They’re concerned that the expectations the administration has publicly set are unrealistic.
Banks are warning that a $350 billion lending program for struggling small businesses won’t be ready when it launches Friday because the Trump administration has failed to provide them with the necessary guidelines and has set requirements for the loans that are unworkable.
The lenders complain that Treasury Secretary Steven Mnuchin boxed them in with an unrealistic deadline and that the ground rules they’ve been given for the program, which is intended to deliver rapid aid to a huge number of ailing businesses, could delay the assistance for weeks or longer.
The banks, which will be responsible for processing loan applications and doling out money, are expecting millions of applications from businesses. Some fear a disaster that could dwarf the failed kickoff of the Obamacare enrollment web site in 2013.
“Banks are ready and willing to lend, but they need clear rules of the road and a streamlined process to be able to get funding into the hands of small business owners in the coming days,” said Greg Baer, president and CEO of the Bank Policy Institute, which represents the nation’s biggest lenders.
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Banks warn that a $350B lending program for struggling small businesses won't be ready when it launches Friday because the Trump administration has failed to provide them with the necessary guidelines and set requirements for the loans that are unworkable https://t.co/Go2KzS5I7P
— POLITICO (@politico) April 2, 2020
President Trump pledged to kick off a $350 billion small business loan program Friday despite widespread warnings from banks that they aren't ready to deliver the desperately needed aid as advertisedhttps://t.co/VfN2vl8Z0K
— POLITICO (@politico) April 3, 2020
A small business lending program designed to halt an avalanche of layoffs got off to a rocky start today as banks rushed to figure out how to process millions of expected applicants based on guidelines the Trump administration published just hours earlierhttps://t.co/VvIiirZ91A
— POLITICO (@politico) April 3, 2020
The loans are not for all businesses. My husband was just laid off. The company he works for is owned by a non-American company who owns a bunch of companies all over the world. So he and others will be laid off.
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