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Started By
Message
Was the uproar over PPP loans another case of fake news?
Posted on 5/6/20 at 9:38 am
Posted on 5/6/20 at 9:38 am
I am not sure. The first tranche of funds went very fast. Then there was a uproar on social media, which was trumpeted by the MSM, that small businesses were getting shut out of PPP and it was mismanaged and the evil big companies were getting it all and banks were favoring clients.
Well, then the second tranche of $350B comes along. After nine days, the SBA says that they have approved $181B of the $350B. Seems the new funds would have gone pretty quickly if it was as bad as everyone said. Seems that any small business that wants to apply and get funded has had a fair shot.
Don't hear as much about it this week either.
Well, then the second tranche of $350B comes along. After nine days, the SBA says that they have approved $181B of the $350B. Seems the new funds would have gone pretty quickly if it was as bad as everyone said. Seems that any small business that wants to apply and get funded has had a fair shot.
Don't hear as much about it this week either.
12
Posted on 5/6/20 at 9:40 am to wareaglepete
murder hornets dude...
Posted on 5/6/20 at 9:41 am to wareaglepete
quote:
tranche
Does anyone else hate this word? I hate it.
Posted on 5/6/20 at 9:42 am to wareaglepete
No, the program was a disaster.
Posted on 5/6/20 at 9:44 am to wareaglepete
I’ve applied both times and I’m still waiting on my money. So no.
Posted on 5/6/20 at 9:46 am to wareaglepete
It wasn't rolled out well at all. Most of the bitching was from companies with poor record keeping and trying to get the loans from banks that they had no realionships with and people trying to profit off of commissions by making companies open up accounts and a bunch of other stuff.
It was put together quickly but money got picked up by various companies across the country.
It was put together quickly but money got picked up by various companies across the country.
Posted on 5/6/20 at 9:46 am to crimson crazy
Don't know what is going on this go round, but I am seeing people getting approved and funded much faster now.
Posted on 5/6/20 at 9:46 am to wareaglepete
Wife (no pics) applied during the first round and was basically told it ain't happening.
Just recently, in a span of two days, she was notified that her application had been submitted to the SBA and then it was immediately approved.
Just recently, in a span of two days, she was notified that her application had been submitted to the SBA and then it was immediately approved.
Posted on 5/6/20 at 9:49 am to wareaglepete
When you consider size, scope, and unprecedented nature of this thing, I think the bitching about the rollout is pathetic. We all complain about how slow and bureaucratic government is, but this thing got done faster than I would have thought possible.
Posted on 5/6/20 at 9:49 am to wareaglepete
A neighbor of mine owns a very nice upscale restaurant. He has tried to remain open with curbside service. He has kept his staff on payroll with reduced hours and has continued to pay his rent.
He applied for $20K on the first day and got shut out. His application was accepted by Chase but the bank told him they had no funds to give him.
Naturally a bank would find it easier to make one $1,000,000 loan than 50 $20,000 loans.
Surely the $20K loans would have done more good for the economy. If he doesn't get help soon, he'll be declaring bankruptcy.
He applied for $20K on the first day and got shut out. His application was accepted by Chase but the bank told him they had no funds to give him.
Naturally a bank would find it easier to make one $1,000,000 loan than 50 $20,000 loans.
Surely the $20K loans would have done more good for the economy. If he doesn't get help soon, he'll be declaring bankruptcy.
Posted on 5/6/20 at 10:02 am to BigAppleBucky
quote:
His application was accepted by Chase but the bank told him they had no funds to give him.
Now this I think was part of an issue the first go round (first tranche
). I think the banks just did not know how to handle the scale of applications that came in and the SBA was no help and kept changing things constantly. I would bet that the companies that were larger and asked for larger loans got a lot of outside advice and counsel and were probably having their apps submitted the very second the banks opened the process and thus were at the very front of the line. Also, and I can't say how I know this, but there were a lot of little things on those apps that would seem silly, but got a lot of the apps kicked back from SBA. I would bet that a lot of the larger companies applying were tipped off to exactly what needed to be put on the apps. Can't prove this, just tinfoil hat thinking.
