Dennis Jansen Interviewed on Covid-19 Economic Relief Bill Loan Challenges
Apr 23, 2020
Summary: Dennis Jansen, PERC’s Director, was interviewed on Monday, April 13, 2020 by news station KBTX on the difficulties facing the Small Business Administration (SBA), banks, and loan applicants with quickly processing business loans that are part of the Covid-19 Economic Relief Bill.
Jansen stated that the loan program, which is being administered by the SBA, faces multiple challenges, including the need to quickly develop procedures on the fly, the large total quantity of applications, and the loan policies and processes that will need to be followed.
One problem facing the SBA is the sheer size of the relief loans that their staff will need to process. “I think the biggest problem is that this program started almost out of nowhere and they’ve had about a week or so to get a process together to lend out $500 billion” Jansen said. Last year, the SBA made about $2 billion in disaster loans with its 4,000 employees.
Although under strain from shelter-in-place orders, businesses who are in need of one of these loans must still abide by the processes set out by the SBA and its partner banks. “The SBA approves the loans, but banks actually have to make the loans. There’s about 1,800 partner banks with the SBA and those banks can make loans now, but banks that aren’t currently partners have to be approved. They have to go through a process – it's being expedited, but there’s still a process by which the SBA approves its partner banks.”
Click here to see the full interview
on KBTX news.