![]() ![]() Secondly, the PPP program must do more to to get money to minority-owned and women-owned businesses, as well as smaller firms that generally bank with regional or community banks. Recently developed solutions avoid many of the challenges involved in legacy systems, ensuring the most important outcome is achieved: serving the customer. Fintech solutions, such as Biz2X, are built with modern software and can handle processing at scale. For instance, it has been reported that much of the E-Tran system is coded in COBOL, a programming language that is no longer in widespread use by tech companies. Government agencies and banks alike, which are handling submissions of applications in the tens of millions, need to be using the latest technology to process such requests. Thus, the importance of reliable and efficient software could not be clearer. The challenges highlight two shortcomings of the well-intentioned government’s lending program.įirst, the technology underlying the submissions was, understandably, not built to handle the avalanche of applications resulting from the economic damages of the coronavirus pandemic. Confusion from lenders was the theme from that point forward on Monday as tens of thousands of small business applicants waited for word about the status of their outstanding requests.Īdditionally, the SBA on Wednesday, halted access for large banks for an eight-hour period so that lenders with less than $1 billion in assets would have a chance to submit Paycheck Protection Program loan applications into the system. However, a spokesperson for the SBA said that the “pacing” mechanism designed to stop any one lender from submitting thousands of loans an hour into the E-Tran system caused lenders to “time out” on the system. The SBA reported that it made adjustments to its E-Tran system in an effort to ensure that all lenders would be on equal footing and have the ability to submit the same amount of applications per hour. In fact, the SBA announced last week that in the first round of PPP alone it processed more loans in 14 days than it had in the last 14 years. The lenders could not input the applications into the SBA system at the same time, which was not designed for this level of volume. Nearly 30 million small businesses are vying for $310 billion in additional funding. ![]() ![]() “I heard there was a glitch,” President Trump said.ĭemand for the second round of funding crashed the system on Monday almost as soon as lending reopened. Borrowers should carefully review PPP regulations and guidance and the certifications required to obtain a loan.” “All eligible borrowers who need these funds should work with an approved lender to apply. “We encourage all approved lenders to process loan applications previously submitted by eligible borrowers and disburse funds expeditiously,” Carranza and Mnuchin said. ![]()
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