[digsy]

>I can't see the upside in doing this through the banks other than to make it a logistical nightmare for small businesses - if anyone has thoughts otherwise I would really like to understand.

Financial Institutions are set up already to do Know Your Customer (to prevent fraud).

And they have systems/processes in place to file loans through E-Tran (needed to file a loan with the SBA).

You arent hearing back instantly because FIs are completely overloaded with this and modifying existing loans/mortgages for small businesses and customers.