, and later added PPP forgiveness intake and processing in the same tool.
Problematic PPP Loan Forgiveness Process
Now that the PPP loan forgiveness application process is open, several problems have arisen. We continue to hear from small businesses that the forgiveness application is as complicated as a tax return. Many struggle to gather the right documentation or decipher the latest guidance from the SBA.
When it comes to lenders, they are poorly prepared as well. The simple fact is that lenders are not set up to forgive loans, much less a huge volume of forgiveness applications in a short time frame. That high volume and short time frame, paired together with the changing SBA guidelines, have made it difficult to properly review and process forgiveness applications.
Recently, FINSYNC’s Eddie Davis explained how banks can make PPP forgiveness manageable to the Independent Community Banker’s Association. It’s clear that businesses need assistance to complete this complicated process. But how can lenders help when the guidelines are continuously updated and banks don’t have the accounting expertise businesses need?
Focus on Educating Customers
In addition to focusing on developing a robust application tool, FINSYNC is working to educate small businesses that need guidance. Our goal is to deliver the most current information via resources like the PPP forgiveness guide, which contains what you need to know, have, and do to maximize how much of your PPP loan will be forgiven.
We’re also offering small businesses a PPP forgiveness calculator that allows those who received a PPP loan to track their expenditures, and ensure maximum forgiveness. The calculator is an easy, fill-in-the-blanks tool that also includes examples you can use for guidance. We’ve broken it down to five steps that should leave you with a complete PPP loan forgiveness calculation.
Both tools are updated as the SBA provides new information, and we email our clients as soon as we are up-to-date on the newest changes.
Another part of customer education is professional help. FINSYNC’s network of vetted small business accountants is available for those that may need additional guidance.
Easy, Step-by-Step Application Process
These educational resources can set you up for success once you’re ready to fill out your PPP loan forgiveness application.
FINSYNC’s application process is completely electronic, including application documents, signatures, and, of course, the e-submission to the SBA. For banks and credit unions, the FINSYNC solution does not require any core or IT integration.
You can start your PPP loan forgiveness application by going through a simple intake form that mirrors the SBA form. After filling out the form, you are taken to the main portal where your PPP loan forgiveness will be processed. You will create a secure username and password to protect your account and then submit the required supporting documentation
Banks typically have multiple team members review an application before it ultimately is approved. FINSYNC makes it easy for bankers to complete their individual tasks, and then hand it over to the next user. This way it becomes a team effort, where each member gets notified about all important changes. After the application is fully reviewed, it is ready for submission to the SBA electronically or manually (when available).
The bottom line is the PPP forgiveness process is complicated and there are some details that still need to be worked out. However, we’re gaining more clarity every week. To make this process easier for your small business, take advantage of educational materials and request your bank use our review tools to make this process easier for everyone.