As we continue to assist customers navigate these challenging times, we turn the spotlight to our Governance, Risk & Compliance (GRC) division to explore how its Compliance Solutions team is helping our banking and credit union customers access U.S. Paycheck Protection Program funding, while helping to secure hundreds of thousands of jobs at small businesses across America.
The Wolters Kluwer Compliance Solutions business has acted fast, delivering deep impact when it matters most. In immediate response to the U.S. CARES Act (Coronavirus Aid, Relief and Economic Security Act), it launched a dedicated solution utilizing its market-leading SaaS-based TSoftPlus™ software to support the Paycheck Protection Program (PPP). The solution is designed to help banks and credit unions support small businesses with payroll funding during the COVID-19 crisis.
The solution enables banks and credit unions to process loans for small businesses with greater speed, confidence and compliance. Local lenders continue to praise the technology, compliance expertise, and client support capabilities that help them deliver vital aid for their small business client base.
At the time of writing, two tranches of PPP funding had been approved. The first round of funding saw $349 billion committed to job retention with an additional $310 billion approved for the second round on April 24, 2020. Wolters Kluwer has assisted in PPP loan approvals supporting approximately 1,000,000 jobs in all 50 states to date. Notably, 80 percent of the loans Wolters Kluwer processed were for small businesses with 20 or fewer employees.
Positive impact for customers and communities
Many 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.
The impact of our efforts are certainly being felt by local lenders nation-wide in helping small businesses retain employees and keep their businesses afloat during the COVID-19 pandemic. An example is North Star Community Credit Union, of Maddock, North Dakota, which has 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 have also noted the impact the Wolters Kluwer solution has made. “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. “The opportunity to help small businesses get this payroll funding was critical, so we used Wolters Kluwer TSoftPlus technology to help speed up PPP loan applications.”