After Chaotic Start To Small Business Stimulus Program, Fed Steps In As Backstop For Loans

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After a chaotic start to the small business stimulus program, the fed has stepped in as backstop for loans by theothersarahh

has already seen applications from 177,000 small businesses that account for $32.6 billion—almost 10% of the entire amount allocated by Congress.

The program will offer loans of up to $10 million at 1% interest to companies and nonprofits with fewer than 500 workers so they can cover two months of payroll and overhead expenses. If the borrower retains workers and doesn’t cut their wages, the government will forgive most or all of the loan and repay bank lenders.

 

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theothersarahh How? And why are they when we just gave them billions? Is it a money or efficency problem?

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