Bank of America Corp. (NYSE: BAC) has received over 10,000 applications for the small business loan program backed by the government. Bank of America has been the first major bank to accept applications for the small business rescue program that has been approved by Congress last week.
“Speed is of the essence here for these types of small businesses,” Moynihan said. “The money will start to go out the door once these applications are processed over the next short period of time.”
Small business employ half of the U.S. private sector’s employees have been affected immensely due to the impact of the COVID-19 virus. COVID-19 has caused cities to shut down their non-essential businesses as consumers stay home, practicing social distancing and isolation in efforts to contain the virus. This also curbs consumer spending which negatively impacts all companies.
Consumer transaction volume fell from an average of USD 60 Billion a week to USD 40 Billion, Chief Executive Brian Moynihan said. In its USD 2 Trillion stimulus package passed by Congress last week, USD 349 Billion was included for small businesses as they lean on banks to retrieve the funds.
“Wells Fargo is working as quickly as possible to be ready to assist small-business customers as part of the Paycheck Protection Program (PPP),” a spokesman said in a statement.
Businesses are encouraged to apply for the small business loan via the same bank that holds their business account as it will process faster. “If you borrow from another bank … Please go back to them because they’re your core bank and they know you the best and can process you the fastest,” he said.