Results 76 to 100 of 232
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04-03-2020, 02:23 PM #76
- Join Date
- Mar 2014
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- Florida
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- 2,959
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.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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04-03-2020, 02:25 PM #77
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04-03-2020, 02:26 PM #78
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- Oct 2016
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- 4,318
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.
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04-03-2020, 02:28 PM #79
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- Oct 2016
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- 4,318
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04-03-2020, 02:30 PM #80
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- Oct 2016
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04-03-2020, 02:31 PM #81
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04-03-2020, 02:35 PM #82
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- Oct 2014
- Location
- Naples, FL
- Posts
- 474
Then there's this: https://www.kabbage.com/paycheck-pro...program-loans/
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04-03-2020, 02:42 PM #83
- Join Date
- Jan 2015
- Location
- Laguna Beach
- Posts
- 463
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.
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04-03-2020, 02:43 PM #84
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- Oct 2016
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04-03-2020, 02:52 PM #85
what story? its the governments money who they are getting from you the taxpayer to grant to small business owners to keep businesses float so the economy doesnt hit a total depression the likes of which it will take a very long time to recover,, oh and get a small fee for doing so
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04-03-2020, 02:59 PM #86
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- Oct 2014
- Location
- Naples, FL
- Posts
- 474
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04-03-2020, 03:03 PM #87
They are def not a lead gen company
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04-03-2020, 03:04 PM #88
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- Oct 2016
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- 4,318
The. Banks. Don’t. Want. To. Participate.
Why? Do you think banks are in the business or turning down the profits? No. And stop with this whole “it takes minimal amount of manpower” aspect. It is the bank who also has to deal with the forgiveness aspect on the backend. That will take considerable amount of manpower (which costs the bank money).
Try this: call 10 banks and ask them if you can send them referrals for PPP and you want nothing in return. 10 out of 10 will tell you they aren’t interested. Then ask yourself, if this is worth it for them, why are they turning away referrals.
Let me tell you, I’ve been brokering for 15 years. The majority of the stuff I broker is conventional and SBA loans. I have contacts with just about every conventional/SBA lender there is. We have contacted all of them in the past weeks preparing for this. I literally have just a handful that are accepting my referrals on this.
**Update**
Just after I posted above I literally just got word from one of the few that were accepting outside clients saying that Crestmark Bank has just opted out of the program due to “final program guidance”.Last edited by WestCoastFunding; 04-03-2020 at 03:09 PM.
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04-03-2020, 03:16 PM #89
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- Oct 2016
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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
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04-03-2020, 03:17 PM #90
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- Mar 2014
- Location
- Florida
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- 2,959
Chris - you seem to think this is a good situation for brokers. I disagree and so do a few others on this forum.
Come back to us in 2 weeks and inform us of your experience.
For myself, I will stay with the SBA 7(a) - with lower interest rates, there is an opportunity for business
owners to purchase or possible refinance their commercial property.
The landscape has changed and will remain changed for quite some time at least regarding the MCA Industry.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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04-03-2020, 03:20 PM #91
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- Oct 2016
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- 4,318
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04-03-2020, 03:25 PM #92
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04-03-2020, 03:26 PM #93
banks are being greedy when business owners need them. they want to turn a profit sure, but they wont be able to lend money if all their clients go out of business.
And yes, we have all heard not many banks are taking broker apps or paying fees, still today is the first day... stay tuned
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04-03-2020, 03:28 PM #94
i dont think its a Good situation, i think its deals to do, minimal work and helping create and build relationships with many.
by the way lots of banks have stopped processing regular 7a loans so good luck with that, since they can also get a deferment on their current SBA loans.
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04-03-2020, 03:29 PM #95
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- Sep 2014
- Posts
- 263
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.
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04-03-2020, 03:29 PM #96
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- Oct 2016
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- 4,318
Ok, so it’s clear you don’t even know what you’re talking about. These are banks using their own money, who then have to petition the Treasury for reimbursement (which will take 60-90 days) if the lender deems the borrower eligible for loan forgiveness.
It’s the bank using its own capital, but just given a 0% risk-weight.
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04-03-2020, 03:39 PM #97
- Join Date
- Sep 2014
- Posts
- 55
So is Kabbage going to be dispersing these PPP funds? Are they becoming an SBA Lender? Seems like their automated underwriting process would make much more sense for something like this.
Last edited by Fly; 04-03-2020 at 03:40 PM. Reason: grammar
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04-03-2020, 03:44 PM #98
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04-03-2020, 03:45 PM #99
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04-03-2020, 03:48 PM #100
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- Sep 2014
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Yeah the NAELB just emailed this update out. About the dispute on buy backs and 3rd revised application to come.
Last edited by Fly; 04-03-2020 at 03:49 PM. Reason: specific
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