Supposed to save many businesses from folding, small business loans have paralysed some banks in the first days. Demand has outgrown expectations, the system is yet to work properly and money just isn't flowing. Not yet, at least.
Pushed into operation on Friday, the small business loan program is yet to show results to those in need. Small Business Administration's system used to process applications filed by businessowners through different banks has been crashing constantly until Monday afternoon, crushed with the number of applications.
Despite pressure of time and ongoing technical issues, applicants have successfully filed for so many loans that some banks have already maxed out on what they can ask for. That's the case for Wells Fargo (maxed at $10 billion), while Bank of America and JPMorgan Chase have seen applications worth over $60 billion combined. Citi is yet to launch its application platform.
