Plansmith Blog

PPP Loans: Your Top 3 Questions Answered!

Posted by Jennifer Mello on 3/4/21 3:00 PM

Due to the COVID-19 pandemic, Paycheck Protection Program (PPP) loans are a strange new addition to every banker’s reality. The role of the community bank and credit union has always been to serve customers and local businesses with compassion and trust. This responsibility has only been amplified by the current situation.

PPP loans help ensure businesses have funding to stay open and continue to pay their employees through the uncertainty of the crisis. Financial institutions play an essential role by assisting in creating, processing, approving, and allocating these loans.

Bankers who assist with PPP loans are forced to learn how to process these unique documents. However, senior leadership and accounting teams must also report these loans accurately in the budget and other financials.

With these new items and responsibilities, we want to make sure your questions are answered.

In August, we hosted a full Lunch ‘n Learn where we took a look at how to model PPP Loans in our Compass budgeting model and added tips for forecasting, reporting, and measuring impact. To watch that video at any time, click here.

As an overview, the top 3 questions from the Lunch ‘n Learn were:

  1. How do I set up PPP Loans in Compass?

Thankfully, it’s easy to set up PPP loans in Compass. Simply go to ‘Account Projections,’ create a new account, add a pricing model, then correlate the DataBridge code(s). For step-by-step, detailed instructions, watch the full Lunch ‘n Learn!

  1. How do I forecast my PPP Loan portfolio in Compass?

Once you perform a download, you’ll see the forecasted total maturities, interest income, and yields populate in the new account. Since we’ve already established pricing during set-up of the account, all we have to do is decide how long we’d like the forecast period to be. Then, forecast the maturities and balances using the quick edit techniques referenced in the Lunch ‘n Learn.

  1. How do I analyze PPP Loan data in Compass?

The last question refers to the best reports you can use to adequately analyze PPP loan data. The two reports that we recommend reviewing are the Yields & Costs report and the NIM Shock report. The Lunch ‘n Learn will show you detailed examples of why, where to look, and what to gain from these reports as you digest the information the numbers provide.

At Plansmith, we understand these uncertain times are difficult.

As always, reach out to us directly at with any questions. If you’re not yet a client, click here to ask how Plansmith can assist your organization with budgeting and ALM/IRR.

Topics: ppp loans

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