Complaints Over Delays, Glitches Roll In As Small-Business Loan Program Reopens For Applications
“The SBA’s systems were not designed to and are not capable of handling the volume of loans banks processed over the last several weeks for small businesses,” said Richard Hunt, chief executive of the Consumer Bankers Association.
The Wall Street Journal:
Small-Business Loan Program Resumes With Reports Of Delays
The U.S. government reopened the pipeline for small-business loans and grants Monday, triggering a fresh chorus of complaints from lenders and borrowers about delays and glitches plaguing the approval process. The Small Business Administration’s electronic loan portal was overwhelmed by demand shortly after it opened Monday morning, according to banking industry groups, that say the process was also stymied by last-minute changes in guidance on how to submit applications. (Hayashi, 4/27)
Los Angeles Times:
Small Business Loan Program Resumes With New Funding
Despite early glitches and overwhelming demand, the Small Business Administration processed more than 100,000 Paycheck Protection Program loans by more than 4,000 lenders as of 3:30 p.m. Eastern time. Some participating lenders reported trouble accessing the SBA application website. Twice as many users were trying to access the application website Monday compared with at any time during the first round of the program, SBA administrator Jovita Carranza said. (Haberkorn, 4/27)
In other news on relief money —
The Wall Street Journal:
Coronavirus Relief Often Pays Workers More Than Work
Roughly half of all U.S. workers stand to earn more in unemployment benefits than they did at their jobs before the coronavirus pandemic shut down wide swaths of the U.S. economy, and employers say the government relief is complicating plans to reopen businesses. The package of coronavirus stimulus laws Congress passed and President Trump signed in March included a $600 boost to weekly unemployment benefits through July 31. (Morath, 4/28)
The Associated Press:
Judge Sides With Tribes, Limits Distribution Of Virus Relief
A judge has ruled in favor of tribal nations in their bid to keep Alaska Native corporations from getting a share of $8 billion in coronavirus relief funding — at least for now. In a decision issued late Monday, U.S. District Judge Amit Mehta in Washington, D.C., said the U.S. Treasury Department could begin disbursing funding to 574 federally recognized tribes to respond to the coronavirus but not to the corporations. (Fonseca, 4/28)
