I wanted to share an update
on our experiences with the Paycheck Protection Program (PPP) yesterday as it was a very disappointing experience. Banks
of all sizes are reporting significant difficulties accessing the Small
Business Administration’s E-Tran system after its reopening for PPP loan
applications at 10:30 a.m. yesterday.
The SBA announced
the following surprise measures to help it manage the anticipated crush of
volume at yesterday's reopening:
·Pacing the number
of loans processed in the E-Tran system for participating lenders imposing an
“hourly limit” on the number of applications submitted.
maximum dollar amount at 10 percent of PPP funding authority that any lending
institution will be able to originate, in addition to $60 billion carve out for
operational standards to ensure that lenders access PPP funds based on their
asset size and ensuring the PPP continues to operate on a first-come,
guidance allowing lenders that have received a significant amount of loan
applications to make a one-time bulk submission of XML files to E-Tran.
files of 5,000 or more (revised from 15,000 today) approved PPP loans to be submitted
to SBA by 9 p.m. EDT, April 27, 2020.
Unfortunately, the E-Tran
system effectively crashed at 10:34 am yesterday morning. It appears the mega-banks and financial tech
providers have flooded the pipes and precluded us from making a great deal of
progress on submissions due to system outages.
I have been in communication with ABA President and CEO Rob Nichols who
reported “member banks across the country are deeply frustrated at their
inability to access SBA’s E-Tran system.
We have raised these issues at the highest levels. Until they are
resolved, America’s banks will not be able to help more struggling small
The SBA advised us
yesterday afternoon that the system
will remain available overnight and accordingly we worked through the evening to submit applications.
We will keep you posted in real time on the status of your PPP loan application. Please contact your banker at Freedom if you
have any questions.
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