Small-business loan program just hit its $350 billion cap and is now out of money

The PPP loan program was well intended but had a “structural flaw” in how it was executed, said Mehrsa Baradaran, a professor specializing in banking law at the University of California, Irvine. “Any time you create a big program and give banks the ability to choose which customers to prioritize, you’re going to have disparities. Banks are incentivized to choose the customers that make them the most money,” she said.