This post was edited on 5/6/20 at 10:04 am
Posted on 5/6/20 at 10:06 am to wareaglepete
quote:
first tranche
Posted on 5/6/20 at 10:10 am to wareaglepete
quote:
Well, then the second tranche of $350B comes along. After nine days, the SBA says that they have approved $181B of the $350B. Seems the new funds would have gone pretty quickly if it was as bad as everyone said. Seems that any small business that wants to apply and get funded has had a fair shot.
A lot of people got shut out in the first round. SBA didin't handle it well. Everyone should be able to get in on the second round
This post was edited on 5/6/20 at 10:11 am
Posted on 5/6/20 at 10:13 am to Demshoes
quote:
Just recently, in a span of two days, she was notified that her application had been submitted to the SBA and then it was immediately approved.
Not how it works. THe bank lied.
The banks do the underwriting and lending. Once the bank has decided it's a viable loan they submit it to the SBA via ETran. The ONLY thing the SBA does is issue an SBA loan number and a subsequent SBA guarantee.
Posted on 5/6/20 at 10:16 am to VABuckeye
quote:
The banks do the underwriting and lending.
Kind of. The SBA only requires that the banks do a "good faith" verification that the loan amount applied for equals 2.5x average monthly payroll. The SBA still approves. Their approval is their guarantee of the loan. The bank technically lends out the money, but they will not do that without the SBA guarantee and that is the "approval".
Related to what I posted above, a lot of banks at first were taking apps and just submitting them. Then they started to get kicked back because they did not do a verification and because of the little silly things mentioned above.
This post was edited on 5/6/20 at 10:18 am
Posted on 5/6/20 at 10:33 am to wareaglepete
quote:
Seems the new funds would have gone pretty quickly if it was as bad as everyone said. Seems that any small business that wants to apply and get funded has had a fair shot.
Hopefully these mega-corps that gobelled up the first round then got shamed into returning them learned their lesson.
All they had to was call up their bank and say "get me that money," and the bank had an inside lane to do so. No waiting on the phone like small businesses had to do.
Posted on 5/6/20 at 10:39 am to uppermidwestbama
quote:
It wasn't rolled out well at all. Most of the bitching was from companies with poor record keeping and trying to get the loans from banks that they had no realionships with and people trying to profit off of commissions by making companies open up accounts and a bunch of other stuff
Agreed. It wasn’t rolled out well. First round big banks dropped the ball for small business. Second round funding came through. We had all our shite wrapped up the first round with more documentation than required. Second round was deposited but only because of the backlash from small business to big banks.
All my podnahs that bank local got their money way before we did
Posted on 5/6/20 at 10:47 am to wareaglepete
The news from the first round was certainly true. The second round seems to be going much better though, it did for us!
Posted on 5/6/20 at 10:58 am to crimson crazy
quote:
I’ve applied both times and I’m still waiting on my money. So no.
Are you applying with a big bank? I applied with Chase on 4/9 and as of today they’re still “manually reviewing” my paperwork before submitting it to the SBA and “if they need anything they’ll email me”. So I applied at my credit union last Thursday. By Friday morning I was approved and on Monday afternoon they cut me a check.
Posted on 5/6/20 at 11:09 am to wareaglepete
The uproar was legit, but may have been aimed in the wrong direction. There were a lot of companies that received funding in the first wave that did not need the money, but applied because it's "free money". Now, the SBA is putting out clarifying information that essentially tells companies they will need to make a statement under penalty of fraud that they absolutely needed the funding in order to continue operations and bring employees back. For those companies that did not need the money, they have until 5/07 to return the funds no questions asked.
It is why you are hearing about companies like Shake Shack, Lakers, and a few other publicly traded companies returning the funds. They are looking for he Goodwill and asking for forgiveness, but they are also looking to avoid the Fraud charges/penalties as well.
It is why you are hearing about companies like Shake Shack, Lakers, and a few other publicly traded companies returning the funds. They are looking for he Goodwill and asking for forgiveness, but they are also looking to avoid the Fraud charges/penalties as well.
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