U.S. Bank on Thursday successfully began funding Paycheck Protection Program (PPP) loans, an important milestone, but just the beginning, in providing relief to business customers through the Small Business Administration program created under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
As of April 9, U.S. Bank continues to accept applications from single-owner businesses and is working around the clock to further build out the process – from start to finish – to increase how many applications can be processed at a time and from what kinds of businesses. The bank will expand the types of applicants we can process over time.
In the coming days we expect to reach out to multi-owner businesses, independent contractors and non-profits. In the future, it is also our goal to serve non-U.S. Bank customers.
U.S. Bank continues to build out its digital capabilities specifically related to the PPP, with a highly-digital experience for the customer, but there remain a number of steps to fund these loans that require manual work by individual bankers. To help expedite the time-intensive process, U.S. Bank is redeploying bankers from across our company to help. The company looks to have hundreds of bankers dedicated to this work in the coming days, allowing us to quickly scale the process and help as many customers as soon as possible.
Business owners who are interested in the program can learn more at the U.S. Bank SBA Paycheck Protection Program (PPP) inquiry page. Customers will receive email updates during the process.
As for the process itself, U.S. Bank provided applicants with a detailed update on the steps required from application to funding.
The first step is the actual application process. Customers complete this digitally, but the process requires a combination of digital and manual validation from U.S. Bank.
When that validation is complete, customers will receive an email from U.S. Bank asking them to begin the process of uploading their documentation.
Once U.S. Bank receives the documents, the most labor-intensive and time-consuming part of the process – payroll review – begins. Bankers must manually go through the documents to ensure the loan amount requested aligns to the documents provided. U.S. Bank is expeditiously redirecting available bankers to help speed up this process.
Once the payroll information is verified, the application is then submitted to the SBA via its E-Tran system. This is also a manual process and we are actively training additional employees to help with this step given the unprecedented volume.
After receiving the guarantee from the SBA, the final two steps are largely automated. The customer will receive an email with documents they can sign electronically and then it is on to funding. There are some instances where manual intervention may be required for funding, but it is primarily a digital function.
U.S. Bank will continue to update customers through the process, and will provide additional updates on its progress funding PPP applicants here and through social media.