SBA stumbles with second round of emergency loansThe Hill
April 29, 2020
The second round of the Small Business Administration’s (SBA) emergency coronavirus lending program is struggling to bounce back from a disastrous start.
A crush of applications locked out thousands of furious lenders and desperate business owners on Monday, requiring many applicants to give it another go on Tuesday after waiting weeks for the new pool of money.
Small businesses have flooded banks, credit unions and financial firms across the country to secure forgivable loans through the SBA’s Paycheck Protection Program (PPP) after President Trump and Congress approved an additional $310 billion in funding last week.
The original $349 billion allocated for PPP loans ran dry in less than two weeks, leaving thousands of businesses without relief as more states extended coronavirus restrictions.
The backlog of PPP requests that built up during the weeks without funding crashed the SBA’s beleaguered processing system, preventing thousands of applicants from securing government assistance.