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SBA Sets Cap on Amount of Relief Loans That Banks Can Process

April 26, 2020, 9:25 PM

The U.S. Small Business Administration is capping the value of loans individual banks can arrange under a government economic relief program for small businesses that restarts Monday.

The move reflects concerns that the biggest U.S. banks could again dominate the lending and prevent money from getting to the mom-and-pop shops that need it the most.

The SBA sent an email to lenders on Sunday limiting the maximum dollar amount of loans each bank can issue at 10% of funding authority of the Paycheck Protection Program. The goal of the cap is “to ensure equitable access,” according to a copy ...