[malkuth23]

My understanding is there is actually some risk. If they do the paperwork wrong, or if the regulations change randomly (which they have a bunch of times already), the bank could theoretically be on the hook. Some of this reportedly happened in the last recession/bailout, so the banks are a bit gun shy.

I am not a banker, so this is all second hand information I have read on r/smallbusiness and other forums while trying to figure out my own stuff.

Don't get me wrong, I think they are getting paid a ton, probably too much, but it is not zero risk.

[tobyjsullivan]

The banks considered that risk and said they wouldn't participate unless it was eliminated.[0] I can't find any follow-up article covering if or how that resolved but I notice most banks seem to have participated in the end.

[0] https://www.reuters.com/article/us-health-coronavirus-stimul...

[tempsy]

Sure there’s probably some compliance risk here but that’s why most businesses are only working with existing clients. Very few are approving applications from brand new customers they’ve never had a relationship with.