Q&A: Lessons From a PPP Loan Buyer and Servicer


Q&A: Lessons From a PPP Loan Buyer and Servicer

National and community banks have played a big role in supporting small businesses through Paycheck Protection Program (PPP) lending. But some lenders may find they are less than prepared to handle the complicated and detailed PPP forgiveness process. Lenders may also be eager to realize loan income early, which is possible when they decide to reduce risk and sell PPP loans.

One way for a bank to accomplish this is by selling its PPP portfolio to a non-bank partner that exclusively services PPP loans. Luke LaHaie, Founder, CIO, and president of ACAP, a PPP loan servicing solution provider, discusses the top lessons his PPP loan buying and servicing team have learned throughout the program.

How do lenders immediately benefit by selling their PPP portfolio and outsourcing servicing?

LaHaie: There are a few short-term benefits, including realizing your PPP loan income early and eliminating future risk. There are also long-term benefits, such as ongoing service through forgiveness for your PPP borrowers – meaning banks can get back to what they do best.

How does a PPP loan servicing partner make PPP easy and seamless?

LaHaie: Most banks do not have the technology or staff in place to effectively service PPP. Borrowers also have a lot of questions along the way, which can take time and resources. A PPP loan servicing partner is better prepared, with all the tools and talent in place to get the job done simply.

What are the long-term benefits for banks outsourcing PPP?

LaHaie: Banks that sell their PPP portfolios and outsource PPP servicing provide their borrowers with improved access to PPP financing and forgiveness. In turn, this allows lenders to focus on what they do best, while still capitalizing on PPP profits and potential. Look for a PPP partner who also is leveraging experience to help drive equal access to program fairness.

PPP in 2021: What has changed that lenders should know?

LaHaie: The Small Business Administration (SBA) program is currently set to expire on March 31, leaving eligible borrowers little time to take advantage of PPP. Lenders however can sell their PPP portfolios to a PPP service provider beyond this date, providing borrowers with the necessary customer support, tools, and guidance when applying for forgiveness.

Sell your PPP portfolio and keep your banking customers

Helping PPP borrowers achieve forgiveness is a huge undertaking. Without an SBA department, banks can struggle and fall behind on the demands of servicing PPP loans. With a non-bank PPP servicing partner, lenders can provide borrowers with transparent, customer care and real support when they need it most – right now.

Stay in control, save time, and start providing better service. Begin the loan transfer process and protect your PPP customers at acapgp.com/sell-ppp-loans/.