Treasury Secretary Mnuchin criticizes big companies, including the LA Lakers basketball team, taking loans through the Paycheck Protection Program and warns that others following suit will undergo an audit. Follow live updates:
From CNN's Lauren Fox
Let’s just say it: The second launch of the Paycheck Protection Program didn’t go smoothly yesterday. In fact, lenders and small business owners who had hoped the kinks had finally been worked out in the intervening weeks since PPP ran out of money,System-wide slowdowns left lenders taking to Twitter to vent frustrations. Small business owners who have been waiting weeks to get their applications approved, may still be in the queue after some small lenders failed to get even a few dozen applications uploaded.
Several industry sources pushed back that the pacing mechanism was the sole reason the system was unreliable. Instead, arguing the issue was that SBA’s system was simply not equipped to handle the volume despite multiple promises to congressional aides and industry that the system would be ready to go this time.It is worth repeating, SBA has never in the history of the agency lent the kind of money they are responsible for getting out the door right now.
It would normally take SBA years to lend the more than $660 billion they are kicking out right now. Aides on the hill hearing about frustrations from constituents and bankers are keenly aware of the fact that the system has not worked smoothly, but at the end of the day, the entire U.S. Senate present to vote for the program, did.
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