North Carolina banks and other lenders are trying to keep up with a surge of applications for small business disaster loans during the coronavirus pandemic.
The Small Business Administration began processing loans under a program called Paycheck Protection last week, but some customers complained banks were slow to submit applications or were not taking them at all.
The Treasury Department did not finalize its guidance for the program until this week, according to Peter Gwaltney, president of the North Carolina Bankers Association.
"We didn't have those rules of the game, so now the public will see loans closing, business being funding, Paycheck Protection Program loans being funded, and money moving into the economy very quickly here," he said.
Congress set aside nearly $350 billion in small business loans at a 1% interest rate over two years. The Wall Street Journal reports the SBA has already approved loans totaling nearly half of that funding, but most businesses are still waiting for the money.