New virtual lending solution for community lenders helps process loans for small businesses under the Paycheck Protection Program
NEW YORK, May 13, 2020 /PRNewswire/ -- Finastra, one of the world's largest financial technology solutions providers, announced today that it has helped process more than 86,000 Paycheck Protection Program (PPP) loans to date, supporting community-focused banks and credit unions as they provide critical financial assistance for small businesses impacted by the COVID-19 pandemic. Finastra's CARES Act solution – developed in response to the Coronavirus Aid, Relief and Economic Security (CARES) Act – helps these organizations meet the urgent demand for PPP loans that are critical for small business owners who need to pay salaries, rent and other costs of doing business.
Robert F. Smith and Vista Equity Partners has authorized Finastra to donate revenue generated from the initial phase one and two PPP loan processing fees – equal to $2.2 million – to food banks across America.
"At a time when so much is uncertain, community banks and credit unions are vital in paving a path forward for small and mid-sized businesses being impacted by the COVID-19 pandemic," said Chris Zingo, SVP and GM of Americas Field Operations, Finastra. "We are proud to be able to help our customers deliver on their promise to serve their local communities in a time of great need. By optimizing our business and consumer lending platforms, we are ensuring that financial institutions are able to deliver relief to the businesses that serve as the backbone to their local economies."
Components of the CARES Act solution include new and existing Finastra products. Fusion Small Business POS is a new loan origination portal custom-designed to directly serve the market for PPP loans, available at no cost to Finastra customers. Fusion LaserPro, Finastra's loan documentation software, has been updated to ensure all PPP loans are compliant, containing all necessary documents and disclosures put forward by the Small Business Administration (SBA) and U.S. Treasury. Together, these products provide a platform for E-Tran submission of SBA PPP loans and the associated documents and disclosures. In addition, the application process can be electronically streamlined by collecting the borrower's application and supporting documentation using Finastra's ProSign Online, creating a virtual working solution.
"I'm so glad we had ProSign Online to use, in order to expedite all of these loan requests! We've already approved over 450 PPP applications, totaling over $55 million," said Jeremy Gray, Director of Credit Administration, Rock Canyon Bank. Finastra has helped nearly 4,000 lenders like Rock Canyon Bank provide relief lending through the CARES Act. As additional funding becomes available, community lenders will be ready to provide the critical assistance that local businesses need.
"Our mission as a financial technology solutions provider has always been to expand access to financial services and enable financial institutions to serve their customers quickly and efficiently," said Simon Paris, CEO, Finastra. "Never before has our mission been more critical. Many small businesses across the US are dependent on their ability to quickly access PPP loans, and we are proud to partner with and support the community banks and credit unions that are meeting that demand."
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on payroll through closures and business downturns resulting from the COVID-19 pandemic. The Small Business Administration will forgive these loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. However, time is of the essence; all funds must be distributed by the June 30 deadline, and the loan process can be slow and inefficient without the right technology to support the process.
Finastra is committed to keeping its clients updated on the evolution of the CARES Act and to help equip banks and credit unions with critical information for business borrowers. For the latest information, please visit https://www.finastra.com/cares-act.
Finastra is building an open platform that accelerates collaboration and innovation in financial services, creating better experiences for people, businesses and communities. Supported by the broadest and deepest portfolio of financial services software, Finastra delivers this vitally important technology to financial institutions of all sizes across the globe, including 90 of the world's top 100 banks. Our open architecture approach brings together a number of partners and innovators. Together we are leading the way in which applications are written, deployed and consumed in financial services to evolve with the changing needs of customers. Learn more at finastra.com
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