[Fly]

What's the over/under on Trump firing Mnuchin? 1.5 months? When huge corps will have been already bailed out and 95%+ of small business still have not received any $.

[WestCoastFunding]

Whether it takes 3 weeks or 3 months, how many companies will be able to hold on to employees after missing weeks and weeks of payroll?

Also, while this could help with payroll, it’s not going to do much good when the business collapses due to lack of operating capital.

We are in a massive depression.

[Winning]

I will give Bank of america a call and see what they say I have available to me. I have been a customer with them since the 90's when they were called NationsBank.

Also, I am not sure I should even take any money. This could be like putting air in a tire with a slow leak in it. Just because a business is open, doesn't mean it will be profitable. My business is along the lines of luxury goods. I am not sure how many people will be wanting to splurge on luxury goods once the economy is back "open".

It is depressing to even think about having to close my 4000 square foot facility and having to disassembly and clear out everything and put it all in a warehouse. But I think I could come out better in the long run if I do.. This could be a setup for a major win for me in the future.

I have been paying a retail commercial lease for 14 years. Perhaps if I do close, then decide to reopen in 6 months to a year from now, I buy a commercial property instead of lease it. With the downtown of the economy I might be able to find a really good deal on a commercial property to buy! #Winning!

[WestCoastFunding]

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.

I will give Bank of america a call and see what they say I have available to me. I have been a customer with them since the 90's when they were called NationsBank.

Also, I am not sure I should even take any money. This could be like putting air in a tire with a slow leak in it. Just because a business is open, doesn't mean it will be profitable. My business is along the lines of luxury goods. I am not sure how many people will be wanting to splurge on luxury goods once the economy is back "open".

It is depressing to even think about having to close my 4000 square foot facility and having to disassembly and clear out everything and put it all in a warehouse. But I think I could come out better in the long run if I do.. This could be a setup for a major win for me in the future.

I have been paying a retail commercial lease for 14 years. Perhaps if I do close, then decide to reopen in 6 months to a year from now, I buy a commercial property instead of lease it. With the downtown of the economy I might be able to find a really good deal on a commercial property to buy! #Winning!

I’ve appreciated everything you’ve posted about your experiences over the years, bro. It’s been really insightful.

[Yankeeman07]

A good stategy as long as you have the 20% to 30% as a down payment.

**A nugget of information that you may keep in mind:

The SBA will also automatically pay the principal, interest,and fees of new 7(a) loans issued prior to September 27, 2020.

[Steven_O]

BOA told a client of mine he had to have a Business CC in order for them to file the PPP paperwork. Mind you, he has personal accounts AND a business account there.

[Christian]

BOA told a client of mine he had to have a Business CC in order for them to file the PPP paperwork. Mind you, he has personal accounts AND a business account there.

Heard the exact same situation this morning. They don't want these loans.

[Yankeeman07]

Treasury seems to be in conflict with SBA

How will agents be compensated? Agent fees will be paid out of lender fees. The lender will pay the agent. Agents may not collect any fees from the applicant.

**Take note of when the lender is paid their fee

SBA - Refer to Form 159D -

Bottom line I do not see any money for brokers/agents

[cmarks]

Treasury seems to be in conflict with SBA

How will agents be compensated? Agent fees will be paid out of lender fees. The lender will pay the agent. Agents may not collect any fees from the applicant.

**Take note of when the lender is paid their fee

SBA - Refer to Form 159D -

Bottom line I do not see any money for brokers/agents

1% is for agent out of the 5%

[Steven_O]

1% is for agent out of the 5%

Out of our WHOLE group here on DF... who has an agreement in place to get paid 1%?

Anyone want to clarify? I can assume if no one does - then no one is getting that 1%.

Bank contacts of mine have told me that they are not paying ANYONE out.

[Kevin Henry-Seacoast]

Out of our WHOLE group here on DF... who has an agreement in place to get paid 1%?

Anyone want to clarify? I can assume if no one does - then no one is getting that 1%.

Bank contacts of mine have told me that they are not paying ANYONE out.

Most are not. They are working directly with their clients.

[WestCoastFunding]

Out of our WHOLE group here on DF... who has an agreement in place to get paid 1%?

Anyone want to clarify? I can assume if no one does - then no one is getting that 1%.

Bank contacts of mine have told me that they are not paying ANYONE out.

I can tell you that our team has reached-out to literally hundreds of banks, credit unions and ABL lenders since this was first floated around weeks ago (I received a copy of this proposal by lobbyists before it was even made public) and zero have offered a referral fee. And it’s unanimous — all of them absolutely hate having to deal with this program. The info I get is that the only reason they’re servicing existing customers (and existing customers only) is because they don’t want the blowback/negative press. But, ****, there are big institutions that still won’t have anything to do with it. It’s just not economical vs hour of labor/resources.

