WASHINGTON, D.C. – Today, U.S. Senators Jacky Rosen (D-NV) and Catherine Cortez Masto (D-NV) announced they have joined colleagues in a letter to the U.S. Small Business Administration (SBA) Administrator Jovita Carranza and U.S. Department of the Treasury Secretary Steven Mnuchin about reports that lack of guidance and extreme limitations have kept SBA loans from being properly administered to small business owners across the country. In the letter, the Senators demand that Carranza and Mnuchin resolve these implementation issues by providing new guidance that offers access to eligibility experts at SBA and Treasury and finalizing all guidance to lenders from processing to closing.
“We are deeply concerned by reports of financial institutions turning away or being unable to lend to small businesses, private non-profits and other entities seeking capital through the Paycheck Protection Program created by the Coronavirus Aid, Relief and Economic Security Act (CARES Act),” wrote the Senators. “Unfortunately, we have learned that some financial institutions have yet to start offering the loans due to a lack of guidance from the Small Business Administration (SBA) and the U.S. Department of the Treasury (Treasury), are limiting the timeframe for small businesses to apply for loans, or are only offering loans to current customers who have or had an existing small business loan, checking account or credit card with their financial institution. These combined issues create a system of winners and losers for borrowers and lenders alike.”
Read the Senators’ full letter here.