U.S. Capitol. (Source: Shutterstock)
Amid allegations that large lenders and large businesses have been getting the first crack at the coronavirus-related Paycheck Protect Program loans, two Democratic senators called on the administration to process applications for loans of less than $1 million first in any new funding that is provided.
"Giving priority to smaller loans will ensure that small businesses in our states have a fair shot at receiving PPP funds," Senate Banking Ranking Democrat Sherrod Brown and Brian Schatz (D-Hawaii), wrote in a letter to Small Business Administration and Treasury Department officials this week.
The complaints about how the SBA is processing PPP loans have grown so loud that on Wednesday, the agency set aside eight hours for smaller lenders to submit loans.
That is not enough, the senators contended.
They said the SBA has been processing the loans using a "first-come, first serve" system that is not at all transparent.
They said that while Congress has set aside some $60 billion in loans for smaller lenders, that money is likely to be quickly exhausted. And then, smaller lenders will have to compete with big banks and big companies for the rest of the PPP loan money.
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