UPDATE 2-U.S. will cap how much each bank can lend under emergency coronavirus program -memo [Reuters]
JP Morgan Chase & Co. (JPM)
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Source: Reuters
U.S. will cap how much each bank can lend under emergency coronavirus program: memo WASHINGTON (Reuters) - The U.S. government notified lenders on Sunday that it will cap how much each bank can lend under the emergency loan program designed to keep workers on payrolls amid the coronavirus pandemic, hours ahead of the reopening of the lending program. The Small Business Administration (SBA) will impose a maximum dollar amount for individual lenders at 10% of Paycheck Protection Program funding, or $60 billion per lender, and pace the applications filed, according to SBA guidance on Sunday to lenders that have received a significant number of applications. The steps are “prudent and reasonable” due to the unprecedented demand for the loans, the memo said. U.S. banks were girding over the weekend for another frantic race to grab $310 billion in fresh small-business aid due to be released by the government. The SBA was due to reopen PPP funding at 10:30 a.m. ET (1430 GMT) on Monday, allow
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