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Trump veto congressional waiver of DeVos loan forgiveness rule


Waiting for almost the very last minute on a Friday, President Trump issued his first veto on domestic policy legislation. This veto was to Joint House Resolution 76, sponsored by Representative Susie Lee (D-NV), a bill that would have prevented Education Secretary Betsy DeVos from implementing her new rule determining how defrauded student borrowers could get loan forgiveness.

The “borrower’s defense against repayment” rule gives the secretary of education the power to pay off student debt if student borrowers have been defrauded by their college. In 2016, the Obama administration issued new regulations for the borrower defense rule after the floodgates opened with students accusing former Corinthian College fraud.

Secretary DeVos thought the Obama-era rule was too generous and recently rewrote the rule, making it very difficult for borrowers to get loan forgiveness. His new rule created a very high standard, placing an almost impossible burden of proof on student borrowers.

While the old regulation required that a student had to submit a material misrepresentation on the part of a school, DeVos would require students to prove that schools did so knowing that the information was false or that the school acted with reckless disregard for accurate information. Students would also have to demonstrate that they have suffered financial harm – an incredibly difficult standard to prove.

In March, the The Republican-controlled Senate passed the resolution under the Congressional Review Act, joining the House of Representatives to rebuke DeVos’ new rule. Ten Republican Senators joined with all Senate Democrats in sending this resolution to the White House.

Trump’s veto will likely anger many veterans across the country just days after Memorial Day. In March, more than 30 military and veterans organizations, including the American Legion and Veterans Education Success, signed a letter urging President Trump to support the legislation. Just before Trump vetoed the measure, the American Legion tweeted a statement calling on the president to sign the law.

Many veterans have been the target of predatory colleges seeking to reap the benefits of military and veteran education. Veterans Education Success even organized a Fox News announcement target the president in the hope that he could influence him to support the legislation.

The Congressional Review Act allows Congress to overturn the regulations of an administration. A Trump veto has always been the likely outcome, as a president is unlikely to override his own administration. White House staff issued a declaration in February that the president is expected to veto the resolution.

However, Trump himself has shown inconsistency On the question. Last year, Trump announced he was going pay off debts of disabled veterans whereas his administration had been slow to do so before. He also reportedly considered debt forgiveness due to pressure from the 2020 campaign and debt cancellation proposals from Senators Bernie Sanders and Elizabeth Warren.

The resolution will now return to Congress, where the House will have the first chance to override the veto. Two-thirds of the members in each chamber must vote for the derogation for it to be successful. The House is expected to vote to overturn the president’s veto, but it’s unclear whether enough Republicans would join the Democrats.

And if the House is successful, the waiver faces a much steeper hill in the Senate. Winning the top 10 senators was already a big victory for supporters of the legislation, but it will take winning more Republicans to bypass the president in the Republican-controlled chamber.

I’m a senior policy and strategy advisor at New America. Follow me on Twitter and connect with me on LinkedIn.

CVB Financial Corp. announces the 126th consecutive treasury


ONTARIO, Calif., March 17, 2021 (GLOBE NEWSWIRE) – CVB Financial Corp. (NASDAQ: CVBF) (the “Company”) announced a cash dividend of eighteen cents ($ 0.18) per share for the first quarter of 2021. The dividend was approved at the regular meeting of the board of directors. administration of the Company which took place on March 17, 2021. The dividend will be payable on or around April 14, 2021 to shareholders of record on March 31, 2021.

“The Company’s strong capital and liquidity levels, combined with its history of 175 consecutive quarters of profitability, have enabled us to pay cash dividends to our shareholders for 126 consecutive quarters,” said David A. Brager, Chief Executive Officer of management.

Company overview

CVB Financial Corp. (“CVBF”) is the holding company of Citizens Business Bank. CVBF is one of the 10 largest California-headquartered banking holding companies with total assets of over $ 14 billion. Citizens Business Bank is regularly recognized as one of the best performing banks in the country and offers a wide range of banking, lending and investing services through 57 banking centers and 3 trusted offices serving the Inland Empire, County of Los Angeles, Orange County, San Diego County, Ventura County, Santa Barbara County and the Central Valley area of ​​California.

The common shares of CVB Financial Corp. are listed on the NASDAQ under the ticker symbol “CVBF”. For information on CVBF for investors, visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tongue.

Contact: David A. Brager
Chief Executive Officer
(909) 980-4030

MSMEs Can Now Raise Up To 2X Emergency Loan As Government Doubles Outstanding Credit

The government has also increased the annual turnover limit to be eligible for the scheme.

Credit and finance for MSMEs: In order to benefit individuals and a greater number of MSMEs under the Emergency Credit Line Guarantee Program (ECLGS) of Rs 3 lakh crore for MSMEs, the Ministry of Finance has broadened its scope of application. The government has raised the upper limit on outstanding loans, as on February 29, 2020, from earlier to Rs 25 crore to Rs 50 crore now so more small businesses can raise credit. According to the eligibility guidelines, MSMEs can apply for emergency credit from banks and NBFCs up to 20% of their outstanding amount. Therefore, with the new modification, borrowers will now be able to obtain credit up to Rs 10 crore, which is 20% of Rs 50 crore, against Rs 5 crore – 20% of previous Rs 25 crore.

The government has also increased the annual turnover ceiling to be eligible for the program from Rs 100 crore to Rs 250 crore “in accordance with the increased ceiling on outstanding loans and the revised definition of MSMEs published by the Ministry of MSME”, as per the notification sent by the National Credit Guarantee Trustee Company (NCGTC) to executives of all listed commercial banks, financial institutions and NBFCs.

“The MSME Ministry thanks PM, FM and @FinMinIndia for expanding the reach of the ECLG program. The emergency credit facility will now cover individuals and more businesses, ”the MSME ministry said in tweeting the notification sent last week.

Read also : Delayed payments from MSMEs: the rate of settled cases remains low; Government urges buyers to pay dues within 45 days

“We advise you to make the most of the changes and ensure maximum use under the program,” read the notification signed by NCGTC CEO Durgesh Pandey. NCGTC acts as a trustee for several credit guarantee funds.

The program was launched by Finance Minister Nirmala Sitharaman in May as part of the Rs 3.7 lakh crore program for MSMEs as part of the announced Rs 20 lakh crore economic stimulus plan. The program can be used until October 31, 2020. According to the government, 45 million MSMEs affected by the Covid pandemic will “be able to resume their business activities and save their jobs”, according to the presentation of the Atmanirbhar Bharat campaign .

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Tottenham reportedly made loan offer for Barcelona Coutinho


OH BOY WE GOT A TRANSFER WINDOW NOW! A few hours later Tottenham Hotspur fans ended a collective panic over a fake report that linked Arsenal with a loan for Barcelona attacking midfielder Coutinho, there is a new set of articles circulating in the football media that say it was in fact the SPURS who made a loan offer for the former Liverpool man.

Several outlets, including ESPN, report that while the Gunners and Barcelona links were fake, Spurs have a real interest in bringing Coutinho to north London, with talkSPORT and the Times of London (£) saying that Spurs even went so far as to make a loan offer.

Wait, it’s better. Some reports suggest Barcelona are demanding a loan fee of £ 21million for the year and Spurs would cover Coutinho’s full salary of £ 200,000 + / week. The implication is that Coutinho would be a must-have replacement for Christian Eriksen, which Spurs would then try to unload before the window closes, possibly to Manchester United but more likely abroad. It might not be a coincidence that Barcelona and Daniel Levy are currently in Miami, Florida.

It’s crazy. Just … completely crazy bugs. The idea that Spurs could sell Eriksen for, say, £ 50million and then turn around and incur £ 21million in PLUS WAGES loan fees to Barcelona on a loan is simply unimaginable and does not fit the bill. way Tottenham actually works. It would make me wonder if Levy has developed an addiction to construction adhesive blowing.

The idea of ​​a move for Coutinho is not without some background – Mauricio Pochettino apparently worked with Coutinho for a season while the two were at Espanyol, and he would be a fairly direct replacement for Eriksen if they tried to ship him. He might have struggled a bit at Barcelona but still produced some really good numbers and was REALLY good in the Premier League with Liverpool. He would undoubtedly be a good addition to Tottenham’s offense.

But spending £ 21million to borrow a 27-year-old Coutinho for a season where that money could be spent signing Giovani Lo Celso from Real Betis is mind-blowing. It has been suggested that Spurs are resource-rich but run out of money at the moment, which is one of the reasons Lo Celso’s deal is taking so long – Betis might want a bunch of money to advance and Spurs may not have that kind of liquidity right now. Even so, that Coutinho rumor, wow.

There are going to be BIG OPINIONS in the comments for this one, and I’m ready for them. But if you were waiting for a nowhere transfer rumor some nowhere crazies set your pants on fire here in the window dying days, well you got one now, mate!


UPDATE (1:30 p.m. ET): Conflicting reports have emerged (as expected) regarding the structure of a possible loan, with Le 10 Sport suggesting that Spurs will pay loan fees but Barcelona will eat up the salary:

The Innovators 2020: Cash management


Our innovative cash management institutions have all introduced new products and services that provide clients with greater flexibility and control over their cash flow.

Uncertainties raised by Brexit and a wave of global trade disputes were forcing companies to assess their cash flow management even before the coronavirus accelerates the need for liquidity visibility. The fact that many banks and businesses are now operating remotely puts additional pressure on their capacities. Application Programming Interfaces (APIs) enable banks and their corporate clients to access the best solutions at lower cost and with faster implementation. They also provide flexibility, allowing treasurers to pay only for the services they use, but increase later as needed. Flexible solutions help businesses manage their cash flow capacities; companies that can provide them may have a competitive advantage in the future.

The common denominator of this year’s most innovative cash management banks is that their offerings put the power in the hands of customers, giving corporate treasurers greater flexibility and control over their cash flow.

Abu Dhabi Commercial Bank’s Virtual Accounts Phase 2 API integration, for example, promises the flexibility to open, edit, close and monitor large numbers of virtual accounts in near real time. Improving the reconciliation of financial statements that cover many customers and suppliers, by creating virtual accounts under a single physical account, promotes clarity and cost savings without compromising functionality or reporting, according to the ADCB.

ING’s zero-knowledge proof notarial service, which runs on the Corda blockchain, can assess the validity of a transaction without revealing anything about it, unless it is valid. “Even with the use of authorized private registries, we believe there are still key privacy challenges to be addressed when it comes to DLT,” says Benoît Legrand, Innovation Director at ING. “For example, in the Corda consensus, a choice must currently be made between a validating notary and a non-validating notary, and with that a compromise between security and confidentiality.”

Instead, he says, with zero proof notary, “we can ensure both the accuracy of a transaction as well as the confidentiality of its content in the consensus process. In addition, we also plan to develop the solution further to also offer a privacy solution for historical transactions, in particular the provenance chain that follows a transferred asset. “

Adapt with APIs

Immediate settlement and accurate information management are two attributes that corporate treasuries will focus on adapting their cash management operations to new standards arising from the Covid-19 pandemic, explains Raof Latiff, digital manager at DBS Institutional Banking Group. “At DBS, our suite of digital solutions enables real-time payments and collections, improves forecasting accuracy, facilitates automated reconciliation and strengthens the management of customer credit extensions,” he says. “With our range of APIs covering various types of services, customers can also plug and use banking services in their systems and processes efficiently, without high capital costs and without technical integration. This has allowed our clients to better control their cash flow, optimize their working capital and deepen their relationships with their main suppliers.

We’ve selected two DBS Quick Response Code (QR) innovations that simplify both payments and collections. DBS MAX Business2Business facilitates cashless and immediate collections via QR codes from retailers, while at the same time enabling real-time credit confirmation and automated reconciliation. DBS MAX Client Integration is a QR collection solution that enables merchants to generate and display a dynamic QR code on their trading platforms to facilitate instant national collection and payment capabilities.

First Abu Dhabi Bank’s Global Cash Position mobile app offers near real-time visibility. Customers of several banks in UAE and around the world can view cash positions worldwide by bank, product and various currencies. The application includes an exploration function to display the balances of individual accounts; while executives can view aggregate liquidity positions across the group in seconds, eliminating the need to log into the electronic banking platforms of many banks.

Integration for the opportunity

Bank of America has integrated an Apple Watch token app into its CashPro ecosystem, allowing mobile users to pair their Apple Watch with their mobile token to generate a one-time password so they no longer have to jump between two or carry a physical token. This means treasurers can check balances or approve a payment anywhere they use their Apple Watch. BofA users reportedly completed $ 160 billion in mobile transactions in 2019, including a $ 1.6 billion transaction executed through CashPro.

BofA has also added to its exchange rate / payment solution, FX Trade and Pay, allowing users to trade via API and settle via Swift, or trade via mobile and settle online, for example, to manage their payroll. global and their subsidiary funding operations. APIs also help correspondents make competitive FX payments, according to BofA, by allowing payment processors to leverage FX Trade and Pay.

Security Bank Corporation’s Salary Advance (salad) app is a fully automated mobile instant payment service, providing customers with 24/7 cash access. Employees can request payday advances via SMS and the loan proceeds are credited to their payroll account within 10 minutes.

Taishin Bank’s direct-link API platform, iHUB, enables the Taiwanese bank to offer new products and services, including real-time automatic and multi-channel payments. Taiwan has many different payment channels, each with their own verification rules and deadlines; IHUB API modules allow customers to use all of these channels according to their needs. For example, by connecting the three major convenience store payment systems in Taiwan to iHUB via API, customers can generate and pay their bills on their mobile devices at any time. Before logging into iHUB, convenience stores needed at least five days from the delivery of a paper invoice to reconcile a store account.

Another bill payment solution, that of Kotak Mahindra Bank, C2B will operate on the back of BBPS-BOU (Bharat Bill Payment System — Biller Operating Unit), the one-stop payment platform of the Reserve Bank of India, to offer to consumers the ability to pay interbank bills. Additionally, Kotak Mahindra’s launch of an updated version of the United Payments interface from the National Payments Corporation of India allows customers to request recurring payments. Integrating this capability with BBPS-BOU creates a powerful collection solution for Kotak’s corporate clients.

In such solutions, APIs act as a bridge between banks and third-party applications. As APIs share real-time data, they also give businesses a real-time view of their cash position across their banking relationships. Since APIs don’t require endless banking connections, they save time in addition to delivering quality cash flow data in real time. It is an innovation that benefits both banks and their customers.

Cash management innovators 2020

Abu Dhabi Commercial Bank Integration of the API of phase 2 of virtual accounts
Bank of America Improved FX trading and payment
Apple Watch token app
DBS DBS MAX Business2Business
DBS MAX customer integration
Abu Dhabi’s leading bank Global cash position mobile application
ING Notary Zero-Knowledge Proof on Corda
Kotak Mahindra Bank C2B platform
Philippines Security Bank Payday advance from the security bank (SALAD)
Bank of Taishin Taishin Direct-Link API – Smart Checkout and Cashout

Candidates enjoy cash benefits in the city’s reduced ballot races


(ld) Candidate controllers Lander, Benjamin, Weprin, Parker

This article is published in partnership with City limits. Also read: Race for money in mayor’s primary: January filing sets the stage for 2021


While money plays a decisive role in the Democratic race for city comptroller, it appears to be a two-candidate affair. But, even in the race to become a city accountant, money isn’t everything.

According to documents filed with the New York City Campaign Funding Council for the Jan. 15 deadline, just over five months before the all-important primary day in June, the Brooklyn City Council member, Brad Lander, now has $ 2.7 million, funded from his own $ 800,000. fundraiser and a dose of $ 2.3 million in matching funds in December.

Manhattan State Senator Brian Benjamin, whose fundraiser was the source of the controversy, follows Lander of $ 100,000 in private donations, but on Friday received an injection of $ 950,000 in matching funds and had $ 1.5 million available at the time of filing.

Queens Assembly member David Weprin had $ 295,000 in the bank and Brooklyn State Senator Kevin Parker just over $ 81,000.

However, Weprin was the most successful fundraiser during the July-January period covered by this recent reporting deadline. He brought in $ 292,000 versus $ 244,000 for Benjamin, $ 173,000 for Lander and $ 119,000 for Parker. Lander and Benjamin both started fundraising long before Weprin and Parker.

At the time of filing, Parker had raised $ 122,711 from 663 contributions for an average of $ 183. Weprin said he raised a total of $ 465,212 from 1,431 backers, for an average of $ 318.

Benjamin said he has raised a total of $ 706,046 so far from 2,146 backers, for an average of $ 327. And Lander said he raised a total of $ 858,844 out of 4,621 contributions for an average of $ 169.

Ballot but a lot of money
In 2021 as in previous years, the mayoral race is generally in the spotlight. But raffle races are a big contributor to the cost of New York City’s municipal campaigns and expenses that help reach voters across the city.

In 2013, the last time a large chunk of office was opened for limited terms, mayoral campaigns accounted for just under half of the $ 122 million spent by city candidates. The races for the controller, the public lawyer, the president of the district and the municipal council made up the remainder.

As in all competitions, money is only one factor – always important, but not always decisive – in these races. John Liu passed the field when he won a crowded primary race in 2009 to win the nomination and become a controller. But Eliot Spitzer’s big spending advantage in 2013 didn’t help him outweigh Scott Stringer in that controller primary.

The numbers from last week’s fundraiser indicate something about how the raffle races are shaping up. In a year characterized by an abundance of open seats, pandemic-related campaign restrictions, the first use of ranked voting, and a generous eight-to-one matchmaking ratio for public campaign funding of some contributions eligible, having the most money might not be crucial, but having enough money to compete will be. It’s five long months between now and the Democratic primary in June.

The hunt for matching funds
The threshold for receiving matching public funds in the Comptroller Race is to raise $ 125,000 in matched donations from at least 500 New York City residents. Lander qualified in December and received money based on his fundraising until July. Benjamin received public funds on Friday based on July figures.

The BFC will now review the July-January fundraiser reported last week to determine if Parker and Weprin qualify and to determine amounts owed to qualified applicants. Benjamin and Lander may receive additional funds based on their most recent fundraiser. The next installment is in February.

Parker, with just over $ 53,000 in matching gifts, appears to have fallen short of the threshold. Weprin published what the campaign estimates to be matched donations of over $ 209,000, which is enough to qualify, and his campaign said he expected nearly $ 2 million in matching public funds. when disbursed next month.

As for Lander and Benjamin, they appear to be awaiting additional public fund payments of up to $ 940,000 and $ 480,000, respectively, in February, based on the matched donations they received from July. The Campaign Finance Board will review the numbers submitted by campaigns, who have made their own assessments which are released upon filing.

Although Lander has had the smallest average donation so far in the race, he has raised significantly more ($ 38,000) through middlemen than anyone in the field, although no middleman has made more. of $ 2,500 to Lander.

In the very calm race for public counsel, there has been some modest fundraising. After raising $ 106,000 since July, incumbent Jumaane Williams – the only city official eligible to run for office this year – now has $ 44,300 – a tiny amount for a city-wide campaign, but more than any of the other three candidates entered for this race. Closest to him is Anthony Herbert with almost $ 1,500 on hand. The threshold for public funds in the lawyer race is the same as the comptroller, and with just over $ 50,000 in matching donations against the $ 125,000 threshold, Williams is short of qualifying.

Races at the arrondissement and district level
City council member Fernando Cabrera has the biggest bankroll of anyone running for Bronx Borough President, with $ 120,000 in hand. State Senator Luis Sepulveda holds the second most money ($ 48,000), but his campaign has been jeopardized by the allegation that he tried to strangle his wife. City council member Vanessa Gibson has $ 29,000 to spend and Samuel Ravelo $ 16,000. MP Nathalia Fernandez’s campaign is in the red by $ 28.

“Board member Cabrera has built unprecedented local support across the Bronx,” Cabrera campaign manager Timothy Tapia said in a statement. “Fernando has shown that his vision of repairing the Bronx has been embraced by residents across the Bronx borough.”

In the contest for President of the Brooklyn Borough, Assembly Member Jo Anne Simon ($ 187,599) and City Council Member Antonio Reynoso ($ 139,089) are leading the race for money. City Council member Robert Cornegy, Jr. raised ($ 249,640) more than the two, but spent almost every dollar he raised.

“Raised in just three months, the case demonstrated strong local support for Simon, with Brooklynites making up over 80% of its more than 800 unique contributors,” Simon’s campaign said in a statement. But the treasury includes a $ 125,000 loan she made to her campaign.

City council member Ben Kallos has a solid stock of cash ($ 574,139) in the Manhattan Borough presidential race, but State Senator Brad Hoylman ($ 278,421) and City Council member Mark Levine ($ 235,920) also has competitive cash flow. They are one of the six candidates in this Democratic primary and the only three current elected officials in the running. Former Community Council President Elizabeth Caputo has over $ 55,000 available at time of deposit.

On Friday, City Council Member Jimmy Van Bramer’s candidacy to oust newly-elected Queens Borough President Donovan Richards received a boost with the allocation of $ 395,000 in matching funds, giving him a balance of 384 $ 000, more than three times what is in Richards’ account, who just won a November special election to serve the remainder of the 2018-2021 term of District Attorney Melinda Katz. Both are Democrats.

Staten Island Borough presidential candidate Steven Matteo, a member of city council, now has $ 545,000 to spend. The only other Richmond County candidate registered with the CFB, Leticia Remauro, declared $ 34,000 in the bank. Matteo and Remauro both run in the Republican primary.

Given the low threshold of eligibility for public funds as a candidate for the presidency of the borough (100 donors and matched donations totaling $ 10,000 in Staten Island and up to $ 50,094 in Brooklyn), it appears that several Candidates will qualify for funds in the Borough President races once the CFB reviews the most recent deposits and allocates new funds in February.

In the five boroughs, city council candidates have so far lost $ 4.8 million on the race and have a total of $ 10.9 million to spend. Ten Council candidates received matching funds on Friday based on the pre-July fundraiser. A few dozen had received public funds in the previous round of awards in December. Many are on track to receive matching funds in February and others are hoping for March.

The best-funded candidate in town is Erik Bottcher, candidate in Manhattan’s 3rd District, who has raised $ 133,000, received $ 160,000 in matching funds and has $ 244,000. However, no one has raised or spent more than outgoing City Council member Mark Gjonaj of the Bronx, who has already spent $ 446,000 of the $ 577,000 he raised. Four years ago, Gjonaj spent almost every candidate in the city losing $ 1.3 million to win his council seat. It is again facing stiff competition.

Also read: Race for money in mayor’s primary: January filing sets the stage for 2021

by Jarrett Murphy of City Limits, published in conjunction with Gotham Gazette
@GothamGazette @CityLimitsNews

Ben Max contributed to this article.

Big Six banks are bursting with cash – and this has mergers and acquisitions in the mind of Bay Street


Investors got the quarter they were counting on when Canada’s Big Six banks reported earnings this week – and more.

When bank stocks started to rally on October 29, investors were buying because they believed the banks’ outlook for credit quality was about to take a distinctly positive turn. And they were right. Each of the major banks has decided to set aside – or “provision” – much less money than there is barely a quarter for an anticipated wave of defaulted loans due to the economic shock of COVID-19 . In fact, each of the banks reduced credit loss provisions (PCL) more than analysts expected. Because every dollar in a PCL is a dollar lost to the bottom line, earnings per share have exceeded expectations in all cases.

When the Bank of Montreal and the Bank of Nova Scotia each beat expectations on December 1, shares of all banks rose and investors quickly revised their expectations for near-term earnings upward. Some analysts think we could be a quarter or two of the banks that actually take money out of loan loss reserves and put it back into the income statement, which would be a big short-term boost to profits. .

But there was another trend in results that could significantly affect banks’ strategies in 2021: In each of the Big Six, regulatory capital levels have increased significantly. This suggests that we may soon see some of the banks making acquisitions.

The main capital ratio of banks is their Common Equity Tier 1 (CET1) ratio, and according to current instructions from the Office of the Superintendent of Financial Institutions, it should remain above 9.0%. Slower loan growth during the pandemic meant that “risk-weighted assets” – the denominator in the formula used to calculate the ratio – grew more slowly than profits added to capital levels – the numerator – this year. By the end of the fourth fiscal quarter (October 31), banks were sitting on capital that was between 2.75 percentage points and 4.1 percentage points above the regulatory minimum. The Toronto-Dominion Bank leads the pack with a CET1 ratio of 13.1%.

Canada’s banking regulator – OSFI – has temporarily banned raising dividends or repurchasing stocks to ensure banks are sufficiently capitalized to withstand a huge wave of bad debts caused by a pandemic. This makes acquisitions more likely, as banks will want to use their excess capital.

I spoke to Jim Shanahan, an analyst who covers banks at Edward Jones, and asked him if he thought banks with large US businesses were most likely to be buyers. These are TD, Bank of Montreal, Royal Bank and, to a lesser extent, Canadian Imperial Bank of Commerce. The United States, after all, is where most of the potential bank acquisitions are located.

He agreed with this view, but noted that Canadian lenders will face tough competition from US banks for quality assets. This is a big difference from the years after the financial crisis, when Canadian banks were much better capitalized than their weakened American counterparts. This time the American players are also flush.

“There will be interest in acquisitions, but there will be competition,” Shanahan said. “TD Bank and Royal Bank have the most excess capital, so they potentially present themselves as candidates. “

TD earlier expressed interest in expanding its large US retail banking business into the Southeastern United States, he noted. TD has also bought US loan portfolios in the past and may continue to do so, he noted.

Los Angeles-based Royal Bank’s City National is a high net worth banker, and the bank has said it wants to expand City National’s presence into other U.S. markets.

Of the other two, the Bank of Montreal is a major lender to businesses in the US Midwest. CEO Darryl White, however, downplayed the importance of the acquisition story when asked about it on a conference call, saying he preferred to invest in growth within from BMO.

CIBC owns the smallest US platform – through its purchase of Chicago-based PrivateBancorp – but it has been clear since this acquisition was completed in 2017 that it saw PrivateBancorp as a foundation on which to build a larger US company. . Maybe now is the time.

If the Bank of Nova Scotia made a deal, it would probably be in Latin America. But Nova Scotia has made more sales than purchases in this region in recent years, placing more emphasis on the attractive economies of Colombia, Peru, Chile and Mexico. He has also integrated two large Canadian acquisitions in recent years – Jarislowsky Fraser and MD Financial – and has seen his share price languish as investors worried about these lengthy integrations.

And aside from that, Scotia CEO Brian Porter said in an interview Thursday that the bank would likely buy back its own shares when OSFI gives the green light.

“We think our stocks are still cheap and very attractive,” Porter said.

Trump pressed by cash crunch in final election sprint


President TrumpDonald Trump Superb Investigation Says Grim View of Flourishing Anti-Democratic Views Pilot of Southwest Investigation Report Says “Come Brandon” on Theft Texas Police Deny Biden Bus Escort Requests surrounded by Trump supporters: PLUS reports campaign faces significant cash flow shortfall against Democratic candidate Joe bidenJoe Biden The White House unveils its strategy for the net zero goal in 2050. with less than two weeks of election day, a surprising reversal of fortunes for a campaign once awash in money.

Biden’s campaign entered in October with over $ 177 million in the bank, while the Trump campaign entered the last month with just $ 63.1 million. It’s a huge turn for the Trump campaign, which has raised and spent over $ 1 billion this cycle. Trump started the year with more than $ 100 million in the bank, compared to less than $ 10 million for Biden.

The president’s grassroots fundraising and his cash flow situation once seemed overwhelming, but now the Congressional Democratic campaign committee will enter the home stretch with more money on hand than the incumbent president’s campaign.

Biden has argued this cash benefit in recent weeks, inundating Trump on television. The president’s campaign simply cannot compete with Biden in the paid media at a time when the president is lagging behind in a number of national, state and district polls.

“You are entering the last two weeks of a campaign, these numbers really tell you a story,” said Robert Zimmerman, member of the Democratic National Committee. “It shows you who has the energy, the grassroots support, and the momentum.”

“The reality is that the emperor did [not] only no clothes, the emperor has no campaign budget, ”he added.

