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The small business program won't be defined its first day, but it's first day will.. not be good.
Community banks already got the loan rate doubled for what's not forgiven. https://www.washingtonpost.com/business/on-small-business/us-doubles-small-business-loans-rate-to-1percent-after-lenders-balk/2020/04/02/c49c6d8a-752c-11ea-ad9b-254ec99993bc_story.html
JPMorgan said it's not ready, and if it's not, probably nobody is: https://www.cnbc.com/2020/04/02/jpmorgan-says-its-not-ready-for-small-business-loan-applications-as-banks-await-treasury-guidance.html
Lenders have no clarity about the program, and mostly want to be held harmless from any liability. https://www.marketwatch.com/story/lenders-call-on-washington-for-more-clarity-on-small-business-rescue-program-a-day-before-launch-friday-2020-04-02
All these lenders are said to be eligible but they have to be approved by SBA and there's no system of approvals set up. https://www.nytimes.com/2020/04/02/business/small-business-coronavirus-stimulus.html
A http://HC.gov scenario would be catastrophic. Time is the key to all of this. Hundreds of thousands, maybe millions of businesses are weeks from shutting down for good. And yet operating this program on the fly is going to make banks not want to participate.
The Home Owner's Loan Corporation in the Depression just hired a bunch of people to process the loans. They didn't rely on banks or a pass-through of confusing information. They just did the job.
Not what we're getting here. Brace yourselves.
Not what we're getting here. Brace yourselves.
CC @EricLevitz, @kdrum. Design is important but implementation is everything, and day 1 implementation is going to be miserable. Which isn't all that unexpected.
