If you’re connected in any way to “the business of lending to the masses,” I suggest you join FISCA and set up Google Alerts for Max Woods, FISCA, OLA, NAFSA, CFSA, your state association… Resources listed here: https://thebusinessoflending.com/resources/
PS: I know from anecdotal reports that a couple of our peers “have been approved” in Texas and Oklahoma. However, they have NOT YET been funded!
We’ve had several questions from members regarding the Payment Protection Plan (PPP) loan program through the Small Business Association (SBA). The situation seems to be pretty fluid at this point and no clear answers are available. That being said, we did want to share with you what information we do have.
The information below was taken from an update provided by our friend, Max Wood, in Alabama.
CAN WE PARTICIPATE IN PPP?
We do not have an official word on the PPP program for our industry, at this time. The most recent factual information we have is that our industry does not likely qualify because we are a financial service company. That information comes directly from the Senator’s office in Washington who is chair of the committee that authored the bill.
WHAT ARE LENDERS REPORTING ON PPP?
Generally, most are not getting a response other than acknowledgment of their application. The bottom line is that the PPP program, at its core, uses existing SBA guidelines and regulations. So, ultimately, the decision to approve or not approve a loan will be made by the SBA.
We know that several of the national trade organizations, including FISCA, are working to clarify that ruling and to have financial service companies included. It is by no means clear, at the moment, if they will be successful.
We encourage you to submit your paperwork if you have not done so. In the event this ruling changes, and if the money remains available, you will at least be in the queue.
We are sure there are many questions you may have, but this is what is known at the moment. We will continue to monitor the situation.
We will report back soon.
Sincerely,
Luke Montgomery, President FISCA
