FinTech Numerated Announces Automated PPP Loan Forgiveness
Among the many ways that the coronavirus pandemic has changed life in America and around the world is that it’s made FinTech more relevant than ever before. From contactless payments becoming a growing preference to digital banking proving essential, these innovations have been thrust into the spotlight. Similarly, while select banks struggled to handle the demand of the Paycheck Protection Program (PPP), some online outlets were able to step in, helping customers and institutions alike. Now Numerated is looking to expand its role by continuing to create solutions for PPP lenders and borrowers.
Just days after the Small Business Administration released the Loan Forgiveness Application, the FinTech firm Numerated announced that its platform could automate the forgiveness process. As Numerated co-founder and CEO Dan O’Malley explained, “We developed a loan forgiveness solution that allows banks to say to their customers, ‘we’ve made this complex process as easy as possible.” O’Malley continued, “Many banks stood up digital lending for the first time during this pandemic, and we want to ensure that same rapid, responsive service continues through to forgiveness and beyond as banks move to offer digital buying experiences across a wider set of their products.”
This news comes after Numerated partnered with more than 70 banks and credit unions to help their customers obtain PPP loans. As a result, the FinTech reports originating 5% of PPP loans, amounting to $16 billion being distributed to 170,000 small businesses. These funds then allowed 2.2 million employees to continue receiving income.
Recalling his company’s call to action regarding PPP, O’ Malley said in a statement, “As the CARES Act was being drafted, we realized our digital lending technology could bring relief to businesses across the country. We knew we could provide a fast, simple, and scalable solution for banks to get capital to their communities.” Meanwhile, speaking to what the experience has been like on the banking end, Pinnacle Bank Chief Administrative Officer Hugh Queener stated, “We needed to help as many businesses as possible keep their employees paid during the pandemic, so we turned to Numerated to launch a fast and simple digital experience for the Paycheck Protection Program.” As for next steps, Queener added, “We look forward to continuing our work together for the forgiveness phase.”
While details on Numerated’s PPP loan forgiveness automation are fairly slim at the moment (at least publicly), some are saying the same of the SBA’s guidance itself. However the agency is expected to offer more details and answer more questions soon. In the meantime, hopefully Numerated’s solution can not only help small businesses navigate the process but also ease the burden on the banks issuing the loans. To that point, the rapid response and seemingly success that Numbered has shown during this ordeal once again highlights the power of FinTech.