The Globe and Mail reports in its Monday edition that Canada's banks spent the weekend in intensive talks with Ottawa to iron out details of a program that will give interest-free loans to small businesses suffering amid the COVID-19 virus, but the length of time needed to process those loans has become a key point of discussion.
The Globe's James Bradshaw writes that at least one point remains to be settled: The feds believe it is necessary to have a delay of up to five days before banks disburse funds to clients who qualify for loans.
A working group of bankers and federal officials has agreed on most of the core issues, including eligibility criteria, the banks' process for verifying clients and preventing fraud, the terms of the loans, and what reporting the government will require from banks.
Government officials are pressing for a five-day waiting period before banks disburse funds to clients who qualify for loans. That would give the government time to verify borrowers' details and ensure businesses are not applying more than once. Banks, however, want the government to make it possible for them to issue funds the same day, to shorten wait times for business owners who are already pleading for more relief.
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