‘Lender Secondary Review’ – what does it mean and why is it important?

'Lender Secondary Review' - what does it mean and why is it important

Ever checked on the progress of your loan request, only to see that it has been flagged as ‘lender secondary review’?

Taking out a loan – any type of loan – can be a challenging and stressful time, plus loan applications can be confusing and difficult. When you need money enough to take out a loan, you probably want it to just reach your account as quickly as possible, so getting an unknown status detail can add to the difficulty and confusion of the matter.

Being warned about a lender secondary review is a very common thing that can come up on some loan applications – especially if you made a PPP loan application with Womply or another similar option.

Before we discuss the status ‘lender secondary review’ on PPP loans, let’s look at what reviews and checks you can expect when applying for any loan.

What are normal loan reviews?

Any time you make a loan application, the bank, government body, or lender should make some checks about you, your financial history, your employment status, and more. This is very common, and it is nothing to worry about. While these kinds of checks can add stress to a loan application – at what is probably already a stressful time in your life – these checks do actually benefit you in the long run.

What are loan reviews for?

Simply put, any loan reviews, checks, or information requests are designed to make sure that the bank or lender does not lend the wrong money to the wrong person. This is why you may have heard of people getting their loan requests refused – a review by the lender might have shown that it was not in their best interests to lend money to that person. It is also important that every loan application is seen in the same light.

Of course, this can feel very unfair. Sometimes people can find that their loan applications are getting refused without the lender having really taken their situation into consideration. This is common, and it is because the numbers do not look right to the bank or lender, meaning that they do not think that the applicant can handle the loan repayments.

This is however a positive for the vast majority of people, who get their loans approved. If banks or lenders end up lending money to people who cannot repay it, the lenders would try to recoup their money by increasing interest rates across the board – meaning your own loans could be more expensive in the long run.

What will the lender check?

For a standard loan, you will often find that the lender will ask for a lot of details about you, as well as bank information. From this, they will be able to check several things, such as:


A lot of loans are only available to people who are citizens of the USA. Most lenders will have to check that you are eligible for their loans if you are applying for one based on citizenship.


Our financial footprint follows us throughout our lives, and this is vital for banks and lenders to be able to see who you are and how much else you have borrowed in the past. You’ll also find that your actions when paying back a loan can affect your credit score, so the lender needs to make sure that your loan application is definitely linked to the right person’s record. As well as this, some people will try to get loans using someone else’s details – this is fraud, and most people who gain loans this way do not honor their agreement to pay the loan back, since registering for a loan under someone else’s identity means that the actual borrower cannot be chased for repayments easily. This is one of the major reasons why banks and lenders have to do a lot of checks and reviews before handing out loans.

Credit rating

You’ve probably heard the term Credit Rating used, especially if you have applied for a loan. Simply put, your credit rating – or credit score – is a number based on how good you are at paying off loans and managing debt wisely. It can also show how much debt you currently have, as well as what your debt to income ratio is. All of this will tell the lender whether or not you are likely to be able to pay off the loan that you take out with them. For a lot of standard loans, you’ll also often find that the interest rate you get offered depends on your credit score. So if you want to get lower interest rates on future loans, you should look at ways you can boost your credit rating.

What is the lender secondary review meaning for a PPP loan?

With the basics of loan reviews and checks covered, let’s look into a more specific case – what happens when you get a PPP loan application secondary review status.

What is a PPP loan?

PPP loans are also called Paycheck Protection Program loans. This is a type of loan that was arranged by the U.S. Department of the Treasury. These loans were also called the Small Business Paycheck Protection Program. They were designed as part of the Coronvavirus Aid, Relief and Economic Security Act. This was designed to help make sure that people would not face undue financial hardships during the Covid-19 pandemic, when trade, travel and business were all limited by the need to self-isolate, stay at home, and maintain social distancing.

Paycheck Protection Program loans were designed to help small businesses continue to pay for their employees’ salaries, though the money could also be used to cover other expenses that a business might not be able to afford, such as rent costs, utility bill costs, insurance, and other payment commitments that the business still had to cover, even though a lot of companies had a drastically reduced turnover.

What is Womply?

Womply is a local commerce platform that helped people apply for the Paycheck Protection Program. However, a lot of users started to have problems with Womply, meaning that borrowers were left without ways to get the funding through the Womply lender.

Generally, advice on the internet and on shared web forums is to avoid using Womply. A lot of people had bad loan experiences and found the Womply status updates unhelpful.

What was the secondary review warning on Womply?

This was a problem that a lot of recipients came up against when using Womply lender funding, however the real meaning of this was hard for people to decipher. This meant that there was additional checks being done before the funds would be released to the recipient bank institution.

The most common reason for this second review by the lender was to make sure that everything on the application was legitimate, where an application had been flagged by the Small Business Administration. This was particularly common for cases where people had accidentally filed a duplicate PPP loan application. However, it could also happen if there were other issues such as having more than one bank account linked to the application, or having incorrect bank information.

What is lender funding?

Womply lender funding refers to the stage where the company is funding the loan, before it goes into the receiving bank account. This was usually after an application secondary review has been completed.

What does borrower funded mean?

This means that the borrower should have received the funds, meaning you could draw loan funds from your bank account.

Can I still apply for a PPP loan?

No, PPP loans were no longer available as of May 31, 2021. This means that no new applications can be started. If you find that you are still struggling to cover the expenses of your business due to the prolonged financial impact of the Covid-19 pandemic, you might have to look for other options for financial lending services.

What is PPP loan forgiveness?

PPP loan forgiveness is a way to get some of your PPP loan written off. You might be eligible for either full forgiveness, partial forgiveness, or none. Whether or not you are able to apply for PPP loan forgiveness depends on how you used the PPP funds you received, as well as other factors.

Am I eligible for PPP loan forgiveness?

You might be eligible for PPP loan forgiveness if you meet the criteria below:

  • Employee numbers and compensation levels are maintained before, after and during the PPP funding period
  • The funds from your PPP payment must have been used on payroll and other eligible expenses
  • At least 60% of the funds from PPP were spent on payroll costs.

However, you should look at your exact situation and compare it with the advice from the Small Business Administration (SBA). If you are in doubt, you can always contact a financial advisor to see if you are able to apply.

What’s the take-away from the Womply issues?

The secondary lender review issue with Womply caused a lot of confusion for a lot of borrowers, and this made it hard for people to understand the process of requesting their PPP funds. This could have easily caused a lot of stress for a lot of people, as well as risking the financial stability of themselves and their employees – at a time when people needed their incomes to be steady.

It is important to learn from this about how to pick good leading services or financial services to use. While the PPP funding is no longer available, it is almost a certainty that most people will need to take out a loan at some point in their lives, whether that is for a house mortgage, a car, a business loan, student loans, or anything else.

When you are looking for a loan, you should absolutely look for reviews of the lending options you have. There are plenty of ways to look for how reliable a company is – simply tap their name into any web browser and you will doubtless find a lot of opinions, reviews, and personal experiences from people who have used their services before. Just be sure to consider your sources – a company’s advertising is not likely to be the most reliable source, as advertising is designed to make the company look good.

Once you have done your research, you should find that getting through the loan process and getting your funding approved should be a lot simpler.

What else can I do if I am still financially affected by the Covid-19 pandemic?

Unfortunately, most government-led Covid-19 economic relief programs have been stopped. This means that if you are still struggling, you may need to look into personal loans or business loans. You could also look at ways of budgeting – such as the 60-30-10 rule, or incremental budgeting.

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