Finastra, one of the world’s largest financial technology solutions providers, announced earlier this month that it has helped process more than 86,000 Paycheck Protection Program (PPP) loans to date, supporting credit unions as they provide critical financial assistance for small businesses impacted by the coronavirus (COVID-19) pandemic.
Finastra’s CARES Act solution—developed in response to the Coronavirus Aid, Relief and Economic Security (CARES) Act—helps these financial institutions meet the urgent demand for PPP loans that are critical for small-business owners who need to pay salaries, rent, and other business costs.
Robert F. Smith and Vista Equity Partners 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 nationwide.
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.
“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,” says Finastra CEO Simon Paris. “Never before has our mission been more critical. Many small businesses across the U.S. are dependent on their ability to quickly access PPP loans, and we are proud to partner with and support the credit unions that are meeting that demand.”
The PPP 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 SBA 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 with critical information for business borrowers. For the latest information, visit www.finastra.com/cares-act.