Boston, April 30, 2020 – Among the many emergencies thrust upon us as the result of the COVID-19 pandemic is its impact on businesses, many of which have encountered revenue reductions that make it difficult to make payroll and ultimately lead to layoffs. In an effort to help businesses, the United States issued within the Coronavirus Aid, Relief, and Economic Security Act the Paycheck Protection Program, an initiative under which small businesses can obtain loans equal to 2.5 times their monthly payroll. When borrowers, at a later date, prove that they used the loans’ proceeds for their intended purposes, the loans are effectively forgiven and converted to grants. Parties within the U.S. small-and-midsize-business lending ecosystem acquired new capabilities via their participation in PPP. Far from being embraced for one-time use, these capabilities are likely to become new best practices and areas of competency for the strongest players.

Clients of Aite Group’s Wholesale Banking & Payments service can download this 13-page Impact Brief. To learn more about the topic covered in this Impact Brief, please contact us at [email protected].

This report mentions Abrigo, Bottomline Technologies, Edgeverve, Finastra, FIS, Fiserv, Hyland Software Inc., Jack Henry & Associates Inc., Mambu, MeridianLink, Moody’s Analytics, nCino, NCR, Newgen Software, NYMBUS, Oracle, Pegasystems, Q2 Holdings, Tata Consultancy Services, TransUnion, and Wolters Kluwer Financial Services.