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<ul class="summary-list"><li><keyword id="265395" type="PERSON" weightage="60" keywordseo="Jack-Dorsey">Jack Dorsey</keyword>'s <keyword id="688028" type="CITY" weightage="60" keywordseo="Square">Square</keyword> has launched a <keyword id="6354778" type="ORGANIZATION" weightage="60" keywordseo="Banking">banking</keyword> arm to "operate more nimbly."</li><li>Utah-based Square Financial Services aims to offer <keyword id="35526" type="PERSON" weightage="60" keywordseo="business-loans">business loans</keyword> and <keyword id="45841" type="CITY" weightage="60" keywordseo="Deposit">deposit</keyword> products.</li><li>The <keyword id="6355272" type="UNKNOWN" weightage="60" keywordseo="bank">bank</keyword> will first underwrite and originate <keyword id="6362287" type="UNKNOWN" weightage="60" keywordseo="loans">loans</keyword> taken out by Square's existing sellers.</li></ul>Digital payments processor Square said on Monday it has launched in-house banking operations after <a href="https://squareup.com/us/en/press/square-financial-services-begins-banking-operations">completing the approval process</a> with a US insurance agency and Utah's financial regulator.Square Financial Services, the industrial bank based in Utah's Salt Lake City, is now ready for business after receiving conditional approval <a href="https://squareup.com/us/en/press/ilc-update">nearly a year ago</a>."Moving forward, Square Financial Services will be the primary provider of financing for Square sellers across the US," the company said in a statement.The first few actions for the bank will include underwriting and offering business loans for Square's existing lending product. Its primary purpose is to offer business loans and deposit products."Bringing banking capability in-house enables us to operate more nimbly, which will serve Square and our customers as we continue the work to create financial tools that serve the underserved," Square CFO Amrita Ahuja said.Square is headed by longtime cryptocurrency advocate Jack Dorsey, who is also chief executive of social media platform Twitter. With a product line that includes the <a href="https://cash.app/">Cash App</a> and Square <a href="https://squareup.com/gb/en/point-of-sale">Point-of-Sale</a>, the company is known for its easy-to-use mobile payment services.Shares in the company rose 3% to $248.80 in pre-market trading on Tuesday.

Jack Dorsey's Square kickstarts in-house banking services nearly a year after receiving conditional approval

<ul class="summary-list"><li>US nonfinancial businesses <keyword id="44647" type="ORGANIZATION" weightage="60" keywordseo="debt">debt</keyword> surged a record annualized 18.8% in the first quarter, <a href="https://www.federalreserve.gov/releases/z1/20200611/z1.pdf">according to a Thursday report from the Federal Reserve.</a></li><li>A jump in <keyword id="6362287" type="UNKNOWN" weightage="60" keywordseo="loans">loans</keyword> and corporate bond issuance pushed total US nonfinancial business debt to $16.8 trillion, higher than the level of household debt. </li><li>Companies likely boosted their debt in preparation of riding out a downturn sparked by the <keyword id="8829783" type="UNKNOWN" weightage="60" keywordseo="coronavirus-pandemic">coronavirus pandemic</keyword>. </li></ul>US nonfinancial business debt surged by a record amount in the first quarter of the year as companies loaded up on loans and corporate bonds to protect against economic fallout stemming from the <keyword id="1754604" type="PERSON" weightage="60" keywordseo="coronavirus">coronavirus</keyword> pandemic. Company debt spiked an annualized 18.8% in the first three months of 2020, <a href="https://www.federalreserve.gov/releases/z1/20200611/z1.pdf">according to a Thursday report from the Federal Reserve</a>. An increase in loans and corporate bond issuance pushed total US nonfinancial business debt to $16.8 trillion in the quarter, surpassing the $16.3 trillion of household debt. At the same time, the coronavirus pandemic-induced stock market rout took a bite out of household net worth, which fell the most on record to $110.8 trillion from $117.3 trillion in the previous period. The market has since rebounded strongly from March lows, signaling that net worth may in large part recover in the second quarter. Federal government debt jumped an annualized 14.3%, from a 3.8% annualized rate in the prior quarter. Read more: <a href="https://www.businessinsider.com/stock-market-investing-how-to-short-strategy-advice-andrew-left-2020-6">Famed short-seller Andrew Left lays out his methodology for finding the stock market's weakest links — and says he's terrified of newbie day-traders that think they can outsmart Carl Icahn and Warren Buffett</a>Surging debt and falling net worth come as the longest US expansion on record ends — on Monday, the National Bureau of Economic Research <a href="https://markets.businessinsider.com/news/stocks/us-recession-economy-february-coronavirus-nber-official-data-2020-6-1029289987?utm_campaign=browser_notification&amp;utm_source=desktopktop">officially declared that the US is in a recession,</a> spurred by the coronavirus pandemic. The Federal Reserve in March <a href="https://www.businessinsider.com/fed-interest-rate-cut-zero-bond-holdings-coronavirus-pandemic-economy-2020-3">slashed interest rates to near zero</a>, which helped encourage the spike in corporate borrowing as businesses prepared for the pandemic.

