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U.S. small banks have processed more than 700 small business relief loans for $2.5 million: Mnuchin

Published 04/03/2020, 09:07 AM
Updated 04/03/2020, 09:35 AM
© Reuters. FILE PHOTO: Treasury Secretary Steven Mnuchin testifies before Senate Finance Committee

© Reuters. FILE PHOTO: Treasury Secretary Steven Mnuchin testifies before Senate Finance Committee

WASHINGTON (Reuters) - U.S. Treasury Secretary Steven Mnuchin said on Friday that community banks have processed hundreds of small-business loans aimed at shoring up the economy during the global coronavirus pandemic, and sounded a positive note about a new program that lenders have greeted with skepticism.

"The system is up and running. Community banks have already processed over 700 loans processed for $2,500,000. Great work!!" Mnuchin wrote on Twitter. "Large banks expected to go live soon this morning as well."

Mnuchin pressed ahead with launching the $349 billion rescue loan program after conceding to bank demands to fix aspects that might create legal and financial risks.

© Reuters. FILE PHOTO: Treasury Secretary Steven Mnuchin testifies before Senate Finance Committee

In the hopes of keeping small businesses afloat, and their workers employed, the government created loans of up to $10 million to cover about eight weeks of payroll and some other expenses such as rent and utilities.

Latest comments

Must be a misprint or I'm misreading.  $2.5 million?  For the whole country?  And this comes to $3,571 per business which might cover a couple of paychecks.  It's like being rescued from a storm at sea by a boat consisting of one toothpick.  Good idea but need more...
This isn't because there's something fundamentally wrong with these businesses, it's because they simply aren't doing business because they can't. Every business owner I know is simply on pause, and ready to resume immediately when this virus response is over.
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