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The banks are doing everything they can to make it a challenge to file for this program. You can't really blame them since it doesn't make sense for them to be

The banks are doing everything they can to make it a challenge to file for this program. You can't really blame them since it doesn't make sense for them to be lending given that 4/5 of the amount is likely to be forgiven. This should be done through spa.gov or some other government service. For BOA you're required to have a lending product in addition to a checking account. While Chase first delayed their roll out and now are only offering a call back (with no details as to when or what they will require). I hear similar things about the disaster loans offered by the Government (not hearing back within 3 days) but at least in that case you can actually file an application. What are you supposed to do if you don't have an account with BOA or Chase? You're at the mercy of whether or not the bank wants your loan on their books. I can't see the upside in doing this through the banks other than to make it a logistical nightmare for small businesses - if anyone has thoughts otherwise I would really like to understand.

digsy 7y ago
>I can't see the upside in doing this through the banks other than to make it a logistical nightmare for small businesses - if anyone has thoughts otherwise I would really like to understand. Financial Institutions are set up already to do Know Your Customer (to prevent fraud). And they have systems/processes in place to file loans through E-Tran (needed to file a loan with the SBA). You arent hearing back instantly because FIs are completely overloaded with this and modifying existing loans/mortgages for small businesses and customers.
mNovak 7y ago
I think the logic is that banks can much more rapidly deploy money than can the government (see estimates on the regular stimulus check timeline). The issue for the banks isn't that the loans will be forgiven, that's fine, they still get an origination fee; the issue is they're liable for validating the info you provide on the application, whereby if there's an issue your loan may in fact not get forgiven, and they're stuck with it. So you're exactly right, if you already have accounts with the right banks, it's easy enough for them to verify and process the loan. But if you're an outsider, it's much harder.

digsy 7y ago

>I can't see the upside in doing this through the banks other than to make it a logistical nightmare for small businesses - if anyone has thoughts otherwise I would really like to understand. Financial Institutions are set up already to do Know Your Customer (to prevent fraud). And they have systems/processes in place to file loans through E-Tran (needed to file a loan with the SBA). You arent hearing back instantly because FIs are completely overloaded with this and modifying existing loans/mortgages for small businesses and customers.

mNovak 7y ago

I think the logic is that banks can much more rapidly deploy money than can the government (see estimates on the regular stimulus check timeline). The issue for the banks isn't that the loans will be forgiven, that's fine, they still get an origination fee; the issue is they're liable for validating the info you provide on the application, whereby if there's an issue your loan may in fact not get forgiven, and they're stuck with it. So you're exactly right, if you already have accounts with the right banks, it's easy enough for them to verify and process the loan. But if you're an outsider, it's much harder.