Small business loan program resumes, but technical frustrations remain

The second round of filing applications for loans through the federal government’s small business relief program was slowed Monday by computer glitches at the Small Business Administration. 

The SBA on Monday afternoon reportedly informed lenders that high demand was slowing the system, after telling them Sunday that it was limiting the number of applications any lender could submit at once.

The first round of application for the widely popular program also was slowed by computer issues at the SBA, according to Associated Press.

The program’s initial $349 billion was exhausted in less than two weeks after more than 1.7 million loans were approved.

On Monday, the SBA began accepting applications at 10:30 a.m. Eastern time for $310 billion in funding.

Lenders complained that they couldn’t get their applications into the ETran system, which processes and approves loans.

“This is one of the most inefficient days I’ve ever been a part of,” United Midwest Savings Bank Chief Lending Officer Craig Street told the New York Times. “We have people sitting in front of computers inputting data over and over again only to be continually timed out of the system and have to start over.”

Last week, Congress approved $310 billion in additional funding to replenish the depleted program, known as the Paycheck Protection Program, created to help small businesses impacted by the coronavirus crisis.

Many businesses have been hit hard amid the pandemic. The economic damage has been so acute that more than 26 million people have filed for unemployment within a 5-week period.

"Our member banks across the country are deeply frustrated at their inability to access @SBAGov 's E-Tran system," President and CEO of the American Bankers Association Rob Nichols tweeted about the technical problems on Monday. "We have raised these issues at the highest levels. Until they are resolved, #AmericasBanks will not be able help more struggling small businesses."

Still, the SBA reported having processed Monday more than 100,000 loans from 4,000 lenders.

Citizens Bank of Edmond Chief Executive Jill Castilla said that during a period of six hours only three applications had processed out of the 200 prepared for submission.

“We serve truly tiny businesses, and many of them are in desperate circumstances,” Castilla said according to the New York Times. “We know that each hour that goes by means there’s more money used up that won’t be available to be allocated for loans in our community.”