Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 174943 times)

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2595 on: January 06, 2021, 01:52:41 PM »
Seems there are others outside of EU also offering to share commissions... did 2nd round commissions go up, or just pressure from EU?
Wonder if large PPP borrowers can negotiate a share of the commission themself (have their cake and eat it too :) )

Indeed, apparently commissions went up. Commissions for larger loans are a smaller percentage of the loan amount, and might be capped, but itís probably still significant.

Is it even legal for the lender to share their commission with you? If it is, please let me know where I can get in on this as it effectively means more PPP money for using that lender.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2596 on: January 06, 2021, 02:02:17 PM »
Indeed, apparently commissions went up. Commissions for larger loans are a smaller percentage of the loan amount, and might be capped, but itís probably still significant.

Is it even legal for the lender to share their commission with you? If it is, please let me know where I can get in on this as it effectively means more PPP money for using that lender.

This is what banks were/are getting:
In the CARES Act:
A .5% fee on loans below $350,000.00
A .3% fee on loans between $350,001.00 and $2,000,000.00
A 1% fee on loans between $2,000,001.00 and higher

In the Response and Relief Package:
A 50% fee on loans below $50,000.00 (capped at $2,500)
A 5% fee on loans between $50,001.00 and $350,000.00
A 3% fee on loans between $350,001.00 and $2,000,000.00

CRAZY increase.

Offline YesThatsMe

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2597 on: January 06, 2021, 02:12:04 PM »
This is what banks were/are getting:
In the CARES Act:
A .5% fee on loans below $350,000.00
A .3% fee on loans between $350,001.00 and $2,000,000.00
A 1% fee on loans between $2,000,001.00 and higher

In the Response and Relief Package:
A 50% fee on loans below $50,000.00 (capped at $2,500)
A 5% fee on loans between $50,001.00 and $350,000.00
A 3% fee on loans between $350,001.00 and $2,000,000.00

CRAZY increase.

Where is your link? I'd love for you to make the $2,500 on me after all the Chesed you've done here!!!

Online zh cohen

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2598 on: January 06, 2021, 02:14:02 PM »
Where is your link? I'd love for you to make the $2,500 on me after all the Chesed you've done here!!!

Same but pretty sure she gets a percentage of what the bank is getting not all of it.

Offline est

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2599 on: January 06, 2021, 02:20:44 PM »
There is crazy money to be made here for the lenders! More than enough to share a percentage to get the account!
Iím surprised theyíre not advertising even more!!
@cgr Iím waiting for your link...glad to give you the commission;)

Offline lakewood34

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2600 on: January 06, 2021, 02:37:23 PM »
This is what banks were/are getting:
In the CARES Act:
A .5% fee on loans below $350,000.00
A .3% fee on loans between $350,001.00 and $2,000,000.00
A 1% fee on loans between $2,000,001.00 and higher

In the Response and Relief Package:
A 50% fee on loans below $50,000.00 (capped at $2,500)
A 5% fee on loans between $50,001.00 and $350,000.00
A 3% fee on loans between $350,001.00 and $2,000,000.00

CRAZY increase.
i don't mean to question you but i am pretty sure that in round 1 banks got 5 percent of smaller loans not .5 percent

also if they are really making 2500 a loan i hope they have better customer service this time because honestly last time it was atrocious

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2601 on: January 06, 2021, 02:45:27 PM »
i don't mean to question you but i am pretty sure that in round 1 banks got 5 percent of smaller loans not .5 percent

also if they are really making 2500 a loan i hope they have better customer service this time because honestly last time it was atrocious
Need to double check- thanks.
Don't worry- as of now banks have not agreed to pass on a higher rate to referrers than last time, even though they're getting a huge raise.

Online Hjay

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2602 on: January 06, 2021, 02:50:32 PM »
Indeed, apparently commissions went up. Commissions for larger loans are a smaller percentage of the loan amount, and might be capped, but itís probably still significant.

Is it even legal for the lender to share their commission with you? If it is, please let me know where I can get in on this as it effectively means more PPP money for using that lender.

Why would it be illegal? Iím waiting to see a thread on DDF for splitting  commission  ;D

Offline Sport

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2603 on: January 06, 2021, 02:52:38 PM »
This is what banks were/are getting:
In the CARES Act:
A .5% fee on loans below $350,000.00
A .3% fee on loans between $350,001.00 and $2,000,000.00
A 1% fee on loans between $2,000,001.00 and higher

In the Response and Relief Package:
A 50% fee on loans below $50,000.00 (capped at $2,500)
A 5% fee on loans between $50,001.00 and $350,000.00
A 3% fee on loans between $350,001.00 and $2,000,000.00

CRAZY increase.
Keep in mind this is what the banks get, EU is a broker and they only get a portion of that and are passing on 20% of their portion.

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2604 on: January 06, 2021, 02:57:04 PM »
Don't worry- as of now banks have not agreed to pass on a higher rate to referrers than last time, even though they're getting a huge raise.

The major banks are going to rake in tens of billions in fees for this next round, a lot of which is pure profit. How much of that is reflected in their ~25-35% stock price increase these past 3-6 months?

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2605 on: January 06, 2021, 03:13:37 PM »
This is what banks were/are getting:
In the CARES Act:
A .5% fee on loans below $350,000.00
A .3% fee on loans between $350,001.00 and $2,000,000.00
A 1% fee on loans between $2,000,001.00 and higher

In the Response and Relief Package:
A 50% fee on loans below $50,000.00 (capped at $2,500)
A 5% fee on loans between $50,001.00 and $350,000.00
A 3% fee on loans between $350,001.00 and $2,000,000.00

CRAZY increase.
It was 5% and 3% not .5% and .3%
a $50,000 loan is still getting the same $2,500 they just increased that even smaller loans should receive $2,500 it should be worth for the banks to play with smaller loans also.
There is no crazy increase.

All small employers are getting now CRAZY INCREASES with being able to apply for PPP, ERC, FFCRA concurrently if they meet eligibility. a company with 10 employees paying them $50k yearly wages for a total of $500K payroll, can get now approx $300k between all these programs. Its HUGE HUGE money. I think most people didn't digest it still and there is definitely no reason why not to raise the stimulus to $2,000 or even $4,000 per person after businesses getting such windfalls
« Last Edit: January 06, 2021, 03:21:46 PM by TBD »

Offline ShimshonK

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2606 on: January 06, 2021, 03:18:47 PM »
What was the motivation for the govt to offer banks higher commissions??

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2607 on: January 06, 2021, 03:21:44 PM »
It was 5% and 3% not .5% and .3%
a $50,000 loan is still getting the same $2,500 they just increased that even smaller loans should receive $2,500 it should be worth for the banks to play with smaller loans also.
There is no crazy increase
You're right- it is 5% and 3%.
I do think that the 50% increase makes a big difference though (not huge  ;))

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2608 on: January 06, 2021, 03:23:12 PM »
What was the motivation for the govt to offer banks higher commissions??
To support the little guy. If you remember in the first round of funding (before the program was replenished), Chase and BofA reportedly gave loans to their big customers, and weren't really helping anyone else.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2609 on: January 06, 2021, 03:24:13 PM »

All small employers are getting now CRAZY INCREASES with being able to apply for PPP, ERC, FFCRA concurrently if they meet eligibility. a company with 10 employees paying them $50k yearly wages for a total of $500K payroll, can get now approx $300k between all these programs. Its HUGE HUGE money. I think most people didn't digest it still and there is definitely no reason why not to raise the stimulus to $2,000 or even $4,000 per person after businesses getting such windfalls
You mean consecutively. You can't stack these programs.