The $60 Billion Carve Out for Small Lenders Won’t Solve PPP Problems

Congress tried to solve the problem of large businesses obtaining loans from the PPP by giving more money to smaller banks; but as Ryan Metcalf, head of U.S. regulatory affairs at Funding Circle, said a better way would have been to carve out this money based on loan size; Metcalf said, “What they should and could have done was ensure that this $60 billion is set aside for loans under $50,000, or for small businesses with less than 20 employees, but they didn’t do that”; what this means is that, once again, the smallest companies might miss out on badly needed funds; the $60 billion carve out excludes fintech lenders, it is only intended for banks; because many lenders have continued accepting applications even though there was no money available it is expected that the money for this round of PPP loans will be exhausted even more quickly, possibly within 72 hours. Banking Dive

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