Lockouts, login issues, and sluggish systems marred the Small Business Administration's loan approval process, with each bank unable to submit more than a few hundred applications.
During the first phase, the SBA’s loan guarantee system repeatedly crashed under the weight of a higher volume of loans in a few days than it normally receives in a single year, and was inoperable for hours at a time.
A new “lender gateway” built by Amazon Web Services for the SBA was supposed to make make it easier for some new lenders to swiftly submit applications to the SBA’s system. However, not all banks are ready to use it. Amazon did not respond to multiple NBC News requests for comment. "We are hearing from bankers all over the nation, they are locked out of the SBA systems and unable to process their PPP loans. So, challenging and frustrating PPP relaunch to say the least," said Paul Merski, spokesman for the Independent Community Bankers of America, representing 99 percent of banks.
While bankers say they expected some disorganization under difficult and hurried conditions, the program has been evolving, creating both improvements and complications.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Mnuchin optimistic about economic recovery in summer, says new PPP money will be 'distributed fairly'Treasury Secretary Steven Mnuchin predicted that the trillions of dollars Congress has poured into the economy in coronavirus relief packages will pay off as states slowly begin to allow businesses to reopen.
Read more »
Even The LA Lakers Got A PPP Small Business LoanThe Los Angeles Lakers — one of the NBA's most profitable franchises — have returned money they received from a federal loan program intended for small companies. More than 200 public companies are still holding onto money from the program.
Read more »
Several major US banks are being sued for unfair PPP lending practices - Business InsiderICYMI: Major US banks are being accused of prioritizing higher-value loan applications, rather than processing requests on a first-come, first-serve basis
Read more »
L.A. Lakers qualified for an emergency PPP loan — why didn't nonprofits?Not only are nonprofits being skipped over by coronavirus-related aid, they have had to cancel valuable fundraising events because of social distancing lockdowns.
Read more »
Fmr. Special Inspector General on PPP: Oversight needs to be in place when rules are being madeFmr. TARP Special Inspector Gen. Neil Barofsky says the small business loan program was set up to incentivize banks 'to make the biggest loans to the most established customers ... oversight has to be on the ground when the rules are being implemented.'
Read more »
Op-ed: The PPP isn't working. Here's an idea — get paychecks to people, directlyThe short-term pain of job losses, furloughed and unemployed workers in food bank lines miles long, may lead to worse long-term effects: a deep, permanent dent on America's competitiveness.
Read more »