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| Enlisted Late, Online Lenders Still Must Wait to Help Speed Up Stimulus | Enlisted Late, Online Lenders Still Must Wait to Help Speed Up Stimulus |
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| WASHINGTON — When the federal government opened its $349 billion small-business lending program last Friday, start-ups that specialize in giving such loans were eager to accept applications and send money to the restaurants, gyms and hair salons hit hard by the coronavirus shutdown. | WASHINGTON — When the federal government opened its $349 billion small-business lending program last Friday, start-ups that specialize in giving such loans were eager to accept applications and send money to the restaurants, gyms and hair salons hit hard by the coronavirus shutdown. |
| Yet these online lenders were locked out of the program for the first six days, even as small businesses complained about the difficulties in getting loans through traditional banks. | Yet these online lenders were locked out of the program for the first six days, even as small businesses complained about the difficulties in getting loans through traditional banks. |
| Treasury Secretary Steven Mnuchin had said on Fox News on March 29 that online lenders could be a part of what is known as the Paycheck Protection Program in order to give small businesses more, and potentially faster, options to get the loans. | Treasury Secretary Steven Mnuchin had said on Fox News on March 29 that online lenders could be a part of what is known as the Paycheck Protection Program in order to give small businesses more, and potentially faster, options to get the loans. |
| But it was only on Wednesday night that the Treasury Department offered online lenders a way to apply to take part in the program. The start-ups said they had received no guidance on how long it would be before they could begin lending. | But it was only on Wednesday night that the Treasury Department offered online lenders a way to apply to take part in the program. The start-ups said they had received no guidance on how long it would be before they could begin lending. |
| The difficulties facing online lenders are another example of the dysfunction and disorganization that have slowed down the flow of loans to small businesses, even as President Trump has insisted that the program is going well, with only a few small glitches. | The difficulties facing online lenders are another example of the dysfunction and disorganization that have slowed down the flow of loans to small businesses, even as President Trump has insisted that the program is going well, with only a few small glitches. |
| Financial technology companies like PayPal and Square, and smaller companies that focus on small-business lending, like Kabbage and OnDeck, have specialized in giving loans to the businesses that are the focus of the government program — those with fewer than 500 employees — and doing it more quickly than banks. Many of the lenders have expressed frustration that they have been shut out when they feel they could be the most useful. | Financial technology companies like PayPal and Square, and smaller companies that focus on small-business lending, like Kabbage and OnDeck, have specialized in giving loans to the businesses that are the focus of the government program — those with fewer than 500 employees — and doing it more quickly than banks. Many of the lenders have expressed frustration that they have been shut out when they feel they could be the most useful. |
| “Every five minutes I’ve been refreshing the Treasury page like a maniac,” said Sam Taussig, the head of global policy at Kabbage, one of the largest online lenders for small businesses. “The businesses that we serve on Main Street, they only have about 10 to 12 days of cash on hand, and we are well past that in many places.” | “Every five minutes I’ve been refreshing the Treasury page like a maniac,” said Sam Taussig, the head of global policy at Kabbage, one of the largest online lenders for small businesses. “The businesses that we serve on Main Street, they only have about 10 to 12 days of cash on hand, and we are well past that in many places.” |
| The Small Business Administration and the Treasury Department, which are overseeing the loans program, didn’t respond to requests for comment about the online lenders. S.B.A. officials have said they are working to iron out any issues slowing the flow of money to business owners. | The Small Business Administration and the Treasury Department, which are overseeing the loans program, didn’t respond to requests for comment about the online lenders. S.B.A. officials have said they are working to iron out any issues slowing the flow of money to business owners. |
| The lenders want to help distribute the $349 billion in loans the government is giving to small businesses to help them make payroll and cover other costs during the pandemic. The loans have generous terms, including a low interest rate and forgiveness for portions spent on fixed costs like rent and paychecks for employees who aren’t working. | The lenders want to help distribute the $349 billion in loans the government is giving to small businesses to help them make payroll and cover other costs during the pandemic. The loans have generous terms, including a low interest rate and forgiveness for portions spent on fixed costs like rent and paychecks for employees who aren’t working. |
| The government has so far relied on traditional banks, like Wells Fargo and Bank of America, to distribute the loans alongside smaller community institutions. The banks have obtained approval for $95 billion of loans, leading lawmakers to discuss adding more money to the program. | The government has so far relied on traditional banks, like Wells Fargo and Bank of America, to distribute the loans alongside smaller community institutions. The banks have obtained approval for $95 billion of loans, leading lawmakers to discuss adding more money to the program. |
| But these large financial institutions have mostly been willing to work only with existing customers, making it hard for small enterprises that did not previously have accounts with the banks. Banks also tend to rely on paperwork and manual processes that can take days. | But these large financial institutions have mostly been willing to work only with existing customers, making it hard for small enterprises that did not previously have accounts with the banks. Banks also tend to rely on paperwork and manual processes that can take days. |