The Trump campaign, under the former campaign manager Brad ParscaleBrad ParscaleAides tried to get Trump to stop attacking McCain in hopes of winning Arizona: MORE report, spent huge sums at the start of the year before Democrats even named Biden.

Parscale bragged about toppling the Trump campaign’s ‘death star’ as he spent money in ways Presidential campaigns never had before, including a 10-minute ad. million dollars for the Super Bowl which aired in February to match the then Democratic presidential candidate. Michael bloombergMichael Bloomberg Two Strategies to Save Democracy and Halt Rise of Authoritarianism Equilibrium / Sustainability – Presented by Southern Company – How Martian Biofuel Could Transport Humans Twenty-five US cities on track to exceed Paris climate targets by 2025 : PLUS reportown Super Bowl advertisement.

Most recently, under the new campaign manager Bill StepienBill Stepien “Just Say We Won,” Giuliani Told Trump Assistants on Election Night: Book Some RNC staff didn’t vote for Trump in 2020, says book Trump adds veteran organizer to help to conduct political operations: PLUS report, the Trump campaign has spent millions on some of the most expensive digital real estate on the internet, including a takeover of the YouTube homepage at the Democratic and Republican conventions in August.

Since 2019, the Trump campaign has paid more than $ 200 million to American Made Media Consultants. The campaign did not disclose who owns the business.

The Trump campaign has spent nearly $ 1 million on Trump-branded properties since the start of last year.

“Much of this money [is] going to various consultants with exorbitant fees, the total amount of which we won’t know until after the election, ”said GOP strategist Doug Heye. “This isn’t your typical campaign finance and it’s not your typical consultant-led campaign.”

Heye said financial irresponsibility and overspending at the start of the campaign is the root of the Trump campaign’s cash flow problem.

Between April and July, the Trump campaign exceeded the Biden campaign by $ 30 million. In August and September, with time running out until election day, the Biden campaign topped the Trump campaign by $ 215 million.

“If he spends too much money in key states and the Biden campaign has even more resources than they can put into it… that puts Trump at a disadvantage,” Heye said.

The Biden campaign has overtaken the Trump campaign every month except one in 2020 and they have been more frugal with their resources. The Biden campaign has been slow to recruit and develop his digital team, leading some Democrats to fear that they are falling too far behind. They also waited until later in the cycle to spend big on the airwaves.

Now, Biden has overtaken Trump by nearly 2: 1 in television commercials, according to the Wesleyan Media Project, which found that the Biden campaign ran 80,000 spots over two weeks in late September and early October, compared to Trump’s 32,000.

While Trump’s glowing Super Bowl ad landed nearly nine months ago, it’s now the Biden campaign that is creating expensive, newsworthy content with a cleverly produced 60-second ad narrated by the actor Sam Elliott who aired in the World Series opener this week.

“While the impact of ads in presidential races tends to be quite small, Biden’s consistent 2-to-1 or even 3-to-1 advertising advantages in battlefield states must explain at least part of his growing lead in polls in recent weeks, ”said Travis Ridout, co-director of the Wesleyan Media Project.

The Trump campaign brushed aside the idea that the campaign was strapped for resources, telling The Hill they were ready for the latter part of the campaign.

Working with the Republican National Committee, the Trump campaign has invested heavily in its ground game, sending volunteers knocking on doors throughout the pandemic as the Biden campaign has brought its operations online.

The Trump campaign has also been heavily invested in Facebook and Google, surpassing the Biden campaign by $ 50 million since mid-April, according to data from the Wesleyan Media Project. Still, the two campaigns have spent roughly equal amounts on digital advertising in recent weeks, with Biden racking up his cash advantage.

“We are running a comprehensive campaign that incorporates our massive ground game, our trips to key states, and ads on digital, TV and radio,” said Samantha Zager, national press secretary for the Trump campaign. “Joe Biden has no field program to help rectify the lagging Democrats’ mail-in voting returns or erase the large Republican voter registration gains that we are seeing.”

“As Hillary ClintonHillary Diane Rodham ClintonFranken rules out challenge against Gillibrand for Senate seat Abedin says anger at Weiner ‘almost killed me’ 2022 and ‘the passion gap’ – why Republicans are more excited MORE proved when she spent us 2 for 1 in 2016, no amount of money can buy the presidency – voters must be excited to vote for a candidate, and that only happens for President Trump ” , Zager said.

Trump faces a larger deficit in the polls against Biden than he did against Clinton four years ago, making the home stretch of the 2020 race a bigger climb for his campaign.

Democrats say Biden’s strength at this point in the campaign is largely the result of a united Democratic Party and a staunch liberal donor base keen to see Trump ousted from office.

“Even when we were all fighting for the same slice of the pie, we were speaking out against Trump every month and every quarter as a group,” said Mike Nellis, founder of Authentic Campaigns and former senior adviser to Sen. Kamala harrisKamala HarrisAmerica last: Biden goes all out on Oprah, considers 0K payments to separated illegal migrants at border Harris makes final argument for McAuliffe McAuliffe, Youngkin posts closing announcements ahead of Virginia election MORE‘s (D-California) presidential campaign.

“Unifying the Democratic Party so quickly after Super Tuesday was really the key to it all,” he added.

Financial history at the presidential level appears to be reflected in the ballot races, particularly at the Senate level, where a number of Democratic challengers have overtaken Republican incumbents by huge margins.

“It’s a tsunami of money coming for Democrats, and it’s not the big checks,” Heye said. “He’s someone who gives $ 10 to seven different races in the Senate, then gives another $ 25 two weeks later.”

Richmond ends cash payments at Redskins training facility


Richmond and the Redskins have agreed to allow the city’s EDA to cease annual cash payments to the team as their training camp nears the end of their contract. (Bon Secours Washington Redskins Training Center)

The Richmond Economic Development Authority on Thursday unanimously approved the elimination of the required annual cash contribution the city has had to make to the Redskins since the deal was struck in 2013.

The change cancels out the balance of EDA’s overdue payments in 2019 by approximately $ 161,800, and there will also be no cash payment this year. This is the last year of the eight-year training camp contract.

The authority had already paid around $ 386,000 as part of its 2019 allocation. City and Redskin officials have been discussing the amendment to the agreement for several months, and the agreement is not specifically linked to the coronavirus pandemic, said Leonard Sledge, director of the EDA.

The deal comes as the city seeks to mobilize resources to help businesses and residents weather the disruption of the coronavirus pandemic. The EDA will use the funds saved by the agreement to support an emergency small business loan program he approved on Thursday, according to a press release from the city.

The authority and the team have agreed that there will still be a 2020 local contribution of $ 500,000. However, this year’s allocation will not involve cash. Instead, it will be goods and services, and any shortfall will not be a default, according to the deal the authority voted to approve.

In accordance with the agreement signed in 2013, the EDA agreed to contribute $ 500,000 per year to the Redskins in in-kind and cash resources to cover the costs associated with moving the team from the training camp to town. .

The team has the option of extending the partnership, Sledge said.

City council approved a plan to finance the Redskin facility behind the Virginia Science Museum in 2012. The approximately $ 10 million project involved a significant investment from Bon Secours. The deal also gave Bon Secours relative control of the former Westhampton School site in the city’s West End, where a development of apartments and medical practices is underway.

PM Modi’s Rs 3 lakh crore MSME loan program sanctioned this amount in one day

Credit granted to businesses under this program will last four years with a 12-month moratorium on principal repayment.

Credit and financing for MSMEs: According to Finance Minister Nirmala Sitharaman, public sector banks sanctioned loans worth Rs 3,200 crore in a single day under the Rs 3 lakh crore unsecured loan program for MSMEs. “In a single day, June 1, 20, #PSB sanctioned unsecured loans worth Rs 3,200 crore through the emergency line of credit guarantee program, ”the minister’s office tweeted on Monday. The program was approved by the cabinet, chaired by Prime Minister Modi, last month. “Businesses / MSMEs have been hit hard due to Covid-19 (and) need additional funds to deal with accumulated operational debts, buy raw materials and restart business,” Sitharaman said while announcing the economic package of Rs 20 lakh crore.

In addition, MSMEs based in more than 3,000 Tier II cities “were covered in one day” under the loan program which “will allow them to pay salaries, rent and restocking costs,” said another tweet. MSMEs with outstanding Rs 25 crore and turnover of Rs 100 crore can apply for emergency credit from banks and NBFCs up to 20% of total outstanding credit as of February 29, 2020 .

Read also : Modi reassures MSMEs of growth with revised definition; says businesses can grow “without any worries”

“The deployment of unsecured loans worth Rs. 3 lakh crore for MSMEs will help inject much needed liquidity into the sector and help these units solve their cash flow problems. This decision will prove crucial for MSMEs to start their businesses and provide job protection for employees, ”said Mahesh Singhi, Founder and Managing Director of Singhi Advisors. Credit granted to businesses under this program will last four years with a 12-month moratorium on principal repayment. Banks and NBFCs have a 100 percent credit guarantee on the amount of principal and interest. MSMEs can benefit from the program until October 31, 2020. Sitharaman had stated that 45 lakh MSME units would be able to resume business activities and save jobs with the program.

However, a section of small businesses had recently been concerned about the reluctance of banks to lend. During a video conference with MSME Minister Nitin Gadkari last week, members of the Calcutta Chamber of Commerce said last week that “Despite the government giving a sovereign guarantee (under the crore loan program Rs 3 lakh), the bankers do not show up “. The minister, however, had asked them to send their grievances to him if it was to get a loan from the banks so the government could track and resolve the credit crunch.

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Can you buy a house with cash and then get a mortgage?


In competitive markets, money is king. But come up with the full purchase price of a house for sale in Baltimore, Maryland, or anywhere else is not easy to do. That’s why some buyers look to a one-size-fits-all solution to compete better when multiple deals are on the table: pay cash now, then get a mortgage later. Does this sound complicated to you? He is. Here’s how it works and what you should consider.

1. Why cash is still king in competitive real estate markets

Here’s the strategy: Buyers liquidate their assets, raise enough money to buy the house, then make an offer as a cash buyer. For sellers, cash offers are more attractive than those for buyers who need to finance the purchase. Cash transactions mean fewer contingencies – primarily, the sale of the home depends on the buyer’s obtaining the mortgage, and there is no guarantee that this will happen. For example, the sale could fail if something goes wrong during the subscription process. The sale is also subject to a home inspection and assessing whether the buyer is financing the purchase, and again, a number of issues could arise that could give your lender (and yourself) pause. Additionally, all-cash transactions tend to close faster and with fewer overall complications than a sale that relies on finance.

2. A new purchasing strategy: cash first, mortgage later

Buyers use the cash strategy first, then the mortgage later, to get around these eventualities. They still have finance their house with a mortgage, but they delay this process until the sale is final. “With good advance planning, a buyer could potentially come up with a 24-hour close,” says Dennis Crowley, director of Vitruvius Capital Consultants. Prior to opening his own business, Crowley was a private banker and helped buyers use this strategy to buy homes.

There are downsides to this tactic, however. “You are using marketable securities as collateral,” Crowley cautions. “This means that the buyer and the lender have agreed that the collateral is worth a certain amount, and that amount is subject to change without notice.”

3. What to consider before liquidating your assets

This buying strategy is not for everyone. “Use the same wisdom you would apply to any other purchase,” advises Crowley. “Make decisions with facts, not emotions, and understand your options. »Instead of liquidating your assets and putting a lot of pressure on yourself to buy a home, consider a new one. chronology of your home ownership goal – maybe set a buying goal in five years instead. By then, you will have saved more money and may not need to liquidate existing investments. Second, the the real estate market could change meanwhile – making such extreme measures unnecessary.

But if you do your research and figure out cash flow first, then mortgage later is something you want to do, you need to know how it actually works. After all, few buyers try the strategy just because they don’t know it’s an option.

4. How to Buy Cash First and Get Your Mortgage Later

Some buyers are withdrawing money from their retirement savings. Others liquidate other investment accounts and various assets like other property or use savings in cash. Buyers also look to (generous) relatives to help them raise the amount needed to cover the purchase price. Once you have enough money you buy the house (woohoo!). Then you get a mortgage, using that loan amount to top up the accounts you’ve run out of and pay off anyone who helped you put together the money you needed to buy.

Of course you must be careful when tapping into your retirement savings, like 401 (k) and IRA accounts – it’s not always a wise move. You will be penalized for withdrawing funds before retirement age, so include these fees in the total cost of your mortgage if you want to pay off those accounts in full. And an important note: Crowley stresses that trying to use your existing assets in this way is not for people who want to borrow money they don’t have. The cash first, mortgage later option is for people who want to use the capital they already have in the most efficient way, he says.

5. More factors to consider

Remember to assess your situation (and your assets) to determine if buying this way is even an option. “A buyer with about 150% of his proposed purchase price in marketable securities puts those options on the line,” Crowley explains. “Failing that, a buyer who owns at least 200% of a deposit required might consider them.

An understanding of marketable securities is a prerequisite for this buying strategy. Crowley also recommends finding the right lender. Most mass market lenders will not be able to support the level of complexity required to smooth the process from start to finish. “Most of the big brokerage firms offer these options. Some small businesses do it too, ”Crowley says. “Even some independent financial planners have access to such channels. “

The bottom line? Liquidating your assets to buy a house with cash and delaying financing by taking out a mortgage after the purchase is a great strategy, but not one for everyone. it can help keep your offer competitive when you’re trying to buy a home, but you shouldn’t just liquidate all of your assets to become a cash buyer. Use the money you already have as leverage, and don’t try this strategy just because you don’t have enough money to put money on a house or buy a house.

Have you bought a house for cash and then taken out a mortgage? Tell us about your experience in the comments!

SBA’s small business loan program has run out of cash


There is no more money in the Small Business Administration (SBA) rescue initiative. CNBC reported that the $ 349 billion intended to keep small businesses afloat as the COVID-19 virus continues to wreak havoc on the country’s economy has run out.

The SBA published the news on his website, noting that they are “unable to accept new applications for the Paycheck Protection Program based on available credits.” Likewise, we are unable to register new PPP lenders at this time. “

President Donald Trump tweeted Thursday April 16 accusing Democrats of blocking PPP funding:

Meanwhile, Democratic Senator Chuck Schumer tweeted about the need to provide funds to small businesses that need it.

Last week, PYMNTS reported that the SBA was struggling to meet demand for the Small Business Paycheck Protection (P3) program that rolled out on April 3. At this point, 178,000 loans had been approved, for a total of $ 50 billion.

Democrats and Republicans disagree on how an additional $ 250 billion measure should be spent. Republicans want aid to go exclusively to struggling businesses, while Democrats say the money should be shared with states and hospitals.

The Wall Street Journal reported that a banking industry official said lawmakers may need to keep the money in circulation or some businesses will be left out. “We believe we will need more than $ 1 trillion to meet the demand of US small businesses,” Richard Hunt, general manager of the Consumer Bankers Association business group, told the news service.



On: Forty-seven percent of U.S. consumers avoid digital-only banks due to data security concerns, despite considerable interest in these services. In Digital Banking: The Brewing Battle For Where We Will Bank, PYMNTS surveyed over 2,200 consumers to reveal how digital-only banks can boost privacy and security while providing convenient services to meet this unmet demand.

American Airlines posts loss, burns less money than expected


American Airlines Group (AAL) – Get the report from American Airlines Group, Inc. swung to a better-than-expected second quarter loss on an 86% drop in revenue.

The Fort Worth, Texas carrier reported an adjusted net loss of $ 3.4 billion, or $ 7.82 per share. Analysts polled by FactSet had expected a loss of $ 7.84 per share for the period.

Revenue for the quarter fell 86% to $ 1.62 billion. The FactSet survey called for a consensus estimate of $ 1.44 billion.

“This has been one of the most difficult quarters in American history,” Chairman and CEO Doug Parker said in a statement.

“Covid-19 and the resulting shutdown of the US economy have caused serious disruption to global demand for air travel. “

Better than expected results follow those of United Airlines Holdings. On Tuesday, the Chicago-based carrier reported “the toughest financial quarter in its 94-year history,” dropping to a second-quarter loss of $ 1.63 billion from a previous year’s profit on 87% lower income.

American Air said an average daily cash consumption rate of $ 55 million in the quarter, higher than the $ 70 million per day it had forecast.

Three weeks ago, American said it reduced its daily cash consumption to less than $ 35 million per day in June, from $ 100 million per day in April.

The airline ended the quarter with about $ 10.2 billion in cash on hand. An additional loan terms sheet signed by the Treasury Department for $ 4.75 billion is expected to be closed in the third quarter.

“We acted quickly to improve our cash flow, save money and keep customers safe when they travel,” Parker said.

“There are a lot of uncertainties ahead, but we remain confident that we will emerge from this crisis more agile and efficient than ever.”

Earlier this month, American said it was overstaffing 20,000 employees for the fall schedule.

However, U.S. carriers are prohibited from laying off or reducing staff pay rates until September under funding terms they received from the U.S. Treasury.

At last check, American Airlines shares were up 0.6% to $ 11.43.

Oakland Woman Charged Under $ 4.5 Million Coronavirus Relief Loan Program


A Californian woman has been charged with attempting to defraud the pandemic $ 4.5 million loan assistance program, according to the Ministry of Justice.

Christina Burden, 31, of Oakland, was charged with one count of bank fraud in June when she applied for and received a loan of $ 684,375 from the Paycheck Protection Program for a shell company.

Burden then submitted nine more fraudulent PPP loan applications and ultimately secured over $ 4.5 million for four different bogus companies, the DOJ reported, citing a criminal complaint.


“The Paycheck Protection Program provides a financial lifeline to businesses in need and their employees,” prosecutors said. “We allege that Christina Burden obtained PPP funds by fraud, submitting false business information, false employee numbers, false bank statements and false income tax returns.”

Burden spent the majority of the PPP money she received on physical items and personal luxuries, including private jet travel, hotel stays, boat rentals, restaurant expenses, luxury cars, Louis Vuitton and Neiman Marcus products and other specialty items, according to the complaint.

A woman wearing a protective mask walks past a Louis Vuitton store, a unit of LVMH Moet Hennessy Louis Vuitton SA. (Photographer: SeongJoon Cho / Bloomberg via Getty Images)

Burden’s fraudulent applications included forged bank statements and fake tax forms, the DOJ noted.

“As we begin a second round of P3 loans for small businesses struggling during this pandemic, we will be on the alert for scammers looking to take advantage of the program,” said Craig Fair, FBI San Francisco special agent, in a statement. communicated. .


“Those wishing to defraud programs designed to help those in need should know that the FBI and our partners will use all investigative tools at our disposal to ensure the integrity of these programs and that they remain available to owners. small businesses in our community, ”said Fair mentioned.

The Small business managementThe PPP forgivable loan program was first implemented through the CARES law of March.


ASB said Tuesday it has approved over 400,000 loans worth approximately $ 35 billion to date. The numbers were the first released by the SBA since the program reopened earlier this month.

About 66% of the loans were for $ 60,000 or less, with the average loan being around $ 87,000.


Megan Henney of Fox Business contributed to this report.

Need cash, Dave & Buster’s plans to sell stocks


Photography: Shutterstock

With its massive complexes left empty by the coronavirus shutdown, Dave & Buster’s have chosen to sell stocks to keep themselves out of the water.

The Dallas-based food and games chain said on Tuesday it had reached an agreement with Jefferies to sell up to $ 75 million in stock as part of a “market offer” program.

This program is designed to raise funds to help the company overcome its coronavirus stop.

The company has agreed in an agreement with the lenders to make “commercially reasonable efforts” to begin selling shares within 60 days, according to a federal securities filing Tuesday.

Dave & Buster’s stock fell 12% when the sale was announced. Its stock price has been volatile lately, but has lost more than 70% of its value since February, largely due to concerns about the shutdown.

The closure, including “the closure of our stores and the resulting impact of the closures on our revenues, profitability and ability to meet covenants, may continue to have a significant effect on the market price of our common shares. “the company said in a statement. a deposit.

Dave & Buster’s faced major questions about its ability to weather the shutdown, given its overall debt load and heavy reliance on restaurant customers.

The company at the beginning of the month put more than 15,000 employees on leave and closed all of its 137 locations. Dave & Buster’s has $ 648 million in debt and approximately 15 weeks of operating cash flow.

“We thoughtfully and quickly implemented a comprehensive plan with a simple goal,” CEO Brian Jenkins told analysts earlier this month, according to a transcript on the financial services site Sentieo. “Reopen our stores as soon as possible and safely so that we can welcome back our team members on leave, reactivate our games and bring fun to the communities we serve, some of which we believe will be very important to the world. as our company emerges from this situation. pandemic.”

Lenders have granted the company waivers of many of the financial requirements of its loan agreement, and some landlords have given the company rent concessions.

Dave & Buster’s also revealed earlier this month that it was in talks with various parties to improve its cash flow to get it through the shutdown. Media reported that the company is in talks with some private equity groups. The sale of shares suggests that the company is taking another route.

Wait for the RBI to extend the moratorium on EMI loans after August 31? Here’s why it might not be

RBI cannot extend Emi’s moratorium beyond August 31

The Reserve Bank is unlikely to extend the moratorium on repaying bank loans beyond August 31, as an extension could impact borrowers’ credit behavior without addressing the issues they face after the COVID-19 outbreak, sources said. The RBI had announced a six-month debt repayment moratorium starting March 1, 2020 to help businesses and individuals overcome financial problems caused by the disruption of normal business activities. The six-month moratorium ends on August 31.

This was only a temporary reprieve for borrowers affected by the pandemic, the sources said, adding that a longer moratorium period exceeding six months may impact borrowers ‘credit behavior and increase borrowers’ credit behavior. risks of default after resumption of scheduled payments.

It should be noted that several bankers, including the chairman of HDFC Ltd Deepak Parekh and Kotak Mahindra Bank Director-General Uday Kotak had asked RBI Governor Shaktikanta Das not to extend the moratorium as many are taking unfair advantage of the facility.

As the various containment measures put in place by the government begin to ease and economic activity accelerates, the continuation of temporary measures would not be sufficient to resolve borrowers’ cash flow problems.

A more sustainable solution was therefore needed to rebalance the debt burden of viable borrowers, both businesses and individuals, against their cash flow generation capabilities in the post-containment scenario, the sources said.

It is with the above objective that the Reserve Bank of India (RBI) recently announced a special resolution window for COVID-19 stress in the existing prudential framework for the resolution of stressed assets. It strikes a balance between protecting the interests of depositors and maintaining financial stability on the one hand, and preserving the economic value of viable businesses by providing lasting relief to businesses as well as those affected by the COVID pandemic. -19 on the other hand, the sources said.

Resolution plans to be implemented under the framework may include converting any accrued or accrued interest into another credit facility, or granting a moratorium and / or rescheduling repayments, based on an assessment of the borrower’s income stream, up to two years, the sources added.

While resolution in this framework can be invoked until December 31, 2020, credit institutions have been encouraged to strive to invoke early in eligible cases, especially for personal loans.

Thus, the concerns of borrowers must be taken into account by the resolution framework in which the moratorium is also a relief option that the borrower can avail himself of.

According to the sources, the relief for each borrower can be tailored by banks to address the specific problem the borrower faces based on need rather than having a holistic approach to dealing with the problem.

Recently, the RBI Governor said that if the loan moratorium is a temporary fix amid the foreclosure, the resolution framework should provide lasting relief to borrowers facing the stress of COVID-19.

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Rising loan recoveries bring relief, but risks persist in securitization


IndiaThe loan securitization market is slowly buzzing with activity, encouraged by the widespread improvement in loan collections by lenders.

Most banks and even some non-bank financial corporations (NBFCs) reported a clear improvement in repayments after the progressive unblocking of the economy from June. Default rates, especially on mortgage and auto loans, have come down. This encourages investors to buy pools of securitized loans, one of the primary means for NBFCs to raise capital.

Securitization is a process by which multiple loans are consolidated and issued as a single security. The payment to the investor is directly linked to the recoveries of the underlying loans.

Repayments on these bundled loan securities have been hit after the Reserve Bank of India (RBI) asked lenders to grant a six-month moratorium on loans.

However, performance was encouraging after the moratorium, which ended in August, analysts said. “After the payment moratoriums ended in August, loan recovery rates for our Indian auto loan ABS (asset backed securities) and our MSME loan ABS (micro, small and medium enterprises) have improved markedly. in September and October, although they remained lower than before. – coronavirus levels, “analysts at Moody’s Investors Service Ltd. said.

The largest issuers of securitized loan pools are the NBFCs and these lenders have been the main drivers of growth over the past two years. In the face of the capital shortage, securitization of loan pools was a quick way to free up capital, especially when banks were willing buyers.

View full picture

Micro, small and medium enterprise securitized loan pools have seen steady improvement and spikes due to large prepayments

However, the pandemic changed everything. NBFCs’ balance sheets have weakened, with some experiencing severe contractions. The measures taken by the government to encourage investment have yielded limited results.

It is not a straight and quick road to recovery. For securitization, the road is much more difficult.

Bad debts are far from falling. Defaults could increase for small business loan pools, analysts say. These loan pools also had the highest proportion of loans under moratorium. The stress has not diminished, analysts said. “MSME loans are not showing much improvement. Thus, stocks that have them as their underlying will take a long time to perform, ”said one analyst.

Meanwhile, large cash reserves offset the stress on these securities. Stress will remain high for 6 to 12 months, Moody’s analysts said.

The outlook for default is not entirely optimistic and investors would prefer to hold back a little longer. The securitization volume had plunged 80% in the first six months of FY21 compared to the previous year. There are a lot of challenges to waking up early.

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New £ 1million loan scheme set up for South West eco-business projects


An innovative £ 1million fund has been set up to lend money to businesses for projects that benefit the South West’s economy and the environment.

The South West Heart (HotSW) LEP launched the Natural Capital Demonstrator (NCD) Fund for businesses and organizations to develop and finance “natural capital” projects that support the environment while providing broader economic benefits.

The NCD Fund is available for capital expenditure by providing loans to businesses and organizations. This financing approach was designed to test a new method of financing the protection and enhancement of the territory’s natural assets.

LEP hopes that the fund will be able to support a portfolio of projects that will provide new methodologies for natural capital that can be replicated in other areas and scaled up.

Karl Tucker, President of the South West LEP Heart

Natural capital is defined as the sum of ecosystems, species, freshwater, land, soil, minerals, air and seas. These are all elements of nature that directly or indirectly add value to people and to the country as a whole.

They do this in a number of ways, but primarily by providing food, clean air and water, wildlife, energy, wood, recreation, and protection from danger.

The NCD fund aims to support HotSW’s clean growth priority and is aligned with the government’s 25-year environmental strategy and ten-point plan for a green industrial revolution.

There is a two-step process to apply for the fund. Initially, a short expression of interest must be submitted by April 8. These will then be shortlisted and projects moving to the next stage may be able to apply for a share of £ 20,000 to help develop the full business case.

Business Live’s Southwestern business reporter is William Telford. William has over a decade of experience reporting on the business scene in Plymouth and the South West. It is based in Plymouth but covers the entire region.

To contact William: Email: [email protected] – Phone: 01752 293116 – Mob: 07584 594052 – Twitter: @WTelfordHerald – LinkedIn: www.linkedin.com – Facebook: www.facebook.com/william.telford.5473

Staying in touch: BusinessLive Newsletters have been redesigned to make them even better. We send morning newsletters straight to your inbox on the latest news, views and opinions in the South West. Also receive our last minute alerts and weekly sector reviews. Register now – it’s free and it only takes a minute. To subscribe to the daily Business Live newsletters, click on here

And visit the Business Live South West LinkedIn page here

The business case must be submitted by June 30 and the decision on successful applications will be made in early September.

Karl Tucker, President of Heart of the SW LEP, said: “The Heart of the South West area is rich in natural assets, which we must continue to preserve and enhance.

“This fund was created to ensure that we explore new ways to protect and restore these assets while using them to increase social and economic benefits.