US business debt surged a record 19% in the first quarter as companies braced for economic fallout

<ul class="summary-list"><li>The <keyword id="6355253" type="UNKNOWN" weightage="60" keywordseo="federal-reserve">Federal Reserve</keyword> announced Thursday it will expand its Main Street Lending Program to include mid-sized companies and those with greater leverage.</li><li>The central bank expanded program eligibility to businesses with 15,000 employees or $5 billion in revenue, up from the 10,000 employee and $2.5 billion limits.</li><li>The <keyword id="45672" type="ORGANIZATION" weightage="60" keywordseo="Fed">Fed</keyword> didn't provide a start date for the relief program, adding that it would be announced "soon."</li><li>A separate aid program for nonprofit organizations is under consideration, the Fed said in a <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20200430a.htm">release</a>.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>The Federal Reserve is widening its Main Street Lending Program to include more mid-sized businesses seeking loans amid the economic downturn.The central bank <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20200430a.htm">announced</a> Thursday it will expand credit eligibility to firms with up to 15,000 employees or $5 billion in revenue. A third loan option for "borrowers with greater leverage" was created, and the minimum loan size for certain offerings was lowered to $500,000 from $1 million.The lending pool was previously limited to businesses with up to 10,000 employees or $2.5 billion in revenue.The Fed didn't provide a start date for the $600 billion program, only noting it "will be announced soon."Read more: <a href="https://www.businessinsider.com/small-cap-investing-strategy-stock-picks-fund-manager-brandon-nelson-2020-4">A fund manager who's beating the market by betting on tiny companies says coronavirus 'turbocharged' the trends driving his portfolio. He told us what they are, and the 3 stocks he's most bullish on.</a>The newest loan allows participating lenders to retain a 15% share on loans that, when added to existing debt, don't surpass six times the borrower's income. The existing loan options let lenders hold only a 5% stake after selling the debt to the Fed.Apart from expanding its Main Street facility, the Fed Board is mulling a separate aid program for nonprofit organizations, according to the Thursday release. Such a facility could target universities and hospitals hit by the <keyword id="1754604" type="PERSON" weightage="60" keywordseo="coronavirus">coronavirus</keyword> and its economic toll.The announcement comes one day after the Federal Open Market Committee elected to hold rates at historic lows. The committee's April meeting yielded little guidance on how the central bank may act further to pad the <keyword id="34412" type="ORGANIZATION" weightage="60" keywordseo="economy">economy</keyword> against heightened risk, though Fed Chair Jerome Powell urged policymakers to spend more on relief measures."Will there be a need to do more, though? I think the answer to that will be yes," he said, adding that additional stimulus could defend businesses, corporations, and households from "avoidable insolvency."Read the original article on <a href="https://www.businessinsider.com/federal-reserve-expands-main-street-lending-program-coronavirus-relief-stimulus-2020-4">Business Insider</a>

The Fed expands its $600 billion lending program for struggling businesses but leaves start date unannounced

