The U.S. government’s $350 billion small-enterprise rescue program was plagued by documents and technical points as it lurched to the top of a fourth day on Monday, with some banks experiencing main glitches with the processing system, based on industry groups, bankers and an email.
The problems with the plan, which is jointly addressed by the Small Enterprise Administration and the U.S. Treasury Division, threatened to delay putting much-needed funds into the hands of small companies hit by the coronavirus crisis.
Three banking delegates said U.S. lenders had been unable to process loan applications for hours Monday after the SBA’s online portal crashed in the noon. A senior administration delegate denied the SBA system had crashed and said the company continued to process loans and add lenders.
Since the program opened Friday, banks have struggled to access the clunky system and the paperwork involved has changed over once, trade sources stated.
Many lenders have had difficulties signing up for new user accounts with the SBA’s platform, while bankers who already had accounts have had problems unlocking them or resetting passwords. It stated the SBA was working to unlock all of the existing user accounts in a single batch.
SBA further alerted banks in the email that its technology platform’s mortgage authorization form was “not at all” compliant with the terms of the rescue program.