“This is a pioneering model and we are looking for demonstration projects that show the concept of natural capital in action and help develop an understanding of how we can together view environmental protection and economic growth.

“As something that can often see conflict, we are keen to explore ways to both meet needs and overcome those tensions.”

For more information, visit the LEP website by clicking on here.

Greens on housing crisis: investors must be taxed and forced to spit out cash deposits


Robertson wrote to the Reserve Bank in November seeking advice on how to stabilize house prices with interest rates at record highs, after data showed prices had climbed 20% to the same period the previous year.

It must now take the impact on house prices into account when making monetary and financial decisions.

The Reserve Bank has done its part to cool the housing market, reinstating loan-to-value (LVR) restrictions starting in March, which means real estate investors must make a 30% down payment for a house and first-time buyers 20%.

But some have questioned the Reserve Bank’s loan financing program (FLP) – making up to $ 28 billion available to banks at a record 0.25% interest rate, to lend and help to stimulate the economy.

Since banks are not required to target loans to business investment rather than real estate investors, some say this only fuels demand for housing.

The government is trying to solve the housing crisis by replacing the Resource Management Act (RMA), the complex planning law accused of holding back new developments. But with more than 800 pages to replace, it won’t be adopted until 2022.

The national urban development policy statement will require councils to reduce planning constraints and plan for growth, allowing for greater intensification in cities, but National says that will have no impact until 2024.

Rogers, used to high debt, secures record bridging loan for Shaw deal


The Rogers Communications Tower at One Mount Pleasant in Toronto on March 15, 2021.

Melissa Tait / The Globe and Mail

Rogers Communications Ltd. closed the largest single-vendor bridge loan in Canadian history this week, securing a $ 19 billion commitment from New York-based BofA Securities to pay for its planned takeover of rival Shaw Communications Inc.

Rogers CEO Joe Natale said the loan was “a sign of the confidence the financial community has in Rogers.”

The nation’s second-largest telecommunications company won’t receive the money unless the Shaw deal goes through as planned next year.

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Rogers deal makes it harder for Shaw to auction on 5G airwaves

Bankers say Rogers’ massive funding indicates lenders are willing to invest significant capital to support acquisitions. BofA made its commitment to Rogers in the wake of Alimentation Couche-Tard inc. , owner of Circle K convenience stores, lining up a similar-sized bundle of debt for a potential US $ 20 billion takeover of French grocer Carrefour SA , an agreement that was blocked by the French government.

Rogers’ bridge loan will be syndicated, or leased, to many other banks by early next week. Rogers expects to pay between 4% and 5% interest on the loan initially, according to banking sources and bond market traders. The Globe and Mail does not name these sources because they are not authorized to speak on behalf of Rogers and the terms of the funding are not finalized. BofA Securities, the investment brokerage arm of Bank of America Corp. , declined to comment.

Rogers had to line up a bridging loan ahead of its offer for Shaw because Canadian securities regulations require takeovers to be fully funded when announced.

If the deal with Shaw goes through, Rogers will use the bridging loan, then plans to move quickly to pay off some of the debt and refinance the rest by issuing bonds and other long-term finance. In total, the banks would earn tens of millions of dollars in M&A and financing fees on the transaction. Rogers long-term bonds denominated in Canadian and U.S. dollars were yielding around 3.7% on Tuesday, and bond traders said the bridging loan will likely have similar interest rates.

Rogers is borrowing and would assume an additional $ 5.8 billion in Shaw’s debt if its takeover is successful at a time when interest rates are near record lows and credit markets are widely open. Canadian governments and businesses borrowed a record $ 269.7 billion in 2020, according to Refinitiv, far more than the previous annual record of $ 184.9 billion.

Some business owners might be worried about borrowing so much money. However, at Rogers, this type of leverage is considered conservative.

Rogers and the rating agencies have said the telecommunications company will remain credit-quality even after a debt-financed purchase of Shaw. Rogers long-term debt is currently rated triple B-plus by Standard & Poor’s. This contrasts with the years of rating the Toronto-based company’s junk bonds when founder Ted Rogers was growing the business through acquisitions.

The story continues under the ad

In the 1960s, Rogers broke a promise to his wife’s family by mortgaging the house they bought for the newlywed couple in Toronto’s upscale Forest Hill neighborhood to start his business.

In the 1980s, Rogers was one of the first cable companies to tap into the US junk bond market, after Canadian banks were reluctant to extend further loans to the company. Initially, the company hired Michael Milken’s company, Drexel Burnham Lambert, to raise US $ 181 million, money that Rogers used to buy Canadian and US cable franchises.

As a junk bond borrower in 1983, Rogers paid up to 14.25% to borrow for five years. However, none of the interest payments were due until the debt maturity date, giving the company time to integrate cable operations and increase its cash flow. After a takeover by Shaw, Rogers expects to generate $ 1 billion per year in synergies from the business combination and reduce its debt from five times its annual earnings before interest, taxes, depreciation and amortization to three times its EBITDA within two years.

In 2004, Rogers organized the largest junk bond issue in Canadian history, raising US $ 2.7 billion. The investment banker behind this funding was Robert Gemmell, who ran Citibank in Canada and also helped fund Rogers while working at Merrill Lynch, now part of BofA Securities. Following his retirement, Mr. Gemmell joined the Rogers Board of Directors.

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Most Student Loan Cancellation Plans Are A Bad Idea


It’s no secret that student loan debt has spiraled out of control and there’s no end in sight 1.5 trillion dollar problem. After all, a Forbes analysis from this year showed that the average Class of 2017 graduate left school with $ 28,650 in unpaid federal and private student loans. More than 44 million borrowers also owe their share, of which more than 1.3 million owe six figures or more on their loans.

While common sense would tell you that the high costs of higher education are at the root of this problem, some politicians – including Senator Elizabeth Warren – have proposed sweeping forgiveness legislation that would wipe out student loan debt altogether – at least for some of us.

It remains to be seen whether the forgiveness plans are realistic or not, but one thing is certain: these “total” student loan forgiveness plans are mostly a bad idea.

Elizabeth Warren’s Global Loan forgiveness plan

As with most things in life and essentially anything to do with politics, the devil is in the details of Warren’s plan. For starters, it’s troubling that the underlying costs of higher education are not addressed in this proposal – you know, the problem that created all this mess.

When the average cost of a year in a four-year public school is $ 10,230 according to College Board, and those costs climb to $ 21,370 per year when you add room and board, it’s mind-boggling how a “solution” exists that does not in any way try to control costs. Also note that Warren wants to make the two- and four-year degrees “tuition-free,” which is a baffling idea with no price controls in place.

Plus, true forgiveness in Warren’s world is only bestowed on those who strive not to climb the corporate ladder or work toward a career that places them in the top 5% of employees in the world. United States Senator from Massachusetts posted his plan on Medium, which you may read to find out that every household with an income of less than $ 100,000 would have up to $ 50,000 in student loan debt canceled.

The pardon would be phased out for households earning between $ 100,000 and $ 250,000, however with $ 1 for every $ 3 of income over $ 100,000.

“For example, a person with a household income of $ 130,000 gets $ 40,000 in cancellation, while a person with a household income of $ 160,000 gets $ 30,000 in cancellation,” the essay notes. Medium.

Finally, households earning more than $ 250,000 will not have any loans canceled. You know, households with doctors, lawyers, and senior executives who have spent maybe a decade in school to get graduate degrees. Or entrepreneurs who risked everything to build successful businesses from scratch. Basically, this plan doesn’t penalize those who borrowed too much for their college education – it penalizes people who put their higher education funds to good use, climbing the income ladder to the upper middle class.

Plus, the source of all that extra cash we’ll need is sketchy to say the last. To pay for this proposal, she wants to institute another tax on the ultra-rich – a “2% annual tax on the 75,000 families with $ 50 million or more in wealth.”

While no one feels sorry for families with net worth over $ 50 million, don’t lose sight of what this tax is. It is not an income tax – it is a tax on the wealth people already own, as well as the wealth they have already paid taxes on.

Why Comprehensive Loan Forgiveness Will Never Become Law

David Carlson, author of Student loan solution, also points out that total loan cancellation plans may be more of a Democratic talking point than anything else. In other words, these plans are made to embolden the base, even though they should not become law.

“Politically, they are not achievable,” he said. “One of the reasons is that student loan cancellation can be a burning issue for many. “

While many people with crushing student debt are in favor of canceling their loans, there are many people who have never taken out loans or paid off all of their loans, many of whom believe it is. unfair for a borrower to have their loans canceled, he says.

And let’s not forget the political support that loan cancellation would need to become law. For example, Carlson points out that a recent proposal from Sen. Tim Kaine and Kirsten Gillibrand to simplify and expand the delivery of civil service loans is unlikely to gain enough support from moderates to pass the Senate.

“With that example in mind, it’s hard to imagine that there will be a scenario where total loan cancellation would one day become law,” he says.

Also note that the Trump administration has proposed eliminating the public service loan forgiveness (PSLF) in the future and switching to an income-tested loan forgiveness of fifteen or thirty years, depending on whether the borrower is repaying. or not graduate student loans.

“Like the total loan cancellation, this proposal has little or no chance of becoming a reality.”

Unfortunately, that means the status quo is most likely for student borrowers until something big changes or the bubble completely bursts.

What is possible in the future, according to Carlson, are smaller-scale fixes and revisions put in place, similar to the extended utility loan temporary surrender.

Better alternatives

At the moment, the majority of student loan borrowers already qualify for some type of loan waiver. A better alternative would be to make these existing systems work better to serve the borrowing population.

For example, the public service loan discount. It has three main requirements:

  1. Direct loans
  2. Eligible repayment plan
  3. Eligible employment for 10 years

A simple solution to make this program work better and serve more people is to eliminate the first two requirements. Open it to any type of loan (not just direct loans) and open it to any type of repayment plan (so borrowers can choose the plan that is best for them).

This makes the plan much easier to understand, easier to regulate and maintain, and opens it up to more borrowers. It also requires a significant commitment to get your loans canceled – 10 years of public service employment.

The bottom line

If you’re betting on a full forgiveness of your student loan, you might not want to hold your breath. A plan of this magnitude is unlikely to be adopted, let alone in the current political climate.

For this reason, Carlson encourages borrowers to defend themselves, especially if they are seeking a loan forgiveness.

“Instead of betting on something like total loan cancellation, I encourage borrowers to learn as much as possible about their loans and their repayment options,” he says.

For example, Public service loan remission can be a huge financial victory for a borrower, but you need to make sure that you are familiar with the program as the majority of applicants for this program are ultimately turned down.

“When you submit your final waiver request, you should be fully sure that you have ticked all the boxes and done everything necessary to get the loan waived,” says Carlson.

Also consider income-based repayment plans that allow you to pay a percentage of your “discretionary” income for up to 25 years before your loans are canceled. These plans may change in the future or disappear altogether, but they will allow you to pay a lower monthly payment than a standard ten-year repayment.

Whatever you do, don’t wait for the politicians to save you. They may pretend to get your vote, but you won’t get the help you need in the end – at least not anytime soon.

SBA offers questionnaire on the need for a PPP loan | Faegre Drinker Biddle & Reath LLP


On October 26, 2020, the United States Small Business Administration (SBA) issued a opinion request approval from the Office of Management and Budget (OMB) to collect and use certain borrower information to assess the “need” for Paycheck Protection Program (PPP) loans further of $ 2 million. The SBA offers a “Loan Necessity Questionnaire” in slightly different versions for for-profit and non-profit borrowers. The stated purpose of the new questionnaires is to “facilitate the collection of additional information that will be used by SBA loan examiners to assess the good faith certification” that PPP borrowers have made in their loan applications that the economic uncertainty made the loan request necessary. The SBA has not officially released the forms; however, versions of the questionnaires have circulated online over the past few days. It is not clear whether the questionnaires are in their final form or will undergo further changes.

Although the details of the timing of the use of the questionnaires by the SBA are still uncertain, affected PPP loan recipients can start preparing their responses now. Questionnaires indicate that every for-profit and non-profit borrower who has received PPP loans with an initial principal amount of $ 2 million or more is required to complete the form and submit it, along with the required supporting documents. , to its lender. According to Federal Register Notice, the SBA expects about 42,000 respondents to the For-Profit Borrower Questionnaire and about 10,000 respondents to the Nonprofit Borrower Questionnaire.

The questionnaires consist of two sections: an assessment of business activity and an assessment of liquidity. The assessment of the business activity of for-profit borrowers requires detailed information and supporting documents regarding:

  • Gross revenue in Q2 2019 and Q2 2020
  • If the borrower has been ordered to close or significantly modify its operations by a state or local authority since the COVID-19 national emergency declaration of March 13, 2020
  • If the borrower has voluntarily ceased, reduced or modified their operations since the COVID-19 national emergency declaration on March 13, 2020

The liquidity assessment of for-profit borrowers requires detailed information and supporting documentation regarding:

  • How much the borrower had in cash and cash equivalents immediately before the PPP loan application date
  • If the borrower has paid dividends or other distributions of capital to its owners between March 13, 2020 and the end of the period covered by the cancellation of the PPP loan
  • If the borrower has prepaid any outstanding debt between March 13, 2020 and the end of the period covered by the forgiveness of the PPP loan loan
  • If any of the borrower’s employees or owners who work in the business have been remunerated by the borrower for an amount greater than $ 250,000 on an annualized basis during the period covered by the loan forgiveness of the PPP loan
  • If any of the borrower’s equity securities were listed on a national stock exchange on the date of the borrower’s PPP loan application
  • The borrower’s market capitalization or the borrower’s book value
  • If the borrower was a subsidiary of another company on the date of the borrower’s PPP loan application
  • If 20% or more of the borrower’s outstanding equity securities were held by a private equity firm, venture capital firm or hedge fund on the date of the borrower’s PPP loan application
  • Whether the borrower was a subsidiary or subsidiary of a foreign public enterprise or a department, agency or instrument of a foreign state on the date of the borrower’s PPP loan application
  • If the borrower received funds directly from a CARES Act program other than the PPP

The Loan Necessity Questionnaire for Nonprofit Borrowers includes a similar set of business activity and liquidity assessment questions suitable for eligible types of nonprofit borrowers who have received PPP loans. Both questionnaires require the borrower to certify, “after reasonable investigation of the people, systems and other information available”, that the information and documentation provided is true and correct in all material respects.

The publication of these quizzes, which “will be used to inform the SBA exam [borrowers’] good faith certification that economic uncertainty has made [the] loan request necessary “to support ongoing operations, is not unexpected given the SBA guidelines previously set out in the Frequently Asked Questions About PPPs (FAQ). For example, in response to FAQ # 31, the SBA advised potential borrowers that they should carefully consider the required economic uncertainty certification and “should do this certification in good faith, taking into account their current business activity. and their ability to access other sources of liquidity. sufficient to support their ongoing operations in a way that is not significantly detrimental to the business. In response to FAQ # 39, the SBA alerted borrowers that it would review all loans over $ 2 million after the lender submits the borrower’s loan forgiveness request.

Assuming the form is finalized and approved by OMB, borrowers should carefully complete this form and any supporting documentation, especially given the subjective nature of any review process. Receipt of the form by a borrower does not mean that the SBA is contesting that borrower’s certification. The SBA did not provide any details as to its methodology for reviewing the forms, indicating only that its determination will be based on all of the circumstances. In response to FAQ No. 46, the SBA noted that loans over $ 2 million may have an adequate basis for establishing the required good faith certification, but reminded borrowers that the established protocol would still subject such loans to a review by the SBA to verify their compliance with program requirements. If the SBA determines that a borrower did not have an adequate basis to support certification of the necessity of the loan application, the SBA will request repayment of the outstanding balance of the PPP loan and notify the lender that the borrower does not. is not eligible for loan cancellation. The FAQ states that if the repayment is made, the SBA will not pursue administrative execution or referrals to other agencies based on its loan certification determination. Borrowers have the right to appeal certain loan review decisions.

What this means for borrowers

Since borrowers may only have ten days to submit the questionnaire after receiving it from the lender, borrowers who have received a PPP loan of $ 2 million or more should start preparing their responses and collecting the coins. supporting documents now. It appears that the trigger for this form is the loan forgiveness request. Borrowers who have concerns about questionnaire-related issues should consult legal counsel promptly and certainly before submitting any completed questionnaire.

Brandon Frere pleads guilty to multi-million dollar student loan fraud case


A Sevastopol man pleaded guilty on Friday to wire fraud and money laundering charges in a scheme that defrauded borrowers of million-dollar student loans, the US attorney’s office said.

Brandon Frere, 42, owned and operated three Rohnert Park-based companies – American Financial Benefits Center, Financial Education Benefits Center and Ameritech Financial. In his plea deal, Frere admitted to using the companies to market student loan document preparation services for people who applied to programs through the Department of Education between January 2014 and November 2018, according to a press release from the US attorney’s office.

The scheme defrauded borrowers of $ 25 million to $ 65 million, Frere admitted for sentencing purposes. It targeted clients who were looking for federal loan forgiveness, loan consolidation, and reduced payment programs.

Frere told his employees to follow deceptive scripts that used deceptive sales tactics to get people to sign up for services without understanding them, according to the press release. During the initial registration of clients for the document preparation service, employees were asked to also enroll them in a “financial education benefits program,” which purported to allow clients to register for services such as LifeLock Identity Theft Protection and Roadside Assistance.

However, Frere told his employees to hide the program fees from clients and make the cost appear to be included in the document preparation service. He told employees not to present the program as an optional or additional service, so that customers buy it unknowingly.

Frere also asked employees to misrepresent the ability of companies to make fixed payments for the life of student loans and loan forgiveness under alternative repayment plans, the press release said. Under him, employees unduly inflated the size of clients’ families, leaving clients with the impression that their monthly payments would be lower than they actually were.

To cover up the money from his scheme, Frere began transferring it to overseas bank accounts in 2015. He continued this process in August 2017, after being embroiled in litigation with the Federal Trade Commission and fearing that the commission or a court cannot seize the money for its scheme, the statement said. The commission subsequently filed a civil lawsuit against Frere and his companies in federal court in Oakland in February 2018 – a lawsuit that is still ongoing, said Frere’s criminal defense attorney Ed Swanson.

Scott Belnap of Riverton, Utah, is among thousands of people across the country who have been scammed by one of Frere’s companies. Belnap, however, said he was one of the lucky ones. Two weeks after signing up for Ameritech’s debt relief services, a Federal Trade Commission investigator called him and asked him about his experience with the company. After learning about the commission’s lawsuit against Frere and his companies, Belnap called Ameritech and canceled his account. He estimated that he only lost a few hundred dollars because of the scheme.

“I was very lucky,” said Belnap, 37. “There are a lot of people who were much worse. “

Frere was arrested on December 5, 2018 at San Francisco International Airport while attempting to board a flight to Cancun, Mexico, and was formally charged? Oct. January 1, 2019. He is now out on bail pending his conviction, which is scheduled for March 27.

Swanson said his client had cooperated with the government to recover the proceeds from his companies.

“Sir. Frere has fully accepted responsibility for his conduct,” Swanson said. to do whatever he can to make things right. “

Frere faces a maximum sentence of 20 years in prison on each count, according to the press release. For his fraud count, he is liable to a fine of up to $ 250,000. For his count of money laundering, Frere faces a fine of up to $ 500,000.

Belnap said the more he learned about the program, the worse he felt for other clients who were misled. He said he heard that some people even went two years not knowing that businesses had failed to repay their loans, even though they were still paying the fees that businesses charged them.

“Anyone who takes advantage of an already vulnerable group… that’s a really underhanded and unethical thing,” Belnap said. “I’m glad (Frere pleaded) guilty and I’m glad these people who have been taken advantage of a lot will get some sort of closure or restitution.”

You can reach Editor-in-Chief Chantelle Lee at 707-521-5337 or [email protected] On Twitter @ChantelleHLee.

Historic Midtown hotel closes despite reported PPP loan


The entrance to the historic Omni Berkshire Place hotel is now barricaded.

The East 52nd Street Hotel was built in 1926 by the company that designed Grand Central Terminal. In 1942, Richard Rodgers and Oscar Hammerstein wrote “Oklahoma! at the location.

But once the pandemic struck, the hospitality industry collapsed.

“Two hundred and sixteen of us were laid off without a penny in severance pay or health care. In the midst of a global pandemic, New York City, which was the epicenter,” said Tamara Lynch, waitress at Omni’s restaurant for 13 years.

What would you like to know

  • The Omni Berkshire Place Hotel was built in 1926 by the company that designed Grand Central Terminal
  • Employees said on June 8 they had been told the COVID-19 layoffs would be extended indefinitely as the hotel was now permanently closed
  • The Omni chain is run by Texas billionaire Robert Rowling
  • Report: The chain reached $ 84 million under the Federal Paycheck Protection Program, a loan structured as an incentive for the company to keep its employees on the payroll.

Lynch was put on leave in March when restaurants were closed to diners. Lynch says that on June 8, employees received WARN notices that the layoffs would be extended indefinitely because the hotel was now permanently closed.

The Dallas Morning News reports that the Omni chain, run by Texas billionaire Robert Rowling, has received up to $ 84 million under the Federal Paycheck Protection Program (PPP), a loan structured as an incentive for the company to keep its employees on the payroll.

“I think it’s morally wrong that you take 216 people and throw them out on the streets after they’ve served you faithfully and brought you millions of dollars and in the midst of our most incredible needs here in New York.” , said Lynch.

Longtime employees wiped away tears – while talking about the next step.

“Devastated. It left me speechless. I couldn’t believe the owner would ever, ever close this place, ”said Georgeta Ionescu, who worked at the Omni for 23 years. “I was like, ‘I’m going to get by on a pension.’ “

“And just to have all those years – 21 – and for me to go out and maybe try to change careers at my age?” It’s difficult, ”said Kelly Orama, a former employee.

A source familiar with the negotiations said management is negotiating severance pay under the worker’s contract. It includes cash payment, compensation for unused leave and additional health coverage.

The Hospitality Trades Council, the union representing workers, declined to comment. A spokeswoman for Omni Hotels said the PPP money the company received was essential to its survival. The program states that loans must be repaid if employees are made redundant. The spokesperson said that any part of the PPP loan that was not canceled would be repaid with interest. She said Omni would pay severance pay, and added that there was no plan for the building at the moment.



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Restaurateur Tilman Fertitta is desperate for an infusion of money for his hotel empire


Houston-based restaurateur Tilman Fertitta is looking for a lender to provide a massive injection of cash to keep his huge hotel empire afloat.

Fertitta would be willing to pay a huge 15% interest to any lender willing to offer a “living” loan of $ 250 million, according to Bloomberg. In addition to this potential loan, Fertitta, which is worth more than $ 4 billion, has invested $ 50 million of his own money in the business in an effort to keep the hundreds of restaurants he operates under the umbrella of Landry, including the recently acquired chains Del Frisco’s and The Palm, as well as its Las Vegas casinos.

Nor is it the first desperate step Fertitta has taken. Earlier this month, his company has laid off more than 40,000 workers Across the country. Prior to that, Fertitta’s business had sparked outrage after employees at her posh Post Oak Hotel in Houston were told they would not be able to take paid time off for the foreseeable future. The company finally went back on this decision for employees who have not been affected by the leave.

Most homeowners are expected to receive a government cash grant notice by mid-August, Business News & Top Stories


The majority of property owners with tenants eligible for rent relief under the amended Covid-19 (Temporary Measures) Act are expected to receive notices regarding their government cash grants by the middle of next month, said yesterday the Ministry of Justice (MinLaw).

Landlords cannot take enforcement action against tenants who meet the criteria for non-payment of rent relief until cash grant notices are issued, he said.

The changes to the law, which provide the framework for rent relief for small and medium-sized enterprises (SMEs) and specified non-profit organizations, come into force today.

Landlords with eligible tenant-occupants will receive their cash grant notices from the Inland Revenue Authority of Singapore starting next week.

This notice will inform landlords of the rental waivers they should provide to tenants.

They are required to provide their tenants with a copy of this notice within four business days of receiving it, so that tenants have timely confirmation that they are eligible for rent waivers.

Service of the notice can be done in person, by registered mail or by email, MinLaw said.

The Rent Relief Framework will help affected SMEs that need more time and support to recover from the impact of the coronavirus outbreak, as well as eligible nonprofits.

Tenants and subtenants do not need to pay rent for the months covered by the rent relief framework.

Qualifying tenants in the food and beverage and retail sectors will receive four months rent relief from April through this month – two months each from the government and the landlord.

Those in the office and industrial sectors will benefit from a two-month rent waiver for April and May – one month each from the government and landlord.

This as long as their leases were either concluded before March 25, or concluded before March 25 but had expired and renewed either automatically, or in exercise of a right of renewal in the contract; and in effect anytime between April 1 and today for qualifying commercial properties, and between April 1 and May 31 for other non-residential properties.

Once the landlord has received the cash grant notice, the applicable rent and any interest payable on the rent are waived under the Act.

Landlords can deduct from rental waivers any financial assistance, such as rent discounts, that they had previously granted to their tenants.

If the rent had already been paid, the rent waivers should be applied to the next immediate month (s) of rent. If this is not possible, tenants can obtain a refund from their landlords.

In addition to the rent relief framework, businesses and individuals who are unable to fulfill their contractual obligations due to Covid-19 benefit from other enhanced relief.

Tenants who were unable to vacate their premises after their lease or permit expired due to Covid-19, because they were unable to hire movers, for example, will not have to pay double rent for “holdback” even though some amounts will still be payable.

A ceiling on late interest and late fees has been set at an amount equal to 5 percent per annum of simple interest.

This ceiling applies to certain contracts, in particular equipment leasing contracts and commercial vehicle leasing contracts.

Once a waiver notice is served, the waivers will apply for the period prescribed under the Act, which is currently until October 19.

Man allowed to collect ₹ 24 lakh loan from friend


The check issued by the borrower was rejected by the bank for having “insufficient money”

A Delhi court allowed a man to collect a 24.20 lakh loan from his friend with 6% interest for the period his collection suit was pending.

The complainant used to loan his friend money because he needed it to run his chit fund business.

According to the complaint, the lender loaned this amount to the borrower between September 2008 and January 2009.

The applicant would lend money and the borrower would issue promissory notes to secure repayment. At the time of repayment, the defendant wrote checks in his favor and took back the promissory notes.

For this loan amount, the borrower had also issued a check in his favor.

But when the plaintiff deposited it for collection in his bank, it was rejected with the comment that the account of the check issuer did not have enough money to make the payment.

Subsequently, he served her with a formal notice but did not bother to return the money. Then he filed a recovery complaint.

In its defense, the defendant argued that the check that the plaintiff presented on the back was in fact a stolen check.

“Did not inform the bank”

But the judge of the extra sessions, Brijesh Kumar Garg, rejected his defense, saying that although he filed a complaint about the loss of the check, he did not notify his bank.

“The defendant did not produce any written information issued by him to his banker to stop payment of the missing checks. The defendant failed to give such indication to his banker until 02/23/2009 or after, when the check was returned by his banker for insufficient funds, ” Garg said as he allowed the lawsuit.

V / Line boss took out a loan from a cleaning company for a door-to-door deposit, IBAC said


Mr Pinder prepared a document for Ms Tsakopoulos after being raided by IBAC investigators, it was said at the hearing, which summarized the nature of their relationship and the loan. Mr Pinder claimed he wrote the document to remind Ms Tsakopoulos of the details as “she is a little annoying”, which was categorically rejected by Mr Lawrie.

The Williamstown home of former V / Line CEO James Pinder.Credit:www.realestate.com.au

“I tell you quite frankly, Mr. Pinder, this is only a fiction,” said Mr. Lawrie. “This is a document you prepared and provided to Maria to settle a story between the two of you about where this $ 320,000 came from.”

“I panicked,” Pinder said.

Mr Pinder said he took the money because he was desperate to buy the property before his wife and stepson arrived from the UK, admitting he orchestrated a “ruse elaborate “which involved him taking money from” unusual sources, “including $ 10,000 in cash from him. real estate broker at the National Australia Bank.

