Read on Twitter
I& #39;ve spent the last 2 weeks of my life locked in this room trying to make #PPPloans work for my companies. I have thoughts 1/
I& #39;ve got to acknowledge that these are insane times and @marcorubio had the best intentions. Everyone from Congress, to the banks, to @USTreasury, to @nvca has been working like crazy to make #PPPloans work. It& #39;s still not working 2/ https://www.wsj.com/articles/small-business-loans-face-delays-even-as-coronavirus-program-expands-11586511002">https://www.wsj.com/articles/...
As I mentioned on @Marketplace this week, the original sin was to use @SBAgov as the distribution mechanism. In a good year SBA issues $30B worth of 7a loans. To issue $349B of #PPPloans in a few weeks is staggering. 3/
https://www.marketplace.org/shows/marketplace-tech/covid-19-small-business-loans-venture-back-startups/?amp">https://www.marketplace.org/shows/mar...
https://www.marketplace.org/shows/marketplace-tech/covid-19-small-business-loans-venture-back-startups/?amp">https://www.marketplace.org/shows/mar...
Even though Congress thought it was cutting through @SBAgov regs by waiving "affiliate rules" and "personal guarantees," SBA rules almost killed this program before it started. Over 120 startup groups and 100 lawmakers pleaded for relaxed regs 4/ https://twitter.com/nvca/status/1244420006290624513?s=19">https://twitter.com/nvca/stat...
With imperfect regs, the next step was to get banks comfortable with lending. Even after @USTreasury practically shifted all burdens of proof to borrowers, the mechanics of lending are still being invented on the fly.
#PPPloans checks aren& #39;t flowing 5/ https://www.washingtonpost.com/business/2020/04/10/small-businesses-are-still-awaiting-emergency-loans-facing-dilemma-about-how-spend-them/">https://www.washingtonpost.com/business/...
#PPPloans checks aren& #39;t flowing 5/ https://www.washingtonpost.com/business/2020/04/10/small-businesses-are-still-awaiting-emergency-loans-facing-dilemma-about-how-spend-them/">https://www.washingtonpost.com/business/...
Additionally, fundamental flaws with the @SBAgov Etrans system, which was never intended to do something like #PPPloans, means many banks either can& #39;t work with the program or have all their applications in limbo. @ComericaBank is a great example 6/ #1">https://www.comerica.com/campaigns/covid-19/ppp-app-updates.html #1">https://www.comerica.com/campaigns...
Even if/when the money gets disbursed, #PPPloans has a complex formula for determining loan forgiveness in just 8 weeks. There is no plan or mechanism for figuring any of that out. It& #39;s a leap of faith for everyone involved. 7/
And because the program is "first come first serve" while fundamentally underfunded for it& #39;s intended purpose, folks are worried about not getting their fair share. Layer in the broken application process and you have a panic 8/ https://www.bizjournals.com/buffalo/news/2020/04/08/frenzy-over-ppp-loans-hits-buffalo-business.html">https://www.bizjournals.com/buffalo/n...
Congress is currently debating throwing another $250B at #PPPloans. I still haven& #39;t seen a anyone get a check. I sure hope someone is looking at fundamentally fixing this. 9/9
@RepFletcher @RoKhanna @marcorubio @JohnCornyn @SenTedCruz @SpeakerPelosi @stevenmnuchin1
@RepFletcher @RoKhanna @marcorubio @JohnCornyn @SenTedCruz @SpeakerPelosi @stevenmnuchin1
