[BB_Cooper]

Has anyone heard if the pending stimulus bill would eliminate for 7(a) Express Loans the normal restrictions and ineligible business categories?

The current text seems to increase eligibility to any merchant in business on March 1st & have less than 500 employees. Or is this really just going to be the 7(a) Express Loan process without the need to prove you can't receive credit elsewhere?

http://www.congress.gov/bill/116th-c...bill/3548/text
(b) Increased Eligibility For Certain Small Businesses And Organizations.—

(1) IN GENERAL.—During the covered period, any business concern, private nonprofit organization, or public nonprofit organization which employs not more than 500 employees shall be eligible to receive a loan made under section 7(a) of the Small Business Act (15 U.S.C. 636(a)), in addition to small business concerns.

(2) EXCLUSION OF NONPROFITS RECEIVING MEDICAID EXPENDITURES.—Paragraph (1) shall not apply to a nonprofit entity eligible for payment for items or services furnished under a State plan under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) or under a waiver of such plan.

[WestCoastFunding]

Yes, nonprofits would be eligible.

[BB_Cooper]

Yes, nonprofits would be eligible.

So this list of ineligible 7(a) recipients doesn't apply?

https://www.sba.gov/sites/default/fi...20111122_0.pdf

Sorry to ask the obvious and ugly quesiton-how does anyone sell an MCA or any small business loan product, when literally anyone is eligible for a 7(a) Express Loan?

[fundingsmbs]

i would say you can use the analogy why would a merchant take a 18 mo deal with first pos and than go stack. There will always be a need for money. the first line of attack will def be the sba loans for merchants as that makes the most sense, but, they will have other needs the SBA may not have addressed.

[WestCoastFunding]

So this list of ineligible 7(a) recipients doesn't apply?

https://www.sba.gov/sites/default/fi...20111122_0.pdf

Sorry to ask the obvious and ugly quesiton-how does anyone sell an MCA or any small business loan product, when literally anyone is eligible for a 7(a) Express Loan?

I actually think that many of those will still be off-limits. But nonprofits will finally be eligible, as they are removing the biggest requirement the SBA had: must be for profit. The rest, I really have no idea. Can't imagine they'll allow brokers to be eligible.

[splurge37]

I actually think that many of those will still be off-limits. But nonprofits will finally be eligible, as they are removing the biggest requirement the SBA had: must be for profit. The rest, I really have no idea. Can't imagine they'll allow brokers to be eligible.

Brokers can potentially be eligible, I have seen them approved and funded - but that is not every broker, SBA is very nuanced and it is not a simple answer. Here's a read if anyone's interested. It's the SBA's SOP's (368 pages) outlining the specifics of the SBA program.

That being said, as an SBA insider I've personally seen 3 different versions of the bill being considered. Until we have something passed, it's really tough to speculate on what the final language will contain. I'm optimistic SBA lending will be supercharged, regardless.

Demand is very strong, and should only continue to grow.

SmartBiz is the top national originator of SBA loans under $350k - jared.kogan@smartbizloans.com

[sigmundpannu]

Brokers can potentially be eligible, I have seen them approved and funded - but that is not every broker, SBA is very nuanced and it is not a simple answer. Here's a read if anyone's interested. It's the SBA's SOP's (368 pages) outlining the specifics of the SBA program.

That being said, as an SBA insider I've personally seen 3 different versions of the bill being considered. Until we have something passed, it's really tough to speculate on what the final language will contain. I'm optimistic SBA lending will be supercharged, regardless.

Demand is very strong, and should only continue to grow.

SmartBiz is the top national originator of SBA loans under $350k - jared.kogan@smartbizloans.com

Good platform, small window for low hanging fruit. Believe there will be shake out with banks on the platform.

[WestCoastFunding]

Good platform, small window for low hanging fruit. Believe there will be shake out with banks on the platform.

Yeah, they’re limited. Anyone that knows how to work with financials can do much better than them using other platforms, Marketplaces. Plus their fees are easily beat.

[BB_Cooper]

Yeah, they’re limited. Anyone that knows how to work with financials can do much better than them using other platforms, Marketplaces. Plus their fees are easily beat.

Agreed. But the CARE Act provides that provide that a big proportion of these 7(a) loans will be forgiven, as long as the proceeds are used on payroll and other qualified expenditures. In practice, its more akin to a free money than a loan product-

[splurge37]

Yeah, they’re limited. Anyone that knows how to work with financials can do much better than them using other platforms, Marketplaces. Plus their fees are easily beat.

That is not accurate.

SmartBiz altered its fee structure a few weeks ago, and most borrowers pay less than 1% origination fee.

[mrmrg]

That is not accurate.

SmartBiz altered its fee structure a few weeks ago, and most borrowers pay less than 1% origination fee.

West Coast is right, there is no benefit to go through SmartBiz unless you don't know what you're doing.

[splurge37]

West Coast is right, there is no benefit to go through SmartBiz unless you don't know what you're doing.

Also inaccurate. I've been in SBA finance since 2008 and the nuances of SBA are still a daily challenge for me. SmartBiz has 10 banks on the platform, and as you all know with the MCA business...no 2 banks underwrite the same. You have the benefit of 10 lenders with the same process/documentation.