The Small-Business Loan Program Is Already Hitting 4 Big Snags

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For many businesses, by the time all this is sorted out, it will already be too late.

Do better, Steve. Photo: Sarah Silbiger/UPI/Bloomberg via Getty Images The small-business bailout — otherwise known as the “Paycheck Protection Program” — was arguably the most ambitious provision of the $2 trillion stimulus bill that Congress passed last week.

Unfortunately, the small-business bailout season is off to a shaky start — and for entirely predictable reasons. Here, the four big ones: But banks fear this new line of business is riskier than it appears. Specifically, the administration is requiring banks to verify borrowers’ eligibility and certify the size of the loan they are eligible for . Which raises the question: What if a bank gets tricked?

Treasury secretary Steve Mnuchin has said that the administration is committed to replenishing the program’s fund once it’s exhausted. But for now, businesses are competing for scarce bailouts on a first-come, first-served basis. Which is surely exacerbating the preexisting mismatch between demand for loans and suppliers of them, as firms rush to get into the front of the line.

 

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It's a disaster within a disaster. Federal government can't get it act together. It was changing the application process for small businesses yesterday and today, while applications were being submitted. Potential borrowers and lenders are confused. A mess.

Well most business are closed so you don't any costs except rent maybe depends. So instead of worry about the business income I worry more about each individual being able to survive financial thru this fuck fest. An in theory if you give the people money hopefully they spend it

Sad part is not all of those businesses were the ones who believed when Trump called COVID19 a Dem hoax

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