Why spend time reviewing what the SBA or a bank has to say when you can get all the intel from Facebook posts......Holy Smokes!
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Why spend time reviewing what the SBA or a bank has to say when you can get all the intel from Facebook posts......Holy Smokes!
I specifically was addressing your statement that business owners would be lucky if they got money by June, i said within couple weeks, you were wayyy off. We know its only a few, but that wasnt the point. There were always issues, but as Mark Cuban said this morning and as i mentioned, the banks were much of the problem although SBA had their own.
FB posts arent valid?? lol they are from business owners but i guess DF posts are?? makes sense.
Chris,
The amount that has actually funded vs. what has been applied for is VERY low, but you would know this from listening to the news and checking Facebook. How about actually listening to someone that actually works for a bank and talks to bankers all day. The process is onerous for the business owners and the banks. The amount that has actually funded is small compared to applications most BANKS have received.
everyone thought this was an easy customer grab money maker and didn't think it thru. nothing that is gov related is ever easy or fast. this was expected and anyone who thought it was a flip of switch and $350b would be deployed was in denial.
You were wrong on the timing by almost 2 months, so your experience and value of listening to other bankers didnt mean much on the timing. Other points you have are valid, but as i listened very carefully to the lawmaker who made the law, the Tres Secty as he announced the rollout, i knew the timing of funds to be disbursed wasnt gonna take 2 months. Very simple point. not even arguing the fees or guarantees, customer acquisition, etc...
Chris,
I am not wrong about the timing of this. Less than 5% of those that have applied have received any funds. Hell some banks have just received an allocation of what has been accepted this morning....NOT FUNDED! What part of this do you NOT understand? It will be weeks for the majority of applicants to receive funds.
KH
You’re right. I’d bet that roughly 5% of applicants have seen funding from the PPP. Many of these were for companies that really didn’t even need the money, but were well-connected or had great relationship with banker. The businesses that really need them aren’t getting them. For many, it’s already too late.
PPP in theory will help stem some of the job losses (or already delay them). 7(a)s are where it’s at. That’s the only way to get real help to survive the next 18 months of massive recession.
To hitch hike on a few of the posts on this Forum - I just completed the latest 2 hour SBA Webinar .
As of Thursday 04-09-2020, within the Southeast Region $1.3 Billion has been "Approved" between the EIDL and PPP
Program. Much of those funds have not been dispersed.
Of all the merchants that called in with questions, 1 (One) Merchant indicated he actualy recieved $10,000 (EIDL) from a $15,000 approval. He was unclear when the other $5K may be deposited into his account.
Many Banks still do not have clear regulations, rules from Treasury regarding AML, FinCen.
Numerous unanswered questions regarding PPP.
Here is a good link Mark Cuban shared on LinkedIn - https://www.covidloantracker.com/
The $1200 stimulus checks are just now rolling out, some won't see those until August and you think the Govt will deploy the $350B in weeks, not a chance. Anything the Govt touches is a mess, "those who can't, work in the govt" we will all see this now.
False Claims Act Liability - another issue facing banks.
https://www.manatt.com/Insights/News...rs-Participati
checks in the mail yes could take extra time but i already got my $1200 yesterday. Also, those without bank accounts linked to the IRS can update that in the next few days.
Oh and Chase says they Sent 9.3 billion already for PPP
https://www.washingtonpost.com/busin...s-coronavirus/
I have been banking with Wells for 28 years, they hold all my money. They were worthless concerning the PPP program. They are still sending me emails stating that i can not apply because they are too backed up.
I applied with a local bank that specializes in SBA loans. They did my app on Friday. And i was declined yesterday. So at least i know i dont qualify since i am in the brokering and funding of small business loans.
Anyway my point is that the small regional bank had their **** together where as wells was worthless.
On another note i was working with a document prep company (as in selling their product) that was charging $2500 up front to prepare and submit SBA docs for the PPP, the grant and the disaster relief program. I did that for 2 days. I thought it was shady as **** an was taking advantage of people. So I stopped.
I like the way Chris jumps into the forum with bad information an then runs away...... The $1200 was part of the personal stimulus those who qualify will receive by wire if they are set up with the IRS or check which will take much longer. I am not eligible for the personal stimulus. Chase has processed and sent less than 30% of loans that have applied. When will the other 70% that have applied get their funds. Probably sometime after the next round of stimulus is approved. Good to see some folks have received some funds personally and for some businesses, but this again is throwing a deck chair off the Queen Mary.
