Bloomberg Tax, August 3, 2020: As Banks Shed Relief Loans, Pitfalls Arise for Hobbled Borrowers
Emergency pandemic relief loans rushed much-needed relief to struggling small businesses, funneled through banks that promised hand-holding throughout the process.
For some businesses, those hands would then wash themselves of the loans, by selling them to lesser-known—and lightly regulated—companies that may not have that same incentive.
Since at least May, two nonbank lenders have announced their intention to purchase more than $10 billion in Paycheck Protection Program (PPP) loans from banks that say they don’t have the capacity or expertise to service the loans they generated or to handle forgiveness applications.