<ul class="summary-list"><li>This story was delivered to Business Insider Intelligence Banking Briefing subscribers earlier this morning.</li><li><a href="https://store.businessinsider.com/products/banking-pro?IR=T&amp;itm_source=businessinsider&amp;itm_medium=content_marketing&amp;itm_campaign=briefing_post&amp;itm_content=top_text&amp;itm_term=bundle_subscription_text_link-citi-builds-portal-for-government-small-business-relief-loans-2020-4">To get this story plus others to your inbox each day, hours before they're published on Business Insider, click here.</a></li></ul> Citigroup CEO Michael Corbat said the bank is "working around the clock" to develop its own online portal for the Small Business Administration's (SBA) <a href="https://e.businessinsider.com/click/19913982.4/aHR0cHM6Ly93d3cud2FzaGluZ3RvbnBvc3QuY29tL2J1c2luZXNzLzIwMjAvMDMvMzAvaGVyZXMtaG93LWdldC1zbWFsbC1idXNpbmVzcy1sb2FuLXVuZGVyLTM0OS1iaWxsaW9uLWNvcm9uYXZpcnVzLWFpZC1iaWxsLw/5d233c18f730436f2414784fB778e2849" target="_blank" rel="noopener">$350 billion</a> Paycheck Protection Program, CNBC <a href="https://e.businessinsider.com/click/19913982.4/aHR0cHM6Ly93d3cuY25iYy5jb20vMjAyMC8wNC8wMS9jaXRpZ3JvdXAtY2VvLXNheXMtYmFuay1pcy13b3JraW5nLWFyb3VuZC10aGUtY2xvY2stb24tc21hbGwtYnVzaW5lc3MtcmVsaWVmLmh0bWw/5d233c18f730436f2414784fB97553865" target="_blank" rel="noopener">reports</a>.Corbat noted that Citi is ensuring it has the digital interface set up so that people can apply online, and the bank can get the documentation it needs for the vast majority of these loans, in order to "get this money into small businesses' hands as quickly as it can." Loan applications - which ask for basic business information like payroll and number of employees - open today. Banks are being paid to facilitate loans on behalf of the SBA and are expected to bring in billions from government fees as a result. As we discussed <a href="https://e.businessinsider.com/click/19913982.4/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L3NiYS1sb2Fucy1naXZlLWJhbmtzLW9wcG9ydHVuaXR5LXRvLWhlbHAtc21icy1tb256by1kZWxheXMtc3Vic2NyaXB0aW9uLWxhdW5jaC1zdGFybGluZy1uaXhlcy1vdmVyZHJhZnQtaW50ZXJlc3QtMjAyMC00/5d233c18f730436f2414784fB0b862025" target="_blank" rel="noopener">yesterday</a>, the SBA's $350 billion is being extended through banks and credit unions to small businesses with under 500 employees as part of the government's <a href="https://e.businessinsider.com/click/19913982.4/aHR0cHM6Ly9pbnRlbGxpZ2VuY2UuYnVzaW5lc3NpbnNpZGVyLmNvbS9wb3N0L2hvdy10aGUtMi10cmlsbGlvbi1zdGltdWx1cy1wYWNrYWdlLWNvdWxkLWFmZmVjdC1iYW5rcy1sbG95ZHMtc3VzcGVuZHMtb3ZlcmRyYWZ0LXBheW1lbnRzLWR1cmluZy1jcmlzaXMtY29tbWJhbmstcnVucy1hZC1jYW1wYWlnbi10by1hZGRyZXNzLWNvcm9uYXZpcnVzLWNvbmNlcm5zLTIwMjAtMw/5d233c18f730436f2414784fB37365b31" target="_blank" rel="noopener">$2 trillion</a> stimulus package.The funding is intended to help businesses avoid layoffs and will be forgiven for those that use the full amount for payroll, mortgage interest, rent, or utilities within two months of receiving the money. To incentivize them to facilitate the loans, the government will pay banks a fee ranging from 5% for a loan under $350,000 to 1% for a loan over $2 million.As banks prepare to accommodate a massive volume of applicants, there are several areas of friction that they will need to navigate quickly. Banks could be overwhelmed with applicants, though dedicated portals like Citi's could prove effective in mitigating this. Over <a href="https://e.businessinsider.com/click/19913982.4/aHR0cHM6Ly93d3cubmZpYi5jb20vY29udGVudC9wcmVzcy1yZWxlYXNlL2Vjb25vbXkvbmZpYi1zdHVkeS1jb3ZpZC0xOS1pbXBhY3Qtb24tc21hbGwtYnVzaW5lc3MtcGFydC0yLw/5d233c18f730436f2414784fBfb9b62e8" target="_blank" rel="noopener">three-quarters</a> (76%) of small businesses are being negatively affected by the coronavirus, suggesting high demand for these loans. And of the 20% of businesses not currently affected, 77% anticipate that will change if the coronavirus outbreak spreads more broadly in the next three months. Prior to the stimulus bill being passed, the SBA <a href="https://e.businessinsider.com/click/19913982.4/aHR0cHM6Ly93d3cud2FzaGluZ3RvbnBvc3QuY29tL2J1c2luZXNzLzIwMjAvMDMvMjYvc21hbGwtYnVzaW5lc3MtYWRtaW5pc3RyYXRpb24tbG9hbi1mYXEv/5d233c18f730436f2414784fBd3d8f149" target="_blank" rel="noopener">saw</a> 20,000 to 30,000 daily calls from small businesses - a