HOME | ABOUT US | MEDIA KIT | CONTACT US | INQUIRE
HOME | ABOUT US | MEDIA KIT | CONTACT US | INQUIRE
U.S. Reps. Emanuel Cleaver of Kansas City and William Lacy Clay of St. Louis have written President Trump to express concerns about banking-system bottlenecks with the new federal loan program designed to help U.S. businesses avoid layong off workers during the pandemic.
In a letter to Trump this week, the two Missouri congressmen said banks were working with “incomplete guidance and insufficient communication to small businesses and small banks seeking to access the Paycheck Protection Program of the CARES Act.” They asked that the Small Business Administration and Treasury Department establish a hotline for financial institutions and borrowers.
While also recognizing the strained resources of the SBA in during a crisis of unprecdented severity, they wrote, “many of the smaller financial institutions and businesses within our districts seeking to leverage this program have found themselves unable to receive enough guidance to implement a loan product or access the program.”
As a result, small businesses may be forced to lay off their workforce during the COVID-19, the said, “precisely the effect this provision of law sought to prevent. Our offices have received several calls from small banks frustrated that SBA personnel were not responding to their calls. Further, our own staff have faced major obstacles connecting with anyone at SBA on these important issues.”
They left Trump with a series of questions. Among them:
o Will SBA guarantee loans to small banks if PPP funds are depleted before loans are finalized?
o What is SBA’s guidance to small banks on this point?
o What is the SBA’s timeline for enrolling non-SBA certified lenders into the Paycheck Protection Program?
o How is SBA doing outreach to small businesses like barbershops and non-profits and other firms that may not be aware of their eligibility to ensure they are not permanently shuttered?
