Update On The PPP Stimulus Program

Here is what I’ve been able to learn about the roll-out of the PPP Stimulus program.  It’s like Christmas for business owners and a nightmare for Santa Clause.  Why the delays?

In the late 1930’s the country was in a depression and Hitler was conquering Europe and Japan was conquering Asia.  The USA was depressed with no money.  Then December 7, 1941 came and the US immediately was engaged in a two front war, Europe and the Pacific.  The fighting tip of the spear for the USA is the USMC.  In 1939 there were 19,432 total people in the Marine Corp.  By 1945 there were 474,680.  The USMC expanded 25X in just 5 years.  How would you like to manage that growth?

That is where bankers are, they are being asked to manage a huge spike in loan/grand requests without much guidance from the SBA.  The SBA typically guarantees about $30B in loans a year or $2.5B a month.  Congress is asking them to fund and guarantee $377B in loans in a couple of weeks.  The wagon is overloaded, the wheels are falling off, but the horses are still pulling.  That is why there are delays in getting approvals and funding.

Best advice.  Be patient.  It has only been 7 days since the lenders started taking requests.  It may be another week before we see progress, but it is coming.  Also encourage your democratic elected officials in congress to approve the $250B in extra money for small business without loading the bill down with non-related PORK.

There is light at the end of the tunnel.

 

Dan Lacy

The Prophet of Profit