Calif. Banks Met With Frustration as PPP 2.0 Launches
Steve Andrews, president and CEO of the Western Bankers Association, issued the following statement regarding today’s re-opening of the Small Business Administration’s Paycheck Protection Program:
“California banks worked throughout the weekend to prepare for the re-opening of the Small Business Administration’s (SBA) platform where Paycheck Protection Program loan applications must be submitted. Banks were hoping that the glitches that challenged the system during the first round of funding would be resolved.
“Instead, our banks were met with frustration as the SBA implemented “pacing mechanisms” to the platform, which limited their ability to submit loan applications, and many ended up being kicked off or denied access. Bankers spent all day trying to input loan applications into the system with limited success when compared against the number of pending applications waiting to be submitted.
“Today’s result is extremely disappointing for the small businesses that need important financial relief and the banks that are working with them to seek help. We hope these issues will be resolved immediately so that the underlying objectives of the program can be achieved.”