[Yankeeman07]

1% is for agent out of the 5%

How will lenders be compensated? Processing fees will be based on the balance of the financing outstanding at the time of final disbursement:
 Loans $350,000 and under: 5.00%
 Loans greater than $350,000 to $2 million: 3.00%
 Loans greater than $2 million: 1.00%
Lenders may not collect any fees from the applicant.

[cmarks]

How will lenders be compensated? Processing fees will be based on the balance of the financing outstanding at the time of final disbursement:
 Loans $350,000 and under: 5.00%
 Loans greater than $350,000 to $2 million: 3.00%
 Loans greater than $2 million: 1.00%
Lenders may not collect any fees from the applicant.

and?? what do you think that means?

[fundingsmbs]

a lot of confusion about this. it will be up to each SBA approved lender what their policy will be to accept broker business. they do not have to pay or accept the business. they will make 5% on loans they service (the sba lender). they will have a ton of apps coming in direct to manage so I would not expect a smooth submission process if you do have a lender willing to pay you. $850M already was disbursed by community banks according to a recent article. bottom line, many banks dont need brokers to send them deals. they will have plenty on their own. a few lenders may be willing but don't count on that being the norm.

[WestCoastFunding]

a lot of confusion about this. it will be up to each SBA approved lender what their policy will be to accept broker business. they do not have to pay or accept the business. they will make 5% on loans they service (the sba lender). they will have a ton of apps coming in direct to manage so I would not expect a smooth submission process if you do have a lender willing to pay you. $850M already was disbursed by community banks according to a recent article. bottom line, many banks dont need brokers to send them deals. they will have plenty on their own. a few lenders may be willing but don't count on that being the norm.

There isn’t a lender that hasn’t been inundated.

[Steven_O]

Then there's this: https://www.kabbage.com/paycheck-pro...program-loans/

[WestCoastFunding]

Then there's this: https://www.kabbage.com/paycheck-pro...program-loans/

Kabbage has basically basically stopped funding altogether and laid off a considerable number of employees. According to reports, Kabbage sole business now is brokering PPPs.

[Steven_O]

Kabbage has basically basically stopped funding altogether and laid off a considerable number of employees. According to reports, Kabbage sole business now is brokering PPPs.

So they went from a funder... to a lead gen company. I can hear their thoughts already.

[Christian]

I believe the policies like B of A requiring a previous loan/BizCC, is because they are then funding a loan that will keep their clients in business, so THEY GET PAID BACK on the previous loan or cc.

[Enablement Data]

They are def not a lead gen company

[WestCoastFunding]

They are def not a lead gen company

They do gift certificates now, too:

“Kabbage is now trying to position itself as a middleman that will connect people with loans from the Small Business Administration. It has also started a website to help small businesses sell gift certificates to consumers.”

https://www.bloomberg.com/news/artic...sh-needs-mount

[michaelh]

Hello Mike,

The latest news is that there is an issue with the agreement between banks and the government regarding the buy-back provision that the government was supposed to perform. Under the initial loan program, the PPP loan was 100% guaranteed by the government, and a 100% guarantee to buy the loan back from the bank after the 4 month forgiveness period ended. However, last night’s rule changed that dynamic, eluding that the banks may not be able to sell the loans back to the government at a 100% commitment as soon as the forgiveness period arrives. The banking industry is working with the gov’t right now to resolve the issue and hope to have direction shortly.
Additionally, it appears that there may be a 3rd revision to the application.

As a result of the above items it seems prudent to hold off sending out the information needed to submit an application and the portal link, as it is highly likely whatever we would send now most likely will change yet again.

[WestCoastFunding]

Hello Mike,

The latest news is that there is an issue with the agreement between banks and the government regarding the buy-back provision that the government was supposed to perform. Under the initial loan program, the PPP loan was 100% guaranteed by the government, and a 100% guarantee to buy the loan back from the bank after the 4 month forgiveness period ended. However, last night’s rule changed that dynamic, eluding that the banks may not be able to sell the loans back to the government at a 100% commitment as soon as the forgiveness period arrives. The banking industry is working with the gov’t right now to resolve the issue and hope to have direction shortly.
Additionally, it appears that there may be a 3rd revision to the application.

As a result of the above items it seems prudent to hold off sending out the information needed to submit an application and the portal link, as it is highly likely whatever we would send now most likely will change yet again.

Un-****ing-believable.

[Fly]

Yeah the NAELB just emailed this update out. About the dispute on buy backs and 3rd revised application to come.