number which has likely grown drastically since and will continue to as the pandemic endures.The Trump administration <a href="https://e.businessinsider.com/click/19913982.4/aHR0cHM6Ly93d3cud3NqLmNvbS9hcnRpY2xlcy90aGUtcnVzaC1mb3ItMzUwLWJpbGxpb24taW4tc21hbGwtYnVzaW5lc3MtbG9hbnMtc3RhcnRzLWZyaWRheS1iYW5rcy1oYXZlLXF1ZXN0aW9ucy0xMTU4NTgyODQ1NQ/5d233c18f730436f2414784fB76f17443" target="_blank" rel="noopener">said</a> it's working to ensure the SBA's systems can handle the volume and will add a backup system. Banks should similarly work quickly to ensure that their own systems can handle a high influx of inquiries - though likely resource-intensive, building a dedicated portal as Citi has could reduce the chances that an applicant encounters an overloaded system, and it could ultimately help get loans out to businesses more quickly. Potential delays in fund disbursements could reflect poorly on banks. Expectations will be high from both customers and the government around how quickly banks can distribute loans to businesses in need. And although the funds are ultimately coming from the SBA, banks will receive the brunt of backlash from any businesses left waiting, since they are the ones that will actually be dealing with applicants.This makes it imperative that banks keep open lines of communications with customers, are transparent about the process for applying for a loan, and set realistic expectations around when the funds can be expected.Despite efforts like Citi's to smooth the lending process for small businesses, banks are in uncharted territory, and a lack of clarity will inevitably create confusion as the program gets off the ground. Unanswered <a href="https://e.businessinsider.com/click/19913982.4/aHR0cHM6Ly93d3cud3NqLmNvbS9hcnRpY2xlcy90aGUtcnVzaC1mb3ItMzUwLWJpbGxpb24taW4tc21hbGwtYnVzaW5lc3MtbG9hbnMtc3RhcnRzLWZyaWRheS1iYW5rcy1oYXZlLXF1ZXN0aW9ucy0xMTU4NTgyODQ1NQ/5d233c18f730436f2414784fC76f17443" target="_blank" rel="noopener">questions</a> from the SBA and Treasury Department could cause complications as banks try to accommodate the anticipated onslaught of borrowers: For example, it's unclear how much due diligence lenders are required to do of borrowers. This could make for a challenging few weeks as banks begin carrying out this unprecedented relief effort. Want to read more stories like this one? Here's how to get access:<ol><li>Business Insider Intelligence analyzes the banking industry and provides in-depth analyst reports, proprietary forecasts, customizable charts, and more. &gt;&gt; <a href="https://www.businessinsider.com/intelligence/corporate-check?IR=T&amp;itm_source=businessinsider&amp;itm_medium=content_marketing&amp;itm_campaign=briefing_post&amp;itm_content=learn_more_text&amp;itm_term=enterprise_text_link-citi-builds-portal-for-government-small-business-relief-loans-2020-4">Check if your company has BII Enterprise membership access.</a></li><li>Sign up for the Banking Briefing, Business Insider Intelligence's expert email newsletter tailored for today's (and tomorrow's) decision-makers in the financial services industry, delivered to your inbox 6x a week. &gt;&gt; <a href="https://store.businessinsider.com/products/banking-pro?IR=T&amp;itm_source=businessinsider&amp;itm_medium=content_marketing&amp;itm_campaign=briefing_post&amp;itm_content=learn_more_text&amp;itm_term=bundle_subscription_text_link-citi-builds-portal-for-government-small-business-relief-loans-2020-4">Get Started</a></li><li>Explore related topics in more depth. &gt;&gt; <a href="https://store.businessinsider.com/collections/banking?IR=T&amp;itm_source=businessinsider&amp;itm_medium=content_marketing&amp;itm_campaign=briefing_post&amp;itm_content=learn_more_text&amp;itm_term=enterprise_text_link-citi-builds-portal-for-government-small-business-relief-loans-2020-4">Visit Our Report Store</a></li><li>Current subscribers can log in to read the briefing <a href="https://intelligence.businessinsider.com/post/citi-works-on-portal-for-sba-loans-fed-relaxes-big-banks-capital-requirements-bofa-reaches-50000-mortgage-payment-deferments-2020-4">here.</a></li></ol><a href="https://www.businessinsider.com/intelligence/10-up-and-coming-fintechs-2019?IR=T&amp;itm_source=businessinsider&amp;itm_medium=ctgr_bii&amp;itm_term=ctgr_leadgen&amp;itm_content=finance&amp;itm_campaign=10-up-and-coming-fintechs-2019-2"></a>

