Round 2 Of Small Business Loans Starts With Glitches, Doubled Demand
The government just pumped hundreds of billions of dollars more into a loan program for small businesses. But is it nearly enough?
The Small Business Administration started accepting applications Monday for the second round of Paycheck Protection Program, or PPP, funds.
But problems started quickly. Bankers reported problems with the SBA's portal, called E-Tran.
Rebeca Romero Rainey, the head of the Independent Community Bankers of America, released a statement Monday saying, in part, "After working tirelessly to get ready for the second round of PPP funding for their customers and communities, most community banks found themselves continually kicked out of the E-Tran system this morning after the program’s relaunch went live."
The SBA told Newsy in a statement, "Currently, there are double the number of users accessing the system compared to any day during the initial round of PPP. SBA is actively working to ensure system security and integrity while loan processing continues."
After a first round that quickly ran dry and left loans in the hands of massive corporations, small business owners were skeptical another pool of funding would be enough.
"We are at least $500 billion to $1 trillion short of what small business owners actually need," Barry Moltz, a small business expert and consultant, said.
With the second round of funding, the Treasury Department reserved $60 billion for small lenders and capped borrowing at $60 billion per lender.
But since lenders kept taking applications after the first pool of funds ran out, there was a large backlog.
"Undoubtedly, there is not enough money to go around," Moltz said. "The other problem really was there was no rhyme or reason I can find why certain companies got it over other companies."
As of Monday afternoon, the SBA said it had processed more than 100,000 loans with more than 4,000 lenders. It did not say how much money remained in the PPP.
Why Are Factory Jobs Making A Comeback?
The economy is changing and manufacturing jobs are on the rise.By Yuri Kageyama / AP
U.S. Hiring Stays Strong, Complicating Fed's Inflation Fight
With not enough people available to fill jobs, businesses are having to offer higher pay to attract and keep workers.By Ted Shaffrey / AP
Rail Strike Averted: Biden Signs Bill Enforcing Agreement
President Biden signed the measure Friday after it was approved Thursday by the Senate and Wednesday by the House.By Manuel Balce Ceneta / AP
Meta Threatens To Pull News From Platforms Over Proposed Media Law
The proposal from Democratic Sen. Amy Klobuchar would allow media organizations to negotiate compensation for news content shared on Meta platforms.By Richard Drew / AP
Indonesia's Parliament Votes To Ban Sex Outside Of Marriage
The amended code says sex outside marriage is punishable by a year in jail and cohabitation by six months.By Slamet Riyadi / AP
Man Who Shot Lady Gaga's Dog Walker Sentenced 21 Years In Prison
James Howard Jackson, one of three men and two accomplices involved in the violent robbery, pleaded no contest to one count of attempted murder.By Saul Loeb / Pool Photo via AP