[fundingsmbs]

Is anyone else hearing that the companies are marketing PPP loans to existing databases and NOT paying the ISOs who brought the deal in the first place? Are the companies entitled to take an ISO's deal and monetize on it without paying?

[WestCoastFunding]

OnDeck:

“In response to COVID-19 and as part of the U.S. Small Business Administration’s Paycheck Protection Program (PPP), OnDeck will be reaching out to borrowers across our customer base and offering them to apply for a PPP loan via OnDeck’s online application. For customers originated through partner-referred channels, OnDeck will not be charging any fees to clients, nor be providing referral fees to partners. We will begin contacting customers immediately to help our small business customers and their employees during these uncertain times.“


Quite honestly I normally wouldn’t give a **** about OnDeck reaching out with PPP help to customers and not paying the broker. But when OnDeck uses chicken**** language like “we won’t be charging the customers any fees” it’s a little insulting. Of course they aren’t charging the customer any fees because it’s against the law. But they are collecting fees for referring the customers to the PPP lender. OnDeck is playing word games.

[abfunders]

Bluevine is giving everyone a chance at the PPP and paying commissions....

[fundingsmbs]

approved fintechs make fees on these. nobody is doing this for free. everyone should be paid something. at least ODC told everyone they werent imagine all those who are and don't say anything.

[Kevin Henry-Seacoast]

They actually have to close one to make a fee or pay a commission. The percentage of them closing will be very very very small. They got into the game way too late and the banks will pretty much take down this round with applicants already in Que from the last round.

[fundingsmbs]

Ready Capital, a multi-strategy real estate finance company and one of the largest non-bank SBA lenders in the country, was the top PPP lender by loan volume in the country. Company CEO Thomas Capasse appeared on Fox Business yesterday and announced key statistics that aligned with data published by the SBA. By dollars, Ready Capital was the 15th largest PPP lender.

“As a leading non-bank, SBA lender, there’s 14 of us, we’re number two in terms of originations last year,” Capasse said on Fox Business, “we focused broadly, we don’t have deposit relationships, so we open our doors broadly to in particular the smaller mom and pop, the local deli, the pizzeria, the nail salon, so just in terms of the numbers, round one of the PPP, we approved 40,000 loans which is number one in the US, it was about $3 billion in total approvals. And our average balance was only $73,000 versus $230,000 for the average in round one.”

Among Ready Capital’s channels for acquiring PPP loan applications is Lendio, who reported consistent figures (a rough average of $80,000 per PPP loan facilitated), and high volume. Lendio has said on social media that they have been working with several partners, Ready Capital among them.

Ready Capital’s Capasse reasoned that their speed could probably be attributed to an affiliated fintech lender. “We are maybe more efficient than some of the banks because we have an affiliated fintech lender which is able to create online portals and processes to work in a more efficient manner and that enabled us to not only process these loans more efficiently but also to provide broad access to the program, to the smaller business owners.”

The company acquired Knight Capital, a small business finance provider, late last year.

Last modified: April 22, 2020

[Michael I]

Bluevine is giving everyone a chance at the PPP and paying commissions....

Free leads for when we can fund

[fundingsmbs]

there is a widening concern that thousands and thousands of private data of customers is being shared for the PPP. Companies thru API and other measures are sending applications thru intermediaries to get PPP across the finish line, which, in itself, helps the SMB, however, this database sharing will stay at the companies who receive them and will have massive robust lead databases to solicit when this clears for loans and mcas. many direct funders are using some fintechs to send massive customer lists. What will happen to your customers!

[fundingsmbs]

https://www.forbes.com/sites/peterjr.../#21a370257251

class action has begun

https://www.classaction.org/news/age...-action-claims

[inacio]

I sent about 22 PPP applications to Ondeck. But before i did i made sure i put those merchants into my Ondeck Partner Portal Refer Merchant. Any sales they do directly i will get a commission. Not off the PPP side as they pay zero but on future MCA or term loans.

[FlexibleCapitalSolutions]

I sent about 22 PPP applications to Ondeck. But before i did i made sure i put those merchants into my Ondeck Partner Portal Refer Merchant. Any sales they do directly i will get a commission. Not off the PPP side as they pay zero but on future MCA or term loans.

make sure you do your own follow ups. Don't hold your breath on them just sending you commissions on future deals.

