How The Big Banks are Working the System at Your Expense

I just got a letter today from Kelly S. King CEO of Truist Bank (a recent merger of SunTrust and BB&T banks).

He sent the letter to try to explain away why several Small Business that applied for the PPP Loan did not get any money.

In the letter there are several white lies that are telling of the truth. First of which is that they said they started accepting applications on April 3. This is a lie at least for most of us who were forced to apply online and not given access to the online service until April 5. Some people did get applications on April 3. The rest of the letter is telling as to who those people were.

The letter goes on to explain in the first 48 hours they received 100,000 applications. They further explain that most of those 100,000 have not received money even though they have released $10 Billion.

Now lets do some math. That means even if they did process all 100,000 applications they averaged giving out $1 million to each applicant. There is no way they processed 100,000 loans. Had they done that they wouldnt need to send out a letter. It is likely closer to a third of that.

Notice though the maximum they can give out by law is $10 million to a customer. There is only one way in which you can process 100,,000 applications and get to $10 Billion and still average a $1 million per customer. The only way is to prioritize the rich clients first.

In other words if you have a payroll of $10 million in 2.5 months you went to the front of the line. And if you were a true small business you went to the back of the line.

This infuriates me.

-IceHot