[Bcooper]

The SBA has just announced as of June 1st they will no longer be refinancing MCA and Factoring debt. If you have any clients with MCA debt lookign to refinacne get it in now you have about two weeks to get these files in before they have no chance of closing before the cut off. Midwestern is currently working on a partnership to create a work around to this new rule. Feel free to give us a shout if you need help placing these files before the cut off, we have no credit or collateral requirement.

[Bcooper]

I have had further conversations with several bank reps vp,pres,CEO ect. It seems that during the first quarter of this year the default rate on SBA loans that contained MCA's was between 11 and 14%. That alone was enough to kill refinancing of MCA's but it was not the only issue. The second major issue was that even after paying off the MCA's many funders would not release the UCC liens and many would even place merchants in a fraudulent default after the fact. I'm not saying this was all funders, not by any stretch, but enough were doing shady **** that the new director for the SBA decided to shut it down for everyone. These were the two main issues there were more. This may finally be the first sign of heavy government regulation in MCA's.

[Bcooper]

Been the trend....was doing truckers then the default rate went up and no more truckers....Even Newity just quit. But Trumps agenda is no regulation so will be interesting to see how it all shakes out.

I can still do trucking companies pretty easily I never real saw any issues or difference with them that was more lender by lender and mine are pretty damn liberal. but this is not a lender by lender issue that national default rate going over 10% on loans issues in the past 90 days in insane.

[Bcooper]

I just got off the phone with the VP of one of my SBA banks....he said if I take out a MCA's with my term loan guy (he does bridge take outs) all he cares about is if the term loan improves cash flow by 10%.

My bridge loan guy just needs a exit strategy with SBA to justify the bridge loan.

we are currently in process of establishing our own in house fund to do exactly this, it will hopefully be open in the next 30 days. No credit requirements and we would have a far wider box not just mca debt, we'd also look at non performing debt to refi and bring into one blanket loan to make files that aren't eligible eligible once more.

[Incbiz440]

I just got off the phone with the VP of one of my SBA banks....he said if I take out a MCA's with my term loan guy (he does bridge take outs) all he cares about is if the term loan improves cash flow by 10%.

My bridge loan guy just needs a exit strategy with SBA to justify the bridge loan.

This is willful ignorance on their part, the original use of funds dictates SBA eligibility. They're leaning on the playing dumb approach to say they weren't aware of original use if it ever came up.

If they're willing to do it whatever, just stupid on their part.

Also I may be off but AFAIK titled vehicles and deeded property fall outside of a blanket ABA, at least when perfected correctly, and perhaps depending on state.

[Bcooper]

1. Who care if it works.

2. iBusiness required merchant to send it truck titles.

I was looking at Ibusinesses Linkedin recently and it looks like they are no longer a direct lender. the verbiage now indicates they broker loans rather than fund them inhouse. I never used them but I was under the assumption they had a medallion a few years ago.

[Bcooper]

Their guy left and they are involved in some lawsuit....

I wish that surprised me.

[Incbiz440]

1. Who care if it works.

2. iBusiness required merchant to send it truck titles.

From a broker perspective no, as vetting end eligibility isn't their job other than to not waste their time. As a lender I would be highly concerned about it as you can have the guarantee pulled on individual loans if its found after the fact to be ineligible, or if it's willful and systemic put your institution's ability to participate in the SBA program in jeopardy. Which is why I said stupid on their part, not yours.

[B2 Systems]

I just got off the phone with the VP of one of my SBA banks....he said if I take out a MCA's with my term loan guy (he does bridge take outs) all he cares about is if the term loan improves cash flow by 10%.

My bridge loan guy just needs a exit strategy with SBA to justify the bridge loan.

For your bridge loan scenario, would the SBA put two and two together and see a large advance by a funder, then see daily debits, then see another large disbursement for the remainder of the MCA? ....Or as long as the MCA is satisfied, the merchant is good?

Or is there a time period from when the merchant last took an MCA until now, where they can now receive an SBA loan?

Does the merchant reconcile the bridge loan at the time he's funded by the SBA backed loan? What happens if the merchant doesn't get the loan? If the merchant is making payments to your bridge guy, BEFORE the SBA loan, that kind of defeats the purpose, unless its structured as a monthly term.



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