By Joyce M. Rosenberg, Business Writer
NEW YORK (AP) --Banks trying to submit applications for thousands of small businesses seeking coronavirus relief loans have hit a bottleneck for a second day at the Small Business Administration (SBA).
Banking industry groups said Tuesday the SBA's loan processing system is still unable to handle the volume of loan applications from business owners trying to get aid under the Paycheck Protection Program, part of the government's $2 trillion coronavirus aid package. The SBA has said the slowdown is due to its attempts to limit the amount of loans any bank can submit at one time. But some banks say they're not able to get any applications into the system.
"Today is just another slow, frustrating slog for getting PPP loans through," said Paul Merski, a vice president at the Independent Community Bankers of America.
Businesses are seeking loans from a $310 billion second round of funding aimed at helping them retain workers or rehire those who they laid off in response to the virus outbreak. Restaurants, retailers, gyms and other businesses were forced to shut down to try to contain the virus's spread, and other companies have seen a steep drop in revenue as customers stayed home or cut back their spending.
The SBA did not immediately respond for a request for comment Tuesday. But in a memo the agency sent to banks at midday Tuesday and obtained by The Associated Press, the SBA said it would stop banks from using a system that automatically submits applications into the agency's ETran system. Without that system, "the loan processing system will be more reliable, accessible and equitable for all businessses," the memo said.
But at some banks, the change means having to manually submit the applications, a much slower process, said Nick Simpson, a spokesman for the Consumer Bankers Association. Others are able to submit applications in batches of more than 5,000, but it wasn't known how or when the SBA would process them, he said.
The $349 billion first round of funding was exhausted in less than two weeks after the SBA approved 1.7 million in loans. That initial round was also slowed by computer issues at the SBA. In this round, banks have reported that they were being allowed to submit only 350 applications an hour, if that many. Meanwhile, they have thousands on hand.
"Banks continued to try and submit applications around the clock but were often told they had reached their hourly limits after just minutes," Simpson said.
On Monday, SBA head Jovita Carranza tweeted that the agency had approved 100,000 loans.
Oscar and Emmy-Winning Composer Kris Bowers Joins Barking Owl For Advertising, Branded Content
Music, audio post and sonic branding house Barking Owl has taken on exclusive representation of Oscar and Emmy-winning composer Kris Bowers for advertising and branded content.
Bowers’ recent film scores include The Wild Robot and Bob Marley: One Love, alongside acclaimed past works such as The Color Purple (2023), King Richard and Green Book. His contributions to television are equally impressive, with scores for hit series like Bridgerton, When They See Us, Dear White People, and his Daytime Emmy Award-winning score for The Snowy Day.
In addition to his work as a composer, Bowers is a visionary director. He recently took home the Academy Award for Best Documentary Short Subject for his directorial work on The Last Repair Shop. The emotionally touching short film spotlights four of the people responsible for repairing the musical instruments used by students in the Los Angeles Unified School District (LAUSD). The Last Repair Shop reflects the positive influence that musical instruments have on the youngsters who play them, and the adults in the LAUSD free repair service who keep them working and in tune.
Barking Owl CEO Kirkland Alexander Lynch said of Bowers, “His artistry, diversity of style and depth of storytelling bring an unparalleled edge to the work we create for global brands. His presence on our roster reflects our continued commitment to pushing the boundaries of sound and music in advertising.”
Johanna Cranitch, creative director, Barking Owl, added, “Kris first caught my attention when he released his record ‘Heroes + Misfits’ where he fused together his jazz sensibility with a deeply ingrained aptitude for melody, so beautifully.... Read More