[Yankeeman07]

I sent about 22 PPP applications to Ondeck. But before i did i made sure i put those merchants into my Ondeck Partner Portal Refer Merchant. Any sales they do directly i will get a commission. Not off the PPP side as they pay zero but on future MCA or term loans.

You are violating the Merchant's Privacy. ? They are under the assumption they are applying for a PPP Loan, not a term or MCA

[fundingsmbs]

Sport & Wheat CPA PA v. ServisFirst Bank Inc. et al.

follow this one. i still think companies who told agents to send in PPP apps that are approved lenders with SBA and are not paying are subject to the outcome of this case

[Kevin Henry-Seacoast]

Sport & Wheat CPA PA v. ServisFirst Bank Inc. et al.

follow this one. i still think companies who told agents to send in PPP apps that are approved lenders with SBA and are not paying are subject to the outcome of this case

What outcome? This is a two person accounting firm in the panhandle that is demanding fees for referring clients to the banks that are customers of the bank???? There's nothing to watch....

[fundingsmbs]

Plaintiff respectfully requests this Court to enter an
injunction ordering that PPP Lenders are enjoined and restrained from refusing to
pay the reasonable and customary fees of PPP Agents (not to exceed the PPP Agent
Fees Cap) who assist a PPP Lender’s Bank Customer in successfully applying for a
PPP loan out of the loan processing fees received by such PPP Lender from the SBA

the law firm is representing every "agent" in the state of FL now

[Kevin Henry-Seacoast]

And the suit is dead on arrival. They were customers of the BANKS!

[fundingsmbs]

Summons Issued to SERVISFIRST BANK INC was just Monday. Has the courts thrown out the case or is it an opinion that it was the banks customers and they shouldnt pay

[Kevin Henry-Seacoast]

Synovis was also mentioned in the suit. I was on a call with some attorneys that are familiar with the case yesterday. They said the suit has no merit as the banks will not and are not required to pay any fees to anyone as the customers were clients of the bank period.

[Kevin Henry-Seacoast]

It's very simple.... Every reputable accountant and advisor I know has helped their customer prepare some information so they could complete the application with the client's bank. NONE of them asked for a fee from their client or bank. None. Some have viewed this as a money grab and a way to make fees and some have not.
Every banker I know has pulled back from originating new loans and has been working 14-20 hours a day 7 days a week for the last month to help clients though this process. Even our underwriters have been pulled into the process to help clients. Some think this is some big money grab for the banks and it's not. It has been a tiresome process with a ton of liability and risk.

[fundingsmbs]

https://www.hollywoodreporter.com/th...n-fees-1292045

not sure. this is all new and a lot of ambiguity with the laws on this program.

[Kevin Henry-Seacoast]

https://www.hollywoodreporter.com/th...n-fees-1292045

not sure. this is all new and a lot of ambiguity with the laws on this program.

Seriously.....you get your "news" from the Hollywood Reporter. Just stop already.....

[fundingsmbs]

does your bank pay fees to agents?

[Kevin Henry-Seacoast]

does your bank pay fees to agents?

Our bank only provided the service to current clients up to including our factoring and ABL clients. We did not originate many new client PPP transactions as there are strict KNOW YOUR CUSTOMER rules in banking. We had some advisors, accounting firms, and other professionals help their clients through the process when needed. None asked for fees from their clients and I am not aware of any that asked for fees from the bank.

KH

[fundingsmbs]

i understand why you are defending the banks side.

A Los Angeles law firm Monday sued nearly 5,000 banks and lenders in an effort to recover $3.85 billion allegedly collected unfairly by financial institutions as administrative fees during the first round of payment protection funding for small businesses.

[Kevin Henry-Seacoast]

i understand why you are defending the banks side.

A Los Angeles law firm Monday sued nearly 5,000 banks and lenders in an effort to recover $3.85 billion allegedly collected unfairly by financial institutions as administrative fees during the first round of payment protection funding for small businesses.

Great! So another attorney is suing banks because somebody did not get paid referring the bank's clients to their own bank! Makes total sense. Why the F should anybody have to pay a referral fee to anyone referring them their own customers. The $3.8Bil in fees is also AT RISK on the bank. There was in excess of $300Bil in loans made that will likely have a large default rate and NOT be paid back. The fees are 1% of the exposure.