AUSTIN, Texas, April 27, 2020 /PRNewswire/ -- Community financial institutions (CFI) will use Abrigo's SBA Lending solution today to begin submitting nearly 28,000 Paycheck Protection Program (PPP) applications totaling nearly $3 billion in loans to help small businesses in their communities.
Abrigo, a leading technology provider of compliance, credit risk, lending, and asset/liability management solutions, has helped its customers prepare to access some of the $310 billion in additional PPP funding using the company's E-Tran-integrated solution as the second wave of Small Business Administration (SBA) funding opens for applications Monday.
This funding includes $60 billion in PPP loans reserved specifically for community financial institutions: $30 billion for institutions with less than $10 billion in assets, and another $30 billion for institutions with $10-50 billion in assets. Most of Abrigo's SBA Lending solution customers are community financial institutions, which means this funding will be disbursed to the local communities and small businesses that need it most.
"Community financial institutions are essential for providing capital to businesses that have been hit hardest by the pandemic. Our SBA Lending solution teams have been working around the clock to ensure CFIs are able to access $60 billion in PPP funds aimed for communities not historically served by larger banks," said Abrigo President Jay Blandford.
Over the weekend, Abrigo performed a data validation and integrity check on customer applications to screen for items that commonly cause E-Tran rejections so that customers could resolve them before the E-Tran portal opens Monday morning.
The PPP launched April 3, and financial institutions were inundated with applicants hoping to participate in the $349 billion "first-come, first-served" program aimed at coronavirus relief. During that initial launch, Abrigo helped CFIs process nearly 16,000 loans. The company has trained some 1,700 bankers and provided ongoing resources to help community financial institutions grapple with the flood of information about the PPP and the demand from borrowers.
"We exported to E-Tran and received SBA approval for 318 loans totaling $26,712,263," said Glenda Sorotski, EVP and Chief Credit Officer of Abrigo customer Western States Bank, after the first round of PPP funding. "Our customers have been pleased with the ease of the online application process as have our lenders, who would not have been able to process as many applications had they been working with a paper-based application and documentation process. The online product was a godsend with bank lobbies being closed due to COVID-19."
Abrigo has provided SBA lenders with automated origination and an integration with E-Tran, the SBA application portal, for 18 months through its Sageworks SBA Lending solution. It updated the solution late last week to include a bulk uploader option, allowing CFIs to push application data in bulk to E-Tran with the click of a button. If E-Tran does go down, the data won't be lost in the Abrigo solution, and users will be able to push the applications in again as soon as E-Tran is back up.
Customers leveraging Abrigo's Sageworks SBA Lending solution simplify and automate the underwriting process to manage the volume of requests so they can quickly get funds into the hands of small business owners. Unlike many SBA software providers that say they are "connected" to E-Tran and have customers processing applications, financial institutions using Abrigo's E-Tran-integrated solution are getting loans completed and approved by the SBA.
Abrigo will continue to keep financial institutions updated on the latest SBA PPP news through ongoing communication, articles, and webinars. Community financial institutions seeking more information and resources regarding the Paycheck Protection Program can visit Abrigo's SBA Lending Resources page. To learn more about Sageworks SBA Lending solution leveraging technology for PPP loans, talk to an Abrigo expert.
Abrigo is a leading technology provider of compliance, credit risk, lending, and asset/liability management solutions that community financial institutions use to manage risk and drive growth. Our software automates key processes – from anti-money laundering to asset/liability management to fraud detection to lending solutions – empowering our customers by addressing their Enterprise Risk Management needs. Visit abrigo.com to learn more. Follow Abrigo on social media using @WeAreAbrigo.