Thousands flood banks as federal small-business loan program has a chaotic first day

Final regulations for the $349 billion SBA program weren’t released until just hours before the program began, and many of the nation’s biggest lenders weren’t ready

The launch of a $349 billion loan program that is key to the government’s hopes of helping the nation’s small businesses survive the economic downturn got off to a rocky start Friday as the big banks in charge of doling out the money said they weren’t prepared or were limiting applicants to their closest customers.

Wells Fargo, Citigroup and PNC said they were still reviewing the program’s rules, which were released by the Treasury Department and Small Business Administration just hours before the program’s launch. JPMorgan Chase, the country’s largest bank, didn’t begin accepting applications until 1 p.m., after initially saying it wouldn’t be ready at all Friday.

Bank of America was one of the few big banks that began taking applications Friday morning, earning the praise of President Trump. “Great job being done by @BankofAmerica and many community banks throughout the country. Small businesses appreciate your work!,” Trump said on Twitter. Continue reading.