Results 1 to 25 of 232
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04-01-2020, 09:45 AM #1
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SBA releases Paycheck Protection details-
http://www.sba.gov/funding-programs/...on-program-ppp
Robert S Bloink
EVP of ISO Partnerships
Direct: 248-341-9477
Email: bb@cooperasset.com
Web: www.cooperasset.com
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04-01-2020, 10:41 AM #2
Reputation points: 32977
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- Dec 2017
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Hey Robert, how does cooper asset plan on brokering these out to the SBA?
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04-01-2020, 10:44 AM #3
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Cooper won't be brokering, but this program and EIDL loans will keep many of your merchants afloat through the summer.
The SBA released the compensation guidelines for this PPP program yesterday. 1% is the max agents can make from the loan proceeds. West Coast and other can weigh in if they can think packaging fees can be charged on top-
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04-01-2020, 10:58 AM #4
Reputation points: 81657
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- Florida
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Where did you see the 1% that agents can earn.
SBA Form 159D - I read that differentlyDave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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04-01-2020, 12:08 PM #5
Reputation points: 5448
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- May 2018
- Posts
- 196
Charles Frazier
President
Sapphire Capital Group
p: 917-781-2232
m: 917-783-5634
w: www.Sapphirecapgroup.com
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04-01-2020, 12:16 PM #6
Reputation points: 676
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- Feb 2017
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It says on the link you provided:
"Neither the government nor lenders will charge small businesses any fees."PDM Capital
39 Broadway
New York, NY 10006
646-876-1055
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04-01-2020, 12:23 PM #7
Reputation points: 13031
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- Jun 2014
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See the link below that the SBA sent yesterday to the Nas. Ass. of Gov. Guaranteed Lenders(NAGGL), which sets out the fees lenders and agents can incorporate, http://home.treasury.gov/system/file...ct%20Sheet.pdf
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04-01-2020, 12:23 PM #8
its 1% up to 350k for PPP, then rates change. no fees can legally be charged otherwise.
https://www.funderintel.com/post/sba...ection-program
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04-01-2020, 12:36 PM #9
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- Oct 2018
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- 9
A broad set of additional lenders can begin making loans as soon as they are approved and
enrolled in the program. New lenders will need to submit their application to
DelegatedAuthority@sba.gov to apply with the SBA.
They indicated that they are now accepting application for Lenders who want to be part of this program who weren't an approved lender before but I am having a difficult time to locate them. Do you guys any clue on this?
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04-01-2020, 12:37 PM #10
Reputation points: 30747
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- Aug 2016
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I wonder will this be like Obama Care, where as the government issued grants to States to create programs that would assist the public in educating them, and signing up for the service?
So the model used for Obama Care, agents would still get paid irregardless if someone signed up or not.. It was more "Public Service".. As long as you met with people and discussed the options you were providing the service that the grant would pay you for.
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04-01-2020, 12:46 PM #11
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04-01-2020, 01:09 PM #12
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- Boynton Beach
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You are all wasting your time thinking you are going to make a lot of money brokering these products......
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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04-01-2020, 02:00 PM #13
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go to the NACLB website in 24 hours for details on the how
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04-01-2020, 03:09 PM #14
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04-01-2020, 09:11 PM #15
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Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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04-02-2020, 05:17 PM #16
Reputation points: 1960
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- Oct 2019
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- 48
There will be a fee (cost) for the merchant if all documents need to be collected.
Will accountants, bookkeepers do this for free, NO! neither can we, it will be time consuming.
EXAMPLE OF DOCUMENTS NEEDED.
Articles Of Corporation (if corporation)
Or Business License
IRS Form 940 = Employers Annual Federal Unemployment (FUTA) Tax Return
IRS Form 941 = Employers Quarterly Federal Tax Return
Payroll Summary As Of February 15 2020 Or
Employee Pay Stubs As Of February 15 2020
Corresponding Bank Statements
Mortgage Statement For This Business (most recent) Or
Rent / Lease Statement (most recent)
Utility Bills: Electric – Gas – Water – Internet – Phone – Waste – Grease – Etc
Copy Of Drivers License
This is a large collection of documents.
It is allowed to charge for these service and many payroll companies will.
This service is not for processing the loan but the collection of all necessary documents to give to the lender, broker, agent etc.
In other words. If you want to provide a second service for collecting the documents needed and charge a fee for that service to help a merchant submit the application, nothing wrong with that. Accountants are already doing it.
Then you help them with their PPP application charge them NO FEE.
Once all docs are received and signed, then send the loan doc with all required docs to the lender, DO NOT CHARGE THEM A FEE FOR SUBMITTING THE LOAN APPLICATION (as you cannot charge a fee for this service) and receive your commission from the lender, heck open your own document collection service.
If lenders think they are just going to sit on the phone and merchants are just going to collect all this data and send it to them they are nuts, very few will. They will struggle to collect this data and they need us BOOTS ON THE GROUND (PHONE) Local to to this. Huge Opportunity awaits us.Last edited by inacio; 04-02-2020 at 05:20 PM.
