The Paycheck Protection Program, Take 2


On April 27, the Paycheck Protection Program (PPP) restarted with $310 Billion dollars ready to loan to Small Businesses. This time there are promises to learn from earlier mistakes. For example, $60 Billion is reserved for smaller community banks, and no bank can process more than $60 Billion in loans. This is thought to create a sense of equality and pacing for all businesses looking to seek relief. The Small Business Administration (SBA) is trying to keep large corporations from squeezing out loan access for small shops. How did things work out the first week?


There were widespread complaints about the online application system. E-Tran continues to crash and is overloaded by the number of users and applications that are uploaded. With that said, the SBA claimed it processed 100,000 loans from 4,000 lenders on Monday alone. Community banks feel that this is worse than their first try. While there is a limit of $10 Million per application, many feel that this funding will run out very soon.

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