For many businesses, by the time all this is sorted out, it will already be too late.
Do better, Steve. Photo: Sarah Silbiger/UPI/Bloomberg via Getty Images The small-business bailout — otherwise known as the “Paycheck Protection Program” — was arguably the most ambitious provision of the $2 trillion stimulus bill that Congress passed last week.
Unfortunately, the small-business bailout season is off to a shaky start — and for entirely predictable reasons. Here, the four big ones: But banks fear this new line of business is riskier than it appears. Specifically, the administration is requiring banks to verify borrowers’ eligibility and certify the size of the loan they are eligible for . Which raises the question: What if a bank gets tricked?
Treasury secretary Steve Mnuchin has said that the administration is committed to replenishing the program’s fund once it’s exhausted. But for now, businesses are competing for scarce bailouts on a first-come, first-served basis. Which is surely exacerbating the preexisting mismatch between demand for loans and suppliers of them, as firms rush to get into the front of the line.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
The Coronavirus Small Business Loan Program: What You Need To KnowCongress has made $349 billion available in loans to small businesses, much of which may be forgivable. Here's what to know about how this might work for your small business.
Baca lebih lajut »
Small Business Loan Program Makes Bumpy StartThe government's $350 billion small business loan program got off to a rocky start Friday, with some of the nation’s biggest lenders saying they weren’t yet able to process loan applications
Baca lebih lajut »
Federal relief loan chaos on Twitter: banks turn small businesses away - Business Insider'We don't get lifeboats': Entrepreneurs are raging on Twitter after banks turn away desperate business owners who were promised government relief today
Baca lebih lajut »
On first day, small business loan application process plagued with problemsOn first day, small business loan application process is plagued with problems, as small business owners waiting for loans say they can't hold out much longer.
Baca lebih lajut »
Treasury makes coronavirus loan terms less favorable for small businessesThe Treasury Department raised interest rates on its Paycheck Protection Program loans for small businesses and reduced their payback period.
Baca lebih lajut »
Exclusive: Top U.S. banks may shun small-business rescue plan on liability worries - sourcesTop U.S. banks have threatened to give the federal government's small-business rescue program a miss on concerns about taking on too much financial and legal risk, five people with direct knowledge of industry discussions told Reuters.
Baca lebih lajut »