SBA PPP
Complimentary Use of Our Platform to Assemble Your Notes
SBA PPP Client Memo
Enhancements
State note variances have been suggested for those states requiring additional state disclosure/provision.
Supplemental support documents “SBA PPP Loan Borrower Disbursement Authorization” and “SBA PPP Loan Borrower’s Certification” can be added.
Many of our clients have expressed interest in high volume batch processing. Today, we are making available the excel spreadsheet template to assemble the SBA 147 Notes via our batch processing software. This includes the SBA 147 Note, Closing Certification, and Borrower Authorization for Disbursement (Information collected when the borrower eSigns) all delivered using DocuSign's CheckID platform.
April 10, 2020
Clients and Friends,
The Paycheck Protection Program (PPP) recently rolled out by the Small Business Administration (SBA) pursuant to the CARES Act requires the use of the SBA Form 147 (06/03/02) Version 4.1 promissory note or another note that has all the required SBA and PPP provisions. Here is a link to the SBA 147 Note on the SBA’s website:
https://www.sba.gov/sites/default/files/2017-09/tools_len147_0.pdf
Their posted form is a fillable PDF that requires a user to add the PPP provisions and other data blocks. To assist those lenders that do not regularly use the 147 Note and are not familiar with the PPP requirements, we have created a free document assembly platform for lenders to use to complete the 147 Note. Our 147 Note has some enhanced features that the posted SBA posted version does not have, but does contain the required SBA provisions. All a lender needs to do is register with us one time...a five minute process. The lender does not have to be an existing client or agree to use our services in the future.
We do not warrant either expressly or impliedly this product in any manner, other than our warranty that it is the same SBA Form 147 (06/03/02) Version 4.1 promissory note published by the SBA. The assembled 147 Note that we produce is our “best efforts” to assist lenders in their efforts to create an SBA PPP compliant promissory note. We have hard-coded variables like the interest rate which does not vary in the PPP program. It is always 1%. We have defaulted language that we currently think is compliant with PPP repayment requirements. We have borrowed much of that language (with a few variances) suggested by our friends at Independent Bankers Association of Texas (IBAT) (Thank you!!!):
https://www.ibat.org/files/PDFs/PPP%20Note%20Considerations%20-%204.9.2020%20-%20FINAL.docx
The lender has the ability to amend, add or delete the language we have suggested or use its own repayment and other provisions. We have added the Texas Notice of No Oral Agreements for properties located in Texas. We have also included a very robust signature engine that helps with setting up the proper parties for execution.
Our documents are DocuSign enabled. The version of DocuSign we use for this product is called DocuSign ID Check aka Knowledge Based Authentication:
https://www.docusign.com/partner/docusign-id-check-powered-by-lexisnexis-risk-solutions
This version has the enhanced security required by the SBA, implements NIST Special Publication 800-63-2 Level 3 assurance levels and otherwise meets the requirements set out in SBA Procedural Notice 5000-1323. Here is a link to that Notice:
https://www.sba.gov/sites/default/files/lender_notices/5000-1323.pdf
Assembly and delivery of the SBA 147 Note to the lender and/or borrower is free, however this DocuSign option is not free. It costs $15 per transaction.
We have other forbearance and modification agreements for a lender’s loss mitigation use on real property-secured loans. Some of those products are also express automated products, but are not free:
https://www.ppdocs.com/covid/Default.aspx#LoanModServices
We also have the ability to assemble multiple 147 Notes in batches from an Excel spreadsheet generated by a lender’s loan processing system. We can assemble batches of up to 3000 notes per batch within 24 hours of data receipt. The resulting 147s can be sent via DocuSign (enhanced security) automatically as well. Contact support@ppdocs.com for pricing and other information regarding that product.
Thank you!
God bless us all!!!
Mike Patterson