| In part because of the cost of working with these loans, banks have taken a step back from lending to small businesses over the last decade, according to data from S&P Global Market Intelligence. | In part because of the cost of working with these loans, banks have taken a step back from lending to small businesses over the last decade, according to data from S&P Global Market Intelligence. |
| That provided an opening for online lenders, which have focused on automating the documentation and approval processes to reduce costs and make it faster. More than 25 such companies have gotten funding from venture capitalists, according to Pitchbook. Those numbers don’t include large financial technology companies like PayPal, Square and Stripe, which have also pushed into lending to small businesses. | That provided an opening for online lenders, which have focused on automating the documentation and approval processes to reduce costs and make it faster. More than 25 such companies have gotten funding from venture capitalists, according to Pitchbook. Those numbers don’t include large financial technology companies like PayPal, Square and Stripe, which have also pushed into lending to small businesses. |
| Online lenders are a small part of the financial industry. But last year, they were the biggest source of loans for small businesses with medium and low credit profiles, according to data released this week by the Federal Reserve. | Online lenders are a small part of the financial industry. But last year, they were the biggest source of loans for small businesses with medium and low credit profiles, according to data released this week by the Federal Reserve. |
| Brock Blake, the chief executive of Lendio, a website that works with online lenders and traditional banks, said that where traditional banks generally took at least a week to approve loans, online lenders could almost always do it within an hour. | Brock Blake, the chief executive of Lendio, a website that works with online lenders and traditional banks, said that where traditional banks generally took at least a week to approve loans, online lenders could almost always do it within an hour. |
| Lawmakers have noticed the start-ups’ absence. Senator Marco Rubio, the Florida Republican who is chairman of the Senate’s small business subcommittee, has raised concerns about their slowness to participate in the program. | Lawmakers have noticed the start-ups’ absence. Senator Marco Rubio, the Florida Republican who is chairman of the Senate’s small business subcommittee, has raised concerns about their slowness to participate in the program. |
| Updated June 22, 2020 | |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| “To not leave behind underserved communities and those whose banks won’t help them, we need to get nonbank lenders, including fintechs, into the program as soon as possible,” Mr. Rubio said in a statement on Thursday. He said he was glad the Treasury Department had released the application for the companies and was “pushing to put that on a fast track.” | |
| Online lenders are desperate to take part in the program because their business has largely dried up in the pandemic. What’s more, with attractive loans available from the government, few small businesses want any other kind. | Online lenders are desperate to take part in the program because their business has largely dried up in the pandemic. What’s more, with attractive loans available from the government, few small businesses want any other kind. |
| The chief executive of Toast, which focuses on lending to restaurants, said in a letter this week that it was laying off or furloughing half of its employees. Kabbage made even larger cuts last month, according to Bloomberg. The price of shares in OnDeck, a publicly traded competitor, have dropped more than 50 percent. | The chief executive of Toast, which focuses on lending to restaurants, said in a letter this week that it was laying off or furloughing half of its employees. Kabbage made even larger cuts last month, according to Bloomberg. The price of shares in OnDeck, a publicly traded competitor, have dropped more than 50 percent. |
| The government loans are unlikely to be great moneymakers. Small businesses will pay almost no interest, and lenders will get a 5 percent fee from the government for any loans they originate. | The government loans are unlikely to be great moneymakers. Small businesses will pay almost no interest, and lenders will get a 5 percent fee from the government for any loans they originate. |
| The companies have lobbied aggressively to take part, asking Congress to allow them to participate and then pushing the agencies to issue guidance making it clear they would be included. | The companies have lobbied aggressively to take part, asking Congress to allow them to participate and then pushing the agencies to issue guidance making it clear they would be included. |
| While waiting for approval, some of the tech companies have tried to figure out workarounds. Kabbage and PayPal have teamed up with banks to process loans for them. | While waiting for approval, some of the tech companies have tried to figure out workarounds. Kabbage and PayPal have teamed up with banks to process loans for them. |
| Kabbage said it had already gotten 40,000 applications requesting $4 billion in loans. That allowed it to bring back some of its furloughed workers, but company executives said they would be able to do more robust business with full approval. | Kabbage said it had already gotten 40,000 applications requesting $4 billion in loans. That allowed it to bring back some of its furloughed workers, but company executives said they would be able to do more robust business with full approval. |
| If they start distributing money on their own, online lenders may encounter the same difficulties that have hit their traditional competitors. While the start-ups can approve loans quickly, they have to process the applications with the Small Business Administration, and an S.B.A processing system has slowed down under the weight of the applications. | If they start distributing money on their own, online lenders may encounter the same difficulties that have hit their traditional competitors. While the start-ups can approve loans quickly, they have to process the applications with the Small Business Administration, and an S.B.A processing system has slowed down under the weight of the applications. |