U.S. small-business rescue loan program enters fourth day plagued by technical problems
7 April, 2020, 10:10 am
WASHINGTON (Reuters) – The U.S. government’s $350 billion small-business rescue program entered its fourth day on Monday, plagued by technology and processing problems that are delaying disbursements to businesses hurt by the novel coronavirus, according to industry groups, bankers and an email seen by Reuters.
U.S. lenders, inundated by thousands of loan applications, struggled to access the government’s technology system for processing the paperwork over the weekend, and the paperwork itself changed more than once, the sources said.
“We know that your efforts have been frustrated with system issues, policy questions and slower than usual responses,” the Small Business Administration’s regional offices wrote to bankers on Saturday evening, according to an email seen by Reuters.
Many lenders have had problems signing up for new user accounts with the SBA’s platform, while bankers who already had accounts have had issues unlocking them or resetting passwords, the email said. It said the SBA was working to unlock all of the existing user accounts in one batch.
SBA also alerted lenders in the email that its technology platform’s loan authorization form was “not at all” compliant with the terms of the rescue program.