Navigating the second tidal wave of SBA PPP loan applications

As round two of the SBA Paycheck Protection Program (PPP) begins this week, lenders are scrambling trying to ensure the issues that plagued round one will not happen again.

Since the U.S. Government approved The CARES Act, which seeks to provide fast and direct economic assistance to American workers and industries, the financial services industry has seen a dramatic increase in SBA loan applications through the PPP. Unfortunately, during the first round of funding, the process was plagued with system glitches, inaccurate applications and lost documents altogether, which led to many small business owners being left out in the cold.

In an effort to correct these issues, many financial institutions are seeking and implementing technology platforms that can both enable their remote workforces with increased access to information while supporting ‘no-touch’ customer engagements to process these applications. To achieve this level of digitization and increase the speed at which they can review and approve SBA loan applications, lenders are turning to content services, secure file sharing and electronic signatures.

Let’s take a look at how each of these technologies optimizes the loan process.

Content services and loan document tracking

If lenders have any hopes of effectively managing the onslaught of SBA loan applications, they must solidify their content services strategies. Implementing a cohesive loan document tracking solution will allow the lender to immediately begin tracking the loan as soon as the financial institution receives a lead.

By capturing information that once only existed on local computers or on paper, lenders now have secure access to a complete view of information within a loan application and can accelerate the loan lifecycle with digital workflows automatically routing information to the necessary employees. With digital access to all required information and documents, lenders equip their loan processors with the right information throughout the lending lifecycle to provide higher-level service to applicants and ultimately help owners secure funding to keep their businesses open.

For many of them, this is a make-or-break moment. We owe it to them to be as quick and accurate as possible.

Cloud-based file sharing

In addition to an effective content services platform, lenders need to have a simple, easy option to communicate and share documentation digitally with applicants at a moment’s notice. With the current remote environment and the increase in SBA PPP loan applications, lenders are in need of a contact-free and secure way to send and retrieve applications with both internal and external parties to process the loans. Many experts agree this could become the new normal, so the time to act is now.

Most lenders are turning to cloud-based secure file sharing applications, which are perfect tools that keep employees connected, content accessible and processes moving. These systems are secure and scalable, allowing lending professionals to access and act on information, like SBA loan applications, regardless of where they are working.

And, because these solutions incorporate higher security protocols than sending private information via email, lenders don’t have to worry about an increased risk of information falling into the wrong hands.

Electronic signatures

Finalizing any loan application process, both the lender and applicant must sign the applicable documents to close on a loan. Living in a remote world makes this difficult, but definitely not impossible.

To speed the completion of the SBA PPP loan process, lenders can utilize electronic signatures to help automate the signing process. This keeps lending processes completely digital from beginning to end. It also provides a secure signing process with the legal authority needed in financial processes without the cumbersome and time-consuming tasks of printing, mailing and manually validating documents.

Essential features within an electronic signatures solution include:

  • Secure document distribution, with options for parallel or sequential signing
  • Protected delivery via a secure HTTPS connection
  • Automatic notification for instant visibility into the loan status
  • Complete audit history for review or archiving
  • Identity verification with knowledge-based authentication

Digital transformation, ready or not

We’re living in an unprecedented time. Whether lenders were ready for it or not, this situation is pushing them to act on their digital transformation goals. Either way, it’s clear to see how content services, file-sharing tools and electronic signatures fit in the digital transformation puzzle, connecting organizations to the critical information they need, when and where they need it.

Whether it’s in response to the current increase in SBA loan activities or to support future loan processing, audit and compliance initiatives, these tools will help lenders succeed on their commitment to making a difference while staying competitive.

To learn more, check out this video.

Bryan Boynar has expertise in the financial services and insurance fields and has been a contributor to the Hyland blog.
Bryan Boynar

Bryan Boynar

Bryan Boynar has expertise in the financial services and insurance fields and has been a contributor to the Hyland blog.

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