Mnuchin sends senior MP to fix small business loan mess
The increased staffing of the Treasury, which has involved other officials intimately in the program since its inception, could allay the concerns of the banks responsible for distributing the loans. They are increasingly frustrated with the administration due to a lack of clear guidelines and an inability to resolve technical issues with the SBA loan processing systems.
This week, the big banks complained that they believed the SBA was keeping them in the dark about their hundreds of thousands of pending applications and that the agency was perhaps putting them at the back of the pack for funds.
“It is important that the Treasury and the SBA work together hand in hand for the success of the PPP for the benefit of the millions of small businesses across the country that depend on it,” said an industry source in response to Muzinich taking a more important role. in the program. “Any measure aimed at strengthening the partnership seems reasonable.”
By sending Muzinich to the SBA, Mnuchin lends an official with extensive banking and Wall Street experience. He played a key role in discussions on the record $ 2 trillion economic bailout bill that established the paycheck protection program. Generally known for his composure, Muzinich forged a reputation in Washington as a pragmatic technocrat rather than a partisan warrior.
The senior Treasury official who confirmed Muzinich’s mission said: “The Treasury Department and SBA continue to coordinate closely for the successful implementation of the paycheck protection program.”
The SBA did not respond to requests for comment.