One reason the Banks are not lending to the PPP program is that they haven't received money from the FED's and don't have all the rules from SBA on requirements for the loan. plus, they can only make .05%. that has been changed to 1%. The money is slowly starting to flow by some banks verbally learning what provisions need to be in the loan documents. It is a good stimulus package but the Government kind of stumbled over their own feet. Everyone knew that once the legislation was approved there would be an immediate spike in demand for those loans. When it happened the Fed's just were not ready. They had not printed the money and the rules were not complete. Banks when loaning to federal programs have a stringent set of rules to comply with. If they don't know what those rules are they are not going to loan for fear of sever penalties. These delays make it even harder on small business unless they have adequate cash reserves. Instead of being critical of the Banks be critical of the process.
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