SBA PPP and EIDL Small Business Loans (some money is forgivable)

[AsherO]

Yes. Frankly, I reached out to 4 relationships at different banks, and only they even got back to me. The average American Banker has not slept in the last 2 weeks and has ticked off many good clients to boot.

The banks are getting .25-1% of these loans, hope the bankers are making bank on this and not just their employers...

[zh cohen]

The banks are getting .25-1% of these loans, hope the bankers are making bank on this and not just their employers...

Actually 1-5%

 

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

[YesThatsMe]

Actually 1-5%

He’s referring to what the agents (brokers) are entitled to. The truth is it’s pennies, as the average loan was under $150,000 the average fee is tops $1,500. The guy who took above average loans did not need to use an agent. So I have no idea why the agents found this program worth the brain damage. Take our community for example, Eastern Union spent quite a bit of money on marketing something their fee was only 100 bips and was probably pushed to the bottom of the lenders pile.

[AsherO]

He’s referring to what the agents (brokers) are entitled to. The truth is it’s pennies, as the average loan was under $140,000 the average fee is $1,400. The guy who took above average loans did not need to use an agent. So I have no idea why the agents found this program worth the brain damage. Take our community for example, Eastern Union spent quite a bit of money on marketing something their fee was only 100 bips and was probably pushed to the bottom of the lenders pile.

Right, my bad. At 1-5% the banks are making a killing. JPMC’s ROI on this one must be epic.

[zh cohen]

Eastern Union spent quite a bit of money on marketing something their fee was only 100 bips and was probably pushed to the bottom of the lenders pile.

They were trying to get a commission without doing anything.

[YesThatsMe]

Right, my bad. At 1-5% the banks are making a killing. JPMC’s ROI on this one must be epic.

Back of the envelope figures of 74% of loans under $150K and average loan of $206K yields around $11B in lender fees. On a risk free note as good as a T-Bill. And tradeable tomorrow morning.

Who doesn’t see 2008esque bank bailout in this all over again....?

[ilherman]

Not sure what your accountant told you, but one of the strict laws of S Corp is that you must take a reasonable wage compared to others in your field.

but he said that the first year or 2 you can get away with it.

[hvaces42]

Back of the envelope figures of 74% of loans under $150K and average loan of $206K yields around $11B in lender fees. On a risk free note as good as a T-Bill. And tradeable tomorrow morning.

Who doesn’t see 2008esque bank bailout in this all over again....?

Neil Barofsky of 2008 fame called it before CARES Act was even signed! When you look at 2008 you see how much was written off on the banks books and how much toxicity the Maiden Lane vehicles took off the Banks hands its no wonder they were showing HUGE profits over the last decade. Every loan that they had written off and then foreclosed upon went straight to their bottom line. Pure profit. This will do that for them again. 

[thebudgetdeals]

Btw the bankers dont have anything else what to do, as loans arent getting approved...
The only other options for them is answering phone calls for mortggage forbearance and delaying cc payments....

[Dan]

https://www.bloomberg.com/amp/news/articles/2020-04-19/shake-shack-potbelly-among-big-chains-tapping-small-biz-funds

[mgarfin]

At this point shouldn't banks and governments be able to figure out what amount of money is needed to fund this for all businesses

Chase seems to have a number It still needs to cover 26b

[ExGingi]

At this point shouldn't banks and governments be able to figure out what amount of money is needed to fund this for all businesses

Chase seems to have a number It still needs to cover 26b

ROTFLMAO

[mgarfin]

Pretty sure you are not allowed to apply at more than one bank (and the application asks).

https://www.inc.com/brit-morse/paycheck-protection-program-loans-multiple-lender-fraud-scams.html

[Mordyk]

How can i know of I'm scheduled to receive the eidl up to $10k grant?

[AsherO]

How can i know of I'm scheduled to receive the eidl up to $10k grant?

I applied and got a mass-mailed update to applicants that didn’t have anything substantial in it. It seems they are no longer accepting new EIDL applications and the ones they received are being processed on a first-come-first-served basis. I’m not holding my breathe.