BOA says 10% of emergency loans could disappear


Three days after lenders began accepting applications for business rescue loans, Bank of America said cash applications hit 10% on Monday (April 6).

BOA spokeswoman Jessica Oppenheim told PYMNTS early Monday morning that the number of claims had risen to 178,500 worth $32.9 billion.

On Friday, Bank of America CEO Brian Moynihan told CNBC that the bank’s full attention will be on the companies that have requested the funds from Congress. New and other small business customers, he said, will have to take a step back for now.

“We need to focus on borrowing customers to make sure we can take care of them,” he said.

On Friday, Bank of America bragged about being the first lender to offer the loans. By midday, 85,000 customers had requested $22.2 billion online, they said. Of the largest U.S. lenders, only Bank of America and JPMorgan Chase were accepting applications for the lending program Friday afternoon.

The federal relief initiative, dubbed the Paycheck Protection Program, is offering $349 billion to small and medium-sized businesses.

The loans are part of a $2 trillion economic stimulus package approved at lightning speed by the White House and Congress in response to the COVID-19 pandemic.

Last week, Treasury Secretary Steven Mnuchin said if the $350 billion wasn’t enough to support the targeted companies, he would ask Congress for more money.

“One of the things I’ve heard is that this small business program is going to be so popular that we’re going to run out of our $350 billion,” he told CNBC. “If that’s the case, I can assure you that it will be high on my list to return to Congress. It has huge bipartisan support and we want to protect small businesses.

Mnuchin was not alone in anticipating the need for more relief.

House Speaker Nancy Pelosi (D-California) also called for more coronavirus help. She told CNBC on Friday that she wants more financing for small business loans.

Pelosi was interviewed by CNBC’s Jim Cramer of ‘Squawk on the Street,’ after a report from the US Bureau of Labor Statistics found that nonfarm payrolls fell by 701,000 jobs in March and the jobless rate unemployment rose to 4.4% from a low of 3.5. percent.



On: Seventy percent of BNPL users say they would prefer to use the installment plans offered by their banks – if only they were made available. PYMNTS’ Banking On Buy Now, Pay Later: Installment Payments and the Untapped Opportunity of FIssurveyed over 2,200 US consumers to better understand how consumers view banks as BNPL providers in a sea of ​​BNPL pure-players.


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