[Winning]

They need to establish a depository capability and it's not that easy. Since funds are "backed" by the Feds, they will also need to make sure compliance is super tight. Hence the reason it is easier for the banks to do this or act as agent.

Some fintechs might have a great front end to help process, but getting someone to partner with right now is close to impossible.

And let's not forget..... the juice is not worth the squeeze.

Again... I ask why?

I don't understand a lot of the behind the scenes inter working of how this usually works.. But maybe the way it usually works is broken.

Perhaps things are about to change..

Similar to way 9/11 created the patriot act and all types of things changed.

[Hedley Lamarr]

Again... I ask why?

I don't understand a lot of the behind the scenes inter working of how this usually works.. But maybe the way it usually works is broken.

Perhaps things are about to change..

Similar to way 9/11 created the patriot act and all types of things changed.

These are essentially emergency loans that are "backed" by the FEDS and sponsored by the FEDS. That being said, they will want to insure the funds are being used for purposes intended. Having the ability to agent, principal, service the loan is one thing. You will have to have the ability to track where the funds went. Having depository capability that can track where funds are going is a must. I would not b surprised if some banks require a separate bank account be sent up just to track funds from the programs to insure funds are being used as intended.

There more to this than just deploying or acting as agent for the loans.

[inacio]

I am a resident of Hope Island as some of labeled me.
I live under the delusion of doing very well in the SBA PPP Program according to the members of this thread.

99% of post are negative and right down discouraging to agents and with good reason, IT'S CHAOS! news articles after news articles are down right ugly, the whole world of SBA is falling apart...... not so.

I'm not of the belief that the SBA will increase the 5% commission to the lenders for loans Less than<$350K which are the majority of my deals iv'e have been turning in.

My deal states i receive 0.50% 50 Basis Point commission off the loan, abviously this is not a direct lender but a broker of the direct lender.

Before on MCA of term loans i was submitting the following on my own 1 man door to door mostly
$250,000 - $400,000 in volume
$45,000 average loan
6 Deals monthly average Approvals
10% Average Commission it varied by lender 8%-12%
38% approval rate Approval rate
1 Loan rejection by merchant, Merchants would decline because of the payback amount to high.

TODAY SBA PPP
1.6 Million in Volume
$100,000 Average Loan (monthly payroll $40,000 X 2.5 = $100,000 Per Loan)
16 Deals
0.50% Commission
$8,000 commission
10 Days. It took me 10 days to get these deals.

NOW! I have not gotten one loan approved yet, So Ill have to wait and see if those amounts get approved and if there is any declines, even if i only get half of the volume that would be a $4,000 commission


Point is, you can listen to the voices that their is no opportunity and go with the flow or learn as much as you can about the program, documents required, find a Lender preferably not a broker and just go for it. You will be only as good as your lender is, you need good support even if its just with email at the time as is my situation, its frustrating at times. Its uncertainty because like i said, i have not received any deals approved yet.

Then you will see the legitimate big FINTEC Lenders come in competing for you.

I hope this brings you a little hope.



.

[Yankeeman07]

Take the time to listen in on the SBA Webinars - go to http://www.sba.gov/updates - you will then receive notification when the webinars are being held. Very Informative and you will learn the reasons behind the ***cluster

I'm listening as I'm wring this post. Every day, the delays are increasing -

IMO - do not listen to any posts that claim that companies or banks are funding.

[Hedley Lamarr]

I am a resident of Hope Island

Hope Island is a very lonely place.......

[Christian]

I believe PayPal already has depository capability. They issue debit cards.

[Winning]

You will have to have the ability to track where the funds went. Having depository capability that can track where funds are going is a must. I would not b surprised if some banks require a separate bank account be sent up just to track funds from the programs to insure funds are being used as intended.

There more to this than just deploying or acting as agent for the loans.

Do you have a paypal account?

PayPal already have all these capabilities.. They pretty much function as a bank but they are not legally a "Bank". In my eyes, they are better than a "Bank".

For example. The PayPal charge back procedure is way better than the banks. If I suspect a fraudulent purchase or if a client is looking to get over. I would much rather have the transaction go through paypal because they have a fairer dispute resolution procedure.

[Hedley Lamarr]

Do you have a paypal account?

PayPal already have all these capabilities.. They pretty much function as a bank but they are not legally a "Bank". In my eyes, they are better than a "Bank".

For example. The PayPal charge back procedure is way better than the banks. If I suspect a fraudulent purchase or if a client is looking to get over. I would much rather have the transaction go through paypal because they have a fairer dispute resolution procedure.

Regardless....there is little to no money for anyone to make here. The juice is not worth the squeeze.

[Fly]

Do something stupid and you will quickly find out.

