Treasury's Mnuchin asking for $250B to replenish small business loan program

Katie Ramirez
April 8, 2020

Bank of America on Monday said it received 177,000 applications for loans under the program asking for $32.6 billion in financing - almost 10 percent of the amount Congress has allotted - and had reached its $10 billion capacity to lend to small business customers.

Banks and the Small Business Administration have been flooded by applications since the program began operating on Friday.

She is among the hundreds of thousands of small owners who have already applied for the SBA loan.

The New Jersey Economic Development Authority rolled out the specifics for how businesses hurt by the COVID-19 pandemic can apply for a $10 million state loan program, after a similarly-natured grant program was depleted just an hour after applications opened on April 3. "Many businesses struggling through this crisis need a financial bridge to help them survive and recover once this crisis eases".

"While we are actively working to create balance sheet capacity to lend, we are limited in our ongoing ability to use our strong capital and liquidity position to extend additional credit", CEO Charlie Scharf said in a statement.

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"The biggest banks in our country are doing it", he said.

McConnell did not say how much the Senate would try to approve by unanimous consent - which allows the Senate to approve legislation without requiring senators to return to Washington to cast votes - but Small Business Committee Chairman Marco Rubio, R-Fla., said "at least" another $200 to 250 billion would be necessary to keep the program afloat.

"If the funds are used for payroll for the eight weeks and it's exactly or beyond the amount of the loan requested, there's a likelihood that the entire debt will be forgiven by the SBA", said Guidry.

If the program runs out of money, Treasury Secretary Steven Mnuchin told FOX Business on Tuesday that officials will ask Congress to replenish the fund. "So you have to get past the labels", says Gov. Burgum. "And if we run out of money we'll come back for more".

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