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As PPP funding runs out, Hunt says demand may be $1 trillion

That’s how fast the Small Business Administration has been providing delegated authority to lenders to disperse PPP loans. By mid-afternoon Wednesday, $5 billion in approvals was being granted every two hours.

Consumer Bankers Association President and CEO Richard Hunt said on a conference call that the program might need $1 trillion before it’s done.

Thrust into maelstrom again, Hunt steadies helm at CBA

On Tuesday, March 10, President Trump emerged from talks with U.S. senators on ways to stimulate the economy during the COVID-19 crisis, and said, “Just stay calm, it will go away.”

For small business loan program, forgiveness may be the hardest part

Smoothing the forgiveness process is critical for the program to succeed, but a lack of government guidance on the related calculations and necessary documentation could land borrowers and banks alike with billions in unexpected debts.

Spokespeople for the Treasury and SBA did not respond to requests for comment, but the agencies are aware of the issues said David Pommerehn, general counsel of the Consumer Bankers Association.

SBA gives out more than half of second batch of 'paycheck protection' aid in one week

Consumer Bankers Association President and CEO Richard Hunt said there were “some hurdles along the way, but in the end, banks with assets greater than $10 billion invested heavily in ensuring this program was a success, making more than half of individual loans and more than two-thirds of the total loan dollar value during this second phase.”

States With Big Cities Now Get Bigger Share of Small-Business Aid

Economists and bank trade group executives attribute the reversal to more active participation of large banks, which were previously less efficient than some smaller banks in shuttling money, hampered by technical glitches and a lack of clarity in guidance from the government.

“The program ran out of funds just when the larger banks were at full throttle and had other processes in place, “ said Richard Hunt, chief executive of the Consumer Bankers Association. Some of the obstacles have been cleared this time around, he said.

JPMorgan to Close 1,000 Chase Branches Due to Pandemic

“More than 99 per cent of branches in the US are open,” said Richard Hunt, chief executive of the Consumer Bankers Association, which represents big banks with almost 40,000 branches between them, half the total in the US. 

 

He added that some banks had moved to drive-throughs only, to reduce crowds in accordance with the guidance of healthcare officials, while others are paring back their hours. Closures so far have focused on areas like college campuses, where classes have been cancelled. 

Bank Regulators Urge Small-Dollar Lending in COVID-19 Crisis

“Previous guidance issued by regulators years ago cut off banks’ ability to offer customers short-term liquidity,” said Richard Hunt, the president and chief executive of the Consumer Bankers Association.

Getting A New Credit Card to Shop Black Friday? You Might Want to Think Twice

The Consumer Bankers Association, which represents many retail banks in the U.S., says that its members work with merchants to make sure payment requirements are clear. But those details may not always be communicated sufficiently by a store employee. 

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