Congress is expected to soon pass the CARES Act legislation to support economic recovery during the coronavirus crisis. The $2 trillion stimulus compensates banks for distributing up to $349 billion in capital to businesses in the form of fully guaranteed loans that will quickly be forgiven by the Small Business Administration (SBA). All capital must be funded by June 30.
This legislation is an opportunity for responsive banks to outperform, get capital to businesses, and win relationships. We’ve followed the legislation closely and are prepared to help financial institutions implement digital application and lending automation for CARES Act loans in a matter of days.
Banks and credit unions should prepare for a surge in businesses contacting them for CARES Act loans. With few exceptions, businesses with fewer than 500 employees will qualify for a 100% SBA guaranteed loan, forgiven by the SBA if the businesses use the funds for payroll. The loans represent free capital and all eligible businesses will get one either from an institution they have a relationship with or a new one if needed.
SBA loans are notoriously paper-heavy, and banks and credit unions that currently have, or are able to quickly stand up, digital application and lending automation for CARES Act SBA loans will have a competitive advantage. Banks that do not move quickly on standing up CARES Act lending experiences, on the other hand, will not only miss out on this opportunity but also likely frustrate customers and potentially lose them during this time of intense temporary financial need.
The platform has decisioned hundreds of millions of dollars in same-day SBA loans across some of the largest SBA lender banks in the country, and we’re grateful to count the former head of the SBA as an investor and advisor. We have been working overtime to bring our SBA expertise and technology capabilities to CARES Act lending.
Numerated’s CARES Act lending solution will be live with existing bank customers on April 8, takes days to implement, and arms bankers with a completely digital solution for their business customers to secure these recovery funds in real-time. The solution includes:
With an existing backlog of banks and credit unions interested in standing up Numerated’s CARES Act lending solution, we encourage banks and credit unions to contact us today for more information.