Bank of America has announced a surge of applications for small business emergency funding under the $2.2 trillion virus relief bill, according to a report.
Banks and other commercial lenders are points of contact for small firms seeking relief loans, which are administered by the Small Business Association (SBA).
Some businesses found their bank wasn’t yet prepared to accept applications, and when they tried another bank, they were told that only established customers were being accepted.
News of the surge in applications shows demand is high for the relief funds as businesses seek to stave off collapse amid the pandemic.
The Paycheck Protection Program gives businesses low-interest loans of about 2.5 times their average monthly payroll. The loans will be fully or partially forgiven if businesses show that the money was used to retain or rehire employees and pay some overhead expenses through June 30.
“Got to take care of your workers,” he said.
Bank of America was the first major lender to start offering the Paycheck Protection Program's loans on April 3.