[mrmrg]

At first I was laughing at 98% of the brokers in this industry who started selling "bulk medical supplies" overnight. Now it's the A paper lenders pitching SBA Loans.

Thoughts?

https://www.rapidfinance.com/busines...g-for-covid19/

If you've just heard about SBA loans for years and have no real relationships/lenders behind you, then it's going to be very hard to reinvent yourself.

[moneypenny1]

At first I was laughing at 98% of the brokers in this industry who started selling "bulk medical supplies" overnight. Now it's the A paper lenders pitching SBA Loans.

Thoughts?

https://www.rapidfinance.com/busines...g-for-covid19/

If you've just heard about SBA loans for years and have no real relationships/lenders behind you, then it's going to be very hard to reinvent yourself.

there not selling it just giving u info on it so the clients can apply get it and not defualt on there advances

[ryan $]

At first I was laughing at 98% of the brokers in this industry who started selling "bulk medical supplies" overnight. Now it's the A paper lenders pitching SBA Loans.

Thoughts?

https://www.rapidfinance.com/busines...g-for-covid19/

If you've just heard about SBA loans for years and have no real relationships/lenders behind you, then it's going to be very hard to reinvent yourself.

They literally are just linking to the .gov website. Spreading the information. Not becoming an SBA Lender.

[brokerCompany]

It seems easier for a business to go straight to the SBA website to apply than use a broker

[BB_Cooper]

They literally are just linking to the .gov website. Spreading the information. Not becoming an SBA Lender.

WELL SAID. It's a about keeping our customers a float, so there is a market for us all in 2021.

[Franklin]

What have you been working on mrmrg?

I’m giving the defendant (you), a chance to respond, before the prosecution brings their case.

At first I was laughing at 98% of the brokers in this industry who started selling "bulk medical supplies" overnight. Now it's the A paper lenders pitching SBA Loans.

Thoughts?

https://www.rapidfinance.com/busines...g-for-covid19/

If you've just heard about SBA loans for years and have no real relationships/lenders behind you, then it's going to be very hard to reinvent yourself.

[Winning]

One thing I have been thinking about as a merchant, will I be able to use the current situation to get access capital at an even lower cost in the MCA space?

Because if the Government is approving the Fed to print an unlimited amount of currency, and allows the SBA to give it away via grants, debt forgiveness, and low interest loans. How will the MCA lenders be able to compete for A paper? The MCA's will hopefully be able to compete on time! But exactly how much value does the time factor weight in compared to the Government system and in some situations "Free Money"?

Has the Government just moved into the MCA's back yard? And are they now a "Super Competitor"?

In 2019 I arranged a show down between Amex and Paypal to win my business. When those 2 competitors fought, I won, and at the end of the day walked away with a 1.06 83 week, ACH weekly deal, with not stips needed (both companies already had all the info they needed to approve the funds). Paypal came out on top, and won my business.

Now I have a new competitor I can put in the frey, the US Government? If/When my business reopens, I will definitely be calling PayPal and giving them the opportunity to show me their hand, and see if they want to play ball against the government. Who knows, they may offer me faster package, with no stips, at 1.04 or lower, with new payment deferral options... Where as I don't have to start repaying advance until 6 months down the road...

Interesting times for sure!

For your visual enjoyment.. I have a few sheets of uncut currency that I bought from the Federal Reserve back in 2004 when I took a tour of the facility. Since I am on "Shelter-In-Place" I decided to photograph it. (Link to law regarding photographing US Currency)

[cmarks]

It seems easier for a business to go straight to the SBA website to apply than use a broker

Accept for you cannot apply on the SBA website, so theres that...

[MCA]

Accept for you cannot apply on the SBA website, so theres that...

