PPP Risk Assessment

Who Needs a PPP Risk Assessment?

Agile Compliance for Insights and Flexibility

The GAO (Government Accountability Office) of the SBA states that 40% of all loans in past stimulus packages had inappropriate or unsupported loan approvals.

PPP loans from the current stimulus package are likely to carry greater risks.

Some banks believe that their PPP loan risk is low for the following reasons:

  • "Our PPP loan process was overseen by trained specialists using an automated system".

  • "Our bank only originated loans to existing customers and applied the same rigorous standards that we do for all loans".

  • "Most of our loans are below $150,000, which means simplified forgiveness with self-attestation is enough."

These opinions do not necessarily mean that your PPP loan portfolio does not pose a risk to your bank.

There are many other factors such as loan origination errors, loan forgiveness records and fraud that have a larger bearing on PPP loan risk.

Taking a true measure of PPP-related risks is a critical first step to risk mitigation and management.

Amberoon's 3-step process to assess your PPP loan risk.

  1. Run the loan risk calculator to get an estimate of your exposure based on the size of your loan portfolio.

  2. Analyze patterns in your loan portfolio using our advanced analytics tools to identify anomalies.

  3. Create a process to quickly triage loans by highlighting unknown risks.for intervention by loan officers

The goal of the assessment is to flag loans that are at risk of having their guarantees revoked due to origination errors or those that show abnormal patterns associated with fraud or money laundering.

Early intervention can mitigate your risk of these loans.

For a confidential initial conversation to discuss your PPP risk, complete the form below.

Amberoon will not share your data, nor will we discuss your situation. Amberoon guarantees our work with a 100% no quibble, money-back warranty.