The Federal Government continues to refine this program to ensure funds find their way to small businesses to cover payroll costs over the next two months.
Additional lenders who have not been part of any SBA program in the past can become PPP lenders by simply signing up with the SBA.
In addition, the Fed announced today that it will create a new credit facility that basically will purchase the PPP loans banks are originating, thereby freeing up their capital to make more of these loans.
The big logjam continues to be the SBA Technology. Known as E-Tran, it is the portal via which an SBA lender submits the loan to the SBA for approval. Many lenders will not fund until they have this approval so even though the borrower has done everything right on their end, they still do not have the funds.
Some community banks have decided to fund even without the SBA E-Tran approval, believing they will get it when the system issues get fixed and feeling it is more important to get the funds in the hands of their clients immediately.