Since our Monday update on the Payroll Protection Loan Program there have been several developments and trends on the SBA’s PPP loan program. Here are Insider’s thoughts as the program rolls out.
There is a need for more money – With demand exploding for the PPP, the Senate went to work on adding an additional $250 billion to the $350 billion already in the program. Republicans had hoped to approve the additional funds by unanimous consent, but Senate Democrats immediately held up the request, accusing Republicans of trying to ram through the expansion with no negotiation and calling for more funding for hospitals and state and local governments.
Senate Majority Leader Mitch McConnell had this to say about the request.
“I’m literally talking about deleting the number ‘350’ and writing ‘600’ in its place,” ….. “Do not block emergency aid you do not oppose just because you want something more.”
The Senate is officially scheduled to reconvene on April 20, but another “pro forma” session may be called before then to try to approve the additional funding.
Smaller banks are proving more responsive on approvals – Community and regional banks are proving to be more responsive in bringing the PPP program online. Many business owners are also appreciating the personal contact and followup from either their relationship manager or another bank representative specializing in the new program.
The larger banks have been slower to begin the application process and interestingly, not shown themselves to be that focused on helping out small business owners affected by the Coronavirus.
Insider has tried to submit an application to Wells Fargo. This has been their response. We have yet to have any direct contact on our application.
An SBA district director was recorded criticizing the large banks, saying that while they were happy to accept government bailout money 12 years ago, they have not made themselves available to help small-business owners affected by the coronavirus pandemic, according to the Washington Post.
A local community banker in Insider’s hometown was recently quoted saying, “People are calling me right and left saying they can’t get through to their bank, and we are taking care of them,” … “There is a place in our country for the big banks, but right now we can be more flexible and nimble.
So a shoutout to community banks and their focus on small business.
Wait, wait, wait…. – No matter who you have you application with, the actual rollout of loan documents and funds has been not has fast as the federal government has hoped. If any of our readers have had success in finalizing a loan and receiving funding, reach out to me at johnhweller@comcast.net.
A bit of good news. Was just contacted by an operator who signed his loan documents electronically and had his proceeds from the loan within an hour.
Stay safe everyone.
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