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  1. #1
    Member Reputation points: 23
    Join Date
    May 2016
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    indiana
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    Paycheck protection program (ppp) information sheet

    I hope you and your families are safe at home. I located this on the treasury website.... looking for some feedback on this... I am not sure that I want to engage in this but many of merchants are calling and asking for assistance. Thoughts please?

    https://home.treasury.gov/system/fil...ct%20Sheet.pdf

    PAYCHECK PROTECTION PROGRAM (PPP) INFORMATION SHEET
    LENDERS
    Who is eligible to lend? All existing SBA-certified lenders will be given delegated authority to
    speedily process PPP loans.
    All federally insured depository institutions, federally insured credit unions, and Farm Credit
    System institutions are eligible to participate in this program.
    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.
    Are these loans guaranteed by the SBA? Yes, the SBA guarantees 100% of the outstanding
    balance, and that guarantee is backed by the full faith and credit of the United States.
    Are there guarantee fees? The SBA waives all SBA guaranty fees, including the upfront and
    annual servicing fees.
    What underwriting is required? You will need to verify that a borrower was in operation on
    February 15, 2020. You will need to verify that a borrower had employees for whom the
    borrower paid salaries and payroll taxes. You will need to verify the dollar amount of average
    monthly payroll costs. You will need to follow applicable Bank Secrecy Act requirements.
    How will lenders be compensated? Processing fees will be based on the balance of the
    financing outstanding at the time of final disbursement. SBA will pay lenders fees for processing
    PPP loans in the following amounts:
     Five (5) percent for loans of not more than $350,000;
     Three (3) percent for loans of more than $350,000 and less than $2,000,000; and
     One (1) percent for loans of at least $2,000,000.

    Lenders may not collect any fees from the applicant.
    Who can be an agent? An agent is an authorized representative and can be:
    An attorney;
     An accountant;
     A consultant;
     Someone who prepares an applicant’s application for financial assistance and is
    employed and compensated by the applicant;
     Someone who assists a lender with originating, disbursing, servicing, liquidating, or
    litigating SBA loans;
    A loan broker; or
     Any other individual or entity representing an applicant by conducting business with the
    SBA.
    How will agents be compensated? Agent fees will be paid out of lender fees. The lender will
    pay the agent. Agents may not collect any fees from the applicant. The total amount that an agent
    may collect from the lender for assistance in preparing an application for a PPP loan (including
    referral to the lender) may not exceed:
     One (1) percent for loans of not more than $350,000;
     0.50 percent for loans of more than $350,000 and less than $2 million; and
     0.25 percent for loans of at least $2 million.

    Can these loans be sold in the secondary market? PPP loans can be sold in the secondary
    market. The SBA will not collect any fee for any guarantee sold into the secondary market.

  2. #2
    Senior Member Reputation points: 81655
    Join Date
    Mar 2014
    Location
    Florida
    Posts
    2,854

    If you want to be confused go to the SBA Web Site - Look for SBA Form 159D -

    FEE DISCLOSURE FORM AND COMPENSATION AGREEMENT
    For Agent Services In Connection With an SBA Disaster Assistance Loan
    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

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