[WestCoastFunding]

Sure.... Banks want to process hundreds of thousands of smaller loans that may or may not ever get paid back and are questionably guaranteed by the SBA .....all for 1%. That's much easier than laying out traditional LOCs or ABLs at Prime +1.

Chris is literally the only person that thinks this is attractive to lenders, yet the fact the lenders refuse to touch these other than to their own clients (nearly all will only do It to protect their own exposure by financing clients that have credit facilities to the banks) tells the story.

Why in the world would the banks want to sink their money into a program like this? They won’t. The Federal Reserves know this program is dog**** to lenders, so they are now creating their own credit facilities to provide financing to the PPP borrowers directly, while using the banks to process the loans.

[cmarks]

Chris is literally the only person that thinks this is attractive to lenders, yet the fact the lenders refuse to touch these other than to their own clients (nearly all will only do It to protect their own exposure by financing clients that have credit facilities to the banks).

Why in the world would the banks want to sink their money into a program like this? They won’t. The Federal Reserves know this program is dog**** to lenders, so they are now creating their own credit facilities to provide financing to the PPP borrowers directly, while using the banks to process the loans.

LOL,, I simply copied and pasted what it says in the docs...thats it. Thats the govt telling you what they think, so theres someone else... None of this is without flaws.
There are reports of businesses who have received money form PPP, and others said that wouldnt happen until June, i said this week. So go figure...

Also there are banks and fintechs applying to join, reasons are multiple, but you know everything with your vast experience of SBA lending that does little to anyone for a brand new emergency loan product that the banks barely know how it works.

[Kevin Henry-Seacoast]

LOL,, I simply copied and pasted what it says in the docs...thats it. Thats the govt telling you what they think, so theres someone else... None of this is without flaws.
There are reports of businesses who have received money form PPP, and others said that wouldnt happen until June, i said this week. So go figure...

Also there are banks and fintechs applying to join, reasons are multiple, but you know everything with your vast experience of SBA lending that does little to anyone for a brand new emergency loan product that the banks barely know how it works.

Chris,

The only reason a non-participating bank or fintech would apply to be a participant is a customer grab. They think that they can grab depository relationships from other banks that were either overwhelmed with PPP or refused the client for one reason or another. It's a great thought, but they are NOT going to make any money on this product alone and are bottom feeding. There might be other reasons for non-banks to apply for participation or act as a broker.....to grab information from the customers needing PPP for other purposes. All eyes are on this program. If anyone does anything nefarious they will go down hard and fast.

I have been saying for weeks...... If you think you are going to make any money off these programs as a lender, agent, or broker.....you are wasting your time. Time is better served trying to help clients in other ways.

KH

[WestCoastFunding]

Chris,

The only reason a non-participating bank or fintech would apply to be a participant is a customer grab. They think that they can grab depository relationships from other banks that were either overwhelmed with PPP or refused the client for one reason or another. It's a great thought, but they are NOT going to make any money on this product alone and are bottom feeding. There might be other reasons for non-banks to apply for participation or act as a broker.....to grab information from the customers needing PPP for other purposes. All eyes are on this program. If anyone does anything nefarious they will go down hard and fast.

I have been saying for weeks...... If you think you are going to make any money off these programs as a lender, agent, or broker.....you are wasting your time. Time is better served trying to help clients in other ways.

KH

This is 100% absolutely right.