You still haven't named 1? I don't plan on doing ****, but to think there is any oversight right now on this seems silly. The SBA and Treasury haven't even gotten their act together yet.

[Winning]

Regardless....there is little to no money for anyone to make here. The juice is not worth the squeeze.

Short term it may not be worth it if they are only looking at profits per initiative. But long term it may be a huge win for any company that can deliver on the PPP in a fast painless way. Just like I am here preaching the Gospel of paypal, because I have used the product and used other products and I have witnessed the goodness of Paypal vs other products.. That type of marketing is priceless..

Also keep in the back of your mind the 2008 term "To Big To Fail". Us common folks are worried about being profitable. Maybe the jokes on us.. Does being profitable really even matter when the reserve said they can print unlimited money. Perhaps a company can look at this as an opportunity to do this right and become a company that moves into a postion in the future that it gets the holy grail title of "To Big To Fail"...

They may be playing chess while we are playing checkers.. IJS...

[Hedley Lamarr]

You still haven't named 1? I don't plan on doing ****, but to think there is any oversight right now on this seems silly. The SBA and Treasury haven't even gotten their act together yet.

Just a few: FBI, DOJ, and the United State Secret Service. The later's Cyber Crime Lab and Enforcement office is in Miami.

Next question....

[inacio]

Hope Island is a very lonely place.......

It is, your right

[skideeppow]

I am a resident of Hope Island as some of labeled me.
I live under the delusion of doing very well in the SBA PPP Program according to the members of this thread.

99% of post are negative and right down discouraging to agents and with good reason, IT'S CHAOS! news articles after news articles are down right ugly, the whole world of SBA is falling apart...... not so.

I'm not of the belief that the SBA will increase the 5% commission to the lenders for loans Less than<$350K which are the majority of my deals iv'e have been turning in.

My deal states i receive 0.50% 50 Basis Point commission off the loan, abviously this is not a direct lender but a broker of the direct lender.

Before on MCA of term loans i was submitting the following on my own 1 man door to door mostly
$250,000 - $400,000 in volume
$45,000 average loan
6 Deals monthly average Approvals
10% Average Commission it varied by lender 8%-12%
38% approval rate Approval rate
1 Loan rejection by merchant, Merchants would decline because of the payback amount to high.

TODAY SBA PPP
1.6 Million in Volume
$100,000 Average Loan (monthly payroll $40,000 X 2.5 = $100,000 Per Loan)
16 Deals
0.50% Commission
$8,000 commission
10 Days. It took me 10 days to get these deals.

NOW! I have not gotten one loan approved yet, So Ill have to wait and see if those amounts get approved and if there is any declines, even if i only get half of the volume that would be a $4,000 commission


Point is, you can listen to the voices that their is no opportunity and go with the flow or learn as much as you can about the program, documents required, find a Lender preferably not a broker and just go for it. You will be only as good as your lender is, you need good support even if its just with email at the time as is my situation, its frustrating at times. Its uncertainty because like i said, i have not received any deals approved yet.

Then you will see the legitimate big FINTEC Lenders come in competing for you.

I hope this brings you a little hope.



.

I dont understand how you got 10 deals in 10 days, yet the PPP program was just launched Friday, and even then no one knew what docs were needed etc.

[fundingsmbs]

why .50% commissions? $350k and under is 1% did you just make someone $8gs

[inacio]

I dont understand how you got 10 deals in 10 days, yet the PPP program was just launched Friday, and even then no one knew what docs were needed etc.

I've been in the credit card processing industry for 21 years and in MCA for 2 years with a few thousand merchants in our portfolio and have majority of our merchants personal and business information already.
Each of the 10 merchants i wrote up have authorize me to talk to their accountant, i suggest this as its a short cut and cuts alot of time.

The way i know what documents to be collected is from the broker i work with. The way they knows what docs is through their lender.

Like i mentioned I haven't received one approval from my 10 deals I don't know if they are going to require more docs! maybe they will and maybe they wont, hell who knows. Point is I'm trying not to waste to much time in a forum and start turning in deals.

i'm not saying I got this thing figured out, at the beginning I was struggling with the doc collection but its getting easier now

What i'm finding out is that those same accountants, bookkeepers are referring me merchants now little by little, 2 today.
They are sending a complete file with all the docs which helps tremendously.

If and when i get approvals and paid commission ill let you guys know, to many damm Debbie downers here.

Im sharing this because i didn,t know what the heck i was doing at the beginning, still uncertaint, no approvals yet,
trial and error.