The value with doc prep companies is on 7(a)s. The EIDL and PPP don’t require much help other than finding banks that will process the PPPs. But charging for PPPs may be illegal. EIDLs can be charged, but really: for what? The 7(a)s are a whole different ballgame. Doc prep matters there, along with being able to place with 7(a) lenders.
Question, was your experience with Wells Fargo bad enough for you to actually decide to move your funds into the small regional bank? That is the million dollar question. Will people that discover that the way they have been doing things may not be the best way, and if so will they find it worth the effort to go a diffrent route. Will this make the customer uncomfortable enough to actually do something about it?
This situation is really shaking the bag so to speak.. It will be interesting to see how the dust settles.
Just like with your personal experience you just posted about.. This situation cracked the door open for the small regional bank you posted about. Now it is up to that Small Regional Bank to really put on a dog & pony show for you. They have try to kick the door you cracked open, wide open and some sort of way land you as a customer. There marketing and remarketing will need to be on point and firing on all cylinders to make the most of all the people just like you that is cracking the door open for them. The hard thing is that people are mostly lazy and forget things quickly.. So the marketing and retargeting get's very expensive.. Having to constantly keep reminding people that "hey your big bank wasn't there for you, we were, don't treat us like the ugly step child, look at all we have to offer you, come over here!!!" requires a good well funded marketing system.. The big FinTech companies have the money and systems to go after all the people that will be cracking that door open.. Perhaps the small regional banks don't.
The same logic can be applied to the new FinTech / Fed Relationship. Due to the situation, the Fed cracked the door open for the FinTech companies... Now the Fintech companies need to put on the best Dog & Pony Show ever for the Fed in hopes they will see the goodness in FinTech's, and susequently open the doors wide open for FinTech's.
The "Is capitalism moral?" rabbit hole...
Best stock week since 1938 at the same time 16 Million of us lost our jobs in 3 weeks.
They say an image is worth a thousand words.
https://www.rawstory.com/wp-content/...-1280x720.jpeg
PPP for self-employed people was launched on April 10, 2020 which was only last Friday - April 10, 2020
I would verify they applied for the correct SBA Laon program, a bit hard to grasp that the SBA has even
reviewed your application that quick.
Not sure how you can misunderstand but which part was bad info? i clearly was referring to the personal stimulus and direct deposit, thats why i said people who didnt have that setup could soon upload their account info on website. The point was, and as much as i dont like this administration, things are moving and although not fast enough its very difficult to do programs this size quickly. Most checks that need to be mailed wont take months to go out, id say by beg of May.
Again, you said people would be lucky to get ppp money by June, but you move the goal post by saying most funds not disbursed.. Banks have 10 days to payout funds once sba have approval number. Im sure you know that by now.
Like Inacio said, several of you are so negative thats it not worth the energy to come on here. You have been wrong about a number of things from the getgo but stick to your narrative of your initial outlook.
Tell us, how much would a bank have to be paid in fees and int rates for it to 'be worth the squeeze'?
I never said its going to make them a margin that they are used to making, as they Should Not in this case, since its all getting paid back to them, at least thats the intent of the bill but with some things that had to be fixed.
Another 310 billion coming going through the 5,000 approved lenders.
You and westcoast can battle all day long, I would think you have more pressing things to do.
So the big companies that are publically traded are getting a mulligan (as long as they take it within 2 weeks)....
This is crazy! I didn't have any faith that this was going to pan out right in the 1st place....
https://www.cnbc.com/2020/04/23/us-i...get-funds.html
US issues new guidance for small business loans, pressures public companies to return funds
Companies applying for coronavirus relief funds must certify that the loans are necessary and that they cannot tap other sources of funding, the SBA said. By definition, public companies have access to the capital markets. For instance, Shake Shack returned the $10 million it got through the PPP after it sold $150 million in new shares.
In a key detail, the SBA indicated that large public companies who tapped the PPP before the rule change can avoid scrutiny by returning the relief loans in two weeks.
https://www.cnbc.com/2020/04/23/us-i...get-funds.html