Top considerations for banks preparing for SBA PPP loans

The $349 billion Paycheck Protection Program began on April 3, offering loans up to $10 million to small businesses that have been impacted by the COVID-19 pandemic. The program is serving as a critical time for banks to not only efficiently move along and approve applications, but also to serve as trusted advisors to local businesses.

Standardize, streamline, and staff appropriately

The volume of applications has been substantial. Banks can quickly mobilize to implement loan origination workflow technology specifically designed for the SBA PPP program to automate the application and approval process. On the flip side, if banks are working manually with applications, it’s critical for everyone to be on the same page. The unique terms and conditions of the loan necessitate standardized messaging so that everyone is talking about the message and requirements in the same way. Specifically, banks need to define procedures and policy to ensure accuracy within the underwriting review process. Redeploying resources that aren’t at full capacity and realigning them to the intake of applications may also be necessary.

Communicate, communicate, communicate

Internal communication is important, but so is the way bankers speak with small-business owners. Bankers can provide significant value as a trusted advisor who coaches these owners – who aren’t inherently financial experts – through this process. Though information about the loan is easily accessible on the internet, and the application is straightforward requiring basic information, granular details can easily be misunderstood. It’s a critical and stressful time for owners attempting to save their business and its workforce. Clear communication is necessary.

People will remember when you said “yes”

This specific loan is more than a single transaction. It’s an opportunity for banks to directly impact the community. If executed correctly, with banks extending support to businesses in the community, those people will stick around for years to come, particularly as the relationship was forged in a time of need.Small businesses are different. If banks execute this payroll loan and do it well, the owner is far more likely to bring the rest of their business and their personal banking as well. What’s more, small-business owners know their employees. Owners will communicate how a company benefitted from this loan and why he or she was able to keep his or her staff. That word-of-mouth travels impactfully.

If your bank is seeking to operationalize and support the SBA PPP program and you need help, please contact Corey Coscioni. We can deliver a streamlined nCino solution to expedite that process and also help stand up a lending and operations team, specifically for the PPP program, irrespective of your Loan Origination System (LOS).