Wolters Kluwer Compliance Solutions is proving itself to be leading the way once more when it comes to helping local lenders of all sizes navigate the complexities of the U.S. Paycheck Protection Program (PPP). The Minnesota-based business is now ready to help local lenders and their small business client recipients of PPP funding facilitate online loan forgiveness applications through its TSoftPlus™ PPP Forgiveness Module. The company says the end-to-end solution will facilitate and automate the application process for the forgiveness of loans to small businesses that received PPP emergency funding under the U.S. CARES Act. A London-based spokesman confirmed that the offering will be made available to local lenders and PPP borrowers following finalization of requirements from the Small Business Administration (SBA) and U.S. Treasury.
The TSoftPlus PPP Forgiveness Module will allow lenders and borrowers to benefit from improved accuracy and document management. It combines the functionality of Wolters Kluwer’s Online Loan Applications product, which enables compliant, convenient distance banking for borrowers, with its Paycheck Protection Program Supported by TSoftPlus™ solution. As previously reported this widely used solution was launched in early April to assist lenders in their support of small businesses nationwide with payroll funding, providing relief from the onslaught of the COVID-19 crisis.
“The product’s online functionality will expedite the loan forgiveness application process for remote, electronic application transactions,” according to a Wolters Kluwer statement. Notably, the TSoftPlus PPP Forgiveness Module will feature an online form pre-populated with required SBA documents and existing PPP borrower loan information. “This approach speeds and automates loan documentation and uploads, thereby enhancing overall application accuracy while reducing the occurrence of incomplete applications,” the statement adds. Customers will be immediately able to upload basic PPP data, thereby helping avoid the backlog issues that were widely reported by non-TSoftPlus users during the approval phase of the PPP program.
“Wolters Kluwer continues to play a major and historic role in helping hundreds of local lenders and their Main Street business customers. In the process, our TSoftPlus automated solution has so far helped those businesses retain approximately one million jobs across all 50 states,” said Steven Meirink, Executive Vice President and General Manager for Wolters Kluwer Compliance Solutions. “Now we are again focusing our capabilities to substantively assist PPP loan program borrowers and lenders in the loan forgiveness phase. The TSoftPlus PPP Forgiveness Module will help simplify and speed the complex process of applying for loan forgiveness under the CARES Act. It promises an intuitive borrower experience, processing gains for lenders that we expect to be up to 20 times faster than manual solutions.”
The seamless user experience and workflow will enable lenders and small businesses to focus efforts on the challenge of determining how much of a PPP loan is eligible for forgiveness. “Initially businesses turned to their accountants for guidance around eligibility and application. With the most recent Internal Revenue Service (IRS) notice around deductibility of expenses funded by a PPP loan and the subsequent loan forgiveness, the questions have gotten more challenging. We continue to provide ongoing guidance, tax expertise, and briefings for accountants to help them navigate the complexities of the program,” said Mark Luscombe, JD, LL.M, CPA, Principal Analyst, Wolters Kluwer Tax & Accounting.
An ongoing story of industry leadership
Wolters Kluwer Compliance Solutions, is a provider of risk management and regulatory compliance solutions and services to U.S. banks and credit unions, insurers and securities firms. The business, which sits within Wolters Kluwer’s Governance, Risk & Compliance (GRC) division, helps these financial institutions efficiently manage compliance obligations tied to loan and deposit origination transactions and workflows, manage risk and other regulatory compliance obligations, and gain the insights needed to focus on better serving their customers and growing their business.
Paycheck Protection Program Supported by TSoftPlus is one of several solutions launched by Wolters Kluwer’s GRC division in response to the COVID-19 crisis, including the Business Entity Search for CARES Act solution, offered by Wolters Kluwer’s Lien Solutions business, which conducts bulk/batch corporate identity searches to verify the business status of potential borrowers. COVID-19 Noteworthy Developments Bulletins, meanwhile, aggregates COVID-19 related global regulatory changes, orders, notices and other informational updates for the financial services industry. The division has also launched a COVID-19 resource center to provide businesses and law firms with international, federal and state legislative updates.
The first round of PPP funding saw $349 billion committed to job retention, with Wolters Kluwer assisting in PPP loan approvals supporting approximately one million jobs in all 50 states. Notably, 80 percent of the loans Wolters Kluwer processed were for small businesses with 20 or fewer employees. The second round of funding, worth an additional $310 billion, is now underway, with Wolters Kluwer continuing to assist its bank and credit union customers secure vital aid for small businesses. The loan forgiveness stage is a particularly challenging and important part of the funding, according to industry observers.
Many Wolters Kluwer customers are reporting as much as a 20-fold productivity gain through using the TSoftPlus functionality compared to securing PPP loans direct via the Small Business Administration (SBA) website.
And the impact of Wolters Kluwer’s effort is clearly being felt by local lenders nationally in helping small businesses retain employees and keep their businesses afloat during the COVID-19 pandemic. North Star Community Credit Union, of Maddock, North Dakota, for example, processed nearly 70 PPP loans using TSoftPlus software for the first round of funding.
“The Wolters Kluwer TSoftPlus solution allowed us to continue our very deliberate, strategic and proactive approach to help regional small businesses tap the CARES Act funds.,” said Bob Herrington, CEO for North Star Community Credit Union. “These funds are really making a difference and making a huge impact for our members.”
Community banks, meanwhile, have also noted the impact the Wolters Kluwer solution has had. “Previously we didn’t have much experience in applying for SBA loans – maybe one or two loans a year,” says John Stellner, President of Hometown Community Bank in Cyrus, Minnesota. “But the opportunity to help small businesses get this payroll funding was critical so we used Wolters Kluwer’s TSoftPlus technology to help speed the PPP loan applications.”