Analysis: Washington won't fix flaws in small-business loan program

  • 📰 NBCNews
  • ⏱ Reading Time:
  • 38 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 86%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Analysis: Why Washington won't fix design flaws in small business loan program. - jonallendc / SRuhle

For banks, which were drafted into the position of making the loans, it made sense to give first to the most creditworthy applicants. They were understandably reluctant to lend federal money to borrowers who might not be able to pay it back or accept the potential for liability in cases of fraud. That gave a leg up to businesses, regardless of size, that had borrowed from the bank before and paid their debts or those that weren’t likely to go bankrupt because of the coronavirus crisis.

For companies in good standing, it’s hard to turn away cash. The government will forgive any portion of the loans, which range up to $10 million apiece, for businesses that keep at least 90 percent of their workforce on payroll. And the interest rate for portions of loans that aren’t forgiven is 1 percent.

Moreover, he said the program’s biggest design flaws include a yawning gap between the large number of small businesses — roughly 30 million in the country — and an amount of total funding that can’t come close to serving them all, as well as criteria that crowded out small businesses based on their sector of the economy or their inability to precisely meet requirements for spending on payroll vs. other overhead costs.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

jonallendc SRuhle zcuskelly

jonallendc SRuhle That will take too long

jonallendc SRuhle see the 'Republicans' side of this chart

jonallendc SRuhle

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 10. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Face it, no one in Washington wants to fix the small business loan program - Business InsiderNo one in Washington will stop big corporations with plenty of access to cash from taking money meant for small businesses. They must not want to.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Small-business loan program restarts Monday with fresh hopes and $320 billionThe U.S. Small Business Administration will restart a government coronavirus relief loan program for small businesses next week with an additional $320 billion. 0 $ don't west your time if u have 0 $ you can make 500$ OR 1000$.. 5000 $ for real for real go to and make money time is gold great Bot in telegram let's go guys And what is the loophole that will allow corporations to line their pockets this time? But how long will that money last? 🤔
Source: latimes - 🏆 11. / 82 Read more »

How to fix the failed small business loan program - Business InsiderOpinion | Congress' small business loan program failed those who needed it most. Here's how to fix it. By lexir, Megan Niedermeyer, and Jeanette Quick of GustoHQ lexir GustoHQ It was designed to fail or in the alternative it was a scam
Source: BusinessInsider - 🏆 729. / 51 Read more »

Kabbage Paycheck Protection Program loans for small businesses: Review - Business InsiderKabbage has shifted its focus to Paycheck Protection Program (PPP) loans to help small businesses struggling amid the coronavirus outbreak. Allows small business to get Loans that the stimulus package doesn’t give to small businesses . Fintech- financial tech company
Source: BusinessInsider - 🏆 729. / 51 Read more »