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I have a really, really bad feeling that @PNCBank is going to shit the bed on the second round of PPP funding (after failing to process applications that were immediately submitted before the money ran out the last time).
Let& #39;s just say the mass email I received did not inspire confidence.
One might think that a party that identifies itself as the party of business would be sensitive to issues like cash reserves, cash flow, and run rate, but nope. This bill treats every applicant equally. Of course, the SBA and lenders don& #39;t do that.
So if you& #39;re from a state that closed early, you& #39;re in the same boat as a bigger co. from a state that closed a couple weeks ago. The same boat up and until they submit their application to their lender& #39;s commercial lending department which gets the application in quickly.
The fact that a hundred $50K loans equates to one $5M loan doesn& #39;t matter. Same boat. Except that the companies applying for the $50K loans really need the money and the $5M loan is getting processed first.
Also, if you& #39;re a leveraged company that has a loan with the bank that is processing the loans, you better believe your loan is getting submitted first. The bank wants to get paid back. Of course, if you didn& #39;t leverage your company, but still need the money, more& #39;s the pity.
Anyway, I suspect that most of the companies applying for smaller loans, e.g., the majority of small businesses, may very well be under by the time these people realize that first come, first serve isn& #39;t working.
