Home » Economy » Banks 'not ready' to begin coronavirus relief program, CEO of top regional bank says
Banks 'not ready' to begin coronavirus relief program, CEO of top regional bank says
Some banks ‘not ready’ for coronavirus relief loans but will be in coming days: ConnectOne Bank CEO
ConnectOne Bank CEO Frank Sorrentino on the process banks are going through preparing to distribute loans to businesses struggling with coronavirus.
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Banks are not ready to lend to small businesses under the $2.2 trillion coronavirus relief package passed by Congress but will be in the coming days, according to the CEO of a top regional bank in the New York metropolitan area.
“The banks are using their balance sheet –with the guarantee of the SBA — in order to produce these loans,” ConnectOne Bank CEO Frank Sorrentino told FOX Business’ Maria Bartiromo. “And what we are waiting for right now — with some final tweaks to the ruleset– the application has changed a couple of times in the last 24 to 48 hours. I know people are lining up saying, hey, you know, we want to rush through that door, but banks are just not ready at this moment in time to pull the trigger.”
Sorrentino's comments come on the heels of the U.S. economy losing 701,000 jobs in March as COVID-19 shut down many businesses and many Americans shelter-in-place.
US EMPLOYERS SHED 701,000 JOBS IN MARCH, UNEMPLOYMENT JUMPED TO 4.4%, AS CORONAVIRUS RAVAGES ECONOMY
Sorrentino said the program is “very widespread.”
“We started last Friday. We started bringing those clients on board, collecting the data that we knew we needed to collect,” he said. “We also have a subsidiary called BoeFly, which is a fintech player, which has over 8000 applications pending and close to $2 billion in… loan demand.”