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04-02-2020, 05:28 PM #17
Reputation points: 156
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- Sep 2014
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SBA is advertising on twitter that anyone asking for fees upfront is a scam, so good luck with that. Charging people upfront fees that can barely survive on a Distatster Loan? That's a pretty solid scumbag move and if you do this to your current book of customers, doubtful they will ever do another loan with you again.
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04-02-2020, 05:36 PM #18
its now 1% interest rate per mnuchin, and if they run out of money they will go back to congress for more
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04-02-2020, 05:47 PM #19
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- Oct 2019
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There is nothing scumbag about it, I stand on that. I have hired a third party (accountant) to collect the documents required so happens they are sending their existing clients they do payroll for.
They have collected 35 merchant's data documents. They do not do it for free. They charge their clients a fee for the service. They Get it to me and I have everything ready to submit their loan. I DO NOT CHARGE THEM FEE TO HELP THEM SUBMIT THEIR LOANS nor do i get anything from the accountant service I just want the LEAD if you will.
Educate yourself in the differences of the services before childish name calling.
YOU CANNOT CHARGE FOR THE PPP SERVICE. scumbag boomerang.
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04-02-2020, 06:14 PM #20
Reputation points: 503040
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Depends on how you plan on handling all 7(a) and EIDL programs. There are essentially 5 programs that were part of the CARES act:
-7(a) enhancements
-7(a) Express enhancements
-EIDL long term loans
-EIDL cash advance
-PPP
If you want to charge a standard fee to provide an all encompassing eval, packaging and loan placement for 7(a)s while offering "free guidance'' as a bonus to place with the PPP and EIDL, then there you have it. But you need to be full-service with all 7(a) programs to keep your ass out of trouble.
But if you think you'll have an easy time getting a referral fee from a lender to refer a PPP, good luck with that. There will be 1,000,000 PPP applications this week, and lenders don't need help getting their own submissions to them. They will be overwhelmed. No need in cutting into their own "limited" compensation by offering referrals they don't need. Hell, nearly 99% will only want to deal with their own customers because it doesn't even make economical sense for them to waste the manpower to deal with this, due to the fact they're going to have to shift a ****-ton of resources just to handle the flow of applications. Its a headache to them.
Lastly, I love how the govt says "stay inside and don't gather in crowds" while also saying "go to your local bank branch to apply". Haha, get ready for the long-lines at small banks.
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04-02-2020, 06:21 PM #21
Reputation points: 503040
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- Oct 2016
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They will run out of money within weeks. The PPP will be renewed 3-4 times this year. But each time the process will become more difficult as borrowers use funds for other things than payroll. Many will say, "I've got to pay my suppliers who are breathing down my neck, along with other creditors, while also paying for other operating costs." Many will simply opt to use 25% of the funds for other uses not allowed by the PPP and settle for only having 75% of the loan forgiven.
Example: you're going to have nail salon owners collect on these funds for "payroll" but the shop isn't even going to be open in many areas that have "shelter in place". But that owner still is going to have liabilities. Sure, they may take this money and be the awesome owner and pay for their employees pay while the employees sit at home. But how many are going to use the money for bills other than PPP outlined uses? I would imagine many.
But here's the catch, once they use a single nickel outside the PPP guidelines, how many will then find themselves ****ed over for the next round of PPP that will happen in two months, after they're deemed ineligible for using funds outside the uses outlined? It will be interesting to see if there is an immediate verification process needed to renew for the next round.
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04-02-2020, 06:39 PM #22
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- Apr 2020
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One large bank near me where I know the Director of Business Lending said they process over 180,000 loans per year and they are expecting 100,000 applications in one week. It will be a total log jam. So many people are relying on it actually happening too. If 20% of total applicants get funded, I will be shocked.
Stefan Bernarsky
CIO
Kanjorski Partners LLC
570-862-7279 call or text
www.kanjorskipartners.com/refinance
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04-02-2020, 06:47 PM #23
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This is not legal advice - but -before you go off the deep ledge, I would suggest you read and comprehend
SBA Foom 159D - Fee Disclosure and Form and Compensation Agreement
"If an Applicant chooses to employ an Agent, the compensation an Agent charges to and that is paid by the Applicant must bear a necessary and reasonable relationship to the services actually performed and must be comparable to those charged by other Agents in the geographical area. Compensation cannot be contingent on loan approval....."
It is an obligation of the merchant to disclose whether they paid a feeDave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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04-02-2020, 06:55 PM #24
Reputation points: 35870
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- Jun 2019
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This whole operation sounds like a cluste**** waiting to happen. The SBA already is slow and ineffecient. They simply dont have the manpower to do this. Many businesses wont qualify, and the ones that do will be so backed up it will take weeks or months before they get the money. I cant even imagime how many businesses will be closed for good.
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04-02-2020, 07:32 PM #25
Reputation points: 30747
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- Aug 2016
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There is some great info and perspectives in this thread. Much appreciated!
I wonder why there are not more merchants here on this forum learning about all these various things. A google search brought me here years ago when I 1st was trying to understand what a cash advance was and how it works, after my credit card processor told me I had been "Pre-Qualified" for a unsecured working capital advance.
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