Small Businesses Scramble to Get Their Share of $350 Billion in Federal Aid
Economy

Small Businesses Scramble to Get Their Share of $350 Billion in Federal Aid

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An aid program designed to help small businesses hurt by the coronavirus pandemic got off to a rough start Friday as banks struggled to implement the massive lending effort, a key part of the $2 trillion aid package signed into law last week.

Guidance from the Treasury Department was sent to banks only on Thursday evening, leaving banks little time to finalize their application systems.

Many banks – including Wells Fargo, PNC and Citigroup – said they need more time to get the program up and running. Bank of America, one of the few banks that began actively administering the program, said that it had received applications from more than 58,000 customers by midday, for loans totaling more than $6 billion, CNBC reported. The nation’s largest bank, JPMorgan Chase, pushed a temporary portal for its loan program live Friday afternoon.

“The chaotic launch heightened fears among business owners that they could miss out on the historic program if lenders manage to disburse all $350 billion of the money,” CNBC said.

Banks expect to see enormous demand for the aid money. The program is aimed at business with fewer than 500 employees, and includes sole proprietorships, independent contractors and nonprofits. Businesses that use their aid money to pay for salaries and overhead are eligible for loan forgiveness.

For more on the small business program, see NPR,  CNN and The Washington Post.

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