Letter to the Editor / “ WE UPPED OUR INCOME, . . .”

By Roger C. Kostmayer

It’s outrageous that many of the biggest banks, ones that were saved by American tax payers during the the 2008 -2009 financial crisis, are failing to help small businesses survive the 2020 Covid-19 pandemic.  Small businesses, that are not at fault and are the heart of our economy, include Mom and Pop restaurants, doctors, barbers, accountants, beauty shops, artists, retailers, designers, butchers and bakers.

The big banks are a necessary processing link in the SBA (Small Business Administration) distribution chain, and they are supposed to be processing the $350 billion in US government loans authorized by Congress.  These huge banks have zero financial risk because the US government guarantees the loans, yet they are deliberately refusing to help get these funds into the hands of small business owners and their employees. Culprits include Bank of America, Wells Fargo, Chase and Citibank, and some of them say that their failure to perform is attributable to this administration’s inability to clarify all the details.  But it’s clear that the banks are deliberately dragging their feet, giving phony excuses and often refusing to help anyone who isn’t already their current customer.

The SBA is the federal agency responsible for saving businesses by implementing the Paycheck Protection Program that’s part of the recently signed $2 Trillion CARES ACT. American voters, many of whom are dependent on small businesses, should hold this administration accountable  – for not holding deadbeat bankers accountable. The ungrateful bankers seem to be telling American taxpayers -“We upped our income, up yours.”

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