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.