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  1. #1
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    Bank of America not offering PPP unless business credit card opened

    Well Fargo?

  2. #2
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    Bank of America Changes Paycheck Protection Program Rules After Criticism.

    Bank of America ended up changing its position with Chief Executive Brian Moynihan telling CNBC Friday that applicants no longer needed an existing lending relationship with the bank to access the funds.*

    Bank of America says that it has already received 60,000 applications with paycheck protection program loan requests totaling over $6 billion.

    Meanwhile the U.S. Small Business Administration said that 5,218 loans valued at more than $1.8 billion had been received.

  3. #3
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    That is correct.
    My rep reached out the very next day and advised on the policy change.

  4. #4
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    Quote Originally Posted by Winning View Post
    Bank of America Changes Paycheck Protection Program Rules After Criticism.

    Bank of America ended up changing its position with Chief Executive Brian Moynihan telling CNBC Friday that applicants no longer needed an existing lending relationship with the bank to access the funds.*

    Bank of America says that it has already received 60,000 applications with paycheck protection program loan requests totaling over $6 billion.

    Meanwhile the U.S. Small Business Administration said that 5,218 loans valued at more than $1.8 billion had been received.
    This is partially correct. BofA will offer loans to businesses with existing checking BUT CAN NOT have a loan/credit with ANOTHER Bank:


    “To be eligible, you must have a Small Business lending and Small Business checking relationship with Bank of America as of February 15, 2020 or a Small Business checking account opened no later than February 15, 2020 and do not have a business credit or borrowing relationship with another bank.”

    https://about.bankofamerica.com/prom...hread-Redirect
    Last edited by WestCoastFunding; 04-06-2020 at 08:10 PM.

  5. #5
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    Quote Originally Posted by WestCoastFunding View Post
    This is partially correct. BofA will offer loans to businesses with existing checking BUT CAN NOT have a loan/credit with ANOTHER Bank
    I fit that requirement. So glad that my app doesn't get kicked out of that technicality.

  6. #6
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    Quote Originally Posted by Winning View Post
    I fit that requirement. So glad that my app doesn't get kicked out of that technicality.
    Unless they look at your Paypal funding as a loan/credit from a bank. I know PP is not a bank but BofA might say it is...

  7. #7
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    Quote Originally Posted by MCA View Post
    Unless they look at your Paypal funding as a loan/credit from a bank. I know PP is not a bank but BofA might say it is...
    My two cents, unless you have a considerable loan with BofA they won’t fund you. I get the feeling they want to help out companies that may be at risk of defaulting on their loans by using this program. I know they say differently in public, but everything I’m hearing says that’s what they’re doing. That does for all lenders.

  8. #8
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    Quote Originally Posted by WestCoastFunding View Post
    My two cents, unless you have a considerable loan with BofA they won’t fund you. I get the feeling they want to help out companies that may be at risk of defaulting on their loans by using this program. I know they say differently in public, but everything I’m hearing says that’s what they’re doing. That does for all lenders.
    Agreed 100%

  9. #9
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    Quote Originally Posted by WestCoastFunding View Post
    My two cents, unless you have a considerable loan with BofA they won’t fund you. I get the feeling they want to help out companies that may be at risk of defaulting on their loans by using this program. I know they say differently in public, but everything I’m hearing says that’s what they’re doing. That does for all lenders.
    i spoke withe someone at a major bank and they told me they are ignoring all non clients application and if there is more time and money they will get to it when they get to it.However math does not work , they already have more applications than amount of money they can give.so bottom line any non client has a zero chance of something happening unless something changes

  10. #10
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    I agree that my app most likely will be deprioritized for now... When I 1st tried to apply there, I did get the msg saying I didn't not qualify due to not having a Credit Card or a Loan with them. The very next morning I wake up and scan through my google news feed and see the article about BOfA changing the requirement.. I then do the app again and it goes through and I get a confirmation number.. So if they did go by 1st in 1st out, I am pretty far down on the list, and if they are prioritizing apps by other criteria I am really far down on the list.

    Since BofA is a bank can they technically consider me selling my future receivable as a loan? And if they did, does that mean a judge would also consider it a loan if I hand over BOFA findings to them. And if a judge considered it a loan, it would then be an illegal loan right? This would create all kind of problems if BofA put in writing that they have found that my advance is considered a loan. It could get even uglier for the MCA industry..
    Last edited by Winning; 04-09-2020 at 10:08 AM.

  11. #11
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    Quote Originally Posted by Michael I View Post
    i spoke withe someone at a major bank and they told me they are ignoring all non clients application and if there is more time and money they will get to it when they get to it.However math does not work , they already have more applications than amount of money they can give.so bottom line any non client has a zero chance of something happening unless something changes
    they are all being sued in class actions for this practice (4 major banks are and more to come)

  12. #12
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    Lawsuits will be a waster of time - Banks are not forced to accept any particular clients, plus, this new round of funding has funding Caps for the big banks.

    **Someone can do the research, but, I believe the big banks were capped at $60 billion
    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
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  13. #13
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    Quote Originally Posted by Yankeeman07 View Post
    Lawsuits will be a waster of time - Banks are not forced to accept any particular clients, plus, this new round of funding has funding Caps for the big banks.

    **Someone can do the research, but, I believe the big banks were capped at $60 billion
    Dave,

    Banks are not forced to take non-bank customers because of know you customer and AML. Banks have been very careful about opening accounts for non-bank customers. Some smaller banks have been willing to help non-bank clients within their respective communities. Banks get audited for this on a regular basis......
    I was on a conference call with a host of attorneys today. The subject was brought up. The suit will get squashed if the clients were already a customers of the bank.

    Best,

    KH
    Hedley Lamarr......That's Hedley

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