The system the Small Business Administration is using to establish coronavirus relief loans was not functioning for most of Monday, banking executives said.
The electronic system the Small Business Administration is using to set up new coronavirus loans was down much of Monday, according to senior banking executives, making it impossible for many new loans to be guaranteed.
Billions of dollars in loans sought by small businesses trying to pay employees and keep their doors open were on pause as the SBA, supported by the Treasury, grapples with the demand on its system.
There are an estimated 30 million small businesses in America. Many are expected to apply for the program, which offers up to $10 million in loans that can turn into free grants if the businesses follow certain rules, which include using the money primarily for payroll. Continue reading.