Mr Pinder said he made a “mistake” and “in my heart I knew it was the wrong thing to do”.

When asked why he didn’t accept cash from people other than the V / Line vendors who had offered to lend him money, thus avoiding a conflict of interest, Mr Pinder replied: “I don’t know the answer to that question.”

Mr Pinder dropped several fundamental questions about financing his house, prompting Commissioner Robert Redlich, QC, to ask at one point, “What’s going on here?”

Mr Pinder said he regularly hangs out with employees of V / Line, Metro, Transclean and other Crown Casino vendors and at horse races.

Mr Lawrie accused Mr Pinder and Mr Bollas of allegedly “using their positions to financially benefit Transclean and themselves”.

Transclean made several payments to Mr. Pinder between late 2018 and early 2019, for a total of at least $ 320,000, “which were used to purchase the [Williamstown] ownership, and which ultimately goes back to Transclean, ”Lawrie said during the hearings.

Mr Pinder reportedly started using a burner phone to communicate with Transclean boss Mr Haritos and Mr Bollas after being appointed general manager of V / Line.

The commission heard the trio communicate this way for four years – in an attempt to keep their “transactions out of sight,” Lawrie said. The phones were underwritten on behalf of Transclean associates.

Mr. Pinder, Mr. Bollas and Mr. Haritos have known each other for almost a decade, with Mr. Bollas reporting to Mr. Pinder when he was in charge of rolling stock at Metro between 2012 and 2015, Mr. Lawrie said. Transclean was Metro’s cleaning contractor at the time. Mr. Haritos and some Transclean employees were invited to Mr. Pinder’s wedding.

Mr Pinder left Metro in 2015 and returned to the UK, but was poached as managing director of V / Line, where he started working at the end of 2016.

The IBAC has opened an investigation after detecting a number of “suspicious bank account transactions” between Mr. Pinder and “Transclean associates”.

In a separate 2017 investigation, the IBAC uncovered a “buddy jobs culture” that saw executives bend bidding rules to award important contracts to friends and associates.

The hearing continues.

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Some Boom-Era INBS Mortgage Repayments Collapse Amid Covid-19


Some non-performing mortgages originally issued by the Irish Nationwide Building Society (INBS) before the property crash have encountered new problems as Covid-19 affected household finances and property sales.

A 359 million euro portfolio of old INBS loans and a 518 million euro pool of mortgages underwritten by the now defunct company and risk lender Springboard during the housing boom saw monthly collections of Borrowers’ money fall 25% between February and April, compared to the previous six months, according to a new report from rating firm DBRS Morningstar.

Both portfolios came from mortgages purchased by foreign investment firms following the crash and refinanced in international bond markets in recent years through a process known as residential mortgage-backed securitization ( RBMS).

“Based on the information and performance data available so far, there is no clear evidence that the drop is directly correlated with Covid-19, but according to comments provided by portfolio administrators in recent years. weeks, some form of distress in the midst of Covid-19 had been anticipated, ”said Laura Lombardo, deputy vice president of European structured finance at DBRS Morningstar, in response to questions from the Irish Times.


Separately, industry sources said that much of the wallet’s cash flow came from the sale of properties – especially rental loans – after troubled borrowers made deals with repairers of RMBS vehicles. There is generally a higher level of sales of closed loans in December than at any other time of the year.

“The interruptions in payment will have had an impact on the collections, but this impact was only really visible in May and June,” said a source, who declined to be named. “Real estate sales activity also came to a halt between April and June, but has now restarted.”

The proportion of non-performing loans in the € 359 million portfolio increased significantly last summer, as the vehicle holding the loans – known as European Residential Loan Securitization 2018-1 DAC – sold part of the performing loans that were in the original wallet.

Repairers of the two vehicles which had experienced a decline in collections had signed up with traditional banks in March to offer temporary payment interruptions to borrowers affected by Covid-19.

According to DBRS Morningstar, collections in larger pools of non-performing mortgage loans contained in RMBS vehicles in the Republic have been broadly “stable” since the start of the year.

“However, we will continue to monitor the amount of actual gross collections recorded on a monthly basis and their sustainability in the medium to long term,” he said.

Airlines downsize to skeletal levels, focus on saving money


Faced with a sharp drop in traffic and income associated with new coronavirus travel restrictions imposed by many countries, including Canada and in the United States, airlines are drastically cutting flight schedules and taking other drastic measures that are having a serious impact on frontline workers for the first time.

Bookings and cancellations happen so quickly that in some cases airlines have cut operations two or three times over the past week. And carriers are starting to highlight how severely the coronavirus crisis is affecting their finances, with the specter of bankruptcy looming for less capitalized companies.

Airlines shares continued their fall on Monday, led by International Consolidated Airline Group and Air Canada, to 27% and 28.2%, respectively.

The situation could deteriorate further for the airline industry. White House and Homeland Security officials said they were considering domestic travel bans that could restrict flights to certain areas. During a White House briefing, President Donald Trump didn’t go so far as to say there would be a Federal Aviation Administration blanket flight ban.

On Sunday and Monday, several airlines announced they were cutting seat capacity by 75% or more and would park much of their fleets, while the Lufthansa Group said its airlines would cut long-haul capacity by 90%. % and the short-haul offer of 80%.

Meanwhile, Lufthansa subsidiary Austrian Airlines is temporarily suspending all flight operations between March 19 and 28, and SAS Ireland, the Irish subsidiary of Scandinavian Airlines, has said it will immobilize all planes for a month onwards. this Wednesday, with all the staff on unpaid leave. .

Last week’s decision by the European Commission to suspend rules forcing airlines to use or lose allocated take-off and landing slots at busy airports until June 30, has allowed airlines immediately consolidate schedules and planes on the ground.

The disruption is also making its way to Latin America.

On Monday evening, Brazilian airline Gol (NYSE: GOL) said it would reduce total flight capacity by 60-70% until mid-June, with a 50-60% reduction in the domestic market and 90-95% in available seats for international routes. The carrier said business was near normal in February, but in recent days there has been a sharp drop in demand for air travel to Brazil.

Removing passenger planes from service is also a problem for shippers as there is less space currently available to transport cargo on the lower deck, forcing companies to view all-cargo operators and ocean carriers as downsides. alternative modes of transport.

North American Airlines

United Airlines (NASDAQ: EU) said it was reducing capacity by 50% for April and during the busy summer travel period, but only expected load factors to be between 20% and 30% on the remaining flights. In the first two weeks of March, it carried more than one million fewer passengers than in the same period last year and expects revenue in March to be $ 1.5 billion lower than those of last March.

In a letter to employees, CEO Oscar Munoz and Chairman Scott Kirby said they have started discussions with union leaders on how to cut payroll expenses and cut company executives’ salaries in half.

Last week, Munoz said he would not accept his base salary and postponed a raise. Like many airlines, United previously imposed a hiring freeze and offered a voluntary leave program, while cutting capital and discretionary spending, but that was not enough to stop the bleeding.

“We are facing an unprecedented challenge. When medical experts say our health and safety depend on people staying home and practicing social distancing, it’s nearly impossible to run a business whose common goal is to “connect people.” Unite the world, ”the leaders wrote.

United stock fell 14.8% on Monday.

Air Canada is also eliminating 50% of its system-wide capacity, with available seats being reduced by approximately 75% in the trans-Pacific market in April.

The airline said it plans to make up 50-60% of the second-quarter revenue loss through savings from significantly lower jet fuel prices, capacity and workforce reductions, and other measures to reduce fuel costs. tightening of the belt. Combined with deferred capital spending, it targets at least C $ 500 million ($ 362 million) in savings to preserve cash flow.

Air Canada is also suspending its share buyback program and has borrowed C $ 600 million on its line of credit. The company, which has C $ 7.1 billion in liquid assets, said it is working to raise more liquidity in the coming weeks and withdraws its previous guidance for this year and next until ‘so that she can control the rapidly evolving situation.

Air Canada (To: THAT) also announced that it will explore with Boeing and Airbus the possibility of postponing deliveries of planes scheduled for this year, including 17 A220 regional jets and six Boeing 737 MAX jets.

“We are convinced that after a decade of transformation and record results, Air Canada today has the agility, the team and the route network to successfully navigate this crisis. More importantly for business continuity, it also has the necessary financial resources, including a strong balance sheet, record cash levels, higher debt ratings based on a low leverage ratio and a large pension plan surplus ” President Calin Rovinescu said in a statement. “These profound strengths allow us to fully focus our immediate attention on both the safety and well-being of our customers and employees, and on mitigating the financial impact of the virus.”

After announcing Friday, it is reducing by 40% of its capacity, suspending service to most of Europe for a month and park up to 300 planes, Delta Air Lines (NYSE: ADL) announced on Monday that it would cut a further 10% to 15% of national seats and suspend its New York-Mumbai service in India. Delta has reduced his schedule to Latin America also in recent days. Its stock fell 6.6%.

CNBC reported that Delta has entered into an agreement with the Air Line Pilots Association to allow it to offer partially paid time off. JetBlue also requires employees to take unpaid time off.

As stated previously, American Airlines announced on Sunday that it was reducing its international schedule in the coming weeks 75% and the parking of 135 wide-body aircraft. The Dallas-based company said earlier it was phasing out its regional E190 fleet by the end of this summer and its Boeing 757 fleet by mid-2021. Helane Becker, airline analyst at investment bank Cowen, has estimated that at least 2,000 pilots will be affected by decisions about the equipment.

American (NASDAQ: AAL) saw its price drop by more than 16% on Monday.

Bloomberg reported that Delta and American are in talks to line up billions in funding for working capital. Earlier Monday, Southwest Airlines said it had put in place a one-year term charge for $ 1 billion, while United revealed last week that it had received a similar loan of $ 2 billion.

UK. Aoverhead lines

Virgin Atlantic said it would cut its schedule by around 80% to focus on main routes and store around three-quarters of its planes by March 26, with a further 5% reduction in capacity in April . Employees are urged to take eight weeks of unpaid leave over the next three months, with the cost spread over six months of pay to cut costs without having to cut jobs.

The airline said the pilots and flight attendants union supported the measures.

Virgin also said it offered employees a one-time voluntary severance package and six to 12 month sabbatical. It postpones salary increases, reduces pension contributions for a year and reduces the amount of paid sick leave. CEO Shai Weiss extended his 20% pay cut until the end of 2020, with company executives getting a 15% pay cut.

IAG Group (LN: AGI), the parent company of British Airways, said it plans to cut passenger capacity by 75% for April and May and CEO Willie Walsh will postpone his retirement maintain management stability during the current threat. The company is also reducing many operational costs to save money, including non-essential and non-cybersecurity IT expenses, and reducing man-hours.

He said he has a strong cash position with 7.35 billion euros, with an additional 1.9 billion euros in planes that can be used as collateral for additional financing.

In addition to the temporary closure of SAS Ireland, charter airline TUI Airways is restraining all planes until further notice, and easyJet has announced that it will shut down the majority of its fleet.

Manchester Airport Holdings, which operates East Midlands, Manchester and London Stansted airports, said it plans to take a series of measures to protect the bottom line as passenger demand plummets, including hours of reduced work, temporary pay cuts and temporary layoffs.

European airlines

The low-cost company Norwegian Air is shutting down most of its flights and temporarily laying off 7,300 employees, or 90% of its workforce, including pilots. This is a rapid change of events for the company, which had undergone a major restructuring and indicated in February that it expected positive results in 2020. The airline said the turmoil in the capital markets has made it extremely difficult to obtain loans and credits to finance operations. .

Deutsche Lufthansa AG (D.IX: LHA) said that it operated more than 17 special flights over the weekend with jumbo jets to repatriate more than 4,000 cruise passengers and tourists stranded in Germany and that the airlines of the group, including Swiss International Airlines, Brussels Airlines and Eurowings , would continue to evacuate. flights to Germany, Austria, Belgium and Switzerland.

The company also announced that it is suspending its dividend for fiscal 2019 in order to preserve its cash flow and has raised around 600 million euros ($ 666.5 million) in credit. It currently has around 4.3 billion euros in cash. The Lufthansa group, which owns 86% of its fleet, is seeking to raise additional funds guaranteed by its planes. He said the book value of the fleet is around 10 billion euros.

Lufthansa shares lost 7.71%.

Unlike passenger airlines, Lufthansa Cargo has so far been able to perform all of its scheduled cargo flights, with the exception of cutbacks to mainland China.

Watchdog alleges district broke law by failing to pay interest on loan repayments to Measure M fund


By David M. Greenwald

On Tuesday evening, the Measure M Citizens Watch Committee unanimously backed a recommendation and letter from President Donna Neville, alleging that the school district is breaking the law for failing to repay loans made by the fund. measure M to the general district fund without paying interest on these loans, as required by state law.

“The law here is clear. In trying to resolve this issue with the district, I consulted with over half a dozen legal colleagues who work in public finance and bond compliance, and they all confirmed that interest must be paid on these loans. Neville said in a letter that will be sent to the neighborhood.

“Over the life of the Measure M program, this non-repayment of loans with interest could represent up to half a million dollars in lost interest, depending on the amounts borrowed, the interest rates and the duration of the loans” , she continued. . “It’s not just illegal; it is a betrayal of the confidence of the voters.

The letter continued, “Nothing in the text of Measure M, which was approved by district voters in November 2018, provided any indication that the district would use the proceeds from the sale of Measure M bonds to grant interest-free loans to the general fund, ultimately depriving the Construction Fund of a significant amount of interest it would otherwise have earned.

Donna Neville informed her colleagues that at the last council meeting, Superintendent John Bowes reported that the two-member subcommittee had met and decided not to recommend any changes to district policy – “qu ‘he was not going to recommend paying interest on that loan. “

The problem stems from a basic problem that school districts all over the state have: a cash flow problem where there is not enough money available to cover normal operating expenses. It has to do with when districts receive their money versus the need to pay expenses on an ongoing basis.

As a result, districts regularly borrow money to pay for these operating expenses, and then repay the loans when the funds come from tax revenue.

“Borrowing is perfectly legal,” Neville explained. She made it clear that they did not question the legality of the loan. “Our real concern here is that when the district commits to this loan out of what is a constitutionally restricted fund, it pays back the loan and meets virtually all of the procedural requirements, but it pays no interest on the loan. “

She explained: “The case law is very clear, we borrow from a constitutionally restricted fund like this, when you pay back the loan, you have to pay it with as much interest as that money would have earned if it had stayed. in the fund. “

Responding to a question from Eric Roe, another committee member, Neville noted that internal borrowing is always the most profitable thing for the school district. “There are other alternatives, they are all much more expensive,” she explained. “In a way, we’re fortunate to be able to borrow internally,” Neville added, noting that most of the time these building funds aren’t cash rich.

Neville estimated that on the $ 8 million loan he would have incurred about $ 100,000 in interest if he had remained in the account. On the other hand, if the district had borrowed from outside, the interest would have reached $ 400,000.

Eric Roe said: “The district is running out of cash, (and) of course there is a lot of extra money in the bond fund, as the bonds have all been funded well in advance due to the conditions. ” He said: “I can certainly see both sides of the debate.”

Neville noted that in chatting with Tom Adams, his response was, “Where am I going to get this interest?”

Bret Hewitt noted: “It is a fundamental proposition that a dollar in a week will not be worth the same amount as a dollar today without an interest component. This is called money valued over time.

“If the school district pays back $ 15 million and $ 12 million before that without interest, we are by definition lowering the purchasing power of bond funds,” he said. “There is no other way to look at it.”

He said: “It is clear to me that it is our duty as champions of the bond fund we have to take this issue forward.”

It was a difficult question for committee members, noting that the district was in dire financial straits.

On Tuesday, the committee asked the full board to take up the matter. Neville in her letter noted that she first raised this concern with district staff and no action was taken to get the whole board to respond to it.

She wrote: “At a non-public meeting of the two-person policy subcommittee on September 14, 2020, the policy subcommittee decided not to recommend any changes to the current district policy regarding interfund borrowing.

She continued, “Because the two-person advisory subcommittee decided not to recommend any changes to the district’s inter-fund borrowing policy, the board never considered this issue at a public meeting. opened.”

Instead, a statement was made during the “Directors Announcements” portion of the meeting that the subcommittee was not recommending changes to district policy.

The watch committee voted unanimously to reiterate their concern and allowed Neville to forward the letter to the district.

Superintendent John Bowes, Assistant Superintendent Matt Best and Amari Watkins, Associate Superintendent of Business Services, who succeeded Bruce Colby, who has since retired, this year attended Tuesday’s meeting. None offered any comment or information to the committee or to the public.

—David M. Greenwald report

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Why use Amex Blue Cash Preferred for grocery shopping


Select’s editorial team works independently to review financial products and write articles that our readers will find useful. We may receive a commission when you click on product links from our affiliate partners.

The Chase Freedom® is currently not available to new cardholders. Please visit our list of the best refund cards for alternative options.

Cooking is one of my passions, so it’s only natural that grocery shopping is high on my monthly spending list. On average, I spend $ 325 a month on everything from milk and eggs to vegetables and chocolate chips. These costs add up quickly, but I’ve found ways to make groceries less expensive.

I’m no stranger to optimizing credit cards (after all, I have ten), so I make sure to pay with the most lucrative refund card in my portfolio: the American Express Blue Cash Preferred® Card.

The Blue Cash Preferred card is my go-to for shopping because it allows you to earn a solid 6% cash back in American supermarkets, up to $ 6,000 per year of purchases (then 1%). Unfortunately, I cannot use it when I buy from Costco because they don’t accept cards from all issuers. When traveling Costco, I use one of my Chase cards backed by a Visa card, like the Freedom Hunt® (no longer open to new applicants).

The reward rate of the Blue Cash Preferred card is higher than that of any other card on the Select list of the best grocery rewards cards and earns me about $ 234 a year in cash back.

If my annual cash back earnings aren’t enough to convince you that this card is a stellar choice, it is currently offering a welcome bonus of a $ 300 credit after spending $ 3,000 on purchases on your new card over the course of the first six months. It’s a great way to offset your grocery bills. Plus, you can qualify for an annual start-up fee of $ 0 for the first year, then $ 95. (See prices and fees.)

If you are also someone who seems to have an endless grocery list, consider requesting this card.

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Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.

Bank lending in Japan surges at record pace in May as pandemic-hit businesses accumulate cash


TOKYO (Reuters) – Japanese bank lending grew at the fastest annual pace on record in May, as cash-strapped businesses used loans to meet immediate financing needs to survive slump in sales due the coronavirus pandemic, central bank data showed on Monday.

The data suggests that a series of measures taken by the government and the central bank to funnel money to struggling businesses, including demands on financial institutions to increase lending, are working at least for now.

Total bank loans and “shinkin” credit unions increased 4.8% in May from the previous year to 562.5 trillion yen ($ 5.13 trillion), s’ accelerating from a 2.9% gain in April and marking the fastest pace of increase since comparable data became available in 2001, data from the Bank of Japan showed.

“Data shows increased demand for corporate funds in response to the coronavirus pandemic,” a BOJ official told reporters, adding that rising costs of credit have so far not deterred financial institutions to lend.

Big bank loans jumped a record 6.6% in May, data showed, with large companies borrowing more as a precaution in case the fallout from the virus persisted, the official said.

Regional banks also saw their lending increase 3.8%, reflecting growing demand from small businesses, the data showed.

The Japanese economy is in recession and analysts expect it to contract 22% on an annualized basis in the current quarter, as lockdown measures – put in place in April and lifted at the end of May – have forced businesses to close their doors and citizens to stay at home.

The BOJ launched a loan program in March to encourage financial institutions to lend to small businesses, which has so far injected 14 trillion yen into the economy.

Reporting by Leika Kihara; Editing by Kim Coghill

Letter to BS: Don’t Blame Cash for All the Evils of Our Financial System


It is Ajit Balakrishnan’s “Stop Making Money Bad” (January 3). The author deserves praise for destroying a myth and playing “devil’s advocate” for money. Cash is the most convenient and anonymous financial instrument. The current rhetoric against cash in India stems from a dubious belief that it is the root cause of black money, corruption, tax evasion, all of which lead to money laundering. It is not cash that gives rise to all of these seemingly illegal practices, but it is the democratic system dominated by 24/7 elections that forces businesses and businesses to generate money. black money to grease the cogs of democracy through the political machinery. In India, the fundamental goal of promoting a cashless or ‘cash less’ society is to force citizens to leave behind traces or footprints which can be used to hunt tax evaders. and allow choice according to the propensity and whims of politics. administration.

It is common knowledge that large-scale tax evasion in India comes more from large corporations and corporations than from individuals. If so, why should we restrict the freedoms of innocent individuals and force them to forgo cash, thereby enriching fintech companies and these other middlemen? After all, paying electronically is by no means free as it is claimed. Look at the losses of large fintech companies and electronic payment platforms in India. The solution lies in educating society.

Ganga Narayan Rath Hyderabad

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Santa Cruz County loan recipients see errors in federal data


Michael Harrison, owner of Michael’s on Main, was relieved when his restaurant, which closed for two months, in the midst of Covid-19 pandemic– got a federal grant loan.

The money allowed Harrison to keep his business afloat and continue to pay his employees. “We are going ahead and hoping for the best,” he said.

What he didn’t know was that the Small Business Administration (SBA) reported that Michael’s on Main took out a Paycheck Protection Program (PPP) loan of $ 5-10 million. That number was far away.

” Oh my God no. Ours was less than $ 150,000, ”he says.

The idea of ​​a multi-million forgivable loan baffles Harrison.

“They say I had so much money?” It’s completely crazy. I wouldn’t have qualified for that, ”he says.

Many companies across the country have reported similar errors.

It has been difficult for reporters and members of the public browsing SBA data to separate fact from fiction. Here in Santa Cruz County, much of the attention has focused on the reported amounts of loans made to Michael’s on Main and the Calvary Episcopal Church on Center Street.

According to SBA data, the church took out a loan of $ 350,000 to $ 1 million. The actual amount of his loan was less than $ 50,000.

Incorrect numbers have been reported by GT, through The Santa Cruz Local and on Santa Cruz Subreddit. Due to the size of the loans, the SBA should not have released information on either. The SBA was supposed to withhold the names of loan recipients who received less than $ 150,000.


Harrison says he spent 60% of his loan money on payroll, with the remaining 40% going on other costs, like food, rent, cable, internet, PG&E, and the IT account. of the restaurant. Under federal guidelines, PPP loans will be canceled, as long as businesses spend at least 60% money on the payroll.

Meanwhile, Harrison and his colleagues have spent the past four and a half months navigating the ever-changing nature of what businesses are and are not allowed to do. Currently, Michael’s on Main is open for outdoor dining and guests are required to wear masks.


The errors in the PPP data raised eyebrows across the country. Investigations, including those of the Washington post and Bloomberg– found many irregularities around the PPP program.

For example, the maximum PPP loan for a one-person business was supposed to be $ 20,833. However, Bloomberg find that more than 75,000 loans showing retained employment had larger amounts, including 154 showing one million dollars or more. Many other companies took out loans that seemed too small, given the size of their payroll. These mistakes combined have challenged the numbers of more than one in five companies.

In his analysis, Bloomberg reporters said the anomalies cast doubt on the accuracy of the data for the centerpiece of the $ 2.2 trillion relief program. They added that it is not clear whether the program has actually saved 51.1 million jobs, the number reported by the federal government.

How to get $ 700 million in student loan forgiveness


There is $ 700 million in student loan cancellations up for grabs on a first come, first served basis.

Here’s what you need to know and how to apply.

Student loan forgiveness

See if you can follow this story. The federal government offers a student loan exemption program. Student loan borrowers who believe they are eligible apply. 99% are rejected. Congress creates an expanded student loan exemption program. Student loan borrowers who believe they qualify for the Expanded Program apply. 99% are rejected.

Yes really.

A new government watchdog report, first obtained by NPR, says a confusing student loan waiver program and process resulted in 99% of the 54,184 completed student loan waiver requests being denied. From May 2018 to May 2019, Congress spent just $ 27 million of the $ 700 million on 661 requests for this new student loan forgiveness effort, according to the Government Accountability Office.

“The department has taken steps to help borrowers better understand the complex eligibility requirements, application process, benefits and other information related to the PSLF and TEPSLF programs,” said Angela Morabito, press officer of the US Department of Education. NPR. The ministry agrees with GAO’s recommendations on how to improve programs; a number of our efforts are already underway.

What happened and what can you do about it?

In May 2018, the US Department of Education announced details of the Temporary Expanded Public Service Loan Forgiveness Program. This program provides student loan forgiveness for borrowers who have previously chosen an ineligible repayment plan under the Public Service Loan forgiveness program. The Public service loan remission is a federal program that waives federal student loans for borrowers who are employed full-time (more than 30 hours per week) in a qualifying federal, state, or local public service job or 501 (c ) (3) which make 120 qualifying one-time payments over 10 years.

Here’s the important part that many of these applicants – including the 71% who were rejected for this reason – missed. To apply for this expanded student loan waiver program, you had to meet all the requirements of the public service loan waiver program, but you mistakenly signed up for an ineligible repayment plan (such as progressive or extended reimbursement). You with me?

How to Apply for a Temporary Waiver of an Extended Public Service Loan

Okay, so how do you avoid the fate of the 99% who were kicked out of this expanded student loan waiver program?

Here’s what you need to know to make sure you qualify:

1. You must be working for an eligible public service employer in an eligible public service role

Generally, there are two types of employers: a) state, local government and federal government; and b) 501 (c) (3) not-for-profit.

2. You must have direct federal student loans

The public service loan forgiveness program does not waive private student loans, even if you work in the public service. If you are not sure what type of student loan you have, check with your student loan officer or through Federal Student Aid. If you have FFEL loans, you must consolidate your student loans into a direct consolidation loan with the federal government to be eligible for the civil service loan forgiveness.

3. You must be enrolled in a federal repayment plan

You must also be enrolled in a federal income-oriented repayment plan and make the majority of your payments under the plan. You can determine which student loan repayment plan is best for you with these student loan calculator.

4. You must have applied for a civil service loan forgiveness.

This is critical. Do not skip this step. You must have applied for a civil service loan forgiveness and made some or all of your payments under a repayment plan that was not eligible. Then you were rejected just because you signed up for an ineligible student loan repayment plan.

How to apply for a temporary discount on an extended public service loan?

There are two easy steps:

  1. Email FedLoan Servicing at [email protected] to ask the Department of Education to reconsider your eligibility for the Public Service Loan rebate.
  2. Include the same name you submitted your Public Service Loan forgiveness application under and your date of birth in the email.

Example email template

Here’s an example of an email template you can use:

To: [email protected]
Subject: TEPSLF request

I ask the United States Department of Education to respectfully reconsider my eligibility for public service loan cancellation.

  • Name: [Enter the same name under which you submitted your Public Service Loan Forgiveness application]
  • Date of Birth: [Enter your date of birth in MM/DD/YYYY format]

Thanks for your consideration.


your name

You will receive a response from FedLoan Servicing once your request has been reviewed. Separately, you can contact FedLoan Servicing at 1-855-265-4038 from 8 a.m. to 9 p.m. EST, Monday through Friday.

What if you didn’t work in the public service?

While you can try to get a student loan forgiveness as part of an income-based repayment plan, it can take 20-25 years to get forgiveness and your student loans can be paid off by then. There is a more proactive approach.

Refinancing a student loan can lower your interest rate, which can save you a lot of money in interest payments. With student loan refinancing, you can combine your existing private student loans, federal student loans, or both into a single new student loan with a lower interest rate and one monthly payment. This student loan refinance calculator shows you how much you can save.

You won’t have access to federal repayment plans and benefits, but many private student loan lenders now offer forbearance and deferral programs in case of economic hardship. The higher your student loan balance, the more you can potentially save.

How to keep your student loan payment at $ 0


(Nerdwallet) – President Biden announced on January 20 that most federal student loan payments would be suspended without interest until September 2021 due to the ongoing pandemic.

Once the suspension is lifted, however, a payment of $ 0 may still be a necessity for some borrowers.

