Marco Rubio on small business lending program: ‘It will get better. It has to get better’

Sen. Marco Rubio on Monday said a new small business lending program designed to help companies make payroll and retain employees during the coronavirus outbreak will likely improve amid a somewhat rocky start.

“We had no choice. This is an emergency situation, and when you do things in an emergency situation, they’re going to be far less than perfect,” Mr. Rubio, Florida Republican, said on CNBC.

“That said, I do believe it will now improve every single day,” he said.

The senator said the Treasury Department had to rewrite rules drafted by the Small Business Administration, and the SBA has been working through the weekend with Amazon to improve the system for banks.

“Hopefully what we want to see is that the number of lenders in the system grows every day and the number of problems and issues with the program diminishes every single day,” he said. “So it will get better. It has to get better.”

The $350 billion earmarked for small business loans to help them make payroll and pay for overhead was a key part of the $2.2 trillion economic rescue package Congress passed recently in response to the coronavirus outbreak.

The SBA estimated that as of Friday evening, about 17,500 loans valued at more than $5.4 billion had been issued.

But some small businesses and banks have reported that the early goings of the program are anything but smooth.

Mr. Rubio’s office had detailed a series of issues, including difficulties businesses were having in obtaining loans if they didn’t have prior experience with the lender and an apparent requirement that lenders have to hold the loans for seven weeks before they can be purchased by the government.

The SBA clarified on Saturday that faith-based groups are allowed to participate without restrictions based on religious identity as long as they meet other qualifying criteria.

President Trump has said he would ask Congress for more money for the program if it runs out.