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Loan forgiveness not coming easily for some PPP borrowers
Andrew Song’s restaurant and karaoke bar is a ghost of what it used to be. The shuttered business in Manhattan still has an outdoor dining structure up and a menu posted by the door. A phone sits on the dusty host stand inside. After eight years in business, Song shut down Le Midi last summer, during the pandemic. Now, he’s left with debt. The business got nearly $250,000 through the federal Paycheck Protection Program. His lender, Citibank, told him he has to pay back more than $25,000. Song can’t figure out why. Was it something in his application? Did he
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An online lender gave hundreds of PPP loans to fake farms. Now Congress is investigating.
A House committee has opened a formal investigation into how several online lenders may have facilitated fraudulent Paycheck Protection Program loans, following reporting by ProPublica and other news outlets. The House Select Subcommittee on the Coronavirus Crisis probe seeks answers from Kabbage and BlueVine, online lending platforms that processed hundreds of thousands of government-backed loans to small businesses, as well as Celtic Bank and Cross River Bank, which frequently partnered with the web-based lenders. Although these highly automated lenders helped the Small Business Administration’s $800 billion relief program reach small businesses that weren’t being served by traditional banks, they also
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With PPP Ended, Small Business Must Look For Other Sources Of Funding
Small business loan approval percentages at big banks ($10 billion+ in assets) climbed slightly from 13.4{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} in April from 13.5{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} in May 2021, according to the latest Biz2Credit Small Business Lending Index. Small banks’ approvals jumped higher from 18.2{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} in April, to 18.7{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} in May. Bank vault (Photo by © Viviane Moos/CORBIS/Corbis via Getty Images) Corbis via Getty Images Loan approvals by small banks rose 0.3{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} as banks start to assess the favorable economic conditions that are beginning to emerge as lockdowns ease and more and more people receive a Covid-19 vaccine. Pent-up demand from consumers is an attractive
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PPP Loan Alternatives for Small Businesses
List of SBA PPP loan alternatives. The Small Business Administration (SBA) Paycheck Protection Program (PPP) application deadline has past. by Joe Panettieri • May 31, 2021 The Small Business Administration‘s Paycheck Protection Program (PPP) stopped accepting new applications in May 2021. If you’re a small business owner seeking PPP loan alternatives for your business or for your clientele in specific vertical markets, here are some potential SBA options: 1. COVID-19 EIDL: This loan provides economic relief to small businesses and non-profit organizations currently experiencing a temporary loss of revenue. EIDL is short for Economic Injury Disaster Loan. 2.
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Lingering pain point for PPP lenders: Forgiveness on large loans
As the final cutoff for Paycheck Protection Program lending nears, forgiveness for large-dollar loans continues to be a sticking point for lenders. Though some bankers say the Small Business Administration has made progress whittling down a backlog of overdue forgiveness applications, others complain about requests that have sat in the queue for months with no word from the agency about when they’ll be resolved. “With smaller loans, they get them in and get them out. … It’s a really straightforward process,” said Bobby Berman, group executive vice president, research and strategy at the $44 billion-asset Frost Bank, a unit of
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Lending platform Kabbage issued PPP loans worth $7 million to fake recipients: report
CPA and market analyst Dan Geltrude unpacks President Biden’s tax proposals, arguing the administration’s potential policies will damage small businesses. About 378 small business loans from the Paycheck Protection Program totaling $7 million were given to fake entities, the majority of which were posing as farms, according to a new report by ProPublica. ProPublica says the loans were disbursed through a fintech lending platform launched in 2009 called Kabbage, which processed nearly 300,000 Paycheck Protection Program loans before the first round of funds ran out in August 2020, second only to Bank of America. CONNECTICUT WILL PAY UNEMPLOYED RESIDENTS
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Businesses in majority-white communities received PPP loans at higher rates, analysis shows
Edward Flores, owner of Juanita’s Cafe on Olvera Street, had to cut his operating hours and lay off his staff last year amid the pandemic. (James Bernal for Reveal / Los Angeles Times) Like other Black entrepreneurs in her Inglewood neighborhood, Annie Graham has struggled to keep her business afloat during the pandemic. At Ms. Ann’s clothing boutique on Manchester Boulevard, the Easter finery Graham stocked last spring remains on the racks. Also untouched are many of the exclusively white outfits for weddings and parties that she sells at her storefront next door, the White House. Customers, she said, mostly
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Real Estate Receives 5{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} of NY PPP Loans
Though some companies have received fat PPP payouts, real estate received just 4.6{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} of the loans distributed in New York. (iStock) The federal Paycheck Protection Program (PPP) has been hailed as a life saver for small businesses in New York. But not all sectors have benefited equally. New York has distributed $1.5 billion since April 2020 to real estate, rental and leasing companies. That’s just 4.6 percent of the total amount disbursed in the state, according to a February analysis by Comptroller Thomas DiNapoli’s office. Those loans were distributed among 22,000 participants, with the average size being $70,361. By comparison,
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