[Scooter_Stepford]

Great. Now there's at least correlational evidence suggesting partisan favoritism affected who goat SBA loans:
[tweet]https://twitter.com/business/status/1251984181522989057?s=20[/tweet]


Per Bloomberg, NY, CA, and DC were the three jurisdictions that had the lowest ratio of eligible payroll to loan $ approved. There are, of course, other potential explanations:

Ernie Tedeschi, the Evercore analyst who calculated the eligible payroll figures, offered a few theories about why the imbalance arose in an April 15 note. One was that regions hit harder by the virus, or that had the earliest lockdowns, may have had more trouble getting lending started. Another was that more businesses in hard-hit states may not have applied because the program isn’t enough to make a difference for them. Tedeschi also floated the possibility that businesses in some states had better pre-existing relationships with community banks that were able to get applications submitted quickly.

The trouble with this is that my friends who got nothing from the SBA had "pre-existing relationships with community banks" and were told that they were beat out by bigger banks like Wells Fargo and Bank of America. Then again, my friends are all in reliably blue coastal states...

One problem with this view is that for a good portion of the window Wells Fargo couldn’t submit loan requests to the SBA.  They were being sanctioned for their past misdeeds and were restricted to $10b in new loans.  It took several days for the sanction to be lifted.  By then, the PPP funds were nearly exhausted.

Since WFC is a monster player in many ‘blue’ states—and a common prerequisite for applying is an existing banking relationship— I wonder how much of the allocation disparity can be attributed to their sordid history and resulting penalty?

Hopefully, 1) Congress decides to put their constituents first and pass the $250b extension sooner rather than later, and 2) WFC has taken this interlude to up their game.  (Spoken selfishly as WFC is my wife’s business’ bank.)

OregonTim’s report of success is the first I’ve heard — other than Ruth’s Chris(!) — of a business receiving PPP funds.

[Scooter_Stepford]

Great. Now there's at least correlational evidence suggesting partisan favoritism affected who goat SBA loans:
[tweet]https://twitter.com/business/status/1251984181522989057?s=20[/tweet]


Per Bloomberg, NY, CA, and DC were the three jurisdictions that had the lowest ratio of eligible payroll to loan $ approved. There are, of course, other potential explanations:

Ernie Tedeschi, the Evercore analyst who calculated the eligible payroll figures, offered a few theories about why the imbalance arose in an April 15 note. One was that regions hit harder by the virus, or that had the earliest lockdowns, may have had more trouble getting lending started. Another was that more businesses in hard-hit states may not have applied because the program isn’t enough to make a difference for them. Tedeschi also floated the possibility that businesses in some states had better pre-existing relationships with community banks that were able to get applications submitted quickly.

The trouble with this is that my friends who got nothing from the SBA had "pre-existing relationships with community banks" and were told that they were beat out by bigger banks like Wells Fargo and Bank of America. Then again, my friends are all in reliably blue coastal states...

One problem with this view is that for a good portion of the window Wells Fargo couldn’t submit loan requests to the SBA.  They were being sanctioned for their past misdeeds and were restricted to $10b in new loans.  It took several days for the sanction to be lifted.  By then, the PPP funds were nearly exhausted.

Since WFC is a monster player in many ‘blue’ states—and a common prerequisite for applying is an existing banking relationship— I wonder how much of the allocation disparity can be attributed to their sordid history and resulting penalty?

Hopefully, 1) Congress decides to put their constituents first and pass the $250b extension sooner rather than later, and 2) WFC has taken this interlude to up their game.  (Spoken selfishly as WFC is my wife’s business’ bank.)

OregonTim’s report of success is the first I’ve heard — other than Ruth’s Chris(!) — of a business receiving PPP funds.