Citi is working on an online portal to facilitate small business loans

Getting a business loan sanctioned can look as an overwhelming experience for many. If it is time to expand your business, you will need to access working capital to meet the spending in terms of paying for employees, materials, equipment, marketing, office space and others. Since not all the aspiring entrepreneurs can have some saving to invest, business loan comes to their aid. Here are the different eligibility criteria that will decide if you can avail of a business loan. Credit The most important criteria for getting a business loan is a good credit score. The better your credit score and credit history are, the more are your prospects of getting a business loan. In fact, the lenders will be eager to learn your personal as well as business credit history and credit score. Since most small-business owners might not have a business credit, personal credit is deemed highly important. Getting credit score from accredited bodies is very essential since the banks will consider only their credit score reports. Income and cash flow Cash flow is an important criteria that can make or break your business. If you have a steady and a dependable flow of income, the lenders will be able to conclude that you will be able to manage the loan payments. We can say the cash flow is the most important representation of how healthy your business is. Lenders will also look into your expenses to ascertain if your business is profitable. Unpaid invoices can seriously impact your cash flow or turnover. Hence you must be wary of them. The age of the business Over 20% of businesses fail during the first year. Hence most lenders and bankers will expect a minimum business age from the borrowers. In majority of cases, the age requirement for a business to be eligible for a loan can be six months to two years. The lenders will also look at how long the business is operating its bank account and for how long the business is registered with the government. Present amount of debt Lenders will also examine your <keyword id="2639414" type="PERSON" weightage="20" keywordseo="debt-to-income-ratio">debt-to-income ratio</keyword> to calculate the percentage of your monthly debt repayments against the gross income you make per month. Majority of the lenders expect the debt-to-income ratio to be around 50% or lower. If the business has other existing loans, lenders will hesitate to give a loan. Collateral For a loan to be approved, the lenders will need collateral like real estate, equipment, real estate, and businesses. In fact business car loans also will need collateral. Collateral can be understood as tangible assets that the business owner already owns and which they can pledge for the purpose of borrowing the loan. Your industry The kind of industry to which your business belongs is one of the most important criteria looked into to ascertain your <keyword id="7269649" type="UNKNOWN" weightage="20" keywordseo="eligibility-for-business-loan">eligibility for business loan</keyword>. If the industry is considered risky, you might not qualify for a business loan. Also those businesses that have an unsteady cash flow or those that are considered unhealthy to the society will not be able to qualify for a business loan.

