For many businesses, by the time all this is sorted out, it will already be too late.
Do better, Steve. Photo: Sarah Silbiger/UPI/Bloomberg via Getty Images The small-business bailout — otherwise known as the “Paycheck Protection Program” — was arguably the most ambitious provision of the $2 trillion stimulus bill that Congress passed last week.
Unfortunately, the small-business bailout season is off to a shaky start — and for entirely predictable reasons. Here, the four big ones: But banks fear this new line of business is riskier than it appears. Specifically, the administration is requiring banks to verify borrowers’ eligibility and certify the size of the loan they are eligible for . Which raises the question: What if a bank gets tricked?
Treasury secretary Steve Mnuchin has said that the administration is committed to replenishing the program’s fund once it’s exhausted. But for now, businesses are competing for scarce bailouts on a first-come, first-served basis. Which is surely exacerbating the preexisting mismatch between demand for loans and suppliers of them, as firms rush to get into the front of the line.
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