Wolters Kluwer Lien Solutions has today launched iLien for Main Street – a customizable financial technology solution devoted to helping U.S. lenders optimize their due diligence and lien management efforts when securing loans for small and medium-sized businesses under the Main Street Lending Program (Program). The Program is part of the U.S. Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
The Main Street Lending Program “helps small and medium-sized businesses adversely impacted by the COVID-19 crisis via the issuance of special loans to help maintain their operations until they have recovered from, or adapted to, the impacts of the pandemic,” the company said in a statement. The $600 billion Program offers five-year loans, ranging from $250,000 to $300 million, with floating rates and deferred principal and interest payments to assist businesses facing temporary cash flow interruptions.
Lenders participating in the Program are expected to follow their current practices and procedures, including those relating to due diligence and perfecting liens on collateral security. Where a lender would normally require a loan to be secured, it must take all necessary steps to ensure that its lien on such collateral is perfected and complies with the security and priority requirements set forth in the Program. iLien for Main Street reduces the manual burden of ensuring compliance and supports management of the lien throughout a Program loan’s lifecycle.
Notably, the web-based iLien for Main Street solution allows lenders to conduct public record searches, retrieve and view actual Uniform Commercial Code (UCC) filings and corporate records, create filings, and track their entire portfolio, with full analytics and reporting capabilities. The product allows lenders to segregate their Program loans for visibility and reporting purposes, easing lenders’ ability to respond to auditor and bank examiner requests in the future. The end-to-end solution is available to both new and existing clients and utilizes Wolters Kluwer Lien Solutions’ award-winning Software as a Service (SaaS)-based technology.
“We are uniquely positioned to offer lenders a secure, compliant and holistic way to help manage their Main Street Lending Program loans within one system through our iLien management technology that supports the Program,” said Raja Sengupta, Executive Vice President and General Manager for Wolters Kluwer Lien Solutions. “Our technology fundamentally improves lenders’ ability to holistically view their lien portfolios, including Program loans, in a way that helps mitigate risk and improves the quality and efficiency of their operations. Having one place to manage liens is particularly crucial for audit and traceability, given the government’s involvement in the Program.”
iLien for Main Street is customizable and includes several critical functionalities, including eFile. Lenders can, for example, create special Program search packages for their employees to use to help ensure consistency and simplify the due diligence process. Search packages can include due diligence grade searches, which help verify a borrower’s Certificate of Good Standing, featuring a UCC lien search to help lenders understand other rights to the collateral. This is in addition to federal and state tax lien, litigation and bankruptcy search capabilities to understand other liens on the debtor.
The solution also “allows for the provision of the UCC filing via the UCC lien service within iLien, thereby helping ensure the lien is placed in the public record, as well as featuring debtor monitoring and alerts to identify developments throughout the loan’s lifecycle,” the company says. Finally, the lien perfection capability within the solution verifies that a lender’s existing liens for debtors who take a Program loan are perfected, with the correct name of the debtor, and filed in the right jurisdiction, with alerts to keep the lender apprised of any subsequent modifications to the loan or debtor status.
Wolters Kluwer Lien Solutions, part of the company’s Governance, Risk & Compliance (GRC) division, is the leading technology and service provider of comprehensive lien management, debtor due diligence, monitoring, and risk management solutions to financial professionals. The iLien suite of products addresses solutions for asset-backed loans, real-estate, and vehicle title processing and management to help simplify complexity in lien lifecycle management, resulting in more confident lending decisions.
iLien provides one-stop access to more than 3,000 U.S. jurisdictions at the state and county level. The SaaS based solution allows bank employees to search electronic records, and retrieve bankruptcy and litigation filings, corporate entity records, judgements, and existing federal and state tax liens. Because iLien is web-based, it can be accessed by any member of a lender’s staff and from anywhere.
Covid 19: Industry Leadership
Earlier this year Wolters Kluwer Lien Solutions also proved its industry leadership through its client centric response to the ongoing Covi-19 pandemic, responding to urgent client needs and establishing a technology solution specifically designed to help U.S. lenders navigate the influx of business loan applications, and associated compliance and risk mitigation requirements, resulting from the CARES Act.
The Business Entity Search for CARES Act solution “conducts bulk/batch corporate identity searches to verify the business status of potential borrowers,” the company says. The report can be updated multiple times a day and can scale to high levels of loan applications.
iLien Main Street Solution is one of several expert solutions launched by the company’s GRC division in response to the COVID-19 crisis. Paycheck Protection Program Supported by TSoftPlus™, for example, helps local lenders assist small businesses with payroll funding via PPP loan applications, and the TSoftPlus™ PPP Forgiveness Module assists lenders and borrowers in completing the PPP loan forgiveness process. As previously reported use of the TSoftPlus solution has so far allowed small business to retain approximately one million American jobs.