Senator Grassley says they might be “repaying” TARP using SBA loans.
In other words, the goobermint is loaning them money to repay their TARP loans.
They? I'm not that familiar with the SBA. Aren't the loans they provide pretty small? I mean the two main banks discussed in this article are paying back $7.4 billion, I'd be surprised if the SBA loans more than 7 figures to a single business.
SBA loans are for mom-and-pop stuff, usually well under a million bucks.
Banks aren’t borrowing from the SBA, trust me.
This makes no sense. TARP has to be repaid by issuing capital to new investors. You can’t repay a loan by granting loans to other parties. When TARP is repaid, cash goes from the bank to the Treasury. When SBA loans are originated, cash goes from the bank to the borrower.