Displaying items by tag: coronavirus

It is now official, the Paycheck Protection Program has exhausted its entire $349 bn. The announcement came yesterday that all the money in the program has been “approved”. However, that announcement left small business owners in confusion, as data shows very little money has arrived. According to COVID Loan Tracker, less than 6% of small business owners say that they have actually received money.

COVID Loan Tracker was started by small business owners Duncan and Rita MacDonald-Korth to help their fellow small business owners understand when PPP and EIDL advance money starts flowing. The site works by crowdsourcing knowledge on applications and loan disbursements. Our goal is to help the small business community and empower journalists with the data they need to keep the government accountable.

PLEASE HELP SMALL BUSINESS OWNERS BY FILLING OUT THE FORM

Small business owners are having trouble reconciling the difference they see between the SBA’s numbers and the lack of money they see in their accounts. The SBA has done little to clear up the confusion, as they have not made actual loan disbursement data public. “Where is the money? That is what all small business owners are asking us. We are getting thousands of those emails a day.”, says Rita MacDonald-Korth, co-founder of COVID Loan Tracker.

HELP COVID LOAN TRACKER KEEP THE DATA FLOWING

(Washington)

While many readers often accuse us of having one political persuasion or another (we get accused by both sides all the time!), we try to be pretty neutral about politics here at FINSUM. On this particular topic, we want to weigh in very clearly (even though we don’t, have a clear position). Earlier this week, the President said what was easily the most heartfelt, eloquent and “presidential” comment of his presidency, and given this topic, we think it is worth sharing. He said “I have it make the biggest decision of my life, and I only hope to god I get it right”. Well, his view was made more clear today, which is that he is favoring a quick reopening.

FINSUM: In our view, nobody knows the right answer to the question about balancing the risk to life versus the imperative of providing economic security. In many ways it is a catch-22. We think a really well-considered strategy is needed.

Earlier this week, the Small Business Administration released aggregate details about the amount of loans “approved” in each sector and each state for the Paycheck Protection Program. However, the document did very little to help business owners understand where their money is, says COVID Loan Tracker.

“Approved” has become a very vague term as it concerns the SBA. COVID Loan Tracker says it has received hundreds of emails from small business owners who say that they have received notices of “approval” but have then waited several days before receiving money, or still have not received it.

COVID Loan Tracker was started by small business owners Duncan and Rita MacDonald-Korth to help their fellow small business owners understand when PPP and EIDL advance money starts flowing. The site works by crowdsourcing knowledge on applications and loan disbursements. Our goal is to help the small business community and empower journalists with the data they need to keep the government accountable.

PLEASE HELP SMALL BUSINESS OWNERS BY FILLING OUT THE FORM

While the release of the data by the SBA does help gain insight into which sectors and states will ultimately receive money, the agency has been reticent to release the numbers of actual loan disbursement (i.e. money actually paid out). This figure would be much more illustrative of how the PPP loan program is proceeding.

For instance, the document does not lend any clarity to the percent of applications that have been paid. According to COVID Loan Tracker, that figure stands at just 5%, a far cry from the ~70% the SBA says has been “approved”. “Where is the money”, says one of COVID Loan Tracker’s founders, Duncan MacDonald-Korth.

(New York)

For many advisors, the idea of changing firms in the middle of the coronavirus pandemic might be the furthest thing from their minds. But the reality is that for many, this could be an ideal time to switch (or even a necessity) for a number of reasons. Firstly, many advisors feel under-supported by their firms during crises (of which this one is unprecedented), which may motivate them to switch associations. But additionally, because of the volatile to the market, recent valuations/production numbers might mean moving soon makes the most sense, as it will maximize the size of moving checks one can receive.

FINSUM: A lot of advisors seem to be worried about maintaining their employees and payroll given the big fall in fees.

COVID Loan Tracker was started by small business owners Duncan and Rita MacDonald-Korth to help their fellow small business owners understand when PPP and EIDL advance money starts flowing. The site works by crowdsourcing knowledge on applications and loan disbursements. Our goal is to help the small business community and empower journalists with the data they need to keep leaders accountable for the promises they made about the PPP program.

PLEASE HELP SMALL BUSINESS OWNERS BY FILLING OUT THE 60-second FORM

Applications are flooding in this morning—several per minute—and we have compiled the data to-date. As of 8 am, over 3,000 companies have reported on their PPP loans, with $1.5 bn in loan applications across all 50 states.

The Data:

• 2.4% of businesses report receiving PPP loan disbursements
• 91% got the full amount they applied for
• $84,000 is the median PPP loan received
• 84% of PPP Loans disbursed came through small/regional banks
• 10% of PPP Loans disbursed came through JP Morgan Chase

Trends:

• Small and regional banks are the backbone of the PPP loan disbursement, reportedly because they were already well established to process SBA loans, so had the best infrastructure
• JP Morgan deserves some thanks, as it is the first big bank to really open the PPP loan spigot
• Wells Fargo and Bank America appear to finally be issuing loans
• Most successful applicants are getting the full amount they applied for
• With applications being fully funded, the money is likely to run out sooner

PLEASE KEEP SPREADING THE WORD SO WE CAN KEEP THE DATA FLOWING