SBA’s Herculean Pandemic Response Was Swift, But Not Smooth
- Many firms shut out, others wondering when funds will land
- Questions rise about states that got more, potential for fraud
Closed stores in downtown Sioux Falls, South Dakota, U.S., on, April 15.
Photographer: Dan Brouillette/BloombergThis article is for subscribers only.
Congress handed the colossal task of quickly getting $349 billion in pandemic relief for mom-and-pop firms to a small, understaffed federal agency that was overwhelmed from the program’s start.
Yet, after a glitch-plagued beginning, the Small Business Administration managed to approve applications and guarantee all the loans in just 13 days, dwarfing its previous record of $30 billion spread out over an entire year. With the funds now tapped out, many businesses remain in the cold, while some that received loans are still wondering when money would actually move into their accounts.