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  1. #1

    SBA releases Paycheck Protection details-

    http://www.sba.gov/funding-programs/...on-program-ppp


    Robert S Bloink
    EVP of ISO Partnerships
    Direct: 248-341-9477
    Email: bb@cooperasset.com
    Web: www.cooperasset.com

  2. #2
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    Hey Robert, how does cooper asset plan on brokering these out to the SBA?

  3. #3
    Cooper won't be brokering, but this program and EIDL loans will keep many of your merchants afloat through the summer.

    The SBA released the compensation guidelines for this PPP program yesterday. 1% is the max agents can make from the loan proceeds. West Coast and other can weigh in if they can think packaging fees can be charged on top-

  4. #4
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    Where did you see the 1% that agents can earn.

    SBA Form 159D - I read that differently
    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

  5. #5
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    Quote Originally Posted by Yankeeman07 View Post
    Where did you see the 1% that agents can earn.

    SBA Form 159D - I read that differently
    That and how do I bring this product to my clients?
    Charles Frazier
    President
    Sapphire Capital Group
    p: 917-781-2232
    m: 917-783-5634
    w: www.Sapphirecapgroup.com

  6. #6
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    It says on the link you provided:

    "Neither the government nor lenders will charge small businesses any fees."
    PDM Capital
    39 Broadway
    New York, NY 10006
    646-876-1055

  7. #7
    See the link below that the SBA sent yesterday to the Nas. Ass. of Gov. Guaranteed Lenders(NAGGL), which sets out the fees lenders and agents can incorporate, http://home.treasury.gov/system/file...ct%20Sheet.pdf

  8. #8
    Senior Member Reputation points: 7556 cmarks's Avatar
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    its 1% up to 350k for PPP, then rates change. no fees can legally be charged otherwise.
    https://www.funderintel.com/post/sba...ection-program

  9. #9
    A broad set of additional lenders can begin making loans as soon as they are approved and
    enrolled in the program. New lenders will need to submit their application to
    DelegatedAuthority@sba.gov to apply with the SBA.

    They indicated that they are now accepting application for Lenders who want to be part of this program who weren't an approved lender before but I am having a difficult time to locate them. Do you guys any clue on this?

  10. #10
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    I wonder will this be like Obama Care, where as the government issued grants to States to create programs that would assist the public in educating them, and signing up for the service?

    So the model used for Obama Care, agents would still get paid irregardless if someone signed up or not.. It was more "Public Service".. As long as you met with people and discussed the options you were providing the service that the grant would pay you for.

  11. #11
    Senior Member Reputation points: 7556 cmarks's Avatar
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    Quote Originally Posted by BP4130 View Post
    A broad set of additional lenders can begin making loans as soon as they are approved and
    enrolled in the program. New lenders will need to submit their application to
    DelegatedAuthority@sba.gov to apply with the SBA.

    They indicated that they are now accepting application for Lenders who want to be part of this program who weren't an approved lender before but I am having a difficult time to locate them. Do you guys any clue on this?
    Im sure those lenders will announce themselves in the next couple of days. No way of knowing until theyre approved
    Chris Marks
    funderintel.com

  12. #12
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    You are all wasting your time thinking you are going to make a lot of money brokering these products......
    Hedley Lamarr......That's Hedley

  13. #13
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    go to the NACLB website in 24 hours for details on the how

  14. #14
    Senior Member Reputation points: 7556 cmarks's Avatar
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    Quote Originally Posted by fundingsmbs View Post
    go to the NACLB website in 24 hours for details on the how
    Dangerfield didn't know the correct rate and term, he said 4% at 10 yrs, its .5% for 2 yrs
    Chris Marks
    funderintel.com

  15. #15
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    Quote Originally Posted by fundingsmbs View Post
    go to the NACLB website in 24 hours for details on the how
    Paycheck Protection Program Directly from SBA Web Site - Information is fluid, check daily:

    https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp
    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

  16. #16
    There will be a fee (cost) for the merchant if all documents need to be collected.
    Will accountants, bookkeepers do this for free, NO! neither can we, it will be time consuming.

    EXAMPLE OF DOCUMENTS NEEDED.
    Articles Of Corporation (if corporation)
    Or Business License
    IRS Form 940 = Employers Annual Federal Unemployment (FUTA) Tax Return
    IRS Form 941 = Employers Quarterly Federal Tax Return
    Payroll Summary As Of February 15 2020 Or
    Employee Pay Stubs As Of February 15 2020
    Corresponding Bank Statements
    Mortgage Statement For This Business (most recent) Or
    Rent / Lease Statement (most recent)
    Utility Bills: Electric – Gas – Water – Internet – Phone – Waste – Grease – Etc
    Copy Of Drivers License

    This is a large collection of documents.
    It is allowed to charge for these service and many payroll companies will.
    This service is not for processing the loan but the collection of all necessary documents to give to the lender, broker, agent etc.

    In other words. If you want to provide a second service for collecting the documents needed and charge a fee for that service to help a merchant submit the application, nothing wrong with that. Accountants are already doing it.

    Then you help them with their PPP application charge them NO FEE.

