You’ve originated PPP loans, but there is still much to do. You know it’s time to maximize PPP forgiveness opportunity for your borrowers – but how? In just three steps, lenders like you are liberating themselves from the PPP servicing and forgiveness process and getting back to banking.
More and more banks are eager to unload their Paycheck Protection Program loans — and some nonbanks are more than happy to take them off their hands.
The Loan Source, a nonbank small-business lender in New York, said it has acquired more than 20,000 PPP loans, with more than $2.9 billion in outstanding balances, in recent weeks. The company, which has finalized deals with 14 lenders, has more in the works.
A Nevada credit union has joined the ranks of Paycheck Protection Program lenders who have opted to sell their portfolios.
Greater Nevada Credit Union in Carson City has sold “substantially all” of its $556 million PPP portfolio to Fountainhead Commercial Capital in Lake Mary, Fla., Fountainhead CEO Chris Hurn said Monday in an interview. The $1.1 billion-asset Greater Nevada did not disclose sale terms.
As the period for originating Paycheck Protection Program loans draws to a close, lenders are now looking for the best way to handle the process for loan forgiveness.
With guidance from the Small Business Administration still scarce, several banks have decided to either seek outside help to navigate PPP’s complexities or to simply sell their loans to other companies.
The first round of $349 billion in funding for the Paycheck Protection Program ran out in less than two weeks. Now that the new Paycheck Protection Program and Health Care Enhancement Act has been signed into law, an additional $310 billion has been designated to help small businesses keep employees on the payroll. The U.S. Small Business Administration says it will start accepting applications from approved PPP lenders again on Monday.
Northeast Bank, based in Portland, Maine, agreed to sell to Loan Source $457.6 million of loans originated in connection with the Small Business Administration’s Paycheck Protection Program.
Several banks are recognizing millions in fees and avoiding a potentially fraught government process by taking advantage of a developing secondary market for Paycheck Protection Program loans.
Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based full-service bank, today reported net income of $11.2 million, or $1.33 per diluted common share, for the quarter ended June 30, 2020, compared to a net loss of $603 thousand, or ($0.07) per diluted common share, for the quarter ended June 30, 2019. Net income for the year ended June 30, 2020 was $22.7 million, or $2.53 per diluted common share, compared to $13.9 million, or $1.52 per diluted common share, for the year ended June 30, 2019. Earnings were positively impacted in the quarter ended June 30, 2020 by the sale of $457.6 million in Paycheck Protection Program (“PPP”) loans to The Loan Source, Inc. (“Loan Source”) which resulted in a pre-tax net gain of $9.7 million, or approximately $6.7 million net of tax.
You’ve played a critical role in supporting small businesses through PPP lending. It’s time to liberate yourself and get back to banking. Northeast Bank’s recent sale of $457.6 million in PPP loans to ACAP & The Loan Source immediately off-loaded the servicing responsibility and forgiveness process, allowing the Bank to accelerate its PPP income…
A government-backed emergency loan program for small businesses struggling to survive the COVID-19 pandemic was supposed to be a surefire payday for banks.
Indeed, many banks will earn millions from the Paycheck Protection Program: More than 30 banks could earn as much from emergency small-business loans as they reported in net revenue for all of 2019.
“ [Northeast Bank] decided to sell the bank’s PPP loans out of concern about the requirements to properly service the loans and handle the forgiveness process, pointing to the government’s ever-changing rules. The bank has a deep relationship with The Loan Source group, providing comfort that its PPP borrowers will continue to receive solid customer service. The bank considered a technology purchase to handle the process but ultimately thought the risks of keeping the process in-house outweighed the benefits.”