What you should know before applying for a business loan

<ul class="summary-list"><li>Prosecutors say a man from Georgia spent $57,789 in pandemic relief loans on a Pokémon card.</li><li>The loans were meant to help small businesses cover the economic fallout of the COVID-19 pandemic.</li></ul>A man from Georgia is accused of lying about the size of his business to a government agency and then blowing $57,789 of his pandemic-relief loan on a single <a href="https://www.businessinsider.com/pokemon-card-valuable-sold-out-scalpers-target-ban-industry-2021-5">Pokémon card</a>.Prosecutors charged Vinath Oudomsine from Dublin, Georgia, with wire fraud on October 19, saying he was granted the relief fund by making "false and fraudulent representations" to the <keyword id="12393608" type="UNKNOWN" weightage="60" keywordseo="small-business-administration" source="Orion">Small Business Administration</keyword> before spending most of it on the collectable, <a href="https://www.macon.com/news/coronavirus/article255207136.html">The Macon Telegraph</a> first reported.In March 2020 Congress passed the Coronavirus Aid, Relief, and Economic Security Act, which made more small businesses eligible for the <keyword id="12393607" type="UNKNOWN" weightage="60" keywordseo="sba" source="Orion">SBA</keyword>'s <a href="https://www.businessinsider.com/small-business-can-get-2-million-pandemic-disaster-loans-2021-9">economic-injury disaster loans</a>. The expansion was meant to help the owners of small businesses cover the economic fallout of the coronavirus pandemic by providing them with an emergency loan they could use on expenses such as payroll, production costs, and rent.In a <a href="https://www.documentcloud.org/documents/21091051-vinath-oudomsine-criminal-information">filing</a> in the US District Court for the Southern District of Georgia, prosecutors wrote that Oudomsine "unjustly enriched himself by obtaining <keyword id="12393610" type="UNKNOWN" weightage="60" keywordseo="eidl" source="Orion">EIDL</keyword> proceeds under false and misleading pretenses," including lying about his company's revenue and how many staff it employed.Prosecutors said Oudomsine submitted an application for an SBA loan on July 14, 2020, for a business he said had existed since 2018, had 10 employees, and had an annual gross revenue of $235,000.They said the SBA gave Oudomsine $85,000 the next month based on such information.The filing didn't name Oudomsine's company or say what kind of business it was. It also didn't say how many people it was actually found to have employed or how much it made in revenue.But the filing did reveal what prosecutors allege Oudomsine spent about two-thirds of his relief loan on: a $57,789 Pokémon card, which they said he bought in early January.Federal attorneys <a href="https://ecf.gasd.uscourts.gov/doc1/05714011080">said</a> Oudomsine could face up to 20 years in prison and a $250,000 fine.A change-of-plea hearing has been <a href="https://ecf.gasd.uscourts.gov/doc1/05714014288">scheduled</a> for Thursday.Neither the SBA nor Oudomsine's attorneys immediately responded to a request for comment from Insider.In a statement shared with <a href="https://www.washingtonpost.com/nation/2021/10/24/pokemon-card-fraud-case-covid-relief/">The Washington Post</a>, the SBA said the Trump administration was behind the error, calling it "another example of the fraud that resulted from their lax controls."Collectors have been coughing up thousands to get their hands on rare Pokémon cards.A <a href="https://www.businessinsider.com/rare-pokemon-card-pokemon-illustrator-sells-for-195000-2019-10">"Pikachu Illustrator" card</a>, considered the rarest Pokémon trading card in existence, sold at auction for $195,000 in 2019, while <a href="https://www.businessinsider.com/pokemon-target-trading-cards-nfl-mlb-nba-resale-fights-2021-5">Target stores paused stocking Pokémon, NFL, MLB, and NBA trading cards</a> after their increasing resale value sparked a fight outside a store in Wisconsin in May.Collectors and retailers say that <a href="https://www.businessinsider.com/pokemon-card-valuable-sold-out-scalpers-target-ban-industry-2021-5">scalpers, nostalgia, and YouTube</a> have contributed to the boom in the cards' value.

A man from Georgia blew most of his COVID-19 small business loan on a $58,000 Pokémon card, prosecutors say

