Good article from fintechs on SBA PPP problems

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"The Floodgates Are Opening Today for Round Two of PPP Lending

While the PPP certainly has flaws, it will open today to massive demand. The funds for round one ran out on April 15 but for the past 12 days many lenders (including approved fintechs) have been taking applications in anticipation of round two. So, there is massive pent up demand for new dollars.

The largest banks have also got their act together. Wells Fargo has 450,000 applications ready to go, Bank of America has processed 390,000 applications (some of these were funded in round one) and Chase has tens of thousands of new applications ready to go. Many fintech lenders will also have thousands of loans ready to go when the virtual doors open at 10:30am today.

Now, the SBA is fully aware they are about to be inundated with completed applications. They sent out an advisory yesterday afternoon (hat tip to Nat Hoopes of the Marketplace Lending Assocation):

SBA and Treasury are implementing the following measures:

Pacing the number of loans processed in the E-Tran system for participating lenders when processing resumes on Monday, April 27, 2020 at 10:30 am EDT;

Instituting a maximum dollar amount at 10% of PPP funding authority that any lending institution will be able to originate, exclusive of the additional $60 billion preserved for lenders with assets under $50 billion (i.e. $60 billion cap);
Implementing operational standards to ensure that lenders access PPP funds based on their asset size;
Ensuring the Paycheck Protection Program continues to operate on a first-come, first-serve basis so that every small business has access to PPP loans to sustain their business and retain their employees; and
Issuing this guidance for lenders who have received a significant amount of loan applications.
It is likely that there is more than $320 billion in loan demand that is ready to be processed by the SBA. It will simply be a matter of how fast the SBA can process these loans. If their systems stay online today the entire amount could be gone by the end of the day. Certainly by the end of day tomorrow I don’t expect any of the PPP money to still be available"

https://www.lendacademy.com/round-two-o ... ge-demand/
 

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