By: Jer Ayles. So, if you’re a non-depository Lender WITH A WEBSITE do you qualify as a “financial technology firm?” Just what is a “financial technology firm? Maybe it means you’re headquartered in Silicon Valley, you offer wage advancement loan products [no license required while still achieving 100%+ APR’s] AND you made significant political donations to Congress?
“As a result of the changes, all PPP lenders approved by the SBA, including non-depository institution lenders, are now eligible to participate in the PPPLF. SBA-qualified PPP lenders include banks, credit unions, Community Development Financial Institutions, members of the Farm Credit System, small business lending companies licensed by the SBA, and some financial technology firms.”
Bottom Line: 70% of existing small-dollar lenders offering payday loans, title loans, personal loans will FAIL! Unless you followed my counsel and hoarded your cash, maxed out ANY credit lines, stopped funding new loans, focused on collections of your existing loan portfolios, renegotiated your lease agreements, LMS agreements, and 3rd party fees, stopped all marketing costs, laid off non-essential employees, enabled borrowers to make their payments via curb-side and online payment portals… you are DEAD!
On the other hand, IF YOU’RE LIQUID when this Corona monster subsides, your OPPORTUNITIES will be incredible! The “business of lending to the masses” will rebound dramatically. Your previous competitors will be declaring bankruptcy. They’ll sell their “paper” for pennies. [Remember, the VALUE is in the DATA.]
So… keep your powder dry. “Prepare for the aftermath!” Begin your journey here: My Services
April 30, 2020
Federal Reserve expands access to its Paycheck Protection Program Liquidity Facility (PPPLF) to additional lenders and expands the collateral that can be pledged
For release at 5:15 p.m. EDT
The Federal Reserve on Thursday expanded access to its Paycheck Protection Program Liquidity Facility (PPPLF) to additional lenders and expanded the collateral that can be pledged. The changes will facilitate lending to small businesses via the Small Business Administration’s (SBA) Paycheck Protection Program (PPP).
As a result of the changes, all PPP lenders approved by the SBA, including non-depository institution lenders, are now eligible to participate in the PPPLF. SBA-qualified PPP lenders include banks, credit unions, Community Development Financial Institutions, members of the Farm Credit System, small business lending companies licensed by the SBA, and some financial technology firms. When the PPPLF was announced, the Federal Reserve said the facility would immediately lend to depository institutions and that non-depository institutions would be added as soon as possible.
Additionally, eligible borrowers will be able to pledge whole PPP loans that they have purchased as collateral to the PPPLF. An institution that pledges a purchased PPP loan will need to provide the Reserve Bank with documentation from the SBA demonstrating that the pledging institution is the beneficiary of the SBA guarantee for the loan.
The SBA’s PPP guarantees loans from qualified lenders to small businesses so that those businesses can keep workers employed. The PPPLF supports the PPP by extending credit to financial institutions that make or purchase PPP loans, using the loans as collateral. The additional liquidity from the PPPLF increases the capacity of financial institutions to make additional PPP loans.
Further details on the PPPLF are available here.
The business of lending to the masses will never abate. The methods will simply continue to evolve. “A strong Team > Capital. Debt Collection experience!” it’s a no-brainer for YOU! Jer
Yes, I do. As I’ve been proselytizing, get “all the pieces in place.” Reach out for a 15 minute conference call with me here: https://clarity.fm/jerayles-ayler