[inacio]

why .50% commissions? $350k and under is 1% did you just make someone $8gs

Heres the Structure
$350k or less = 0.50%
$350K - $2 million = 0.25%
$2 million + = $0.125%
they are just sharing 50% of what they get. Some might say not worth it, to me it is.
Most of my deals are below $350K so ill fall under the 0.50%

I anticipate to write up $2 - 2.5 million in volume each month April & May 20-25 deals per month = majority from referrals & my existing merchants. maybe less maybe more. Lets get to work.

In addition in still working on MCA.
Lots of things can happen, i see a great opportunity

[Christian]

https://apnews.com/Business%20Wire/a...1a4c360579a9cc

[Hedley Lamarr]

https://apnews.com/Business%20Wire/a...1a4c360579a9cc

Yep, that's great. And much like every other fintech company there is little to no place to go with the applications.

[WestCoastFunding]

https://apnews.com/Business%20Wire/a...1a4c360579a9cc

It’s actually a whole lot of nothing. They’ve partnered with Resource bank (a bank that just isn’t doing these right now). Nothing is happening with PPPs until the Federal Reserve becomes the lender. I say let the Fed lend, and use the fintech guys to underwrite. Let the banks get back to doing 7(a)s.

[Hedley Lamarr]

It’s actually a whole lot of nothing. They’ve partnered with Resource bank (a bank that just isn’t doing these right now). Nothing is happening with PPPs until the Federal Reserve becomes the lender. I say let the Fed lend, and use the fintech guys to underwrite. Let the banks get back to doing 7(a)s.

The Fed is never and should never do that....they are just not set up to monitor the back-end to insure the funds go to the right place. The thought of having fintech help in the process might help, but they are not set up to handle the back-en either. If this occurs, the funds the fed is putting up will certainly disappear.

You need to have separate bank accounts set up to insure the money is being used as intended. Co-Mingling funds would be a disaster.

[WestCoastFunding]

The Fed is never and should never do that....they are just not set up to monitor the back-end to insure the funds go to the right place. The thought of having fintech help in the process might help, but they are not set up to handle the back-en either. If this occurs, the funds the fed is putting up will certainly disappear.

You need to have separate bank accounts set up to insure the money is being used as intended. Co-Mingling funds would be a disaster.

Right now the commingling of funds can’t matter. It has to be the speed of getting the cash out there and worry about oversight later. Let there be huge losses. Let there be waste. We are going to see a $5T hit to the economy. Getting cash out to these companies can’t be help up any longer.

[Hedley Lamarr]

Right now the commingling of funds can’t matter. It has to be the speed of getting the cash out there and worry about oversight later. Let there be huge losses. Let there be waste. We are going to see a $5T hit to the economy. Getting cash out to these companies can’t be help up any longer.

But, the trouble with this is you put the responsibility on the bank's back. If the money does not go where it was intended, you can cool believe the Feds are not backing the loan if it fails. We need to get the money out to the businesses quickly, but it needs to be done the right way.

No way in hell the Feds are eating a loss if the money is not used for purposes intended.

[WestCoastFunding]

But, the trouble with this is you put the responsibility on the bank's back. If the money does not go where it was intended, you can cool believe the Feds are not backing the loan if it fails. We need to get the money out to the businesses quickly, but it needs to be done the right way.

No way in hell the Feds are eating a loss if the money is not used for purposes intended.

If the FED becomes the lender, and let the loans be processed by the banks for fintech, there isn’t exposure to the banks. Let the banks/fintech make 5% so that it’s economical. As for commingling, if the borrower does, it’s converted to a loan without forgiveness. That’s still a good deal.

At this point these rescue efforts can’t be viewed in a way in which the Treasury intends to recover the funds. If they commingle they just won’t get access to the next tranche (there will be at least 4 tranches). This has to be seen as stimulus to fill the void left by consumer spending collapsing.

[Winning]

Please keep in mind the important fact that the fed can print unlimited money.. what does it matter if some funds go to the wrong place and is misused if they can hold off a complete collapse.

Long term the value of our fiat currency will take a hit, as more people wake up but that is an entirely diffrent conversation regarding currency manipulation, the gold standard, bitcoin, fiat currency, and the old world bartering and trading system.

[Hedley Lamarr]

If the FED becomes the lender, and let the loans be processed by the banks for fintech, there isn’t exposure to the banks. Let the banks/fintech make 5% so that it’s economical. As for commingling, if the borrower does, it’s converted to a loan without forgiveness. That’s still a good deal.

At this point these rescue efforts can’t be viewed in a way in which the Treasury intends to recover the funds. If they commingle they just won’t get access to the next tranche (there will be at least 4 tranches). This has to be seen as stimulus to fill the void left by consumer spending collapsing.

Again, the Fed is not set up to do this. They will put the responsibility on the backs of the banks and if it goes even slight wrong.....never forgive the loans and the banks will eat them. Not going to happen and should not happen.