<ul class="summary-list"><li>Americans are upset that big corporations are taking money from the <keyword id="9074781" type="UNKNOWN" weightage="60" keywordseo="paycheck-protection-program">Paycheck Protection Program</keyword>, a government fund meant to help small businesses through the coronavirus pandemic. But no one in Washington can explain how that happened.</li><li>Democrats blame Republicans, nad Republicans blame the Treasury — but new legislation to add money to the Paycheck Protection Program still doesn't solve the problem.</li><li>Meanwhile, even public companies with the ability to raise money in the stock market are taking money meant for your corner bodega or local hardware store.</li><li>This needs to stop. For some small businesses this may be the best access to capital they have. It needs to be there when they need it.</li><li>This is an <keyword id="6356002" type="UNKNOWN" weightage="100" keywordseo="opinion">opinion</keyword> column. The thoughts expressed are those of the author.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>As upset as the American people seem about it, as plainly unfair it is, it looks like no one in Washington wants to fix the loophole that allows big businesses to take money allocated to help small businesses through the coronavirus. That is to say, it looks like no one really wants to fix the Small Business Administration's Payroll Protection Program (PPP) — not Democrats, not Republicans, not the White House, and not the Treasury. A draft of legislation to re-up the program, viewed by Business Insider, does not address the issues that allowed big businesses to take from its pot. It is likely to pass by the end of this week. A few days ago Americans found out that <a href="https://www.businessinsider.com/ruths-chris-potbelly-chains-tk-million-in-small-business-loans-2020-4">national restaurant chains</a> like <a href="https://www.businessinsider.com/shake-shack-returns-govt-coronavirus-loan-criticism-small-businesses-2020-4">Shake Shack</a> and <a href="https://www.businessinsider.com/petition-demands-ruths-chris-return-coronavirus-stimulus-loan-2020-4">Ruth's Chris</a> were able to <a href="https://www.businessinsider.com/32-companies-ceos-making-1-million-received-small-business-funds-2020-4">secure multi-million dollar loans</a> meant for small businesses struggling through the pandemic. They were able to do this because the program classified each location of the restaurants as individual businesses. That wasn't the only loophole either. A<a href="https://www.npr.org/2020/04/21/839716980/some-not-so-small-companies-are-getting-small-business-loans-under"> bunch of big public companies</a> and <a href="https://www.wsj.com/articles/dallas-hotel-owner-is-biggest-beneficiary-of-coronavirus-loan-program-11587568827">wealthy business moguls</a> from a variety of sectors were able to grab a few million dollars from the PPP. According to <a href="https://www.bloomberg.com/news/articles/2020-04-22/-shake-shack-loophole-stays-open-spawns-a-washington-whodunit?cmpid=socialflow-twitter-business&amp;utm_source=twitter&amp;utm_campaign=socialflow-organic&amp;utm_content=business&amp;utm_medium=socialtm_medium=social">Bloomberg</a>, everyone in Washington is saying that it's someone else's fault that big businesses were allowed to draw from this capital. The Democrats are blaming Republicans. The Republicans are blaming big banks, or saying the problem is a Treasury Department rule. The Treasury released guidance on Thursday urging businesses to only take the loans if they can "certify in good faith that their PPP loan request is necessary." That's it, requesting these businesses act in "good faith." Both Treasury Secretary Mnuchin and President Trump have said that big businesses should just kindly give the money back. Florida Senator and Monday morning quarterback Marco Rubio even said he's going to conduct "aggressive oversight" of the program this fall. That's nice, but obviously not enough. The loopholes allowing corporates to take money for small businesses should be easy to close — especially while an addendum to the program is being written —but not in our Washington. In our Washington it's pure theater. <h2>Access, access, access, access</h2>Last week when Senate Majority Leader Mitch McConnell (along with the White House) pushed to add funds to the PPP program, the effort hit a snag when Democrats insisted on making reforms to the program along with adding some money for hospitals and state governments into the bill. McConnell did not want those additions in the current bill. So there was a brief stalemate. And during that stalemate the country came to understand why and how the program should be reformed to ensure the money was going to small businesses. For example, on Monday <keyword id="1441253" type="PERSON" weightage="60" keywordseo="Shake-Shack">Shake Shack</keyword> was shamed into <a href="https://www.businessinsider.com/shake-shack-returns-govt-coronavirus-loan-criticism-small-businesses-2020-4">giving back its $10 million PPP loan</a>. The company's CEO Randy Garutti explained on <a href="https://www.cnbc.com/video/2020/04/20/shake-shack-ceo-randy-garutti-on-returning-10m-government-loan.html">CNBC</a> that it could not keep the money in good conscious after it had been able to tap $150 million worth of capital in the stock market the week before. You see, that's the advantage of being a big, public company. You can tap all sorts of funding, and not just from the myriad programs the Federal Reserve has for corporates in this pandemic. You can go to your investment banker and look at all kinds of options, including issuing shares in the stock market. That's why the fact that big companies are getting PPP money is so frustrating. They have other places to go to get money and small businesses don't. For a lot of small businesses this is it. Now, you might be saying to yourself — "but Linette, what about the existing shareholders? They'll take a hit if companies issue shares. They'll get DILUTED!" To which I say, "So what? Sometimes you lose money in the stock market." When the PPP program was first being written, experts of all stripes <a href="https://www.businessinsider.com/corporations-will-buy-up-small-businesses-after-coronavirus-pandemic-2020-4">(and me)</a> warned Washington that, because the program was operating on a first-come first-served basis, big companies with accountants and lawyers and access to their bankers would box out smaller business. That is what happened. The bill that replenishes the PPP funds is likely to pass this week. It attempts to address the problem with the program by setting aside $60 billion for credit unions, minority depository institutions, and other financial institutions that serve the underserved. Democrats got $100 billion for pubic health <a href="https://www.businessinsider.com/trump-treatment-state-governors-governments-coronavirus-response-getting-worse-2020-4">(though nothing for state budgets</a>) too. But the addendum does not change that language that allowed big companies to get money allocated for small companies. It is appalling that no one in DC seems to understand why this happened — not the legislators writing the bill, and not the president who's restaurant advisory counsel consists of <a href="https://www.businessinsider.com/trumps-restaurant-recovery-plan-is-built-on-fast-food-chains-2020-4">only large chain restaurants</a>. Must be some kind of strange coincidence. It makes you think maybe no one in Washington wants to fix this problem. Maybe in Washington this isn't really a problem at all. Read the original article on <a href="https://www.businessinsider.com/democrats-gop-trump-administration-dont-want-fix-ppp-small-business-loans-2020-4">Business Insider</a>

