Overloaded SBA website crashes as banks scramble to submit loan applications
Banks and credit unions say they are having trouble submitting loan applications to the federal government for the second round of the paycheck protection program. Small businesses in Connecticut and New York were largely excluded from the first round of the $ 350 billion loan and grant program.
Bankers are more hopeful that this latest round of funds, $ 310 billion administered by the Small Business Administration, will this time go to genuine small businesses. The problem is, once the SBA web portal opened on Monday morning, it crashed. Many times.
“Some credit unions have been unlucky, so far other credit unions have been lucky. I suspect the system is just bogged down with thousands of financial institutions, ”said Bill Mellin, CEO of the New York Credit Union Association.
Congress has set aside $ 60 billion just for small banks and credit unions. The hope is that this would prevent the big companies from absorbing all the money in the first place. Several large banks have already said they have more requests than they can handle successfully. Mellin says that with this latest cycle, banks are prioritizing their old customers over new customers.
Read the latest information on the WSHU coronavirus coverage here.
Have questions you would like WSHU to answer in local coronavirus coverage? Let us know through this survey.