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 earlier
Treasury Secretary Steven Mnuchin touted early data in a series of Twitter posts. Around 2 p.m., he said more than $1.8 billion in loans had been processed "mostly all from community banks."
But for many banks it was too late to launch the program Friday morning, the deadline set by Mnuchin that many lenders called unrealistic. And while the new guidelines offered relaxed loan-verification rules, they were still structured in such a way that banks would have the easiest time offering loans to existing borrowing customers that had previously been vetted.
Many banks had started gathering borrowers' information in the days leading up to the launch. On Friday, some were taking a cautious approach and processing a small number of loans to see how the system held up. "We have gotten in and we have tested one application and gotten an approval," he said. "Many bankers however are not even able to access E-Tran. There have been many technical issues."
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