Approximately $6 billion of the $350 billion program went to lender fees, as provided in the legislation.
Small-business owners across America are outraged after the coronavirus relief program intended to extend them a financial lifeline exhausted its $350 billion fund less than two weeks after it started — while lenders took home almost $6 billion in fees.
The Small Business Administration opened two programs: The $350 billion Paycheck Protection Program offered businesses with fewer than 500 employees a loan that can turn into a free grant if used to cover payroll and other allowed expenses and employees aren’t laid off. The Economic Injury Disaster Loan provided up to $2 million in financial assistance for any business that has losses as a result of the pandemic.
“It is frustrating due to the small window of opportunity to maintain business,” wrote Yurubi. “This is not right.” The total amount approved was lower than the $349 billion allocated because approximately $6 billion went to lender fees, as prescribed by the legislation. However, despite the amounts of funding that have been committed, the nation’s biggest retail banks were largely unable or unwilling to share figures on how many funds had actually been actually deposited into customers’ bank accounts.
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