"It is absolutely a concern that the smallest, most vulnerable business won't be first in the queue because they don't have the assets to prepare an application quickly", said Karen Mills, a senior individual at Harvard Business School and a previous SBA manager.
"I'm reading that some of the big banks, not all, but some, are creating all these insane restrictions about you don't just have to have a small business account with them, you might also have to have a credit card", Rubio said.
"Our banks know businesses are struggling and they want to give borrowers access to the funds they need as soon as humanly possible", said Don Childears, chief executive officer of the Colorado Bankers Association, in an advisory. "It's supposed to go live today and the feedback we've been getting from the banks is that they still don't have enough guidance to start lending yet".
MidwestOne is an SBA-preferred lender based in Iowa City that has dozens of branches in Iowa and four other states.
It has also drawn criticism from Florida Senator Marco Rubio, who chairs the Senate Committee on Small Business and Entrepreneurship. For now, Brooklyn Cooperative Federal Credit Union says it's best for small businesses to include everything including independent contractor payments in their application for now and let lenders work it out in underwriting.
Bank of America: If you have an existing borrower relationship, BoA says you can apply online. However, if a business lays off employees in the first eight weeks, the amount forgiven will be reduced, Inc. reported.
Another option is an Economic Injury Disaster Loan issued through the Small Business Administration.
Ted Stein, who operates a small software business in West Virginia, filled out an online form Thursday through PNC Bank, saying he was interested in applying.
Banks have been scrambling to prepare for overwhelming demand for the loans while awaiting guidance from the government.
"It's like they dinged me for being a cash positive business", she said. But Congress somehow neglected to provide comparable bailout measures for real small businesses that have committed the sin of convincing investors that they have the potential to employ large numbers of people if they can only survive, "Rand wrote in a direct message".
When will you permit companies who've been your shoppers for many years however donât have loans or bank cards practice for this program? Yet when he logged onto the bank's website early in the morning, he was told he couldn't apply for a loan because he'd never borrowed money from Bank of America before. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program.
Many customers took to Twitter to complain about the difficulty they had in getting the loans they were promised by the government.
"For the 8 weeks, it's forgiven and then anything you overstate you have to pay back at half a percentage interest over two years", Durand said. The SBA typically loans small amounts of money to entrepreneurs and small business owners and also traditionally guarantees many "riskier" loans that banks enter into to finance entrepreneurs and small business owners. The maximum loan amount is $10 million.
Small business owners can apply for the Paycheck Protection Program at any lending institution approved by the SBA to participate in the program.
The CARES Act passed by Congress a week ago was created to keep businesses and workers from economic freefall.
Glidden said, "The great news is we were able to provide financial relief for many customers over a very short period of time and we will continue to work closely with them in other ways that are still available to our customers".