The White House hopes Congress will almost double the size of its program to support ailing small companies by the end of the week, as some of the country’s largest lenders still sit on the sidelines and others stay unable to access the system.
U.S. Prez Trump stated the administration would seek another $250 billion on top of the $350 billion of funds granted by Congress in March, which launched Friday.
Treasury Secretary Steven Mnuchin stated he hoped Congress would sign off on the funds by Friday, as small enterprises scramble for the first-come, first-serve lifeline.
Executives at Bank of America (BoA) and JPMorgan Chase stated they had obtained millions of claims. But as of Tuesday, Citigroup stated it was only accepting a limited number of applications, while Wells Fargo, which has limited lending under this system at $10 billion, stated it had yet to distribute any funds to clients.
The SBA has yet to roll out a promised online system for taking on lenders that have never previously registered with the company, based on the Independent Community Bankers of America.
A representative for the SBA didn’t respond to a request for comment; however, on Monday, the agency defended its progress, saying this system was unprecedented and pointing out that it had approved billions in loans in a short time.