Millions of PPP loan waiver requests to rain on banks in US
Published : Sunday, 24 May, 2020 at 11:36 PM Count : 138
Banks are preparing for a flood of loan waiver applications under the U.S. Paycheck Protection Program, marshalling staff to help borrowers navigate a complex process reminiscent of the early days of Covid-19's small business relief efforts.
In early April, PPP-funded companies could start submitting apologies by the end of May. Donors will need to get it from the Small Business Administration to sort through their detailed application documents, complete the paperwork and get it approved. Banks have disbursed about 4.3 million PPP loans for more than 500 500 billion, and the program helps each borrower to ask for forgiveness.
At Valley National Bancorp, 500 of its 3,200-person workforce were nominated to assist customers in processing, and an apology request will probably require the same number, said CEO Ira Robbins. New Jersey-based Wayne has issued more than ২ 2.2 billion in PPP loans.
“Hopefully it doesn’t all come together and we can stick to it over time, but I believe there will be a lot of hand-holding attached to it as you go through it,” Robbins said in an interview.
The SBA released an 11-page document last week stating that small businesses will follow the criteria for waiving their PPP loans. The guidelines include guidelines on how to calculate pay-rolls, a document that is complex, so it will come down to fall payers to help complete payers complete it, said PPP issuer London-based fundraising firm Holdings PLC's head of US operations.
"If there's no heavy lifting for this processing, I'll equate it to heavy," Morris said. “You have to create a lot of new loan funnels and re-process all these loans. For most nding paying businesses, you are doing this full time without any revenue. "
Peermont Bank, which has PPP loans in the greater New York City area, has spent hours considering SBA requirements to create a worksheet for BA recipients, CEO Wendy Ca-Lee said in an interview. Doug Bland, senior vice president of global credit, said in an email that the PPP fund is about 6 1 1. PayPal Holdings Inc. Planning to use online tools to make the forgiveness process easier.-Internet