According to an October 2020 NerdWallet survey conducted by The Harris Poll, 45% of Americans with their own federal student loans were not convinced they would be able to pay their loan repayments when the payment freeze was to end last December.

Borrowers will hopefully be better off financially by September. But if you need to keep paying less, here are your options.

Adhere to income-based reimbursement

For a manageable payment, start with a income based repayment plan.

“Look at income-based repayment first, because it offers the most benefits,” says Persis Yu, director of the nonprofit National Consumer Law Center’s Student Loan Assistance Project.

These benefits can include a rebate after 20 or 25 years of payments, partial interest subsidies, and monthly bills as low as $ 0.

Payments are based on adjusted gross income, family size, and federal poverty guidelines. For example, if you had an AGI of $ 19,000, were single, and lived in the lower 48 states, you would pay $ 0 for 12 months under most income-oriented plans.

If you’re already using one of these plans and your income has gone down, so can your payments.

“It’s important for borrowers to know that they can request recertification of their plans at any time,” says Yu.

You can estimate payments under different income-based plans with the Loan simulator from the Ministry of Education.

Defer student loan payments

Federal student loan payments can be suspended through deferral and forbearance.

The adjournment is linked to events such as the loss of your job or treatment for cancer. If you are eligible, this option can keep payments at $ 0.

For example, a postponement of unemployment may be possible if you work less than 30 hours per week. If your hours have been reduced, but your household income is too high for an income-driven plan, the deferral may make sense.

The government also bears all interest accrued on subsidized loans during the deferral.

“There are grants on income-driven plans, but they’re more generous with the deferral,” says Betsy Mayotte, president and founder of The Institute of Student Loan Advisors, a nonprofit that offers free advice to students. borrowers.

The deferral is often available for up to three years, but you must reapply periodically. For a stay of unemployment, the duration is six months.

Place loans in forbearance

Payments are currently suspended without interest through a special administrative forbearance. At the end of this break, your service agent can grant you discretionary forbearance, potentially without paperwork.

But in addition to the absence of invoices, this type of abstention offers few advantages.

“Tolerance is a last resort,” says Mayotte. “It’s either that, or you’ll become delinquent or by default.”

Interest generally accrues during abstention. In the end, this interest can be added to the amount you owe, which means that future interest increases on a larger balance.

With any $ 0 payment strategy, you may be able to pay off more globally.

“If you can afford it, I would always recommend paying rather than not paying,” Mayotte says.


The most important thing to do now is understand your options, says Scott Buchanan, executive director of the Student Loan Servicing Alliance, a nonprofit organization that represents student loan managers.

Part of the reason is that providers can’t change your payments yet.

“It’s a matter of regulation and process,” says Buchanan. “We can’t actually put you on (a) plan right now because you’re not on a refund. “

But you can do the following:

  • Verify your information. Log on to your provider’s website to verify your details and payment amount. If you are unsure who your agent is, visit the Federal Student Aid website. Mayotte says to be wary of companies that reach out and offer help for a fee; your repairman will never charge you.
  • Collect the papers. Claims may require documents such as pay stubs, which Buchanan says must be within the past three or four months when you submit your forms. If you are applying now, you will probably have to do it again with more recent information. But you can get a head start by figuring out what you’ll need and filling in what you can.
  • Set a reminder. With payments set to resume in October, plan to submit your claims during the summer.

“If you wait until the day before your due date in the month when 30 million people are going to start paying off,” Buchanan says, “the appeal times are going to be long.

This article was written by Nerdwallet and was originally published by The Associated Press.

More from NerdWallet

Ryan Lane writes for NerdWallet. Email: [email protected]

The article How to Keep Your Student Loan Payment at $ 0 originally appeared on NerdWallet.

Ola suggests to the government a way to legalize bicycle taxis; asks banks to facilitate the loan process for drivers

Bicycle taxis in India have the potential to generate over 2 million livelihood opportunities. (Image: Ola)

The policy and social innovation unit of the SoftBank-backed taxi and bicycle reservation company, Ola Mobility Institute, has suggested state governments classify bicycle taxis as transport vehicles in order to legitimize bicycle taxi activities in India and allow new MSMEs and large companies to emerge. . “This would encourage the availability of large fleets of bicycles for sharing in a city, as well as the emergence of such on-demand two-wheeler businesses of all sizes – micro, small, medium and large,” he said. ‘institute. said in a report on the importance of bicycle taxis in India and their economic potential. Ola is currently competing with other major players such as Uber Moto and Rapido in the bicycle taxi segment.

The bicycle taxi segment in India is currently stuck due to a lack of legal clarity as many state governments have not notified their policies on this matter. This could be due, firstly, to “the lack of precedence resulting from the technical and legal uncertainty regarding the classification of bicycles as a transport vehicle, i.e. vehicles which engage in commercial operations and are usually identified by a yellow registration, “and second,” lack of clear evidence of the positive impact of bicycle taxis in Indian cities, “said the report titled The Power of Two Wheels.

Watch Video: OYO CEO, Backed By SoftBank, Explains How The Company Is Moving Towards Profitability, IPO

However, the Ministry of Road Transport had declared that the authorization of bicycle taxis was legal. “Under the Motor Vehicle Act 1988, states can issue taxi permits under sections 72 and 73. Therefore, it is legal for states to issue taxi permits for all kinds of vehicles. including two-wheelers, ”Ministry of Transportation and Highways MoS Mansukh L Mandaviya had told Lok Sabha in December 2018 in response to a question of whether bicycle taxis were legal in 14 states. Currently, only 13 states and Union territories have defined rules for bicycle taxi companies.

Ola also suggested that banks switch from asset-based loans to cash-flow-based loans to enable people to buy bikes through bank loans without giving any collateral and to earn a living. These unsecured loans to first-time borrowers entering the bicycle taxi economy “can be classified as priority sector loans,” Ola said. To offer loans, banks and microfinance institutions can use “the data available through digital transactions to profile the social and economic context of borrowers”. Bike taxis in India have the potential to generate over 2 million livelihoods and income of $ 4-5 billion, while the industry is expected to reach $ 90 billion by 2030.

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Marcus Lamb Repays $ 3.9 Million PPP Loan After Private Jet Investigation

Joni and Marcus Lamb present Daystar’s flagship show, “Celebration”. |

Daystar Television Network has returned the $ 3.9 million it received from the federal government’s paycheck protection program after being asked by a reporter about the recent purchase of a private jet.

The Christian Network, founded by Marcus Lamb, has denied using PPP funds to purchase a multi-million dollar 1997 Gulfstream V, a luxury aircraft that can accommodate up to 14 passengers, according to Interior edition. The purchase took place two weeks after receiving the PPP loan.

“Lamb says Daystar was able to purchase the jet with the proceeds from an investment and the sale of his old jet,” the news magazine reported.

Texas-based Daystar is one of the largest Christian television networks in the world that features popular preachers and hosts Marcus and Joni Lamb. It is classified as a tax exempt church and therefore is not required to disclose its finances.

Amid the COVID-19 pandemic this year, the Small Business Administration’s PPP aimed to help small businesses and nonprofits overcome coronavirus-related shutdowns and keep workers on the payroll. According to the provisions of the program, a loan can only be canceled if at least 60% of the amount received goes to wages. Many churches have applied for and received PPP loans and among them, Daystar received $ 3.9 million, according to Inside Edition.

Inside Edition chief correspondent Lisa Guerrero confronted Marcus Lamb about the jet which was purchased shortly after.

“Your church received millions of dollars in taxpayer money, and two weeks later purchased a private jet for millions of dollars. Can you explain this? she asked.

“No we didn’t; used our own money,” Lamb replied.

“So why are you using this private jet? Church business only? Guerrero asked.

“Absolutely,” Lamb replied.

The news magazine reported that Lamb’s family used the jet this year for vacations in Florida and California. Lamb said he was on a working vacation.

After Inside Edition’s investigations, Daystar repaid the entire PPP loan to the government with interest.

“A lawyer for Daystar Network said he is not using charitable donations to fund his operations, including the purchase of this jet, and is complying with all laws,” he said. declared.

More than 10,000 religious organizations, including a few other televangelists, have received more than $ 3 billion through the PPP, much of which has gone to groups affiliated with the Catholic Church, according to a partial list of beneficiaries published in July.

According to an analysis of The Guardian’s list of beneficiaries, nine organizations received between $ 5 million and $ 10 million, the highest loan amount available under the PPP. Seven of these 19 groups were affiliated with the Catholic Church.

Jimmy Swaggart, who runs the Family Worship Center in Louisiana and was previously defrocked by the Pentecostal Assemblies of God in the early 1990s for sex scandals, has earned between $ 2 million and $ 5 million.

A Vanderbloeman investigation found that some 75% of churches and Christian organizations that received a PPP loan said the funds helped keep their operations fully staffed and that many of them have already been forgiven. More than half of churches and Christian organizations (61%) received less than $ 150,000 and 85% of these received less than $ 349,000.

Airfordable is a micro-loan tool for airline tickets


The microcredit industry recently entered the airline ticket business with the launch of Airfordable, a website that allows users to pay for their plane tickets in installments. To use the service, travelers submit a screenshot of an itinerary, submit trip details, and then make a deposit toward the overall cost. Until the departure date, regular payments can be made on the overall balance and once the loan has been paid in full, the ticket will be confirmed and sent to the traveler.

For the service, Airfordable charges a 10-20% fee based on the cost of the ticket and then automatically sets up a reimbursement plan. A $ 1,000 ticket required on Dec. 3, for example, would result in a “layaway cost” of $ 130, then $ 126.67 in bi-weekly payments until the date of travel.

Airfordable’s value sits at the intersection of prices for volatile notes and micro-lending instruments. By fixing the ticket price in advance, users can benefit from a better price on airline tickets while demand remains low and the departure date is still far away. And unlike getting a loan from a bank or using a credit card, a micro-loan from Airfordable doesn’t require a credit score survey, a potential problem. for travelers with little or no credit.

While some may view this lack of credit transparency as a handicap, Airfordable claims a 95% repayment rate, similar to other microcredit sites like Kiva, which see rates at. about 98-99%.

Founded in 2015 in Chicago, Ill., Airfordable officially launched its website last December after securing seed funding from Y Combinator, a startup incubator based in Mountain View, California. Last week, the company was boasting that he had helped more than 10,000 customers finance airline tickets. Once the business gets more traction, according to TechCrunch, he plans to expand his model to launch micro-loans for vacation packages and hotels.

YRCW will not face loan maturity payments for more than 4 years under a new contract


YRC World Inc. (NASDAQ: YRCW) will work on figuring out how it will rebuild itself using the $ 700 million it receives from the US Department of the Treasury. His first achievement: getting rid of all debt payments for four years.

In a filing with the Securities & Exchange Commission on Wednesday, carrier LTL said the $ 700 million it was receiving from the federal government taking an approximately 30% stake in the company would be split into two loan tranches, one totaling $ 300 million and the other totaling $ 400 million. The due date for both is September 30, 2024, to be settled with a lump sum payment.

The first loan, dubbed the Tranche A loan, will be used to honor JRCJ’s obligations in several areas, including its obligations to the Teamsters Central Pension Fund. YRCW was in arrears with the fund, and its employees who are members of the Teamsters were receiving benefits paid out of the fund even though YRCW had stopped contributing to the fund earlier this year.

The money in this tranche will also be used to make interest payments on YRCW’s debt, which at the end of the first quarter was around $ 880 million (compared to a current market cap of around $ 108 million. dollars). Real estate and material leases can also be paid out of the proceeds of Tranche A.

Tranche B will be used to purchase new tractors and trailers. The company’s plan to use a large part of the proceeds from the government investment was announced the day the $ 700 million financial support plan was announced.

See more income on YRCW

The loans come with requirements that the company must maintain liquidity of $ 125 million until it can meet quarterly profit before interest, taxes, depreciation and amortization (EBITDA) targets of between 100 and 200. millions of dollars. YRCW’s first quarter EBITDA was $ 34.1 million.

There is also a requirement that comes from the fact that the money for the investment of the federal government comes from the CARES law created in the event of a pandemic. This requirement is that YRCW keep its March 24, 2020 employment levels stable “to the extent possible” and that if a reduction were necessary, it would not exceed 10% of that number. YRCW has approximately 30,000 employees.

There are also executive compensation requirements. Dividends or other distributions of capital are not permitted until 12 months after loan repayment.

In an interview with the Wall Street Journal, YRC CFO Jamie Pierson said the pushed back debt due date to 2024 will give the company “three and a half years to focus on the business, without no deadline. It’s a new day. We just don’t have to explode. “

In a filing Tuesday with the SEC, YRCW clarified some of the details of the federal government’s investment. The actual stake in the company that the Treasury Department will take is 29.6%.

YRCW stock fell from a recent low of $ 1.46 on June 25, just before the Treasury’s investment announcement, to close at $ 2.55 on Wednesday. It traded up to $ 3.55.

See more Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Utah must take another blow against loan sharks


(Courtesy Kim Raff for ProPublica) Darrell Reese, a Vietnam veteran, stands with his granddaughter, Lily, on his porch at his home in Salt Lake City on October 15, 2019. Reese was arrested on mandate after defaulting on payment for a loan he received from Loans for Less. He missed his hearing because, he said, he couldn’t afford to put gasoline in his car.

Brad Daw has long played Whack-a-Mole with the Utah loan sharks.

Once, the buzzards of the high interest lending industry hit him. They built a large war chest for the campaign, enlisted the help of a since disgraced state attorney general, and beat Republican state representative Orem in the 2012 election.

Daw returned to his seat in 2014 and got back to work curbing the worst abuses of the payday loan mob (they don’t really deserve to be called an “industry”) and other debt providers who practice obscene interest rates.

This legislative session, Daw’s target is a kind of lender that even the mainstream payday loan shops don’t want to be associated with.

It is the mass that deals with somewhat larger sums of money, with longer repayment schedules. The companies that, while Daw was not in the game, pushed the Utah legislature to give them the power to prosecute people who fell behind in their payments, to have them arrested (usually by agents armed forces who are not sworn police officers) and, when the victims of the scam post bail to get out of prison, the money does not go to the person who was arrested, as is normally the case. but is confiscated from the lender.

Conducting non-profit investigative journalism Documented ProPublica at least 17 cases – and there were probably many more – where people who defaulted on their payments for a company called Loans for Less spent anywhere from a few hours to a few days in jail.

This is an extreme example of a system that attacks the poor and the helpless in a way that keeps them poor and powerless so that they can fall prey over and over again.

Daw’s legislation – HB319 – would prohibit such practices. Practices deviously designed to get around the fact that debtors’ prisons in the United States were outlawed by Congress in 1833.

Utah lawmakers are often heard lamenting the phenomenon known as intergenerational poverty. It is the tendency of poor families to stay poor rather than realizing the American dream of climbing the social and economic ladders, as many have done before.

Traps such as inescapable high interest debts – as well as factors such as limited educational opportunities, lack of public transport, unequal pay for women, racial discrimination, lack of access to health care health, unaffordable housing – largely explain that sad trend.

The state of Utah may or may not see its way clear in providing more aid to the poor. But that shouldn’t allow the buzzards that plague the earth with triple-digit interest rates to make matters worse.

Daw’s bill should be approved.

(Trent Nelson | The Salt Lake Tribune) Rep. Brad Daw, R-Orem

Boeing tightens its belt as Max’s crisis drains money


Updates from Boeing Co

The 737 Max crisis took its toll on Boeing’s financial health, burning cash, causing credit rating downgrades and forcing the aircraft maker to apply for a new $ 10 billion loan.

But as Boeing announced in April that it would halt share buybacks, new chief executive David Calhoun said last week that the board had never discussed halting a dividend that had paid out $ 3.9 billion last year. Boeing “will stay on this path unless something dramatic changes.”

The aerospace maker will provide more details this week on the financial tradeoffs it may have to make after the Max’s global downtime transformed the company’s work plane from an engine of growth to a well of Treasury.

Boeing’s finances are “at some point between a severe case of the flu and a heart attack – in an otherwise healthy person who is able to recover,” analyst Craig Fraser of Fitch Ratings said. rating, which downgraded Boeing’s quality debt this month. month.

The company’s defense and services business maintained healthy revenues, margins and cash flow, he said. “Once the leak of funds to the Max is over, the whole company will be pulling in the same direction again. “

But in how long? Analysts put the cost of the downtime at between $ 15 billion and $ 20 billion before Boeing announced a week ago that the Max would remain onshore until mid-year. Each additional month of delay costs the company about $ 1.5 billion, said Ron Epstein, analyst at Bank of America Merrill Lynch. Some analysts believe Mr Calhoun is setting a cautious timetable to avoid repeating the overly optimistic predictions that led to the ousting of his predecessor, Dennis Muilenburg.

But Fitch estimates the company’s debt nearly doubled last year to around $ 27 billion. The company’s free cash flow collapsed as Boeing continued to manufacture planes even though it was prohibited from delivering them to customers. Free cash flow fell from $ 11.1 billion in the first nine months of 2018 to an outflow of $ 1.6 billion for the same period a year later. The company stopped production this month.

Wall Street banks step in

Boeing is working with its bankers to secure a new $ 10 billion loan that would help strengthen its balance sheet, according to several people briefed on the matter, and has received pledges from several major lenders, including Bank of America, Citigroup, JPMorgan Chase, Wells Fargo and Morgan Stanley.

As the company continues to work with regulators on the changes needed before the Max can be safely certified, the loan has been structured to give Boeing great flexibility.

It is a two-year deferred drawing loan, which would allow Boeing to access the funds at a later date, according to one of the people briefed. The largest banks that have engaged in financing are expected to contribute around $ 1.5 billion to $ 1.6 billion each to fund the loan package.

Mr Fraser said the loan could be used to cover Boeing’s cash consumption in the first quarter, to pay off maturing debt of around $ 1 billion, or to refinance commercial paper debt that has become more expensive. as Boeing’s credit profile deteriorated.

Boeing also has an upcoming $ 4.2 billion cash payment for the acquisition of the commercial aircraft business of Brazilian aircraft maker Embraer – a deal it hoped to close by May – although regulators Europeans requested additional information last week, which will likely delay the closing date of the transaction.

The push to secure the new loan comes just months after Boeing increased its revolving credit facility with lenders to $ 9.6 billion. Bank of America, Boeing, Citi, JPMorgan, Wells Fargo and Morgan Stanley declined to comment.

Column chart of cash returns to shareholders (in billions of dollars) showing Boeing halted buybacks but maintained dividend

Boeing maintains a good credit rating despite downgrades from Fitch and the two largest rating agencies S&P Global and Moody’s.

But S&P warned last week that a second downgrade could come and that it was revising the A-minus rating it gave Boeing last month. He could lower the rating if his analysts believed that “Max’s immobilization had weakened Boeing’s competitive position, for example by permanently damaging its reputation with customers and regulators,” he said.

The “Commercial Bank” is closed for the moment

Chief Financial Officer Greg Smith said last year that Boeing had “a lot of leverage” to pull to maintain financial flexibility.

This could include deferring capital spending, Fraser said, adding: “I feel there is a general level of belt tightening.”

Another possibility is that Boeing will bid less aggressively for defense work, said analyst Richard Aboulafia of the Teal Group. The strength of the company’s commercial aircraft business has historically enabled it to undercut its competitors and win contracts such as the US Air Force’s TX advanced trainer, the field support helicopter of MH-139 missiles and the US Navy’s MQ-25 aerial refueling drone. With Max’s crisis causing a large outlay of money, Boeing’s defense arm cannot rely on “the Bank of Commercial” to cover initial losses on large contracts, Aboulafia said.

Share buybacks are expected to remain on hold until 2020 and possibly 2021, Fraser said. Boeing repurchased $ 43 billion of its shares between 2013 and the first quarter of 2019, reducing the number of shares outstanding by 25%. Critics accused the company of being more interested in delivering returns to shareholders than investing profits in engineering.

Boeing will publish its quarterly results on Wednesday. Cowen analyst Cai von Rumohr wrote in a Jan. 22 note that the now extended timeline to put the Max back into service would hurt those revenues in two ways.

Boeing has already levied more than $ 5 billion in fees it owes airlines for the delayed delivery of the Max, and Cowen predicted that Boeing would increase customer compensation reserves by $ 6 billion. Meanwhile, the Max’s reported production costs are expected to increase by $ 4 billion.

Both of these estimates, von Rumohr wrote, now appear low.

The Digitization in Lending Market Report 2020 is Expected to Achieve Highest CAGR, Including Major Key Players – FirstCash, Speedy Cash, LendUp, Elevate, NetCredit, Avant, Opportunity Financial


Added a new report on Global Digitization in Lending Market is a comprehensive research guide encouraging market participants to exercise discretion in investing in order to tap uninterrupted growth and steady income streams. The report is poised to provide high-end insights into current and past market scenarios to influence holistic growth forecast forecasts. The report is designed to influence and motivate companies to engage in unique business ventures for exceptional business results. The versatile insights presented in this comprehensive research documentation offer crucial data related to sales data, along with other statistical data and information crucial to driving remunerative returns on investment in the global digitalization in lending market.

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Insightful detail of the competitive terrain of the global loan digitization market is designed to reveal crucial data on strategic vendor profiles, an elaborate SEO of their strong skills as well as glaring inefficiencies that collectively influence the overall growth trajectory. of the global market for digitization in loans through the scope forecasts. Competent and highly preferred business inclination and investment discretion of each of the highlighted vendors have been pointed out in this report to encourage growth competent investment discretion among the major players in the global digitalization market in the loans FirstCash, Speedy Cash, LendUp, Elevate, NetCredit, Avant, Opportunity Financial, Prosper Marketplace, The Business Backer, Headway Capital Partners, Blue Vine, Lendio, RapidAdvance, Amigo Loans, Lendico, Trigg

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This highly relevant business intelligence report on the Global Digitization in Lending Market is a conscientious delivery of unbiased and unprecedented research activities undertaken by our seasoned research professionals to influence growth specific business decisions.

Market segment by type, the product can be divided into
On the computer
On Smartphone
Market segment by Application, split into
Commercial loan
Personal loans

Regional overview:
The report places ample emphasis on decoding regional and national developments, also giving details on local, global and regional growth scenarios. The report is specifically designed to understand consumer preferences and respective behaviors in order to drive business decisions exploited by international and domestic players in the global digitization in lending market. Some of the major countries that have emerged as strong growth beds include Mexico, Canada, United States, Brazil, Colombia, and Argentina from regions of North and South America. Across the European belt, the United Kingdom, Russia and Italy remain the areas most conducive to growth. In APAC, China, Japan, Australia and Southeast Asia continue to serve as growth hotspots. Across the MEA, the United Arab Emirates, Egypt and South Africa are lucrative growth areas.

The report is also designed to offer an analysis of the evolving track of the digitization in lending market that has withstood significant tremors due to an unprecedented pandemic.

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Important Highlights of the Digitization of Loans Report:

  1. Detailed analysis of current and future market trends, driving forces, threats and opportunistic markets.
    2. The impact of COVID-19 on the market as well as the strategies to overcome the global market slippage were explained through data and tables.
    3. Geographical estimates with special emphasis on regions and their main countries, also taking into account the large markets in smaller countries.
    4. Mention of several company profiles for a better understanding of the players dealing with the products on a global scale with the recent developments of their products and their application in the market.

Additional reports
1. SWOT analysis
2. PEST analysis
3. Value chain analysis
4. Porter’s five analyzes

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Basics of the table of contents:

  • Market Snapshot
  • Analysis of the competition by players
  • Company profiles (top players)
  • Digitization of Loans Market Size by Type and Application
  • Status and outlook of the US market
  • Status and prospects of the EU development market
  • Japanese market development status and prospects
  • State and outlook of the Chinese market
  • Digitization of India in the State and Prospect of the Loan Market
  • Southeast Asia Market Status and Outlook
  • Market Forecast by Region, Type and Application
  • Market dynamics
  • Analysis of market effect factors
  • Research results / conclusion
  • Annex

* Do not miss the business opportunities in the digitization in loans market. Speak to our analyst and get crucial industry insights that will help your business grow. If you have any special requirements, please let us know and we will offer you the report you want.

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How government money is helping UK entrepreneurs survive COVID-19


When the COVID-19 pandemic forced businesses to shut down overnight, the UK government responded with a series of financial measures designed to help business owners and their employees weather the worst of the crisis.

These included the Coronavirus Job Retention Scheme (CJRS), through which the government covers 80% of the costs of employment through grants, the Coronavirus Business Interruption Loan Scheme (CBILS), for small businesses, and a Covid Corporate Financing Facility (CCFF) and Coronavirus Large Business Interruption Loan Program (CLBILS) for large companies. Other aids include subsidies to trade tariffs and options to defer payment of VAT to facilitate cash flow.

Are the programs up to the task? According to a survey commissioned by the financial comparison platform KnowYourMoney.co.uk, 42% of UK businesses have closed temporarily due to the pandemic, with a higher figure among micro (51%) and small businesses (49%).

Almost half (48%) have staff on leave, but the majority (71%) have not yet received financial support from CJRS. More than a quarter (27%) of those who have successfully applied for a business loan during the pandemic have yet to receive it, a third (35%) believe the government has not done enough to help the sector private sector, 40% believing that startups have been overlooked.

Nonetheless, many entrepreneurs and startup founders have found that aside from some complexities around the application process and delays in responses and payments, programs are proving to be essential in helping their businesses weather the current storm.

Continued commercial development during containment

Savile Row’s first female tailor Alexandra Wood is famous for transforming high-profile men’s wardrobes and disrupting the male-dominated industry. She started her career as a seamstress in women’s fashion, but discovered a hidden talent for “making men look more beautiful”. The business she started with £ 1,000 is now running at over £ 300,000 a year.

When the crisis erupted in April, Wood got a grant of £ 25,000 from the government. She tried applying for the CBILS loan program, but gave up after three failed attempts – her bank simply did not respond to her phone requests. She has since successfully applied for a Coronavirus Bounce Back loan of £ 50,000.

She says, “We are using the money to fund the costs of the business while being forced to close, but we are also investing in updating our online imagery, marketing and social media spending to promote and increase our new offer of men’s clothing online. We are moving our business from one-on-one personalization consultations to a personal online shopping experience. We’ll also keep reservations to make sure we’re ready to act when the restrictions are lifted next. “

Manage the loss of major events

Promo Veritas, a London-based marketing agency specializing in ‘promotional compliance’ – ensuring that sweepstakes, contests and instant promotions run by major food and beverage brands are fair, legal and managed with integrity.

Founder and CEO Jeremy Stern explains, “A lot of our work is tied to major events sponsored by big brands, for example Pepsi and the Champions League, Toyota and the Olympics, Cadbury and the Premier League. We immediately felt the impact of COVID-19 with the cancellation of client projects and the team having to work hard to deal with the winners who had already won event tickets or in other cases were already in attendance. foreigner. “

Under lockdown, the 30-person team shifted to working from home, but within days it became clear that there wasn’t enough work for everyone, and Stern turned to the programs. emerging governments.

Fifteen people were put on leave, with the government paying 80% of their wages. Stern completed an online application with HMRC Online on April 26, which took 10 minutes, and within five business days the money was in the company’s bank account.

“Doing the math on the HMRC website is a bit of a hassle, but overall it worked well and certainly saved the jobs of several people,” he says.

He also applied for CBIL funding through his bank, below the £ 250,000 level, and admits it was frustrating. “The start of the complaint was straightforward and involved sending some basic information to our account manager, but then there was silence for two weeks,” he says. “Four weeks after that first request, the bank asked for more cash flow information, but we are hoping for a result this month.”

Stern also revised his forecast and submitted a revised corporation tax claim to HMRC, for much lower profit. “Within six working days we received a refund notification of over £ 70,000 on the basis of the review, compared to what we had already prepaid,” he says. “We have also chosen the VAT deferral option. Delaying payment for this is great for the cash flow, but we are paying PAYE to avoid accumulating too many liabilities in the new year. “

Pivot to online retail

The SEVEN BR7HERS Brewing Co was founded in 2014 by McAvoy brothers, Guy, 58, Keith, 50, Luke, 46, Daniel, 45, Nathan, 43, Kit, 38, and Greg, 36, inspired by the efforts of home brewing from their father in their home cellar. The company has grown year on year and in 2019 achieved a growth of 53%.