Face it, no one in Washington wants to fix the small business loan program

<ul class="summary-list"><li>President Trump signed into law a $484 billion coronavirus relief bill that includes another $310 billion in funds designed to provide relief to small businesses.</li><li>The <keyword id="6359222" type="UNKNOWN" weightage="60" keywordseo="Small-Business">Small Business</keyword> Administration will resume accepting loan applications through the Paycheck Protection Program on April 27.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>President Donald Trump signed into law a <a href="https://www.businessinsider.com/whats-in-interim-coronavirus-stimulus-package-2020-4">$484 billion coronavirus relief bill</a> on April 24.The bill includes $310 billion in new funds for the Paycheck Protection Program (PPP), which was put in place to provide aid for small businesses.According to a statement released by Jovita Carranza, administrator of the Small Business Administration (SBA), and Treasury Secretary Steven Mnuchin, the SBA will begin accepting PPP loan applications again on Monday, April 27."We encourage all approved lenders to process loan applications previously submitted by eligible borrowers and disburse funds expeditiously," the statement read. "All eligible borrowers who need these funds should work with an approved lender to apply. Borrowers should carefully review PPP regulations and guidance and the certifications required to obtain a loan."The initial <a href="https://www.businessinsider.com/forgivable-loans-avoid-layoffs-coronavirus-cares-paycheck-protection-economic-injury-2020-3">$349 billion in aid set aside for the PPP</a> in the record $2.2 trillion stimulus package passed in March <a href="https://www.businessinsider.com/ppp-funds-just-ran-out-heres-what-entrepreneurs-should-do-2020-4">was exhausted within about two weeks</a>, by April 16.According to the statement, the PPP loan has already supported more than 1.66 million small businesses and protected over 30 million jobs, yet unemployment claims have soared to unprecedented heights in March and April, <a href="https://www.businessinsider.com/us-weekly-jobless-claims-labor-market-unemployment-filings-coronavirus-recession-2020-4">standing at more than 26 million</a> over a five-week period alone."The Trump Administration is fully committed to ensuring that America's workers and small businesses continue to get the resources they need to get through this challenging time," according to Carranza and Mnuchin's statement.Read the original article on <a href="https://www.businessinsider.com/310-billion-of-the-new-sba-funds-will-go-to-helping-small-businesses-2020-4">Business Insider</a>

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