[fundingsmbs]

Approved lenders for SBA can make up to 5%. The NACLB if you are part of, will give you access to refer and earn up to 1%. FINWISE sponsored the training today for the NACLB . they will be one FDIC bank taking on this task. I don't know if Smart Biz is paying agents for this, but, they are promoting it on their site. smartbizloans.com

[michaelh]

I am aware of what the payments are - but the banks are all opting out because of the cost. I was told by each of these lenders that the majority of these loans will be less than 100,000 dollars and it still has to be processed into the SBA System. They do not want to do the microlending. The banks borrow money from the Fed at .25 right now a month ago it was 1.75 percent. So on a 50k loan the bank would Earn 2500 dollars. and be stuck collecting the money for 2 years and if the Feds Raise the inter bank rate the banks have loans loosing money.

[cmarks]

I am aware of what the payments are - but the banks are all opting out because of the cost. I was told by each of these lenders that the majority of these loans will be less than 100,000 dollars and it still has to be processed into the SBA System. They do not want to do the microlending. The banks borrow money from the Fed at .25 right now a month ago it was 1.75 percent. So on a 50k loan the bank would Earn 2500 dollars. and be stuck collecting the money for 2 years and if the Feds Raise the inter bank rate the banks have loans loosing money.

Most of the loans will be forgiven, grants, probably 90% of them unless business owner is really messes up and doesnt use it for payroll. its the governments money putting 350 billion into it, not the banks(long term).
The Fed didnt say, hey, heres a good idea, lets take 350 billion price tag to the tax payers, tell the banks they have to loan it out and forgive it....The front end 5% fee for 350k or less is mainly it.

So to think these sba lenders are thinking most of them will go to maturity isnt reality.