The newest Paycheck Protection Program installment, known as PPP 2.0, will be signed into law later this week. PPP 2.0 reserves $60 billion for community banks, credit unions, and community lenders to make PPP loans. These lenders now have a turnkey loan-making technology from StreetShares Platform, a financial technology company located outside of Washington, D.C. in partnership with Fiserv, Inc., a leading global provider of payments and financial services technology solutions.
The first version of the Paycheck Protection Program (PPP 1.0) ran out of funding in only 13 days, with bigger banks processing many of the loans. The newest installment, PPP 2.0, adds another $310 billion in funds, and includes a $60 billion allocation reserved just for community lenders, such as community banks, credit unions, and CDFIs.
Community lenders struggled during PPP 1.0 with manual underwriting and uploading to the SBA’s back-end loan registration system called E-Tran.
“We spoke with community lenders and their exhausted staff who manually processed PPP 1.0 loan applications around the clock, nights and weekends,” said StreetShares Platform co-founder Mark L. Rockefeller. “Our solution provides lenders with digital document collection, identification verification services, and SBA uploads. They can now simply pre-load loans beforehand and hit send when the SBA re-opens the platform.”
StreetShares signed an exclusive agreement with Fiserv to assist its clients who don’t utilize a Fiserv Account Processing platform to enable front-end digital PPP application processing with integration into the SBA e-Tran portal. This resulted in a complete turn-key end-to-end solution and represents the best aspects of fintech partnerships.