Before COVID-19, their beers were sold at some UK retailers and bar groups. With the lockdown, there has been the closure of its own breweries in Manchester and a rapid pivot to e-commerce, which previously accounted for 20% of the business, but is now close to 100%.

CEO Keith McAvoy found it frustrating to navigate government programs, but insists it was a game-changer for the survival of his family’s brewing business.

“Our financial controller left no stone unturned in offering grants, loans, VAT deferral and vacation assistance, and it was not a straightforward process,” he says. “We qualified for CBILS support and trade tariff subsidies, which were granted at the eleventh hour, putting us back in a healthy position to grow our e-commerce business, support our closed breweries and help us get through this. crisis. “

Protect the workforce

While some of the digital marketing agency’s clients Reflecting digital are thriving, others are not operational due to the impact of COVID-19. To alleviate the pressure to cover the salaries of staff they cannot generate income the company turned to the CJRS.

CEO Becky Simms said, “A lot of work has been put on hold and without government support it would have strained our business. We were impressed with how quickly the program was created and operational. We submitted our first claim the week it was launched and the money was in our account within three business days.

We are not very worried about the rate of cash consumption of Great Bear Resources (CVE: GBR)


There is no doubt that money can be made by owning shares of unprofitable companies. For exemple, Resources of the Great Bear (CVE: GBR) has seen its share price rise 380% over the past year, delighting many shareholders. But while history praises these rare successes, those that fail are often forgotten; who remembers Pets.com?

Given the strong performance of its share price, we believe it is worthwhile for the shareholders of Great Bear Resources to consider whether its consumption of cash is of concern. For the purposes of this article, cash consumption is the annual rate at which an unprofitable business spends money to finance its growth; its negative free cash flow. We will start by comparing its cash consumption with its cash reserves in order to calculate its cash flow track.

Check out our latest review for Great Bear Resources

Does Great Bear Resources have a long cash trail?

A company’s cash flow trail is the time it would take to deplete its cash reserves at its current rate of cash consumption. When Great Bear Resources last published its balance sheet in December 2019, it had no debt and cash worth C $ 30 million. In the past year, its cash consumption amounted to C $ 15 million. So there was a cash trail of around 2.0 years from December 2019. While this cash trail was not too much of a concern, sane holders would look into the distance and think about what would happen if the company was running out of cash. You can see how her cash balance has changed over time in the image below.

TSXV: GBR Historic Debt May 11, 2020

TSXV: GBR Historic Debt May 11, 2020

How does Great Bear Resources’ silver consumption change over time?

Since Great Bear Resources is not currently generating any income, we consider it a start-up. So while we can’t look at sales to understand growth, we can look at changes in cash consumption to understand changes in expenses over time. In fact, it has sharply increased its spending over the past year, increasing cash consumption by 200%. It’s fair to say that some sort of rate of increase cannot be sustained for very long without putting pressure on the balance sheet. Great Bear Resources is making us a little nervous due to its lack of substantial operating income. We prefer most stocks on that list of stocks that analysts expect to grow.

Can Great Bear Resources easily raise more money?

Given its cash-consuming trajectory, Great Bear Resources shareholders may want to consider how easily it could raise more cash, despite its strong cash trail. Generally speaking, a listed company can raise new liquidity by issuing shares or going into debt. Usually, a company itself will sell new stocks to raise funds to stimulate growth. We can compare a company’s cash consumption to its market capitalization to get an idea of ​​how many new shares a company would need to issue to fund its one-year operations.

Great Bear Resources’ cash consumption of C $ 15 million represents approximately 2.9% of its market capitalization of C $ 531 million. This means that he could easily issue a few stocks to fund more growth and may well be able to borrow more cheaply.

How risky is Great Bear Resources’ cash position?

Even though its growing consumption of cash makes us a little nervous, we are forced to mention that we thought Great Bear Resources’ consumption of cash relative to its market capitalization was relatively promising. Businesses that burn money are always on the riskier side of things, but after looking at all the factors discussed in this short article, we aren’t too concerned about its rate of cash consumption. It is important for readers to be aware of the risks that can affect business operations, and we have selected 3 Warning Signs for Great Bear Resources that investors need to know when investing in stocks.

Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of companies that insiders buy, and this list of growth stocks (according to analysts’ forecasts)

If you spot an error that needs to be corrected, please contact the editor at [email protected] This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Simply Wall St has no position in the mentioned stocks.

Our aim is to bring you long-term, targeted research analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Thanks for the reading.

Stimulus loan allows Benu to expand its Korean take-out program


When Corey Lee decided to launch a taste of his highly anticipated Korean restaurant, San Ho just won, a few weeks ago – in the midst of the pandemic – it wasn’t supposed to be a lucrative business. Exit the kitchen to Blessed, Lee’s three-Michelin-starred fine-dining restaurant, preview dining was basically seen as a non-profit business, as Lee wanted to provide income for a handful of cooks. Moreover, he promised that 100 percent of the profits would be used to pay for the benefits of its employees on leave: health care, rent assistance and financial assistance for workers who are not entitled to unemployment – plus two meals a day for staff and their families.

Next, Lee was informed that Benu had been approved for a Paycheck Protection Program (PPP) loan – federal coronavirus relief loans intended to provide small businesses with an influx of cash, with the stipulation that to be forgiven, beneficiaries must spend 75 percent of the money on payroll. “For Benu, that means operating the San Ho Won takeout program as a real business instead of a small non-profit,” Lee wrote in an email to Eater SF.

In short, Benu is recruiting. Lee says he’s reinstated about 36 of his employees on leave, most of them cooking for San Ho Won. (A few other cooks prepare staff meals, which are cooked and distributed in another of Lee’s restaurants, In situ, which is currently closed to the public.)

For customers, not much will change. San Ho Won meals, which consist of around six or seven courses, will always be in the same multi-course format and will still cost around $ 48 per person. The main difference is that Benu now has the ability to serve Following meals – 200 of them every day, seven days a week. This is good news for customers who have tried snatching up meals over the past few weeks and found them exhausted.

Benu’s take-out operation still won’t make any money, Lee says, and those 200 meals a day may not provide enough take-out volume to support all of the staff he’s reinstated. In theory, says Lee, the restaurant should be able to break even – if they sell out every day, and if they end up receiving at least some loan forgiveness.

Regarding the PPP loan, Lee says he finally received it after applying for it four times between March 17 and early April, and there are still a lot of details on his terms that he doesn’t understand. perfectly, especially around forgiveness. He is not the only restaurateur to have found the to treat confusing. “How is the loan useful for a restaurant that is not open? Lee says – especially in a city like San Francisco, which comes from has extended its order for shelters in place until May 31. For now, however, he says it’s a good thing he can employ more people.

For lovers of Korean cuisine, the fact that San Ho Won takeout – which marries traditional Korean flavors with modern techniques, and has generally been well received – will be more widely available is good news.

The next set of meals, for next week, will be available for online purchase departure today May 1 at noon, underlined by a spring vegetable bibimbap: ramps, fern, cordyceps and pea leaves on a fried rice with sweet carrots. The meal will also include Korean beef meatballs and a 4-year-old fermented soy stew, as well as a few side dishes and a dalgona (Korean honeycomb) dessert with coffee and panna cotta.

While waiting for federal funds, local small businesses find relief money in other ways


NORFOLK, Va. (WAVY) – There is a lot of talk in the United States about how slowly loans are showing up for small business owners during COVID-19.

East Beach Veterinary Care and Housecalls in Norfolk is one of 121 small businesses in Virginia that get fast and timely repayable loans.

Veterinarian Bonnie Alexander explains:

“The loan gives us a little buffer to take care of my employees who are still working… VA 30 Day Fund responded to our request very quickly, and the application process was very simple… The money is in the bank, and it will be. used for payroll if we need it… and if we don’t need the grant money, we’ll pay it back to the 30-day fund where they can help another small business in Virginia, ”Alexander said.

The 30-day VA funds is the brainchild of little businessman Pete Snyder, CEO of Disruptor Capital. His company is an “angel investor” and he calls himself a tech entrepreneur.

“We’re a lifeline for small businesses because they’re waiting for the federal cavalry to get there (along with the paycheck protection program and other loans),” Snyder said.

Snyder made approximately 121 loans at $ 3,000 each.

Matt Potter, of Chicho’s Pizza in Norfolk, applied online and was almost immediately approved for $ 3,000.

“I was very surprised at how quickly it was. This has been very helpful with some of our payroll payments, and we need to generate profit on a daily basis, ”said Potter.

Snyder said he knew his business could help him.

“Our small businesses are ravaged over there, and we have experience in small businesses, and we know we can help,” he said.

Snyder’s 30 Day VA Fund requires a video on why a business deserves the forgivable loan.

Nick’s Fresh Seafood and Steaks in Virginia Beach also created one.

“We welcome the local crowds and tourists coming out of hotels for the almost famous lobster special,” Katie Cosimano said on the video in an effort to convince Snyder to give them a loan.

Cosimano is the daughter of one of Nick’s owners, Pooch Palluch. She was standing outside with Palluch and her co-owner Frank Chesnick. Cosimano’s video includes emails from clients about how historic and deserving Nick is, Cosimano said.

“You may wonder how long it will take or when you will actually see the money after you get the loan. This is what we are using right now to be open, the money we got, ”she said.

Snyder considers his nonprofit VA 30 Day Fund to be “economic marines” that come to do the job, and he now has powerful partners.

“We have the Greater Williamsburg Partnership and the Williamsburg Community Foundation. They have partnered with us and together we want to put more money in the pockets of small business owners, ”he said.

If you are a small business owner and would like to apply for a $ 3,000 forgivable loan, visit the VA 30 Day Fund website at https://va30dayfund.com/.

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Social Energy, a UK-based solar and battery aggregator, raises funds, plans expansion


UK residential energy aggregator Social Energy is planning international expansion after securing multi-million dollar backing from US alternative investment manager CarVal Investors.

The parties have not disclosed the amount involved beyond saying that it represents “a significant investment”.

Minneapolis-based CarVal Investors bought Social Energy in December of last year, the energy company said in a press release. Following the deal, CarVal Investors London director Stuart Lammin will join Social Energy’s board.

Seven-year-old Social Energy specializes in delivering low-cost energy to residential customers. It sells solar and Duracell home battery systems, then aggregates their production using an artificial intelligence-based measurement system called the Social Energy Hub.

In addition to providing 24-hour electricity to its customers, Social Energy uses aggregated capacity to provide services such as demand response and frequency response to UK power grid operator National Grid ESO, as well as flexibility services to distribution network operators such as UK Power Networks.

About 70% of the revenue from these services is split among Social Energy customers, allowing the energy company to deliver a faster return on investment than residential solar and battery owners would get with a standard self-consumption model.

In the UK, Social Energy says it can help residential customers save an average of £ 226 ($ 310) per year. The company now has 6,300 UK customers, Daniel Mahoney, Marketing Director of Social Energy, told GTM in an interview.

Famous faces in front of the brand

Prior to the ongoing fundraiser, the company had grossed £ 12million ($ 16.5million) from high net worth individuals, he said.

These include two sports celebrities from the world of cricket: Michael Vaughan and Shane Warne, who were captains of the England and Australia national teams respectively. Warne invested in Social Energy in 2019 and helped launch the business in Australia last November.

Mahoney said Social Energy seeks significant growth in the australian market due to the prevalence of residential solar storage and batteries in this country. “We’ve already seen a really strong uptake there,” Mahoney said, without providing any numbers.

The UK averages between 1,500 and 2,000 residential solar system installations per month, he said, “while Australia peaked at 24,000 per month, so it’s really a market 10 times larger “.

The market for adapting batteries to existing residential solar systems is also much larger in Australia than in the UK, Mahoney said. There are around 3 million residential solar systems without batteries in Australia, compared to 1 million in the UK, he said.

Finally, Social Energy hopes to be able to offer its Australian customers much greater savings. The company stated in a tweet that it could save AUD 2,182 ($ 1,679 USD) per year on energy bills, based on its UK business model of selling services to the grid operator.

“In Australia, we can take this complex income and translate it into the feed-in tariff,” Mahoney said. “We pay feed-in tariffs of 40 cents [USD $0.31] per kilowatt hour, compared to a market average of 10 cents [USD $0.08]. “

Enter new markets and deliver new products

The expansion into the Australian market will be partly funded by the cash injection from CarVal Investors. But Social Energy also hopes to use the money to expand in Asia, Europe and North America, with Mahoney citing Japan, Spain and the Netherlands in particular.

In addition, Social Energy hopes to develop new products for its customers. The company is already testing the use of its software to control water heaters and aims next year to cover electric vehicle charging as well.

“An important thing for us is to become a focal point for the home in terms of smart energy management,” said Mahoney.

GTM squared highlighted social energy last year after it became one of the winners of a November 2019 flexibility tender by UK Power Networks, the London and South East grid operator from the United Kingdom. Lime jump, Moixa and Powervault, representing a sample of the competition he faces in his chosen field.

In the United States, companies including Sunrun, You’re here, Generac, sound and Inflate bundle solar battery systems for grid services, although US regulatory structures do not support the same range of revenue-generating services available in the UK In European markets, Sonnen owned by Shell is a major aggregator of solar batteries, with other players with the support of major energy investors such as Tiko supported by Engie.

Beyond the financial weight, one of the keys to success in the residential space is probably a keen sense of customer acquisition and retention. This week, Social Energy’s customer service won an award from the Renewable Energy Association, the UK’s renewable energy and cleantech industry group, which cited Social’s “efficient platforms” and “excellent” response times. Energy.

Cash Refinancing, Home Equity Loans Could Stop – Orange County Register


Who Can Blame Mortgage Lenders Now?

More than 36 million Americans have lost their jobs in the past eight weeks. Nearly 15% of the US workforce is unemployed, according to the US Bureau of Labor Statistics.

Fed Chairman Jerome Powell warned this week: “The scale and speed of this slowdown is unprecedented in modern times, far worse than any recession since World War II.”

Ah, the good old days!

Mortgage lenders calculated their rich returns on cash mortgages by grossing up the cost of their funds. Now they are starting to worry about whether they will ever see a return on their investment.

Nearly 8% of all mortgages are now forborne, according to the Mortgage Bankers Association. Data from the builders survey shows that new mortgage applications fell 25% from March to April.

Foreclosure moratoriums, mortgage loan deferrals, and loan modifications are good temporary balms for saving time. But sooner or later it will be time to pay.

How quickly will these jobs return? Will it be time to replenish your checking account so that you can cover your mortgage? How much is going to get back before mortgage lenders get cranky and start foreclosing?

The largest lending department in the United States, Wells Fargo Bank, stopped cash refinancings a few weeks ago, and it also put the brakes on home equity lines of credit, or HELOCs, after April 30, said spokesperson Tom Goyda.

The Chase Bank stopped home equity loans before Wells did. Several lesser-known HELOC lenders have stopped offering HELOCs or have severely reduced their offers.

Mortgage banking trends eventually turn into a herd mentality, especially once fire sales and foreclosures begin. Median home prices will predictably start to plunge.

The good news: Some lenders still offer cash refinances and HELOCs.

U.S. owners have $ 6.2 trillion in workable equity, according to Black Knight. Thus, 44.7 million homeowners may be able to withdraw a first mortgage and / or a HELOC.

But most lenders have added additional fees in the form of points and require higher average FICO credit scores, tighter income and debt ratios, and have reduced the amount of money you can withdraw when refinancing. of a loan.

Here are some of the more aggressive options that may still be available when it comes to withdrawal:

  1. Conventional, FHA and jumbo financings (over $ 765,600) allow collection of up to 80% of the loan / value ratio.
  2. FHA reverse mortgages can provide up to $ 401,174 withdrawal at age 62 for example or $ 491,515 at age 80. Non-FHA reverse mortgages can lend up to $ 4 million.
  3. VA loans allow up to 100% cash out.
  4. Conventional loans for unoccupied homes offer up to 75% loan repayment to value.
  5. For a HELOC, you can get up to a 95% combined loan-to-value ratio.

The last word: if you think you need the money, get it out now. The longer you wait, the more you risk a complete halt in cash lending of any kind as the mortgage market continues to deteriorate.

If you apply for a HELOC, withdraw the money and put it in your bank account. Lenders have a habit of freezing home equity lines without warning when home values ​​start to plummet.

Freddie Mac Rate News: The 30-year fixed rate averaged 3.28%, up 2 basis points from last week. This is the third lowest rate in 49 years that Freddie Mac has tracked 30-year mortgages, with the lowest (3.23%) occurring two weeks ago.

The 15-year fixed rate averaged 2.72%, down 1 basis point from last week.

The Mortgage Bankers Association said the volume of loan applications was unchanged from the previous week.

At the end of the line : Assuming a borrower gets the 30-year average fixed rate on a compliant loan of $ 510,400, last year’s payment was $ 227 more than this week’s payment of $ 2,230.

What I see: Locally, well-qualified borrowers can obtain the following fixed rate mortgages with 1 point: A 30-year FHA (up to $ 442,750 in the Inland Empire, up to $ 510,400 in Los Angeles counties and Orange) at 2.75%, a conventional at 2.5%, a conventional 30-year mortgage at 2.875%, a conventional high-balance 30-year mortgage ($ 510,401 to $ 765,600) at 3.5 % and a 30-year jumbo variable rate mortgage that is locked in for the first five years at 3.625%.

Eye-catcher loan of the week: A 30-year jumbo mortgage, locked in for the first five years at a 3.5% free rate.

Jeff Lazerson is a mortgage broker and assistant professor at Saddleback College. He can be reached at 949-334-2424 or [email protected] Its website is www.mortgagegrader.com.

Find a South Dakota Business That Has Got an SBA Disaster Loan


SIOUX FALLS, SD (KELO) – KELOLAND News reviewed Small Business Administration (SBA) databases of coronavirus-related disaster loans and payments available on the ASB website. KELOLAND News has compiled the following spreadsheets for South Dakota.

These worksheets are for Economic Disaster Lending (EIDL). Spreadsheets do not include EIDL Advance funds. EIDL Advance funds were originally calculated based on the number of employees listed on a candidate’s COVID-19 EIDL application: $ 1,000 / employee, up to a maximum of $ 10,000, depending on the ASB website.

EIDL cash advances are not to be repaid, according to the SBA. Additionally, recipients of the EIDL advance do not need to be approved for an EIDL loan. EIDL Advance money is no longer available.

You can search by clicking on the links below.

SDBA n ° 1

SDBA n ° 2

SDBA n ° 3

SDBA n ° 4

SDBA n ° 5

SBA says if your identity was used to fraudulently obtain a COVID-19 economic disaster loan, you must download the SBA COVID-19 Identity Theft Letter EIDL and resend the documents to [email protected] The SBA says it will then conduct a review of the reported identity theft and take action to release the loan on behalf of the victim so that they are not liable for the debt.

Coronavirus loan program riddled with potential fraud: watchdog


Suspected fraudsters have infiltrated a loan program meant to help small businesses weather the coronavirus crisis – and the federal government is letting them through, a watchdog has warned.

The Inspector General of the Small Business Administration has received over 5,000 complaints from lenders regarding alleged fraud under the Economic Disaster Lending Program, which offers assistance to traders facing temporary loss of income.

The suspicious activity includes people creating accounts with stolen identities, attempting to transfer federal money to foreign accounts, or attempting to withdraw funds in cash, according to a Tuesday note of the Inspector General’s office.

The crooks also use “romantic scams and social media solicitations” to convince people to pass on personal information which they then use to apply for a loan, the office said.

Financial institutions have reported more than $ 187 million in suspicious transactions, such as $ 1.9 million in pending deposits from the SBA to accounts to be transferred internationally, the note said.

“We are alarmed by these reports, but they are consistent with our investigations, which indicate pervasive fraudulent activity,” the memo reads.

This money is only a tiny fraction of the more than $ 184 billion in disaster loans and advances the SBA says it has distributed to small businesses and nonprofits since Jan.31. The loans are made directly by the SBA and are separate from the $ 659 billion paycheck. Protection program offering federally guaranteed loans distributed by banks.

But the SBA’s internal controls are not strong enough to weed out potential fraudsters, according to the Inspector General. The office said it found $ 250 million in loans and advances the SBA had made to “potentially ineligible recipients” and more than $ 45 million in possible duplicate payments.

“The SBA should take immediate action to reduce or eliminate the risk of fraud by strengthening existing controls and implementing internal controls to tackle potential fraud,” the inspector general’s office said.

A spokesperson for the SBA said the agency had already put in place fraud prevention measures “which have so far prevented the processing of thousands of invalid claims.” The agency also refers suspected cases to the inspector general’s office and works with financial institutions to tackle potential fraud, the spokesperson said.

Neglected community lenders ask for help after missing loan frenzy


“Panic” was how Joe Sky-Tucker described the sentiment of his low-income customers at the end of March.

His Seattle-based organization, Business Impact NW, went out of its way to help clients who often couldn’t get loans from traditional financial institutions. Uneven access to federal aid meant money was shrinking for the institution by $ 12 million, as it faced growing funding requests from panicked clients.

“It was so new that everyone was in a panic: ‘What is going to happen to their business, what is going to happen in the economy, what is going to happen from the point of view of public health, ”Sky-Tucker said. “Everyone was just grabbing, they were desperate for help.”

Congress provided a lifeline for small businesses in late March: the Paycheck Protection Program, a $ 349 billion program to facilitate government-backed forgivable loans to keep businesses afloat. Demand was strong when the program was launched in early April: the funds allocated sold out in less than two weeks and many community development finance institutions (CDFIs) like Sky-Tucker’s have felt left out.

The more than 1,000 CDFIs across the country provide education, investment, and loans to low to moderate income individuals and businesses who typically cannot access credit at major banks and are most at risk in the event. economic downturn.

With Congress set to begin negotiating another back-up plan later in July, CDFIs are looking to the future and seeking new funding mechanisms to support their clients.

“The people we work with feel the effects first, they feel the effects more deeply and it takes them longer to recover,” Sky-Tucker said. “It’s just who we serve.”

First missteps

At the start of the program, hundreds of CDFIs were certified to offer PPP loans, a Treasury spokesperson told Bloomberg Tax, because they were already Small Business Administration approved lenders or because they are federally insured financial institutions or credit unions.

But for many CDFIs, getting an application was almost impossible. Sky-Tucker said his organization was successful in getting eight requests approved into the SBA’s system in the first round of funding, and only after investing in software that processes and submits requests more efficiently.

Tommy Espinoza, CEO of Raza Development Fund, a Phoenix-based CDFI, said the vast majority of his clients are used to dealing with physical cash and paper, unlike the digital submissions required by the program. This barrier alone has delayed her organization’s ability to direct funds to the Latino-owned mom-and-pop stores it supports.

“I would venture to say that the majority of this population, or these companies, have been excluded from this,” Espinoza said. “What is a shame is that some of them may not come back. “

The Treasury spokesman said the government tried, where possible, to include CDFIs from the start of the lending program.

“Since the launch of the PPP, the Treasury and SBA have worked tirelessly to encourage and facilitate the participation of CDFIs so that traditionally underserved communities have the resources they need,” the spokesperson said in a statement to Bloomberg Tax. “We have prioritized and contacted hundreds of CDFIs multiple times since the start of the program with a clear message: CDFIs are sought after as PPP lenders, and it is easy for them to sign up.

Second round changes

The first round of loans was criticized after the money ran out quickly and it was reported that recipients understood large companies like Shake Shack, Ruth’s Chris Steakhouse and the Los Angeles Lakers.

“Banks that have already been approved have gone to their customers,” Lisa Mensah, president and CEO of Opportunity Finance Network, told Bloomberg Tax. “And we knew from the start that their customers weren’t the backbone of the economy.

The Treasury Department has made some changes to program rules when the PPP was relaunched at the end of April with an additional $ 320 billion.

The Treasury has also done more to certify CDFIs, Mensah said, which has required the support of CEOs of some of America’s largest banks, constant harassment from CDFI groups and a surge of members of Congress.

The Treasury spokesman said more than 400 CDFIs were invited to become PPP lenders on April 26, and more than 200 more invited to apply on May 1. noted.

The Trump administration took another step in May to ensure low-income communities have access to P3 funds. The government affected $ 10 billion specifically for CDFIs and later an additional $ 30 billion for small institutions including CDFI.

“I think mistakes were made,” Mensah said. “But the swift response and the surprisingly bipartisan nature of the full-throated set of defenders have been extremely valuable to our industry and our future.”

Until June 27, the SBA had disbursed more than $ 7.3 billion in loans through 303 CDFIs, according to the SBA The data. This number could increase if President Donald Trump signs a bill that authorized Congress to extend the nomination period, which expired on June 30, in August.

Not a universal fit

Even with the increased reach of the Treasury, some CDFIs still chose not to participate.

Inna Kinney, founder and CEO of the Institute for Economic and Community Development in Columbus, Ohio, said her organization refused to participate because CDFI requirements prevented her organization from using the money. The organization has provided nearly $ 6 million in new loans since April.

Kinney cited a provision requiring CDFIs to create, maintain and manage more than $ 50 million in business loans or other trade financial receivables in a consecutive 12-month period in the past 36 months. His organization, one of the largest in Ohio, has total assets of $ 27 million.

ASB relaxed this requirement in early May, but Kinney expressed what many thought: PPP was not designed for organizations like his.

“It’s great for Congress to have all of these programs in place, but they also need to think about how organizations can do it because we don’t have the money like the banks do,” he said. Kinney said.

A direct funding vehicle for CDFIs in the next coronavirus relief measure would go a long way in depleting funds, Kinney said.

Until then, CDFIs will continue to leverage their existing banking partners, local governments and states for more assistance.

“We will strive to be there for our community,” said Espinoza of the Raza Development Fund. “We heard through all this madness: La esperanza que los dieron – everyone, you gave me hope, someone cared.”

Portland Homes For Sale Dip To All-Time Low As Prices Rise In Auction Wars: “Money Is King”


The Portland Metro has never had so few homes for sale as seen in November, giving sellers even more power and forcing buyers to face bidding wars or wait for more homeowners list their residential property for sale, forcing them to trust that they can find another one. place to live.

The dead end has long been familiar to home buyers competing in the Portland area market. Stocks in the basement have been driving prices up for years.

But in November, inventories fell again, to the lowest in the Regional Multiple Listing Service’s (RMLS) 30-year history, and the average selling price hit $ 521,200, an increase of 12. 7% compared to November 2019.

The 2,238 Portland metro homes put on the market last month were down 36.3% from the 3,515 listed in October, according to RMLS.

This graph shows the total active listings over the past three calendar years in the greater Portland, Oregon metropolitan area.RMLS

If sales continue at the same rate, it would only take a month to sell all the homes on the market, according to RMLS.

Six months of inventory is an indicator of a balanced market for both the buyer and the seller.

Inventory is calculated by dividing active residential listings at the end of the month by the number of closed sales and homes proposed and under construction.

“We never had more than a month of inventory,” says Dustin Miller of Windermere Realty Trust in Lake Oswego, in response to the RMLS report. “We are still in shock. Fortunately, the median selling price [$457,000] went down a bit from October [$460,000], which is in part due to the number of high-end ads.

Home sales

Average and median selling price of Portland Metro homes since November 2012.RMLS

The median selling price is the midpoint where half of the properties sell for a higher price and the other half for a lower price.

Compared to the previous 12 months, the median cost of buying a home on the Portland subway jumped 6.5% to $ 435,000, according to RMLS.

“We advise clients to list while stocks are still low, rather than risk that after a [coronavirus] the vaccine was made widely available that people could come back to market at normal rates, ”says Melissa Dorman of Living Room Reality, which is licensed in Oregon and Washington.

“A higher inventory could reduce the heavy bidding wars that we are seeing right now,” she said, adding, “in no way do I see the Portland market going down anytime soon.”

