According to Bloomberg, banks are hesitant to participate in the Paycheck Protection Loan program because their fear repercussions if they approve a loan that later turns out to be fraudulent. 

The basic economic problem right now is that a lot of companies have shut down and aren’t earning any money. The ordinary reaction, for a company that doesn’t make stuff or earn any money, is to go out of business and lay off all of its workers, but it is pretty widely recognized that that would not be a good reaction, for most businesses, right now.

Financial relief for small businesses hit a snag as banks were not yet ready to accept applications for the Paycheck Protection Program, reports Yahoo Finance.

The Trump administration’s emergency $349 billion Paycheck Protection Program to help small businesses cover their payroll costs was set to roll out on Friday April 3, with banks accepting applications from businesses slammed by coronavirus. (Applicants must have fewer than 500 employees.)

The SBA’s Paycheck Protection Program still excludes startups, reports Tech Crunch. 

Under new guidance issued by the Small Business Administration it seems non-profits and faith-based groups can apply for the Paycheck Protection Program loans designed to keep small business afloat during the COVID-19 epidemic, but most venture-backed companies are still not covered.

According to Inc., small businesses could get their loan forgiven under the new stimulus package. 

Small businesses reeling from the impact of coronavirus may have good news coming in the form of loan forgiveness.