Home
Fintech
How the SBA’s E-Tran System Became the Center of the PPP

How the SBA’s E-Tran System Became the Center of the PPP

·
FintechNews RoundupUSA
··1 min read

The government did not have a good mechanism for extending $670bn in small business loans and the SBA’s E-Tran came with its fair share of issues; the system was designed to lend about $20bn a year from less than 1,800 banks; PPP was like nothing seen before and the SBA was also home to one of the smallest budgets in the government; banks on the other hand have been spending billions a year to update their technology, this led to a mismatch in tech as the program ramped up; “To do this as quickly as possible, there was no other game in town,” said Charles Potts, Chief Innovation Officer at the Independent Community Bankers of America, to Business Insider. “There is no other platform or mechanism by which a lender could be the intermediary to money from the federal government and distribute it to small businesses,” he added.; banks started to build their own systems to interact better with E-Tran but that overloaded the system and gave an edge to the big banks; all things considered the system was able to extend an extraordinary amount of capital in a few short weeks. Business Insider

  • Emily Donato

    With efforts in many different areas of the team, she helps manage, organize and execute digital and event content. She works with webinars, podcasts, social media along with managing the hundreds of speakers that attend our conferences. Emily was a part of the Zimmerman Advertising Program at the University of South Florida. She graduated in 2019 receiving a Bachelor of Science in Business Advertising.

    View all posts