Computer issues at SBA said to hold up small business loans

NEW YORK (AP) — Small business owners hoping for quick help from the government’s emergency $349 billion lending program were still waiting Tuesday amid reports of computer problems at the Small Business Administration.

The SBA’s loan processing system stopped working Monday, making it impossible for loans to be approved and funds distributed, according to a trade group for community bankers and the CEO of an online lending marketplace. And there was confusion about the documents lenders needed from customers to complete loan transactions, they said.

“We are getting thousands of applications but many of our members can’t get into the SBA’s system or there are additional holdups,” said Paul Merski at the Independent Community Bankers of America.

Thousands of companies are at risk of failure without a cash infusion. Even those that have laid off their staffs face bills like rent, mortgage payments, insurance, utilities and taxes. Many companies that are still working have lost revenue as their customers turned cautious and canceled orders or projects.

There have been more than 275,000 applications received for loans valued at $75 billion since the program launched, the SBA said Tuesday afternoon. Treasury Secretary Steven Mnuchin’s had predicted last week that loans could be turned around and money transferred to businesses’ bank accounts the same day as applications were received.

A large percentage of community banks — small banks that serve rural areas and small towns — have been unable to get logged into the system as well. Two small bank CEOs pleaded with President Trump on Tuesday in a conference call to get the smaller banks approved.

“We have been boxed out of the program,” said Noah Wilcox of Grand Rapids State Bank.

The loans of up...