    Once all docs are received and signed, then send the loan doc with all required docs to the lender, DO NOT CHARGE THEM A FEE FOR SUBMITTING THE LOAN APPLICATION (as you cannot charge a fee for this service) and receive your commission from the lender, heck open your own document collection service.
    If lenders think they are just going to sit on the phone and merchants are just going to collect all this data and send it to them they are nuts, very few will. They will struggle to collect this data and they need us BOOTS ON THE GROUND (PHONE) Local to to this. Huge Opportunity awaits us.
    Last edited by inacio; 04-02-2020 at 05:20 PM.

  17. #17
    SBA is advertising on twitter that anyone asking for fees upfront is a scam, so good luck with that. Charging people upfront fees that can barely survive on a Distatster Loan? That's a pretty solid scumbag move and if you do this to your current book of customers, doubtful they will ever do another loan with you again.

  18. #18
    Senior Member Reputation points: 7556 cmarks's Avatar
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    its now 1% interest rate per mnuchin, and if they run out of money they will go back to congress for more
    Chris Marks
    funderintel.com

  19. #19
    There is nothing scumbag about it, I stand on that. I have hired a third party (accountant) to collect the documents required so happens they are sending their existing clients they do payroll for.

    They have collected 35 merchant's data documents. They do not do it for free. They charge their clients a fee for the service. They Get it to me and I have everything ready to submit their loan. I DO NOT CHARGE THEM FEE TO HELP THEM SUBMIT THEIR LOANS nor do i get anything from the accountant service I just want the LEAD if you will.
    Educate yourself in the differences of the services before childish name calling.
    YOU CANNOT CHARGE FOR THE PPP SERVICE. scumbag boomerang.

  20. #20
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    Quote Originally Posted by BB_Cooper View Post
    Cooper won't be brokering, but this program and EIDL loans will keep many of your merchants afloat through the summer.

    The SBA released the compensation guidelines for this PPP program yesterday. 1% is the max agents can make from the loan proceeds. West Coast and other can weigh in if they can think packaging fees can be charged on top-
    Depends on how you plan on handling all 7(a) and EIDL programs. There are essentially 5 programs that were part of the CARES act:

    -7(a) enhancements
    -7(a) Express enhancements
    -EIDL long term loans
    -EIDL cash advance
    -PPP

    If you want to charge a standard fee to provide an all encompassing eval, packaging and loan placement for 7(a)s while offering "free guidance'' as a bonus to place with the PPP and EIDL, then there you have it. But you need to be full-service with all 7(a) programs to keep your ass out of trouble.

    But if you think you'll have an easy time getting a referral fee from a lender to refer a PPP, good luck with that. There will be 1,000,000 PPP applications this week, and lenders don't need help getting their own submissions to them. They will be overwhelmed. No need in cutting into their own "limited" compensation by offering referrals they don't need. Hell, nearly 99% will only want to deal with their own customers because it doesn't even make economical sense for them to waste the manpower to deal with this, due to the fact they're going to have to shift a ****-ton of resources just to handle the flow of applications. Its a headache to them.

    Lastly, I love how the govt says "stay inside and don't gather in crowds" while also saying "go to your local bank branch to apply". Haha, get ready for the long-lines at small banks.

  21. #21
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    Quote Originally Posted by cmarks View Post
    its now 1% interest rate per mnuchin, and if they run out of money they will go back to congress for more
    They will run out of money within weeks. The PPP will be renewed 3-4 times this year. But each time the process will become more difficult as borrowers use funds for other things than payroll. Many will say, "I've got to pay my suppliers who are breathing down my neck, along with other creditors, while also paying for other operating costs." Many will simply opt to use 25% of the funds for other uses not allowed by the PPP and settle for only having 75% of the loan forgiven.

    Example: you're going to have nail salon owners collect on these funds for "payroll" but the shop isn't even going to be open in many areas that have "shelter in place". But that owner still is going to have liabilities. Sure, they may take this money and be the awesome owner and pay for their employees pay while the employees sit at home. But how many are going to use the money for bills other than PPP outlined uses? I would imagine many.

    But here's the catch, once they use a single nickel outside the PPP guidelines, how many will then find themselves ****ed over for the next round of PPP that will happen in two months, after they're deemed ineligible for using funds outside the uses outlined? It will be interesting to see if there is an immediate verification process needed to renew for the next round.

  22. #22
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    One large bank near me where I know the Director of Business Lending said they process over 180,000 loans per year and they are expecting 100,000 applications in one week. It will be a total log jam. So many people are relying on it actually happening too. If 20% of total applicants get funded, I will be shocked.

    Stefan Bernarsky
    CIO
    Kanjorski Partners LLC
    570-862-7279 call or text
    www.kanjorskipartners.com/refinance

  23. #23
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    This is not legal advice - but -before you go off the deep ledge, I would suggest you read and comprehend
    SBA Foom 159D - Fee Disclosure and Form and Compensation Agreement

    "If an Applicant chooses to employ an Agent, the compensation an Agent charges to and that is paid by the Applicant must bear a necessary and reasonable relationship to the services actually performed and must be comparable to those charged by other Agents in the geographical area. Compensation cannot be contingent on loan approval....."

    It is an obligation of the merchant to disclose whether they paid a fee
    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

  24. #24
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    This whole operation sounds like a cluste**** waiting to happen. The SBA already is slow and ineffecient. They simply dont have the manpower to do this. Many businesses wont qualify, and the ones that do will be so backed up it will take weeks or months before they get the money. I cant even imagime how many businesses will be closed for good.

  25. #25
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    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.

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