The Fed is the Key Player for Success in Stimulus Funding to SMBs

The Paycheck Protection Program has seen its fair share of problems since launching and many of these issues could have been foreseen; banks do not extend capital to small businesses efficiently and online lenders, while being efficient, are finding a hard time operating themselves without the requisite capital; ultimately the Fed  will need to be the backstop to the program in order for it to succeed in the way it was intended; the Fed took a step in this direction on Monday when they announced a facility to finance other’s purchases of the loans; the efficiency in lending is being tested right now with many lenders still underwriting loans as if times were normal; small businesses are unable to wait much longer or else they risk adding themselves and all of their employees to the growing unemployment line. The Wall Street Journal

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