Banks To Be Limited On How Much They Can Lend Small Businesses

Banks will be limited as to how much money it can lend under the US government's emergency loan program.

The Small Business Administration will impose a maximum dollar amount for individual lenders.

An internal government memo says banks will be allowed 10% of Paycheck Protection Program funding authority and must pace the applications filed.

US banks are readying for another frantic race to grab $310 billion in fresh small-business aid due to be released by the government on Monday.

According to Reuters, the program’s first $349 billion of funds ran dry in less than two weeks.

Lenders expect the second tranche of cash to be snapped up even faster by tens of thousands of applications.