Need a Funder or Vendor? START HERE

Results 1 to 20 of 20
  1. #1
    Senior Member Reputation points: 310403
    Join Date
    Mar 2015
    Location
    Rock Ridge
    Posts
    3,265

    OOOOOPs!

    “The House Select Subcommittee report details serious problems of fraud and self-dealing by lenders and by companies who were paid fees by lenders to help PPP funds reach small business owners. In response to new revelations detailed in the report of possible fraud facilitated by third-party companies, the Small Business Administration (SBA) is taking additional action,” reads a statement by the SBA.

    On Wednesday, the SBA released a statement in response to the findings in the House Select Subcommittee on the Coronavirus Crisis report on PPP fraud. The SBA plans to continue working with the Select Subcommittee to review the evidence within the report and continue taking corrective action to address fraud and weak controls that were “so prevalent at the onset of the PPP”.

    In response to the PPP fraud report, the SBA suspended Blueacorn and Womply from working with the SBA in any capacity. In addition, they will be investigating appropriate actions against the companies’ owners, management, and successor companies.

    Further, the SBA stated that they will launch full investigations of the lenders who were partnered with fintechs including Benworth, Capital Plus, Celtic Bank, Customers Bank, Cross River Bank, Fountainhead, Harvest, and Prestamos. This will also include any individuals and related entities that were named in the 130-page report.

    SBA states that they will work with the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the U.S. Department of the Treasury, the Federal Reserve Board, and the Office of the Comptroller of the Currency to ensure federal financial regulators are coordinating their response to any wrongdoings by lenders.

    “The SBA will continue to prioritize its response to findings of potential fraud in pandemic relief programs, efforts that have been positively recognized by the SBA Office of the Inspector General.”
    Hedley Lamarr......That's Hedley

  2. #2
    Senior Member Reputation points: 178500
    Join Date
    Feb 2017
    Posts
    2,897

    Honestly, while I didn't make money on the PPP cycle unlike a LOT of my colleagues, I've been kinda glad that I neither took this money nor brokered any of it.

  3. #3
    Senior Member Reputation points: 38047 Olderguy's Avatar
    Join Date
    Sep 2021
    Location
    Irvine, CA
    Posts
    1,039

    I've dealt with Cross River and Harvest...and the VP at Harvest told me his biggest issue is not getting any money for servicing these loans if they don't get forgiven. My experience with both of these companies has been straight up and I did a lot of PPP loans. Same goes for the forgiveness process.
    Last edited by Olderguy; 12-08-2022 at 03:27 PM.
    Steve Benjamin
    Professional Business Loans

    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    949.228.1050

    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Homeowner loan 2nd position- 15 year 14% no lien
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  4. #4
    Senior Member Reputation points: 310403
    Join Date
    Mar 2015
    Location
    Rock Ridge
    Posts
    3,265

    They are looking into EVERYONE that was involved with PPP......EVERYONE.....
    Hedley Lamarr......That's Hedley

  5. #5
    Senior Member Reputation points: 38047 Olderguy's Avatar
    Join Date
    Sep 2021
    Location
    Irvine, CA
    Posts
    1,039

    Hahahaha...my former boss bought 50% interest in a company - they were doing PPP's getting an illegal kickback from the CEO of the bank. That's why he wouldn't let me do them.
    Will be interesting to see how that plays out.
    Steve Benjamin
    Professional Business Loans

    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    949.228.1050

    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Homeowner loan 2nd position- 15 year 14% no lien
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  6. #6
    Senior Member Reputation points: 178500
    Join Date
    Feb 2017
    Posts
    2,897

    #whistleblowers get paid well

  7. #7
    Senior Member Reputation points: 310403
    Join Date
    Mar 2015
    Location
    Rock Ridge
    Posts
    3,265

    Quote Originally Posted by abfunders View Post
    #whistleblowers get paid well
    Don't need whistle blowers......just follow the money.
    Hedley Lamarr......That's Hedley

  8. #8
    Senior Member Reputation points: 38047 Olderguy's Avatar
    Join Date
    Sep 2021
    Location
    Irvine, CA
    Posts
    1,039

    Too many scumbags to chase...

