After months of back and forth, and an equally tumultuous weekend, lawmakers have finally reached a deal on a stimulus package worth $900B, that will be included in the upcoming 5,593 page omnibus spending bill.
The long-sought legislation—expected to be voted on as soon as tonight, and passed by both chambers, quickly—will send $284B to the Small Business Administration to reopen the Paycheck Protection Program and offer first- and second-draw loans for eligible businesses.
The legislation will also make other minor changes to the Program, such as language to ensure the smallest businesses receive relief. For a full breakdown of the changes to PPP Originations and Forgiveness, join our Tuesday, Dec. 22 webinar by registering here.
Given the months-long gap between stimulus bills and the way in which Congress has targeted this second round of relief, banks and credit unions should not underestimate the demand that a new round of PPP will generate.
As our CEO and Co-Founder Dan wrote in a recent Op-Ed for Barron’s on the need for a new round of PPP funding:
Today, eight months removed from the passing of the original CARES Act, more than 90 percent of America’s small businesses have spent all of their relief capital, according to the National Federation of Independent Businesses. Their study highlights a dire need for more help, with 75 percent of small businesses saying they’d consider a second round of PPP cash if it became available.
As a third wave of COVID-19 worsens and experts’ predictions of a tough winter begin to materialize, lenders should expect to see even higher demand for PPP loans than they did the first time around.
Working with more than 100 financial institutions for both PPP Originations and Forgiveness, we’ve seen how strained lenders' resources become before they’re able to adopt technology to digitize and automate the application process.
Numerated’s platform processed more PPP loans than any other during the initial rounds, and at the height of the program helped lenders process nearly three loans per second—or the equivalent of $250 million of PPP loans per hour.
While the manual processing of PPP loans can cost branches thousands of person hours, the Numerated Platform makes it easy to scale without straining resources by:
- Eliminating Work with End-to-End Automation. Leverage Numerated’s E-Tran API that allows for fully-digital closing and automated doc creation, that helped lenders process $250M/hour during the first two waves of PPP.
- Offering the Best Application Experience. Self-service and banker-led experiences, auto-filled applications, secure doc upload, and battle-tested DocuSign integration help your institution provide the best PPP experience available.
- Gaining Confidence with Fast Launches and Solutions. Get your institution up and ready in 48 hours and benefit from the support of the Numerated team that delivers value-added training, insights, and new features in hours, not days.