Quote:
Originally Posted by Trivers
congrats!!!  |
Devil will be in the details, but its a start.
It's the back-half of SBA stuff that makes it onerous. As a general rule, the SBA lets banks do their own thing on these loans and if everything gets paid off, none of it really matters.
But the reason it's often slow-going is that the banks are REALLY paranoid. If they give out an SBA backed loan and the loan defaults, if they haven't taken every needed step, the SBA won't reimburse the banks. So suddenly that 75/85% backing vanishes and the banks just out the money.
Now to put it in present context - getting the money from the SBA still isn't likely to be the problem. Even before the PPP was approved, banks were being told by the treasury department to do what they have to do short term to keep clients lights on. They were opening the taps already even before the forgiveness models were being thrown around. But what may ultimately be the problem is getting it
forgiven. And there's just so many things we still aren't sure of.
So...we shall see.