The Paycheck Protection Program has seen its fair share of problems since launching and many of these issues could have been foreseen; banks do not extend capital to small businesses efficiently and online lenders, while being efficient, are finding a hard time operating themselves without the requisite capital; ultimately the Fed will need to be the backstop to the program in order for it to succeed in the way it was intended; the Fed took a step in this direction on Monday when they announced a facility to finance other’s purchases of the loans; the efficiency in lending is being tested right now with many lenders still underwriting loans as if times were normal; small businesses are unable to wait much longer or else they risk adding themselves and all of their employees to the growing unemployment line. The Wall Street Journal
