Loans

JPMorgan Now Taking Applications For Paycheck Protection Program

JPMorgan, one of the nation’s largest lenders, started accepting applications for loans from the federal government’s Paycheck Protection Program (PPP) on Friday (April 3), according to Reuters. The news service said the announcement was posted on the bank’s website.

This development is a change from JPMorgan’s previous note in an email on Thursday (April 2) that the bank would not be prepared to begin processing loans on Friday.

One of the criteria for acceptance by the New York-based bank is that applicants must have been Chase business checking account customers since at least Feb. 15. In addition, they cannot have applied for a similar loan with another financial institution (FI).

On Thursday, CNBC reported that Chase had told its customers they will likely be ready to accept loan applications on Friday (April 3). According to CNBC, the SMB lending program is a key part of the $2 trillion stimulus package that President Donald Trump signed into law last week to help rescue an economy that has ground to halt due to the coronavirus.

CNBC said the $2 trillion stimulus package signed into law last week by President Donald Trump is the key to rescuing an economy that has ground to halt coronavirus.

Treasury Secretary Steven Mnuchin said that banks should start distributing $350 billion in loans just after midnight on Friday, and said the loans do not have to be paid back.

In a recent survey, Main Street on Lockdown, PYMNTS reported on the urgency of getting the cash out the door and into the hands of struggling businesses. The survey of more than 200 small and mid-size businesses late last month revealed that there was only enough cash on hand to get through the next three weeks before reaching for personal credit lines or loans.

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The pressure on banks to modernize their payments capabilities to support initiatives such as ISO 20022 and instant/real time payments has been exacerbated by the emergence of COVID-19 and the compelling need to quickly scale operations due to the rapid growth of contactless payments, and subsequent increase in digitization. Given this new normal, the need for agility and optimization across the payments processing value chain is imperative.

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