    As a side note, my former boss had me get 7 EIDL loans totalling $1.3M for a "major" MCA lender and his brothers.....they stiffed me for my fee....took me 4 months to get $2,500.
    Last edited by Olderguy; 12-08-2022 at 07:35 PM.
    Steve Benjamin
    Professional Business Loans

    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    949.228.1050

    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Homeowner loan 2nd position- 15 year 14% no lien
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  9. #9
    Senior Member Reputation points: 310403
    Join Date
    Mar 2015
    Location
    Rock Ridge
    Posts
    3,265

    Quote Originally Posted by Olderguy View Post
    Too many scumbags to chase...

    As a side note, my former boss had me get 7 EIDL loans totalling $1.3M for a "major" MCA lender and his brothers.....they stiffed me for my fee....took me 4 months to get $2,500.
    I thought MCA companies and other lenders were ineligible from receiving EIDL/PPP???
    Hedley Lamarr......That's Hedley

  10. #10
    Senior Member Reputation points: 38047 Olderguy's Avatar
    Join Date
    Sep 2021
    Location
    Irvine, CA
    Posts
    1,039

    Quote Originally Posted by Hedley Lamarr View Post
    I thought MCA companies and other lenders were ineligible from receiving EIDL/PPP???
    I was able to get them an added a letter of explanation for change in business activity code.. None of the lender's brothers were in the industry. Going fintech from lender was pretty reasonable at the time as lending was pretty much cooked.
    Steve Benjamin
    Professional Business Loans

    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    949.228.1050

    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Homeowner loan 2nd position- 15 year 14% no lien
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  11. #11
    Senior Member Reputation points: 310403
    Join Date
    Mar 2015
    Location
    Rock Ridge
    Posts
    3,265

    Quote Originally Posted by Olderguy View Post
    I was able to get them an added a letter of explanation for change in business activity code.. None of the lender's brothers were in the industry. Going fintech from lender was pretty reasonable at the time as lending was pretty much cooked.
    So the company is a "large MCA" company and you were able to get them a letter of explanation to change their business code.
    Hedley Lamarr......That's Hedley

  12. #12
    Senior Member Reputation points: 38047 Olderguy's Avatar
    Join Date
    Sep 2021
    Location
    Irvine, CA
    Posts
    1,039

    Quote Originally Posted by Hedley Lamarr View Post
    So the company is a "large MCA" company and you were able to get them a letter of explanation to change their business code.
    A lot of these companies were doing multiple business functions, one of which was fintech. Providing an explanation and sample allowed them to be accepted into the program using the fintech naics business code.
    Steve Benjamin
    Professional Business Loans

    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    949.228.1050

    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Homeowner loan 2nd position- 15 year 14% no lien
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  13. #13
    Senior Member Reputation points: 310403
    Join Date
    Mar 2015
    Location
    Rock Ridge
    Posts
    3,265

    Quote Originally Posted by Olderguy View Post
    A lot of these companies were doing multiple business functions, one of which was fintech. Providing an explanation and sample allowed them to be accepted into the program using the fintech naics business code.
    So you were able to alter an NAICS code so they were able to obtain a EIDL they otherwise would not qualify for?
    Last edited by Hedley Lamarr; 12-09-2022 at 10:56 AM.
    Hedley Lamarr......That's Hedley

  14. #14
    Senior Member Reputation points: 38047 Olderguy's Avatar
    Join Date
    Sep 2021
    Location
    Irvine, CA
    Posts
    1,039