In November, 109 homes and condos sold for over $ 1 million and 15 of them sold for over $ 2 million, Miller says.

“It can really skew the average sale price a bit, but if it holds up I would see it as a real trend, at least for the foreseeable future,” he says.

Two ads for over $ 2 million sold quickly and for real money. “Money is king,” Miller says.

Beth benner from Living Room Realty predicts that it will take at least a large part of 2021 for supply to catch up with demand. “Buyers come to Oregon from bigger, more expensive cities,” she says, “because they can work from anywhere and Portland always seems ‘affordable.’

In November, 2,745 residential properties in the Portland subway changed hands, down 13% from 3,155 October 2020 closings, but a 25.3% jump from 2,191 November closures 2019, according to RMLS.

Benner also says that early home buyers found they needed more space than a studio, and the lowest mortgage interest rates in history can make a lower payment than rent, though. the buyer has a deposit.

A fixed 30-year interest rate is in the 2.7% range as of December 10, according to the Federal Home Loan Mortgage Corporation, known as Freddie Mac.

Some buyers, not wanting to miss a low rate opportunity in a market with little inventory, offer the full asking price or more. To do this, they expect most repairs found during an inspection to be paid for by the seller, estate agents say.

If the buyer isn’t happy with the repair negotiations, there could be a “sell failure,” in which the buyer pulls out and the property bounces back into the market, Miller says.

Ball of Ilysee, lead broker for I Realty’s team, RE / MAX Equity Group, noticed buyers flinch when asked to absorb the full cost of repairs.

“Buyers are less willing to take on updates and repairs. They leave if they feel a house needs work, ”she said in May. “With the rise in prices over the past few years, people have become more and more picky, and with the conditions of staying at home, it can be intimidating for buyers to think of workers in their homes. “

In the Portland subway, the 2,557 homes with an accepted offer, known as pending sales, fell 20.1% in November from the 3,199 offers accepted in October 2020, but represented a 12.4% jump from compared to the 2,274 offers accepted in November 2019, according to RMLS.

The average time to sell Portland Metro residential properties last month before receiving an acceptable offer was 41 days.

Aggravating shortages of homes for sale are a growing population, with homeowners unwilling to sell during the coronavirus pandemic and the September wildfires that destroyed over 4,000 Oregon homes.

The main driver of no-sale, according to the analysis of the National Real Estate Database, is worry about not finding another home.

Many home buyers have broadened their search and are leaving metropolitan areas.

Interest in suburban living, with homes on larger lots, has been increasing in recent years, real estate professionals say, but the coronavirus has amplified the desire for more square footage as well as a backyard. – relaxing course to replace weekend getaways.

“The suburbs have clearly benefited this year from urban thefts and the general implications of the pandemic related to work-from-home opportunities,” says Jim arnal of Living Room Realty.

– Janet Eastman | 503-294-4072

[email protected] | @janeteastman

Want to research real estate listings in Oregon and use local resources? Click here.

What Every Student Loan Borrower Should Know About The New Relief Law


The tax code provides for several exceptions to this logical treatment, one of which concerns student loans. If the loan requires a student to work “for a certain period of time in certain occupations” in exchange for “paying off the loan,” then that paid debt is excluded from taxable income. A similar exception applies to students who work for public interest organizations such as public defender’s offices or non-profit hospitals for at least ten years. But apart from these two situations, when a student loan is canceled, the released balance is generally taxable.

The new provision concerns so-called “income-based repayment” student loans that require a person to pay amounts based on their annual income for twenty or twenty-five years, depending on the specific program involved. After this time, any remaining loan balance is canceled. Prior to the adoption of this new provision, the remaining loan balance was taxable in the year the loan was canceled. The new provision, however, makes the forgiven loan balance tax-exempt if the forgiveness occurs between 2021 and 2025.

This arrangement is remarkable for three distinct reasons. First, while all other payments and tax credits included in the American Rescue Plan Act only apply to 2021, this provision applies for a full five years. Second, there is no dollar limit on the amount of forgiven debt that can be considered tax-free income. And third, there is no income limit for taxpayers who can avail themselves of this provision, unlike the other benefits provided for in the new law.

This new provision is a huge benefit to taxpayers who complete their required payback period within the five-year term of this provision, and other student borrowers may hope that this provision could be extended beyond 2025. Although the new The law does not cancel any student loans, it could foreshadow more important changes to come.

Richard L. Kaplan holds the Guy Raymond Jones Chair in Law at the University of Illinois College of Law at Urbana-Champaign.

Billionaire Kanye West’s Yeezy Received Multi-Million Dollar PPP Loan



On his heels announcement running for president, documents reveal that billionaire Kanye West’s fashion company Yeezy has received more than $ 2 million through the Paycheck Protection Program (PPP) – he owns 100% of the company that Forbes estimates close to $ 1.3 billion in 2019.


Yeezy received between $ 2 million and $ 5 million through the PPP and said he saved 106 jobs, according to a report disclosed Monday by the Small Business Administration (SBA) of the US Treasury.

The US Treasury released the names of companies that received P3 loans over $ 150,000 after Democrats, government watchdogs and media required more transparency.

ASB noted that loans over $ 150,000 represent almost three-quarters of the total amount of loans approved, but that 87% of businesses received loans below this amount and the average is $ 107,000.

Other companies linked to the Trump administration I have money this tour, including the family business of Transportation Secretary Elaine Chao, Foremost Maritime and Joseph Kushner Hebrew Academy in New Jersey, named after Trump’s son-in-law and Councilor Jared Kushner’s grandfather.

key background

The PPP was created under the $ 2.2 trillion CARES law, enacted by Trump in late March. Saturday, Trump signed in law a bill to extend the PPP for another five weeks, just three days after it expires.

chief critic

Treasury Secretary Steven Mnuchin hinted last month that the Trump administration would not disclose the names of the companies because it considered the loan information to be owner and confidential to business owners. The Treasury and the SBA later noted they would publish the names and data of businesses with loans of $ 150,000 or more.

further reading

Trump administration releases list of companies that received most money from small business bailout loans (CNBC)

Trump signs PPP extension bill – giving small businesses 5 extra weeks (Forbes)

Elon Musk and Kim Kardashian back Kanye West’s candidacy for president (Forbes)

Kanye West is now officially a billionaire (and he Truly Wants the world to know (Forbes)

Disclosure: Forbes Media LLC confirmed on July 6, 2020 that it received a Paycheck Protection Program loan of $ 5-10 million on April 15.

Buy cash or get a mortgage?


Many homebuyers use a mortgage to buy a home, but there are those who are fortunate enough to be able to pay in cash – and in today’s booming real estate market, cash buyers have a lot more leverage. Is buying a house with cash the best financial decision? If you weigh the pros and cons of buying a home for cash versus getting a mortgage, here are the main points to consider.

When should you consider paying cash for a house?

A single cash offer could be profitable in several ways. Here are a few reasons to consider making one:

To beat other buyers

In today’s market, sellers favor cash offers because they will be able to close the sale faster and without the risk of seeing the deal collapse if a mortgage approval does not go through as planned.

To speed up the process

Paying cash can also simplify the home buying process. There’s no loan application, underwriting, or approval, so you’ll save yourself the potential headaches and stress of dealing with a lender, and you might not have to wait that long. to conclude.

To ignore the upfront fees

If you have the funds, paying cash for a house definitely saves you money, since you won’t have to pay the costs associated with a mortgage. Origination fees, evaluation fees and others closing costs can total several thousand dollars.

To reduce your costs in the long run

Without a loan, you also won’t be spending money each month on interest charges, which add up to the typical 30-year mortgage.

“You don’t have a mortgage payment and paying cash gives you the actual opportunity cost of the mortgage,” says Leon LaBrecque, director of growth and certified financial planner at Sequoia Financial Group in Troy, Michigan. “Not having a 2.875% mortgage is like earning 2.875%.”

When should you consider getting a mortgage?

The question is not simply “Can you buy a house with cash?” ” although. It’s important to ask yourself if you should be spending all that money up front. Here are some of the benefits of borrowing a mortgage instead of using your own funds to buy a home:

To earn more than what you save

A compelling reason to consider getting a mortgage is historically low interest rate. Currently, the benchmark 30-year fixed-rate mortgage is 3,000%, according to Bankrate’s survey of domestic lenders. Locking in a low fixed rate on a 30-year mortgage helps you free up money for other purposes, like a mortgage. emergency fund, investments or the financing of your retirement accounts.

To reduce your tax bill

If you normally itemize deductions on your tax return, getting a mortgage can reduce what you owe because mortgage interest is tax deductible. This can be very important for high earners who typically retail and want to maximize their deductions.

To build credit

Having debt is not necessarily a bad thing. Have a mortgage gives you the chance to make those regular payments that make you look great in the eyes of the major credit reporting agencies. In the long run, managing your mortgage debt on a regular basis can help improve your credit score.

“Mortgage debt is good debt because it is about an asset that appreciates, not an asset that depreciates like a car or a boat,” says Allan Moskowitz, a certified financial planner at Transformative Wealth Management in El Cerrito, in California.

Considerations to Consider When Deciding to Buy a Home with Cash or a Mortgage

When considering buying a home with cash, ask yourself these questions to help guide your thinking:

1. What is the state of the housing market?

If you really want to secure this home, keep in mind that another buyer might feel the same way. If so, an all-cash offer can make all the difference. A recent report Real Estate Brokerage Redfin has found that making an all-cash offer improves the odds of winning a auction war by 290 percent.

2. How much more will you pay with a mortgage?

Suppose you want to buy a house for $ 360,000, making a 20% payment of $ 72,000 for a 30-year mortgage for the remaining $ 288,000, with a fixed interest rate of 3%. The closing costs are typically 2% to 4% of the loan principal, so in this case, that’s between $ 5,760 and $ 11,520.

Using Bankrate Mortgage Calculator, at the end of the loan term, you can estimate that you will pay a total of approximately $ 149,167 in interest. By adding your total interest to your closing costs, you will end up paying an additional $ 154,927 to $ 160,687 over a 30-year period.

This cost could be offset to some extent if you are a taxpayer who itemizes deductions on your return. You could get tax savings every year if you are able to deduct your mortgage interest payments. If you are married, you can deduct interest up to $ 750,000 from qualifying home loans. If you are married and file separately, this limit is halved to $ 375,000. If you are planning to buy a house with cash or take out a mortgage, you can use Bankrate’s mortgage interest tax deduction calculator to understand how a mortgage will impact what you owe.

3. How much money will you have left if you pay cash?

If you are paying cash for a house, you might feel good knowing that you won’t have bills for your mortgage, but make sure you don’t stretch your finances too much to achieve this. You will still need to have an emergency fund in place, and you will need enough money to cover home maintenance and repairs. You’ll also want to make sure that your cash purchase doesn’t impact saving for retirement or other overall expenses.

At the end of the line

Ultimately, the competition between buying a home with cash and a mortgage depends on your overall financial situation, not just the home itself.

Buying cash to save on mortgage interest might not be the best choice if you would otherwise be able to invest the money, in the stock market or elsewhere, for a higher return. If you can lock in a mortgage at today’s low rates, you can take advantage of the lender’s money to purchase your home.

Getting a mortgage can offer great financial flexibility by keeping more of your cash to use in an emergency – but, for retirees or those who want to be debt-free, buying cash can offer certainty. and security difficult to implement. price on. Whatever your age or financial situation, paying with cash gives you the peace of mind that you are not in debt on your most important asset: your home.

If you decide to buy your home with a mortgage, you can easily compare mortgage lenders and offers on Bankrate. Whether you’re looking for a 15-year or 30-year mortgage, you can compare rates from lenders in your area, along with estimated closing costs, to find out the true cost of financing your home.

Learn more:

Here’s how the small business loan program went wrong in just 4 weeks


Trish Pugh started a trucking business in Ohio with her husband in 2015. Even for a small business, it’s small – they had two drivers, including her husband, until they let go of one. cause of the coronavirus crisis.

And so, his company applied for a loan under the $ 349 billion first round of the Paycheck Protection Program, which the federal government put in place to save small businesses.

It didn’t go well.

First, there was confusion between her, her banker, and the Small Business Administration over the forms needed to apply. And then, once she did, she soon found out that she had missed the money.

“I click on this website and it tells me I have to reapply when more funds are available. I was devastated,” she said.

Not only did that first pot of PPP money run out in 13 days, freelancers like Pugh were only able to apply for a week. after the program opened. This puts them far behind other companies in the first come, first served program.

“We’re basically preparing to lose everything, and it’s really sad because we did it on our own at the start,” Pugh said as she prepared to apply for the second round of the program, which features funding of $ 321 billion. “Now that we need help, we cannot get help.”

Pugh has since informed NPR that she ended up getting a loan of just over $ 10,000. It will help her, but she doesn’t know how long it will keep her business running.

Frustrations like Pugh’s have been common since the launch of the Small Business Rescue Program. But his experience was only part of the problems that plagued the PPP in the first round when the program ran out of money and also the faltering start of the second round. Here is a list:

Some not-so-small businesses, like Shake Shack, have obtained loans

The PPP was created to allow any business with less than 500 employees to obtain loans. But several large companies that operate with fewer employees in separate locations, under a franchise model, have also applied for and received loans. Shake Shack, for example, employs nearly 8,000 people at its 189 US restaurants, but only about 45 at each site.

So the chain applied for and got a $ 10million loan from the SBA, causing public outcry, especially after building up evidence that many small restaurants in need of the cash were unable to obtain. loans. Shake Shack quickly returned the money. The company, which has $ 104 million in cash and cash flow, said he obtained other loans to cover the money allegedly coming from the SBA.

Likewise, the chain of steakhouses Ruth’s Chris Steak House, which has approximately 5,700 employees, received a total of $ 20 million and also returned it.

The LA Lakers also got a loan

Then there were other organizations that are not quite what most people would call a small business. As the Los Angeles Lakers basketball team, the eighth most valuable sports team in the world, valued at an estimated $ 3.7 billion, according to Forbes.

But the Lakers applied and received a $ 4.6 million small business loan. Once again, after media coverage, the Lakers decided to return it.

“Once we found out that the program funds had run out, we repaid the loan so that financial support was directed to those who need it most,” the team said in a statement.

Shortly after public outrage over well-known large corporations escalated, the SBA announced it would take a closer look at PPP loan applications over $ 2 million.

Banks raised $ 10 billion, just in fees

Another big beneficiary of the small business loan program: the banks.

Even though tens of thousands of small businesses were excluded from the program, banks have incurred more than $ 10 billion in fees, according to an NPR analysis of financial records.

SBA guaranteed loans carry very little risk and banks were happy to hand out larger loan amounts, resulting in higher fees.

Much of the money was spent on successful businesses, not struggling

Big business, as we now know, got loans. Now, it looks like businesses haven’t had to struggle to get a loan either.

Chembio diagnosis, a Long Island, NY-based company that manufactures infectious disease tests, has secured nearly $ 3 million from the program.

It was exactly the kind of cash injection the business needed to grow. “In order for us to be able to increase our manufacturing capabilities, we thought having this additional amount or loan would be very helpful,” said Gail Page, Chembio board member and former interim CEO.

The problem is, the program was not designed to help businesses grow. It was meant to save small businesses, nonprofits, and the self-employed who struggled to make their payroll or pay for benefits and utilities.

Some small businesses say loans have too many chains

Business owners lucky enough to get the financing said the money kept their businesses afloat. However, some owners also said The PPP rules do not allow them to use the money in the way they consider best.

Among their biggest complaints: 75% of the amount given back on loans must be spent on payroll. The rest can only be spent on a few categories: rent, mortgage interest, or utilities.

But with many businesses unable to reopen, owners are wondering how to spend so much on wages when they have little to no work for their employees.

“I understand in principle that this encourages us to get people back to work,” said Christian Piatt, co-owner of Brew Drinkery in Granbury, Texas. “But in practice, when you have a retail storefront that is not licensed by local authorities to operate as we did before, there should be some consideration to take that into account.”

Will the loans have to be repaid or will they be canceled?

To further complicate all of this, some businesses and finance professionals are unsure whether loans will need to be repaid or canceled. They were waiting for more details from the SBA on how forgiveness works.

“In some ways they really put these small businesses in a very compromising position because they could end up in a situation where they would spend money to get people back on the payroll which ultimately will not be forgiven. the end, ”said Don Stevens, managing partner of private client services at the accounting firm CohnReznick.

It is important that businesses understand all of this quickly. Forgiveness calculations will be based on how businesses spend their money within eight weeks of receiving it. The program opened on April 3, so there are about four weeks left before the first companies have to report their expenses to the SBA.

And just when you think things couldn’t be worse the site has crashed the first day of the reopening of the second round of financing, April 27.

Copyright 2021 NPR. To learn more, visit https://www.npr.org.

What is a combined loan-to-value ratio?


The combined loan-to-value ratio (CLTV) is a calculation used by mortgage and loan professionals to determine the total percentage of a homeowner’s property that is encumbered with liens. The CLTV ratio is determined by adding the balances of all outstanding loans and dividing by the current market value of the property. For example, a property with a first mortgage balance of $ 300,000, a second mortgage balance of $ 100,000 and a value of $ 500,000 has a CLTV ratio of 80%.

Lenders use the CLTV ratio along with a handful of other calculations, such as the debt to income ratio and the standard loan-to-value ratio (LTV), to assess the risk of granting a loan to a borrower. The CLTV ratio differs from the standard LTV ratio because the latter only compares the balance of a loan to the value of the property. In the example above, the property has an LTV ratio of 60%, which is obtained by dividing only the balance of the first mortgage by the value of the property.

Many economists attribute the relaxation of CLTV standards to the seizure crisis that plagued the United States in the late 2000s, among other factors. Beginning in the 1990s and especially in the early and mid-2000s, homebuyers frequently took out a second mortgage at the time of purchase instead of making down payments. Lenders, keen not to lose these clients’ businesses to competitors, have agreed to such terms despite the increased risk.

Before the real estate bubble that spread from the late 1990s to the mid-2000s, it was common practice for homebuyers to make down payments totaling at least 20% of the purchase price. Most lenders have kept clients within these parameters by capping the LTV at 80%. When the bubble started to heat up, many of those same companies took steps to allow customers to bypass the 20% bet. Some lenders have raised LTV caps or removed them altogether, offering mortgages with down payments of 5% or less, while others have kept LTV requirements in place but raised CLTV caps, often to 100. %. This maneuver allowed clients to take out second mortgages to finance their 20% down payment.

The foreclosure peak from 2008 underscored why CLTV is important. Having the skin in the game, such as an initial down payment of $ 100,000 for a $ 500,000 home, provides the homeowner with a powerful incentive to maintain their mortgage payments. If the bank forecloses, he loses not only his house but also the pile of money he paid to close. Requiring equity in the property also insulates lenders from falling property prices. If a property is valued at $ 500,000 and the total of the liens amount to $ 400,000, the property can lose up to 20% of its value without any lien holder receiving a short payment upon termination. a foreclosure auction.

Loan funds attract new money as interest rates rise


State Street Corp Updates

Investors have invested more money in bank loan funds over the past week than at any time in more than a year as rising interest rates have increased the attractiveness of fixed income assets. variable compared to traditional bonds.

Loan funds posted net inflows of $ 925 million in the week to Wednesday, the largest in 55 weeks, according to EPFR Global.

The flows came the same week the benchmark 10-year Treasury yield hit a seven-year high above 3%, and after short-term rates rose sharply this year, in line with rate hike expectations. from the Federal Reserve.

Loans generally pay a variable rate, which increases with the underlying rates. In contrast, rising rates erode the value of fixed-rate securities.

Funds that invest in high yield bonds, which pay a fixed rate, suffered outflows of $ 1.3 billion last week, the EPFR said.

“We’ve certainly seen a lot of interest,” said Matthew Bartolini, head of SPDR Americas research at State Street Global Advisors, citing “the rising rate environment, particularly on the short end of the curve where the [Federal Reserve] has a lot of influence ”.

The US central bank has been raising short-term rates since December 2015, but the pace has picked up over the past year and a half, pushing short-term rates higher. The US three-month Libor rose to 2.33% from 1.45% at the same date last year. Interest on bank loans is usually tied to Libor.

Bank loans tend to take priority over other forms of borrowing, which puts them at the top of the pecking order for payments in the event of a business failure. But these investments are not without risk, especially in times of high demand.

“We have been optimistic, but we are starting to get more cautious,” said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors. “There were a lot of new issues in the first quarter. The problem when borrowers take on more variable rate debt as a percentage of their total liabilities is that it accelerates their inability to pay that variable rate coupon.

The value of the US leveraged loan market broke the $ 1 billion mark for the first time in recent weeks, raising concerns in some quarters. Lending standards can deteriorate when demand is strong, and so-called light covenants, which offer less protection to investors, accounted for 80% of the total issued in April, according to S&P Global.

Elsewhere in EPFR data, which covers the week ended Wednesday, funds investing in Chinese stocks have attracted $ 545 million in new cash, eight straight weeks of net inflows. This is the longest streak since the first quarter of 2013.

Funds that buy stocks in the Greater China region, which includes Hong Kong and Taiwan as well as the mainland, have attracted more than $ 300 million, the most since June 2015.

Investors said enthusiasm for the Chinese economy and the inclusion of domestic Chinese equities, known as A-shares, in the MSCI Emerging Markets benchmark next month outweighed concerns about trade tensions with the United States.

US equity funds also had a good week, with net inflows of $ 8.8 billion, a nine-week high, while emerging market bond funds remained under pressure. Net repurchases of the latter amounted to $ 1.27 billion.

Who benefits from the student loan forgiveness? It is complicated


The Department of Education (DOE) has given the more than 40 million Americans who have direct federal loans and PLUS loans an extra month of respite. The forbearance extension, the pause in the accumulation of interest and the suspension of collection activities will run until January 31, 2021.

Jill schlesinger

The decision should help borrowers prepare for the future. Although President-elect Joe Biden has not pledged to take any specific action on student loans, he is expected to continue to freeze payments and interest before considering his campaign politics education loan goals, which included : assistance for undergraduate borrowers earning $ 25,000 or less; automatic enrollment in the income-based repayment program, with the option to opt out if borrowers so wish; and changes to the taxation of debt forgiveness. The Biden plan also envisioned canceling up to $ 10,000 in debt for students working in national or community service.

The idea of ​​a wider student loan forgiveness always sounds like a great concept, but is it? The recent Federal Reserve Survey of Consumer Finances (FCS) noted that the nearly $ 1.6 trillion in student debt continued to be the largest source, in terms of dollars, of non-mortgage debt owed by American families. This fact might lead you to think: let’s get rid of it. But critics argue it would favor the wealthier people. The Fed’s investigation highlighted the problem, which became a flashpoint in the conversation: “Student debt has historically been disproportionately held by high-income families, which can likely support their families. loan repayments. Indeed, in each survey, more than half of outstanding student debt belonged to the top 40% of the income distribution, and the bottom quintile never held more than 14% of debt.

Researchers Sylvain Catherine, from the Wharton School of Business at the University of Pennsylvania, and Constantine Yannelis, from the Booth School of Business at the University of Chicago attempted to address the problem in a recent working paper. They found that “forgiveness would benefit the top decile just as much as it did the bottom three deciles combined” and “blacks and Hispanics would also benefit much less than the sales suggest.” And of course, canceling student debt wouldn’t benefit millions of Americans who didn’t go to college at all.

Hal Singer and Shaoul Sussman refute the argument that student debt cancellation is regressive in the American Prospect, saying it would “further reduce the student debt burden for low-income indebted households. In other words, low-income households would get the greatest relief in relation to their income. “

A closer look at the numbers strengthens the case for capping student loan forgiveness at a lower level. The Brookings Institution has found that “a very small fraction of all student loan borrowers have very large loans. Six percent of borrowers have more than $ 100,000 in debt, ”which represents about one-third of outstanding debt. “At the other extreme, 18% of borrowers have less than $ 5,000 in student debt. They collectively owe 1% of the outstanding debt.

While borrowers are likely to be relieved, is forgiveness the best way to stimulate economic activity? Jason Furman, former chief economist to President Obama, is not so sure. He tweeted: “I see very little overall help in this.” The singer and Sussman don’t buy it. They cite research from the Federal Reserve Bank of New York that shows student borrowers refrain from buying homes or cars because of their debt load. Without the debt anvil hanging over them, they might be able to participate more fully in the economy.

Where is this taking us? There are no simple answers, but I hope the post-COVID country is focusing its energy on how to fix the failing higher education system, root and branch, not just the associated loan programs. to diplomas.

Jill Schlesinger, CFP, is a CBS News business analyst. A former options trader and CIO of an investment advisory firm, she accepts comments and questions at [email protected] Check out his website at www.jillonmoney.com.

US Small Businesses To Get More Money With Pandemic Loan Program Reopened By Reuters


© Reuters. FILE PHOTO: Chinese restaurant and barber shop in Harlem closed,

By Michelle Price and Pete Schroeder

WASHINGTON (Reuters) – The U.S. government was scheduled to reopen its pandemic small business assistance program on Monday with $ 284 billion in new funding and overhauled rules that aim to provide cash to businesses most in need while eliminating fraud and abuse.

The Small Business Administration (SBA) announced Friday that it will launch a third round of the Paycheck Protection Program (PPP) this week, starting with small community financial institutions on Monday and larger lenders in the coming days.

By prioritizing small lenders, the SBA hopes to respond to criticism from lawmakers that minority and female-owned businesses did not get enough money in the first two PPP rounds last year by compared to large companies.

Administration officials told reporters on Friday they expected sufficient funds to meet demand.

Under the program, lenders on behalf of the government distribute loans that can be canceled provided the money is spent on eligible costs, such as payroll and rent. To date, the PPP has distributed $ 525 billion through more than 5 million loans.

Congress authorized the new funds last month as part of another pandemic stimulus package that also relaxed P3 rules on who can get money and what it can be spent on.

Among the main changes, companies that took cash in the first two rounds will be granted a second PPP loan on the condition that they can show a 25% impact on their revenue. To address concerns about fraud, the SBA is also introducing new due diligence checks.

For details on program changes, see FACTBOX [L1N2JJ2XB].

While lenders say the changes are positive, some fear they may cause initial problems, especially since the updated application forms and SBA guidelines were not released until Friday.

“It’s great but it’s really complicated,” said Dan O’Malley, CEO of Numerated, which provides PPP loan processing software.

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Restaurant industry calls for changes to small business loan program


The restaurant industry is calling on Congress to make changes to the Paycheck Protection Program (PPP), as well as provide additional funding to help struggling businesses during the coronavirus pandemic.

The National Restaurant Association wrote to congressional leaders on Thursday asking for revised loan restrictions so restaurants can spend 50% or more of loans on non-salary expenses, up from the currently prescribed 25%.

The group also called for a flexible schedule for using the loans, including extending the eight-week period to use the loan and allowing restaurants to have at least 90 days from their full reopening to rehire employees.

“A growing number of restaurateurs are concluding that the PPP is not going to prevent them from permanently shutting down operations in local communities,” wrote Sean Kennedy, executive vice president of public affairs for the group.

The Senate and the administration are negotiate a deal provide an additional $ 250 billion to the $ 349 billion program that the Department of the Treasury and the Small Business Administration (SBA) deployed applications for the last week.

The letter also calls on businesses applying for loan forgiveness to be allowed to defer payroll taxes due this year over the next two years, loan forgiveness exemptions for restaurants that cannot retain employees, insurance that nonprofits can get loans, deferred tax payments, better access to disaster loans, and improvements to the employee retention tax credit.

“The severity of this pandemic has made it clear that restaurants will remain closed – or severely reduced in service – much longer than originally planned. Once “normal” operations resume, virtually every restaurant in this country, from the favorite restaurant to the local icon, will be a virtual startup in desperate need of money, ”Kennedy wrote.

Kenny called the impact on the industry “devastating” and said that in the first three weeks of the shutdown 3 million jobs were lost and 15% of American restaurants have closed permanently or are likely to shut down. do so over the next two weeks. The group predicts that revenue losses in March and April will be around $ 100 billion.

