New SBA Guidelines Worry Banks and Borrowers
CHICAGO, June 10, 2020 /PRNewswire/ -- As of Friday, May 22, 2020, the Small Business Administration (SBA) released the second version of the Interim Final Rules pertaining to the guidelines on the SBA loan review process. Then one week later, senate passes house bill on June 3rd which again changed the rules on PPP Forgiveness. The everchanging landscape has lenders and borrowers concerned about submitting PPP Forgiveness Applications. LQD Business Finance, a tech-enabled commercial lender recognized that the complicated Paycheck Protection Program (PPP) Forgiveness Application will create challenges for both banks and borrowers and leave banks potentially vulnerable to non-compliance penalties. In response, LQD Business Finance is using their proprietary technology to offer banks and borrowers a service that will increase efficiency and accuracy.
According to LQD Business Finance's C.E.O. George Souri, "LQD has been working with small businesses on complicated financial reporting for years, and so we understand many of the challenges facing small businesses with respect to PPP reporting. Our existing technology is designed to handle these challenges and changing guidance from the SBA, while alleviating the burden on small business borrowers. It was a natural fit for us to offer a PPP Platform that brought the same increased efficiency and accuracy to the PPP Loan Forgiveness Process."
The PPP Loan Forgiveness Application requires businesses to perform several eligibility calculations for each employee to determine the forgiveness amount, and then aggregate the employee data into the main application form. Reports offered by payroll providers do not perform these eligibility calculations, and borrowers are left to acquire and organize the payroll data then perform several complicated calculations. Most small businesses do not have the in-house ability to perform these tasks, leaving significant room for error.
"Despite the time extension recently passed by Congress, lenders face significant risk related to non-compliant applications. In other words, while the amount potentially forgiven has increased, the application is no less complicated to complete, and an incorrectly completed application can result in significant cost to lenders and borrowers. Because we use multi-point verification, LQD's solution provides a greater level of certainty around application compliance and readiness in the event of a future audit," said Souri.
The LQD Managed Services Platform uses an online portal to collect the required borrower data and deliver a complete submission package to the bank or borrower. The package includes an automatically completed PPP Forgiveness Application along with a readily accessible cloud-based file containing all the backup documents and data required by the SBA. Through API data integration, central data warehousing, and proprietary automation, LQD Finance seamlessly aggregates clean and structured data to provide the required calculations and verifications.
LQD Finance is currently offering demos on the Managed Services Platform.
About LQD Business Finance
LQD Business Finance is a Chicago-based tech enabled business lender, founded on the notion there was a gap in the micro-middle market. LQD uses an industry leading business model and technology to deliver structured, flexible, and transparent financing solutions up to $10M in 30 days or less. Working with a diverse network of industries, LQD Finance creates custom-tailored financing solutions specific to each customer's needs.
Please visit www.lqdfinance.com, https://www.linkedin.com/company/lqd-business-finance/ for additional information.
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SOURCE LQD Business Finance