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04-03-2020, 02:31 PM #1
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- Oct 2016
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- 4,318
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04-03-2020, 02:52 PM #2
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, 03:04 PM #3
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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, 03:26 PM #4
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, 03:56 PM #5
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- Oct 2016
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Greedy? So the banks are supposed to hand out loans barely over prime rate, with super low reimbursement fees for underwriting, with no real guarantee the govt will reimburse the banks at 100% as originally promised, while diverting manpower to process these loans, and using capital they normally lend at much more sustainable rates?
All while we enter a financial crisis where they will face their own capital requirement tightening. And then they have to use even more resources on the backend to verify the borrower’s books and paperwork to provide the required forgiveness, to wait 60-90 days to be reimbursed from treasury?
Oh yeah, and the bank can’t even collect any payments for a year.
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04-03-2020, 04:25 PM #6
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04-03-2020, 04:41 PM #7
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- Oct 2016
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??
The deferment is up to 1 year. Yes, we ****ing know what they are underwriting.
Seriously, the fact that you have continuously argued that the lenders aren’t originating with their own capital, but think it’s the treasury originating the loans, tells us you have no ****ing clue how this works. Yet you’re so adamant that this is such a good deal for lenders. That somehow you know something they don’t know.
Let people who navigate SBA lending on a daily basis discuss this. Stick to writing reviews about people in the MCA space.
And tell us, which lenders aren’t doing 7(a)s as you claim? Have you ever done an SBA loan before?
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04-03-2020, 03:17 PM #8
- Join Date
- Mar 2014
- Location
- Florida
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- 2,976
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, 03:28 PM #9
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, 03:45 PM #10
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04-03-2020, 03:20 PM #11
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04-03-2020, 03:25 PM #12
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04-03-2020, 03:29 PM #13
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- Oct 2016
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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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