[abfunders]

So it appears that everyone (Bluevine/Kabbage/SmartBiz) are signing up with Crossriver Bank, and then profit-sharing.
Crossriver bank was the #4 originator of total loans in the first round. They upped their game and added a whole Salesforce connectivity.
The question is - how much are they paying?

Because here's what I got from SmartBiz, and I think that this is VERY generous if the banks are only paying 1 point on sub-$350,000 like they did last time:

Fee Payment to Partner per Funded Loan Amount
Loans greater than $2,000,000 = 0.167%
Loans greater than $350,000 and up to $2,000,000 = 0.50%
Loans greater than $50,000 and up to $350,000 = 0.83%
Loans up to $50,000 = 16.7% of Fees Paid to Lender

[Jeremiah]

Micah,

Have you seen the latest switch up on the Smartbiz Loans PPP Commissions? Where It caps the fees @1% instead of what they have been telling everyone for months "Loans up to $50,000 = 16.7% of Fees Paid to Lender" How do offices feel about the recent change and unclear communication?

[abfunders]

Micah,

Have you seen the latest switch up on the Smartbiz Loans PPP Commissions? Where It caps the fees @1% instead of what they have been telling everyone for months "Loans up to $50,000 = 16.7% of Fees Paid to Lender" How do office feel about the recent change?

I honestly wasn't working on the PPP very much, and I also wasn't working SmartBiz on them, I had another person to help me with the ones I did need to do. If they were a bait and switch, look at the contract, contact them directly and complain, and get others who have been submitting through them heavily to complain that they move their business elsewhere. Power in numbers.

Someone in Toronto tried changing my payout structure on me for some cannabis Bitcoin processing that we were doing together, and when he "informed" me of his decision to pay me less and not give me an accounting for it, and our contract was clearly different..... well, I have to take him to small claims court in Toronto.

[Yankeeman07]

Micah,

Have you seen the latest switch up on the Smartbiz Loans PPP Commissions? Where It caps the fees @1% instead of what they have been telling everyone for months "Loans up to $50,000 = 16.7% of Fees Paid to Lender" How do offices feel about the recent change and unclear communication?

16.7% of 1% is how I would decipher that statement - ?

[Jeremiah]

Up until recently they had been emailing Loans up to $50,000 = "16.7% of Fees Paid to Lender" Which lenders are paid $2,500 or 50% of the principal whichever is the lesser. So it should equate to about $417 for PPP from 5k-50k. Which is a huge difference.

[abfunders]

Up until recently they had been emailing Loans up to $50,000 = "16.7% of Fees Paid to Lender" Which lenders are paid $2,500 or 50% of the principal whichever is the lesser. So it should equate to about $417 for PPP from 5k-50k. Which is a huge difference.

The lender is paid 5%, but the brokers are paid 1% (or less, with the $350,000 limits). It could be that their marketing emails were a mistake? I obviously understood that they meant a percentage paid to the broker since they're co-brokering with you. Which is exactly why I put my PPP loans through another channel.

[Michael I]

Micah,

Have you seen the latest switch up on the Smartbiz Loans PPP Commissions? Where It caps the fees @1% instead of what they have been telling everyone for months "Loans up to $50,000 = 16.7% of Fees Paid to Lender" How do offices feel about the recent change and unclear communication?

where did you see that update? i funded over a hundred with them and did not get any update

[Jeremiah]

They emailed an update on 4/22. you can also google their terms and conditions which were just updated 4/21/21. It lays out the whole structure there