WASHINGTON, April 26 (Reuters) - The U.S. Small Business Administration (SBA) plans to cap how much institutions can lend under the Paycheck Protection Program designed to keep workers on payrolls amid the novel coronavirus, according to a memo seen by Reuters.
The SBA will institute a maximum dollar amount for lending at 10% of PPP funding authority for any lending institution and pace the number of loans processed for participating lenders, according the memo.
U.S. banks were girding over the weekend for another frantic race to grab $310 billion in fresh small-business aid due to be released by the government on Monday. The SBA will reopen the lending program at 10:30 a.m. on Monday, allowing lenders to resume processing piles of backlogged applications from businesses hurt by the coronavirus shutdown. (Reporting by Michelle Price; Writing by Chris Prentice; Editing by Peter Cooney)