February 13, 2021

slowed

Small business rescue slowed by fight against fraud, drawing protests

“The SBA has put up this firewall” against fraud, said Sam Sidhu, vice chair of Customers Bank, which experienced an immediate loan rejection rate of as high as 75 percent at first. “The firewall’s going to be very beneficial in the long-term, but it’s extremely painful right now, especially when we feel pretty comfortably the money is going to mostly satisfy the demand.”

The latest bottleneck crimped the disbursement of aid in one of the government’s largest Covid-19 relief programs, which despite a series of implementation problems has approved more than $623.4 billion in loans since its creation in March.

Read More