Small-Business Bailout Needs More Than Banks

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Small businesses badly need Congress’s $350 billion loan program. But there are some hurdles to getting the cash to the businesses. Spencerjakab explains how the Fed can help. WSJWhatsNow

Trying to extend hundreds-of-billions of dollars of small-business credit through American banks is like putting a round peg into a square hole.

These days, the most vulnerable small businesses are as likely to ask an online financial-technology firm—Square, for example, or On Deck Capital or Kabbage—for credit as they are any local bank. That is one reason why it is such a struggle to dispense Congress’s $350 billion in guaranteed Paycheck Protection Program loans to small businesses. And it is why the Federal Reserve may...

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