Regarding the many kudos given the small business safety net provided by the SBA Paychecks Program, the proof is in the execution. As documented in many personal interviews with small businessowners on local, regional and national media, only those applying to the largest money center banks are being told that applications are even available, and then only for that bank’s existing loan customers. Almost all applicants to smaller regional or local banks find their bank either has no SBA relationship or doesn’t know when applications will be available, if at all.
As of Friday evening’s news broadcasts, $151 billion in SBA Paychecks loans have already been approved. This is impressive by any measure. Based on applicant “qualifications." 100% of such loans will be to businesses that already had loans or lines of credit in place. Due to current conditions, those borrowing facilities are obviously and seriously impaired as to being paid back timely. There is no better bank protection against losses or workouts than speedily facilitating favorable term government loans to support customers to which they have debt exposure.
These “qualified” borrower businesses have all necessary information and paperwork in place to streamline processing. The earliest applications will quickly reap the available money in the program. That is efficient in all fronts.
As for the legions of much smaller and less sophisticated American entrepreneurs? As always, they’ll be fending for themselves. Good luck to them.