>>Banks are basically being compensated for doing paperwork.
They're really being compensated for having the network to do what the government wanted to. No one else has the capacity to give money to small (and some large) businesses in a record amount of time.
I'd pay 5% to get the stimulus cash a few days after the bill is passed...and I guess the same for the government /taxpayers. Corona loans that go out in October are no good, so you pay a fee for performance. Call that $10B a Bank Stimulus Act
The IRS already has the information that the banks are asking for.
For companies with employees, that is IRS Forms 940 and 941.
For Sole Props that is your IRS Form 1040 and Schedule-C.
The IRS likely has the banking information for your company (or your payroll processor) and if they don't they have your business address, and could cut checks like they do EVERY YEAR.
Claiming that a bank has to be there to process the paperwork is just plain ignorant of the amount of information the IRS already requires from companies on a quarterly and yearly basis.
At the end of each PPP application with your bank, you get the same SBA PPP form to sign as the SBA has publicized on their web page. You then have to sign and pinkie swear that the funds are necessary and going to payroll.
The banks are doing jack shit in terms of useful work except shoveling application's SBA's way, with the SBA being the ultimate approver of the loan anyway! Bank are just in middle and limiting applications to their existing customers for no good reason whatsoever.
Like I said they are being compensated for doing paperwork. But the compensation appears to far exceed the effort required especially if most customers are applying through an existing banking relationship.
They're really being compensated for having the network to do what the government wanted to. No one else has the capacity to give money to small (and some large) businesses in a record amount of time.
I'd pay 5% to get the stimulus cash a few days after the bill is passed...and I guess the same for the government /taxpayers. Corona loans that go out in October are no good, so you pay a fee for performance. Call that $10B a Bank Stimulus Act