Government Loans Start Flowing to Small Businesses
The flow of money to small businesses under the government’s $349 billion coronavirus relief plan is picking up momentum although many company owners are still waiting and wondering.
Money that was held up by technological and legal issues and the sheer volume of applications began arriving in companies’ bank accounts at the end of last week.
The Small Business Administration reported Monday afternoon that more than 941,000 applications had been approved for over $226 billion from the Paycheck Protection loan program.
The loans of up to $10 million at an interest rate of 1% carry the promise of forgiveness if the money is used for retaining staffers or rehiring those who have been laid off.
They also can be used for rent, mortgage interest and utilities. There have been obstacles to getting the money flowing.
The SBA ran into computer problems and bankers initially favored their most established customers. Money was also delayed amid confusion between the SBA and banks over loan documents.