First page of SBA.gov, at the top click here to apply for EIDL

[cmarks]

First page of SBA.gov, at the top click here to apply for EIDL

EIDL, NOT PPP, hence this is why a business owner would use an agent who knows what they are talking about. The PPP is the primary loan to apply to, the EIDL is secondary and only reason to apply would be to get the up to 10k grant

[fundingsmbs]

so for brokers, you will have a small window , 90-days, to make commissions, up to 1%, sending apps for SBA loans. This is not a 7A SBA loan. Information will be posted on the NACLB website within 24 hours of how you can send apps in. FINWISE bank will be one of the approved banks that will facilitate this. There will be a portal where you can submit apps. No PSFs can be charged. After June 30th, 2020, the program is scheduled to end for the payroll loan program. I don't know who the entire approved list of banks are that can facilitate this but im sure it's not just Finwise. The grey area is when you as a broker will be paid post funding. The banks like Finwise said they are going to basically not sleep for the next 3 months as this will be an enormous opportunity for them to take advantage of this window. I do not think you have to go thru any MCA company at all to send in apps. The commission is capped and low so that wouldn't make alot of sense to share it.

for funders, i think what is going to happen is, they are going to flood the banks like finwise and others with applicants who have been applying and more likely I don't anticipate any payment to brokers for that. they will setup their systems API to flood apps in to banks. Basically, all apps being subbed for mca's could possibly be fair game for SBA loans.

Again, the NACLB website will post within 24 hours instructions for how to enroll yourself and sub in deals. This will be the focus for many for the next 90 days

[MCA]

EIDL, NOT PPP, hence this is why a business owner would use an agent who knows what they are talking about. The PPP is the primary loan to apply to, the EIDL is secondary and only reason to apply would be to get the up to 10k grant

Not sure I am tracking what you are saying here? PPP is the payroll loan 2.5x your monthly payroll. EIDL you can receive up to $2 million over 30 years with a 3.75% rate, you can also have both EIDL and PPP. I believe the EIDL would get you more money over a longer period than the PPP. The $10k grant is basically for just applying for the EIDL, you get that and you don't have to repay, it doesn't affect your EIDL application and additional funding you would receive after the 10k grant.

[cmarks]

the PPP is FREE Money unless you dont use it for payroll and other approve expense, and up to 10 Million and if it turns into a loan)only a small amount of people will do this) then its at .5% for 2 years.
What else does a business owner need money for besides the reasons designated in the PPP? So no reason to get a EIDLOAN if you can get a Grant.
TO add, the EIDL is said to possibly take months since being handled by SBA themselves,, whereas all signs are being able to get approved and funds in account within a couple weeks for the PPP

[fundingsmbs]

big question, will we see UI go down and employers actually hire back folks they terminated or furloughed or had wage reductions. As i understand it, anyone who makes $100K or more doesnt get counted as part of the program?

[Steven_O]

#1... the PPP is capped. Only so much to go around (remember it goes up to 10M). #2... there is a limited amount of time to apply #3... the doors havent opened yet and the clarity still isn't there for banks.

Side Note: The slew of information they are going to require people to provide is going to be heavy. Quarterly payroll tax reports, proof of utility bills for the last year, payroll reports (including time off/medical/fmla), docs on healthcare costs, retirement funds, 401k info... not something MCA guys are ready for.

Side Side Note: banks don't want brokers involved in any way. They aren't paying out from the conversations I've had here locally.

[Yankeeman07]

So much misinformation regarding EIDL & PPP.

EIDL = Economic Injury Disaster Loan (Keyword LOAN) SBA has streamlined the EIDL - takes a merchant about 10 minutes to complete. After submission you are assigned a Application Number. "You will be notified via email for any additional information needed once your application has been processed.

PPP = Paycheck Protection Program - Current indications business owners will be able to start applying on Friday April 3rd - https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp

[fundingsmbs]

and now the spread is in. approved lenders will get up to 5% whereas the broker will get up to 1%. So, funders could squeeze a lot of revenue right now if they are approved SBA lenders.

[Michael Slabitcher]

big question, will we see UI go down and employers actually hire back folks they terminated or furloughed or had wage reductions. As i understand it, anyone who makes $100K or more doesnt get counted as part of the program?

"For purposes of calculating “Average Monthly Payroll”, most Applicants will use the average monthly payroll for 2019, excluding costs over $100,000 on an annualized basis for each employee."

Employees making over $100,000 will be part of the equation.

The $100,000 is the max you can use for the calculation.

Example for an employee making $120,000 per year:

The employer will only be allowed to divide $100,000 by 12 for that particular employee.

Hope this helps,
Mike