Mnuchin says stimulus loan program will be 'up and running' on Friday, despite lenders saying they aren't ready
Treasury Secretary Steven Mnuchin on Thursday said a $349 billion coronavirus rescue loan program for small businesses will be "up and running" on Friday, even as lenders express confusion over how they will issue the loans.
The program aims to keep small businesses like salons and restaurants afloat during the coronavirus pandemic. Business owners can get loans of up to $10 million to make payroll for eight weeks or cover rent, utilities, and other expenses. Mnuchin admitted not all lenders will be able to issue loans on Friday, but still encouraged business owners to apply. "You get the money, you'll get it the same day, you use it to pay your workers," he said. "Please bring your workers back to work if you've let them go."
Tony Wilkinson, president of the National Association of Government Guaranteed Lenders, told Reuters "we anticipate more demand than supply. We've got to get our lenders comfortable with the rules so that we know that when we originate a loan, counting on a government guarantee, that we're doing the things necessary so we can actually have the government guarantee."
Applications will be accepted on Friday, Wilkinson said, but it's anyone's guess how many will be approved. "They will process and close them after they know what the rules are," he said. JP Morgan Chase informed clients on Thursday night that they were "still awaiting guidance" from the Small Business Administration and Treasury, and "as a result, Chase will most likely not be able to start accepting applications on Friday, April 3rd, as we had hoped."
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