PPP loan waiver: it’s complicated – Article

Through: John stanfield

The original intention of the Payment Protection Plan (“PPP”) loan program was to provide a simple means of accessing capital quickly during a very uncertain period in our history. With the exception of a few pitfalls which were largely due to the sheer volume of submissions to the SBA, much of it went well.

Part of the reason it turned out well is that applying for the SBA was very straightforward and straightforward. It was a two-page application with basic information, a simple calculation to get your eligible loan amount, and generally straightforward representatives and guarantees that the borrower had to sign.

However, whatever Congress and the SBA got with the loan request, they are wrong with the forgiveness request. It’s an eleven-page document with complex calculations, a voluminous documentation request, and at best ambiguous terminology that prompts borrowers to raise their hands and seek help from their CPAs and lawyers, which will be a costly solution for the borrower (recently the forgiveness request was shortened to five pages – although shortening it did not necessarily make the calculations easier).

The complexity of how to calculate salary costs on a pardon application cannot be overstated. The borrower will need to calculate the number of full-time equivalent employees for three separate periods, consider safe havens, and track all costs per employee during the remittance period, which often comes from multiple sources. For example, large payroll service providers (eg ADP) provide reports to calculate reimbursable salary amounts, but health benefits are an eligible salary cost. So what if you don’t use ADP for your employee health benefits? Second, the payroll provider reports are very little incomplete.

There are several service providers offering “calculators” which often depend on the borrower to do all the heavy lifting and are actually nothing more than a web form that puts the numbers on the SBA form. Additionally, most of these vendors are technology companies, not lenders. They don’t appreciate the intricacies of small businesses and their finances.

To cope with all this complexity, LQD Business Finance has created the PPP LQD forgiveness platform which uses data integration and automation to deliver increased efficiency and accuracy at a very affordable price. LQD Business Finance is the only service that offers a complete remittance package including (i) the PPP remittance determination report, which provides the summary calculations for each criteria and the remittance amount, and which has direct links to all supporting documents, (ii) a completed and automatically generated PPP loan remission request, and (iii) verification and backup documentation files assembled and accessible in the cloud.

Through data integration and automation, we can largely eliminate the tedious and error-prone manual processes currently in use, saving many hours or time for the borrower while increasing accuracy. . The PPP LQD Forgiveness Platform calculates eligibility across multiple factors in addition to available API data, providing greater verification and eliminating bottlenecks and ditches.

LQD’s online customer portal makes the process of data integration, dynamic documentation tracking and submission transparent, and our customer success team will allow us to respond quickly to customer issues and requests.

Providing a free and premium option to meet all borrower and lender needs, LQD Business Finance also offers an audit protection program with the premium package, under which LQD will defend any future SBA PPP audit on behalf of the company, ensuring that the risk of verification or miscalculation is minimized.

To finish, LQD Corporate Finance is not just a software or technology company. As a leading fintech lender, LQD Business Finance has five years of experience dealing with small business borrowers and resolving the many reporting and documentation issues associated with small business loans. With the PPP LQD forgiveness platform, you don’t just get the technology, you get a team of portfolio management, borrower support and technology professionals. LQD Business Finance offers live demos of the PPP LQD platform.