    Quote Originally Posted by Hedley Lamarr View Post
    So you were able to alter an NAICS code so they were able to obtain a EIDL they otherwise would not qualify for?
    Not alter - use one that fits with what they do that is within the guidelines. Companies can operate under different naics in actual operations. Only one shows on the tax return. Lending declined and fintech filled in supporting revenue to keep the business operating. And LOE with specifics does that.
    Last edited by Olderguy; 12-09-2022 at 11:30 AM.
    Steve Benjamin
    Professional Business Loans

    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    949.228.1050

    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Homeowner loan 2nd position- 15 year 14% no lien
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  15. #15
    Senior Member Reputation points: 310403
    Join Date
    Mar 2015
    Location
    Rock Ridge
    Posts
    3,265

    Quote Originally Posted by Olderguy View Post
    Not alter - use one that fits with what they do that is within the guidelines. Companies can operate under different naics in actual operations. Only one shows on the tax return. Lending declined and fintech filled in supporting revenue to keep the business operating. And LOE with specifics does that.
    Similar to a case that was just closed in the South East. The business owner used another NAICS code to obtain less than $5,000 in PPP claiming that the NAICS code was "part of his business". He's now serving 7 years for bank fraud and defrauding the govenment....felony. Another similar case the "advisor" also went to jail for conspiracy to the fraud. He aided the business owner in obtaining to funds for a fee.
    Hedley Lamarr......That's Hedley

  16. #16
    Senior Member Reputation points: 38047 Olderguy's Avatar
    Join Date
    Sep 2021
    Location
    Irvine, CA
    Posts
    1,039

    In this case the transactional activity was real moving from one type of business to another...Owner was originally software development.
    Steve Benjamin
    Professional Business Loans

    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    949.228.1050

    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Homeowner loan 2nd position- 15 year 14% no lien
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  17. #17
    Senior Member Reputation points: 310403
    Join Date
    Mar 2015
    Location
    Rock Ridge
    Posts
    3,265

    Good luck..... The SBA Inspector General basically said "Welcome to Let's Fuck Around and Let's Find Outsville.....I will be your tour guide". They are looking at everybody.... The Fed's are a little more than pissed so much fraud occurred. Word is they are especially looking very hard at EVERY transaction and people who were paid for facilitating transactions. Low hanging fruit is the banks and facilitators that had poor forgiveness rates first and anyone who got paid to facilitate a transaction.
    Hedley Lamarr......That's Hedley

  18. #18
    Member Reputation points: 4699 Rickinindy's Avatar
    Join Date
    Oct 2018
    Location
    Indianapolis
    Posts
    56

    Same here, I sat that one out too...
    Metromedia Funding Solutions LLC
    55 Monument Circle Suite 745*
    Indianapolis Indiana 46204
    317-649-0110*
    https://www.metromediafunding.com/

    Like us on Facebook!https://www.facebook.com/mpmetromedia/

    Rick@metromediafunding.com
    Cell 214-400-6873
    Your friends in funding.

  19. #19
    Senior Member Reputation points: 310403
    Join Date
    Mar 2015
    Location
    Rock Ridge
    Posts
    3,265

    This will go on for a while. The Feds will seek out fraud first related to fintech and low forgiveness rate institutions. The next shoe to drop thereafter will be the Feds going after banks who gave PPP to new customers. They will pop them for know your customer rules.

    A LOT of banks declined PPP to companies that were NOT already bank customers due to know your customer rules and they were busy obtain funds for companies that were already clients. Smart banks that were able to obtain PPP for their clients required the funds be help in a separate account and used for intended purposes only.....mainly payroll. It made it MUCH easier to track and get forgiveness.
    Hedley Lamarr......That's Hedley

  20. #20
    Senior Member Reputation points: 20045
    Join Date
    Jun 2021
    Location
    miami
    Posts
    268

    glad i refused to have any part in the PPP loans now



Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  


INDUSTRY ANNOUNCEMENTS

Loanspark launches co-branded lending srvc
Arsenal Funding secures $16M
New biz loan platform raises $8M


DIRECTORY