“The principle of PPP is an important first step for restaurants surviving this crisis, but there are warning signs that it is not providing the relief our industry desperately needs,” Kennedy wrote. “The PPP is funded at $ 349 billion, and we expect lenders to hit that cap shortly.”

Premier League clubs wait behind the scenes as Fiorentina look to capitalize on Alban Lafont this summer


Alban Lafont is seen as Hugo Lloris’ natural successor for France after breaking through as a teenager … a slew of Premier League clubs wait behind the scenes with Fiorentina ready to capitalize on one of the best prospects goalkeeper from Europe

  • Frenchman Alban Lafont is seen as Tottenham’s Hugo Lloris’ natural successor
  • The 22-year-old is quickly building a reputation for being an excellent marksman
  • Loaned to Nantes, Lafont is considered one of the most promising goalkeepers
  • Fiorentina will look to cash in on Lafont this summer as they seek to raise funds
  • Many Premier League clubs keep an eye on the French U21 international

Alban Lafont is already hailed as Tottenham’s Hugo Lloris’ natural successor, but news of his emergence is spreading beyond France.

The athletic goalkeeper was named Monday in the strong France team for the European Under-21 Championships.

He will start as his nation’s No.1 ahead of Leeds United’s Illan Meslier in the group stage kickoff next week and will be closely watched by scouts from across the continent, including the Premier League. Lafont, loaned to Nantes by the Italian team of Fiorentina, quickly created a reputation for being an excellent marksman.

Nantes lender Alban Lafont is spotted by the biggest European clubs for a summer move

This was further underscored by his exceptional performance last weekend when Nantes claimed a surprise 2-1 victory over Paris Saint-Germain.

Lafont continually thwarted Mauricio Pochettino’s side with a series of saves frustrating Kylian Mbappe, Angel di Maria et al.

And his form has led parent club Fiorentina to consider cashing in this summer as they seek to raise funds after the pandemic. Nantes also has an option to buy it for just £ 6million.

The 22-year-old is seen as the natural successor to Tottenham's Hugo Lloris (above) for France

The 22-year-old is seen as the natural successor to Tottenham’s Hugo Lloris (above) for France

Lafont helped Nantes to a surprise 2-1 win over PSG last weekend

Lafont helped Nantes to a surprise 2-1 win over PSG last weekend

Lafont made headlines in 2015 in Toulouse when he became the youngest goalkeeper in history to play in Ligue 1 at just 16 years and 310 days old and helped the club avoid relegation with eight clean sheets in 24 games.

He went on to make 106 appearances for Toulouse and sparked interest from Arsenal before being sold to Fiorentina at the age of 19 for £ 6million in 2018.

Although he had a few good times at first, the young goalkeeper wanted to leave Fiorentina and the decision was made to loan him to Nantes for two seasons.

There he reaffirmed his status as one of Europe’s top goalkeeper prospects and alerted clubs from England, Germany, Spain and Italy.

Fiorentina will look to take advantage of the athletic goalkeeper this summer to raise funds

Fiorentina will look to take advantage of the athletic goalkeeper this summer to raise funds

Standing at just over 6-4, Lafont started out as an attacking midfielder, which may explain his passer-by skills, but, having embarked on a career in goal, he followed the styles of the he former Manchester United goalkeeper Edwin van der Sar and Manuel of Bayern Munich Neuer is arguably more mobile.

He will take his place in Nantes’ goals on Sunday in what could prove to be decisive for relegation against Lorient before starting for France U21 against Denmark next Thursday.


US Treasury and Fed Work on Main Street, Municipal Lending Facilities: Mnuchin


WASHINGTON (Reuters) – US Treasury Secretary Steven Mnuchin said on Tuesday that more than 3,000 lenders were participating in a new $ 349 billion coronavirus small business loan program, and that the Federal Reserve and the Treasury were trying to set up facilities to support “Main Street” and municipal borrowers.

FILE PHOTO: Treasury Secretary Steven Mnuchin discusses details of economic relief during the daily coronavirus response briefing as Small Business Administrator (SBA) Jovita Carranza listens at the White House in Washington, US, April 2, 2020. REUTERS / Tom Brenner

“If you can’t get the loan today or tomorrow, don’t worry there will be money,” Mnuchin told Fox Business Network, referring to small business loans. “If we run out of money, we’ll come back and get more.

“There is tremendous demand,” he said. “This is the third day that this program is operational.”

Mnuchin said the initial difficulties in launching the small business lending program were due to banks being “overwhelmed” with demand for loans.

Mnuchin said the small business loans could be considered grants and aimed to support about half of the U.S. workforce for about eight weeks during coronavirus shutdowns and quarantines.

The Treasury and the Fed are hoping the Main Street lending facilities will be “up and running quickly,” he said. This program will tap a $ 454 billion pool of treasury capital to support Fed loans to small and medium businesses with up to 10,000 employees.

The same pool of capital will also support a Fed facility to support municipal bond markets which have largely seized up, preventing cities, states, counties, school districts and hospital groups from raising funds with new bond issues. ‘obligations.

The Treasury will pursue $ 46 billion in direct loans to airlines and national security-related companies under the $ 2.2 trillion coronavirus rescue bill passed in late March.

Discussions on the next phase of the coronavirus economic stimulus have started, but Mnuchin said his top priority was to quickly deploy existing funds to the economy.

“We have $ 6 trillion to invest in the economy, we are meeting with all the airline advisers this week, we are working on it very quickly,” Mnuchin told Fox Business. “So I can assure you that the president has asked us to quickly inject this money into the economy.”

Reporting by David Lawder and Doina Chiacu; Editing by Chizu Nomiyama and Jonathan Oatis

Advantages and disadvantages of obtaining a personal loan


Personal loans in the USA are provided by various creditors – banks, MFIs, microcredit companies, etc. Nowadays, they have made the credit granting process as easy as possible, which makes the idea of ​​getting personal credit very appealing. However, before asking for money, it is worth weighing up the pros and cons of this decision.

Advantages and disadvantages of personal loans

In general, the advantages of obtaining loans are as follows:

  1. Fast processing – approximately 5 to 60 minutes is spent on obtaining a cash loan. If you are applying for a loan online, this process is even faster. Access to the service is available 24 hours a day.

  2. The high percentage of approvals – zaplo and many other companies have reduced their demands on borrowers. Today, creditors even lend to individuals with outstanding loans or a damaged reputation. As a result, the probability of obtaining credits is close to 95%.

  3. Minimum package of documents – if personal credit is low, you will only need the basic documents to provide.

Of course, getting consumer loans has some drawbacks:

Every financial product has additional fees, interest rates that increase the real cost of credit. These funds cover the salaries of equipment, rent for premises and problem loans. Knowing the amount of fees charged and how the payments are made, one can choose a beneficial consumer loan without a large overpayment. That is why you should trust not the advertisement but your own attention.

Terms and conditions

The obligations of the parties, including the timing and terms of payment, are prescribed in the agreement. For short-term loans, the debt is paid in one or more transfers before maturity. Long term loans are usually paid monthly. To repay the funds, the creditor company draws up a schedule in which the amounts of the payments and the dates of their closing are indicated. For the convenience of customers, there are several ways to repay loans:

  • through online banking;

  • by card on the official website of the creditor;

  • in cash at the creditor’s company cash register;

  • in cash via payment terminals.

The first three methods are executed instantly. The last one can take up to three working days.

With early repayment of loans, most financial institutions recalculate. However, some organizations charge a fee for prepayment. This condition must be provided for in the contract.

Finally, before you borrow money, you should assess your creditworthiness by comparing income to expenses. Payments on the loan should not affect your comfort. An acceptable amount of debt is one that can be repaid without limiting usual purchases. If the money left over from paying utility bills, buying food, and the most essentials isn’t enough for a monthly payment, forget about the loan.

Hialeah tax preparer accused of COVID-19 loan fraud | USAO-SDFL


Miami, Florida – A South Florida tax preparer was indicted on Tuesday with criminal information of wire fraud as part of a scheme to obtain more than 100 COVID-19 relief loans under the Paycheque Protection Program (PPP).

According to the allegations in the news, Leonel Rivero, 35, of Miami, owned a tax preparation business and submitted around 118 fraudulent PPP loan applications on behalf of himself and his accomplices. Together, the 118 PPP loan applications requested more than $ 2.3 million in PPP loans. On every PPP loan application, Rivero allegedly falsified the applicant’s income and expenses from the previous year and submitted fraudulent tax forms to the IRS. Rivero and his accomplices are said to have received approximately $ 975,582 in PPP loans as a result of the fraud.

Rivero is scheduled to appear for the first time on March 23 in U.S. District Court for the Southern District of Florida. If found guilty, Rivero faces a maximum sentence of 20 years in prison. A federal district court judge will determine any sentence after taking into account US sentencing guidelines and other statutory factors.

US Attorney Ariana Fajardo Orshan of the South Florida District Attorney’s Office; Acting Assistant Attorney General Nicholas L. McQuaid of the Criminal Division of the Department of Justice; Acting Special Agent in Charge Tyler R. Hatcher of the Miami IRS-Criminal Investigation (IRS-CI) office; and Special Agent in Charge Amaleka McCall-Brathwaite of the US Small Business Administration, Office of the Inspector General (SBA-OIG), Investigations Division, Eastern Regional Office, made the announcement.

The IRS-CI is investigating the matter with the assistance of the SBA-OIG.

Assistant U.S. Attorney Christopher Browne of the U.S. Attorney’s Office for the Southern District of Florida and Attorney General Della Sentilles of the Justice Department’s Fraud Section are continuing the case. Assistant U.S. Attorney Nicole Grosnoff is handling the asset forfeiture portion of the case.

The CARES (Coronavirus Aid, Relief, and Economic Security) law is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects of the COVID-19 pandemic. . One source of relief provided by the CARES Act was the authorization of up to $ 349 billion in forgivable loans to small businesses for job maintenance and certain other expenses, through the PPP. In April 2020, Congress authorized more than $ 300 billion in additional P3 funding.

The PPP allows small businesses and other eligible organizations to receive loans with a two-year term and an interest rate of 1%. The proceeds of the PPP loan are to be used by businesses on salary costs, mortgage interest, rent, and utilities. The PPP allows for the forgiveness of interest and principal of the PPP loan if the company spends the loan proceeds on these expenses within a specified time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on the expenses. salaries. .

The Fraud Section leads the Department of Justice’s prosecutions of fraud schemes that exploit the CARES Act. In the months following the passage of the CARES Act, Fraud Section lawyers prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section also seized more than $ 65 million in cash proceeds from fraudulently obtained PPP funds, as well as numerous real estate and luxury items purchased with these products. More information is available at: https://www.justice.gov/criminal-fraud/cares-act-fraud.

Information is only an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.

You can find court documents and related information on the South Florida District Court website at www.flsd.uscourts.gov Or on http://pacer.flsd.uscourts.gov, under file number 21-cr-20160.


Florida man charged with using $ 1.9 million of PPP loan money on new Mercedes, new truck


Central Florida man faces federal charges for using more than $ 1.9 million on an emergency basis Paycheque Protection Program funds on personal expenses, including the purchase of a new Mercedes and a van.

Keith William Nicoletta, 48, of Dade City was arrested last week on charges of bank fraud and illegal money transactions, facing 40 years in federal prison if convicted. In a criminal complaint, the US Department of Justice accused him of fraudulently claiming to employ 69 people at a junkyard that operated out of his home.

Immediately after securing the federal loan, which was aimed at helping companies retain their workers during the coronavirus pandemic, authorities said Nicoletta immediately began transferring funds to newly opened bank accounts and embarked on a spending spree.

“None of the money was used for payroll,” the DOJ said in a press release on Friday.

In addition to withdrawing $ 100,000 in cash, authorities say, Nicoletta bought a 2020 Mercedes for over $ 106,000 as well as a 2020 Ford F-250 special edition pickup valued at over 66,000. $. He also allegedly wired approximately $ 537,000 to a South Florida property management company.


Federal officials have said they photographed Keith William Nicoletta driving this special edition 2020 Ford F-250 pickup truck from his Dade City home at a local country club where he was playing golf.

A possible investigation determined that his alleged scrap company, West Coast Cores, who he said had an annual payroll of around $ 9.1 million, had been inactive for more than a year and had no employee pay in 2019 or 2020, authorities said.

Nicoletta did not immediately respond to HuffPost’s request for comment on Monday.

This summer, another Florida man was arrested on similar charges.

David Tyler Hines, 29, of Miami has been charged with bank fraud, misrepresenting a financial institution and engaging in illicit transactions after authorities said he fraudulently obtained $ 3.9 million in federal PPP loans and used it to buy a Lamborghini and for other personal expenses.

Hines was arrested in July after the $ 318,000 Lamborghini he allegedly bought with the loan money was involved in a hit-and-run accident.

Marco Players set to close with Covid fund leak


Marco players, the second oldest operating theater in Collier County, could be the first artistic death from the coronavirus pandemic.

Artistic Director and President Beverly Dahlstrom has announced that without a major infusion of funds, the theater will close on November 30. Reeling from the cancellation of his last two plays from last season, a nervous audience this season, and the distancing company’s revenue demands, Marco Players lost $ 75,000 in revenue.

Dahlstrom says players have tapped into every source they can. She received interim funding from two Small Business Association programs: Paycheque Protection Program funds for its four contract employees and an economic disaster loan.

He received a grant from the Community Foundation. And her ongoing “Staying Alive” campaign brought in $ 25,000 of the $ 50,000 she was looking for.

But when only 11 people are sitting in the seats in your first game of the season, things are grim, she admitted. Attendance at “Born Yesterday”, which runs until Sunday, November 8, has dropped to 20 this week in a house that will accommodate 42 when its headquarters are socially remote. (At full capacity, the house holds 83.)

Restarting Marco:Marco, The Studio Players tiptoes back into the theater

Some of those ticket holders, however, are people using credits for their seats from productions that were canceled last season.

“Some people don’t come because they are afraid,” she said. “So we are trying to recover from COVID, we are trying to recover from last season and we don’t know what winter is going to bring to a lot of people up north that I have spoken to.

“Some are coming back. Others are not. Some can’t come back now if they want to go home for Thanksgiving or Christmas.”

States like New York, she explained, require people from states with high coronavirus rates to self-quarantine if they return. So many people have simply chosen to wait until January. This would impact the market for “The Farce Day of Christmas”, his holiday game.

For a theater that grossed between $ 20,000 and $ 32,000 per show, plus $ 1,500 to $ 2,000 per show for six Lunchbox Series monologues, it was a disaster.

“If you look at the total cost of running this theater on a monthly basis, you have to admit it won’t work,” Dahlstrom said. So two weeks ago, the theater put in place a plan to vacate the building it rents in the Marco Town Center shopping mall and liquidate its equipment and sets after November 30.

It would be the first known closure due to the pandemic. The Naples-based Stay in May festival was disbanded, but that decision was made for other reasons and was official before the pandemic. Classical chamber concerts, who has no space and needs little equipment, has chosen to sit down this season due to the uncertainty surrounding the pandemic.

Marco Players is used to bringing in local playwrights, such as Carole Fenstermacher, who has previewed or performed here. Nationally, Joe Simonelli, who recently moved to southwest Florida, not only stars in the current “Born Yesterday”, but a world premiere of his “The Spirit of Bay Manor” was slated for January.

Learn more about Marco:Busy month at Marco arts with message paintings, plays

Moving to other neighborhoods would not solve the problem.

“I still have insurance. I still have rent. I still have utilities. I have five offsite lockers. I still have the same bills,” she said. “Quick Books, Constant Contact – they’re coming like there’s no tomorrow.”

He hasn’t totally given up hope. Its “Staying Alive” campaign is still active. (See the information box with this story.)

“During the summer our clients were so amazing. They were so generous. They helped us through the summer,” she said. Still, the costs haven’t stopped and the tourist season could come without tourists.

“We see ourselves as a working theater,” Dahlstrom. “We give people the opportunity to put on a new production or a new play. It’s a theater where people can come and create.”

Harriet Howard Heithaus covers the arts and entertainment for the Naples Daily News / naplesnews.com. Contact her at 239-213-6091.

“Stay alive” with Marco

For more information or to make a donation:

Art student burns student loan


Brooke Purvis.
Photo: Facebook.

We’ve heard about spending money, but what Brooke Purvis, an art student at Central Saint Martins is doing, is a little different. Purvis decided to set fire to his entire unnamed amount student loan for an art project called Everything is burning.

By burning his money, Purvis hopes to ask questions about the nature of money and what we really make from it. However, we imagine that one of the things that he will almost certainly gain from the project is the anger of his fellow students who could have used the money for, you know, things like food, accommodation and school fees. .

“I could donate this money to charity, but charity is capitalism’s solution to the problem it creates,” Purvis said. Vice. “But it’s my money, I remember it’s fiction, and like everyone else, I choose to do what I want with it. Also, I think I’m doing something positive with it. The work I create highlights what I consider to be very important issues.

Purvis sees the work as conceptual rather than performative, and therefore the actual engraving will take place in front of a single witness. It will be documented in both photos and film, and the ashes will be collected for further documentation and, according to Purvis, “possibly on display.”

“You give up your freedom and your time in exchange for pieces of paper that actually have no financial value,” Purvis laments. “Money – in the UK, at least – has absolutely no value other than what you give it.”

It should be noted that one could make a similar argument on the value of art.

Photo: Facebook.

Photo: Facebook.

Purvis, of course, isn’t the first artist to make money destruction an artistic act. In 1994, artists Bill Drummond and Jimmy Cauty of The KLF recorded themselves burning £ 50 bills in a video simply titled Watch the K Foundation burn a million pounds. “Of course I regret it, who wouldn’t!” »Drummond said BBC News twenty years later.

More recently, Dustin Yellin and the artistic collective Bazaar Teens $ 10,000 shredded see you this year Spring art fair / break in New York before using the leftovers to create works of art. (It should be noted that Yellin used the proceeds of the paintings to create grants for high school art students.)

Purvis concedes to Vice that life will be difficult for him without the loan. The artist is currently employed and has a full course load, and he lives in what he describes as “a mouse infested house with 11 other people sharing the same bathroom on the outskirts of London”. He also concedes that some people might view the stunt as juvenile.

“But compared to the stunts the right-wing brotherhood is doing now, it’s nothing,” he says. “And how do you get people interested in an important topic these days? There is so much background noise that the only way to get people to look up and pay attention is to do a shocking and outrageous stunt.

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RSC secures £ 19.4million loan as layoffs loom


The Royal Shakespeare Company announced today (Friday) that the company has won a request for repayable funding from the government’s Culture Stimulus Fund. The £ 19.4million loan will help secure the Company’s immediate future amid the continued impact of the Covid-19 pandemic on the theater industry.

However, he also said layoffs were imminent, with a potential loss of 17 percent of its permanent workforce.

The company has not been able to stage full productions since the start of the pandemic, resulting in an expected 86% loss of revenue outside of the grant from RSC Arts Council England (ACE), a loss of approximately £ 46 million for the current financial year. Throughout the crisis, RSC used its reserves and ACE grant to support the business of the company, as well as fundraising income from funders, donors and partners as well as donations. from the public, members and patrons as part of the Keep Your RSC campaign.

CBC (43513842)

The RSC has also put up to 90% of its staff on leave, benefiting from the government’s coronavirus job retention program, and is coming to the end of a formal consultation with staff on layoffs and job changes. terms and conditions.

Since the temporary closure of the RSC theaters in March, the company has retained at the heart of its profession a troupe of 35 independent actors and directors, has continued to support young people and teachers through its large-scale educational action, celebrated the power of of Shakespeare through initiatives such as #shareyourShakespeare, hosted free summer outdoor performances in his gardens in Stratford-upon-Avon, spoke about Shakespeare online with alumni and RSC audiences and broadcast productions for free on iPlayer.

This repayable funding will ensure the Company’s financial stability in the short term by helping the CBC to:

• stage Tales for Winter, the current live performance program

• open full productions in Stratford-upon-Avon and London in spring 2021

• continue essential education work in schools and communities in collaboration with 11 regional theater partners across the country supporting hundreds of thousands of young people

• resume national tours with RSC partner theaters

• work with business partners to invest in new productions that can generate potential income for the Company

• deliver a major work as part of the Cité de la Culture in Coventry 2021

• Capture the rest of Shakespeare’s canon with live movie broadcasts that are shown to schools for free

As the company’s work program expands, RSC will be able to engage a significant number of independent actors, musicians and creative team members alongside the main -permanent work of the RSC.

RSC Artistic Director Gregory Doran (43513844)
RSC Artistic Director Gregory Doran (43513844)

Commenting on the announcement, Gregory Doran, Artistic Director, and Catherine Mallyon, Executive Director, said: Strong support. It has been reassuring to see the thousands of businesses across the country receiving crucial grants over the past few weeks. They are the lifeblood of communities, support the local economy and enable strong health and well-being in our cities.

“These continue to be difficult times for theaters large and small, and for all those in the arts and culture sector. We are very grateful for the support we have received from our audiences, donors and partners, but with no regular income from our work on stage, and currently no confirmed date for the full reopening of theaters, we have to look forward to another future.

“The funding will help RSC recover and in the medium term reopen our Swan and The Other Place theaters which will remain closed in 2021. All of our activity will increase the work available for our core freelance workforce, who in turn supports the arts and culture industry at large.

“The loan agreement requires that we be financially viable by the end of the 2021/22 fiscal year so that we can move forward towards the repayment of the loan, as well as the interest it will accumulate. Rather than being a grant, it provides cash to help pay for our essential expenses during the crisis.

“Even when we fully reopen, it will take time to return to pre-pandemic income levels. We will need to continue saving, as well as replenishing income, to cover loan repayments, which will not be completed until 2040. This unfortunately means that we need to complete our formal consultation with staff on the proposed layoffs and layoffs. changes to our terms and conditions. Combined with the loss of work and lack of income support for many of our freelance colleagues, this is a source of deep regret.

Read more about this story in Thursday’s Herald.

VA Loan Forms | Military.com


Obtaining a VA mortgage, unsurprisingly, involves a lot of paperwork and procedures. Is it worth it? Absoutely. Benefits like no down payment and no personal mortgage insurance (PMI) are worth the slight increase in paperwork compared to a traditional mortgage.

So what papers do you need? It starts with a Certificate of Eligibility (COE) and your service record (DD-214). After that, the process is very similar to a traditional mortgage: pull up your credit reports, look for pre-approvals and great rates, make offers and sign a contract, get appraisals done, and fill out some more paperwork before you go. ‘get the keys and move into your new home.

Below, we’ve outlined the most common forms and steps required to transition from COE to moving day:

Request for a certificate of eligibility

In order to receive your certificate of eligibility for Virginia loan benefits, you will need to submit your Request for Certificate of Eligibility (Form VA 26-1880), as well as your service record (DD-214).

Applying for a VA loan eligibility certificate

This form must be completed and sent in with a service record (DD-214) if you wish to obtain a certificate of eligibility.

If you don’t have Adobe Acrobat Reader or need a new version, you can download it free.

Once you have completed your form, submit it along with your service record (form DD-214) to a Regional Eligibility Center.

Service registration request

the Form DD 214 serves as proof of military service. If you do not have your DD 214 form, you can request it from the National Personnel Records Center, using a Standard Form 180 (Request relating to military archives).

After completing your Standard Form 180, send it to:

National Center for Personnel Records (NPRC) Military Personnel Records 9700 Page Avenue St. Louis, MO 63132-5100 Website: https://www.archives.gov/

The NPRC will send you your service record (DD Form 214) after processing your Standard Form 180.

Now that you have determined that you are eligible, you can begin the loan application process. There are six important steps to this process: finding a VA approved lender, pre-qualifying for a loan, selecting your home, writing the purchase agreement, having the property appraised by the VA, and finalizing the loan.

To get a VA loan, it is important to note that the law requires that:

  • The applicant must be an eligible veteran who has the right available.
  • The loan must be for a qualifying purpose.
  • The veteran must occupy or intend to occupy the property as a home within a reasonable period of time after the loan closes.
  • The veteran must present a satisfactory credit risk.
  • The income of the veteran and his or her spouse, if applicable, must be proven to be stable and sufficient to meet mortgage payments, cover the costs of owning a home, attend to other obligations and expenses, and have enough money to support the family.

An experienced mortgage lender will be able to discuss specific income and other eligibility requirements.

Find a VA Approved Lender

Before you begin the application process, it’s a good idea to get a copy of your credit report. This can be obtained from one of the three major credit bureaus: Experian, Equifax, and TransUnion. Although individual credit bureaus will likely charge to retrieve your report, you can get your credit report from each of the three bureaus for free, once a year, through the FTC’s annual credit report program.

Once you have obtained your credit report, the next step is to find a VA approved lender. A lender can report any credit problem you may have and provide you with a loan estimate. Compare the prices. Compare the closing costs of different lenders (in addition to the price of the property) incurred by buyers and sellers when transferring ownership of a property (also called settlement costs) and other costs.

Military.com makes it easy to find VA approved lenders – just use our Quick form and be matched with up to five lenders, where you can get prequalified and compare rates.

Pre-qualification for your loan

Prequalifying for a loan is the best way to determine your borrowing power. Prequalification involves informing your lender of your income and assets. Based on this information, you can find out if you are eligible for a particular loan. Note that prequalification only gives an estimate of the amount of mortgage payments you can afford, based on the information you provide. Although prequalification is not a requirement, it is highly recommended. Without prior pre-qualification, you might find yourself searching for homes that you might not necessarily be able to afford. Sellers are also much more likely to choose an offer from a prequalified buyer than a buyer without prequalification.

Once you are pre-qualified, you will have a clear idea of ​​how much income you will need to qualify. You will also know what range of house prices you can handle, which is important for the next step.

Selecting your home

If you are pre-qualified for your VA home loan, you will have a good idea of ​​the homes you can afford. You can now begin the process of selecting your new home. Finding accommodation can be done in several ways:

  • In line: There are many web pages dedicated to listing homes for sale. These pages are often helpful in finding homes that are out of your travel range and often include lots of photos and detailed information.
  • Use a real estate agent: Many people hire real estate agents to go through the paperwork involved in buying a new home. The best source for an agent is through friends or asking around the nearest base. Otherwise, check out reviews online through Google or Yelp and meet with a few agents until you find one you’re comfortable with. This person will be your agent to negotiate the deal, organize reviews, and your reference in the event of a problem (such as a failed sale), so choose wisely.
  • Newspapers and other guides: Classifieds, agency listings, and real estate guides are a proven way to find home listings on the market.

Make an offer and write the purchase contract

Also referred to as the “deed of sale” or “purchase contract” contract, this document represents the finalized terms and conditions under which the transfer of real estate will take place. A purchase contract is basically an agreement between buyer and seller to purchase an agreed property on agreed terms, whatever they may be. The purchase contract will deal with, among other things: restrictions and easements, privileges on the property, inspections, previous leases, disclosures, preparation of documents for the closing and maintenance of the property until the fencing.

In some states, you will submit a written offer before inspecting and appraising the property and before signing a full purchase contract. Discuss the process with your real estate agent, as it varies widely by state and locality.

VA Assessment

Because the loan amount cannot exceed the VA’s estimate of the property’s value, in order to finalize the loan, you must request an appraisal by the Veterans Administration. While anyone (buyer, seller, real estate staff, or lender) can request a VA appraisal, it normally comes from the lender via the Internet using TAS (The Appraisal System).

It is important to recognize that although the VA appraisal estimates the value of the property, it is not an inspection and does not guarantee that the home is free from defects. Homebuyers should carefully inspect the property themselves or hire a reputable inspection company to help them. VA guarantees the loan, not the condition of the property.

Finalize the loan

If the established value is acceptable to all parties and the lender determines that you qualify on the basis of credit and income, the loan can be approved. Most lenders are allowed to make this decision.

You (and your spouse) attend the loan closing and sign the note, mortgage, and other related documents. The lender or closing lawyer will explain the terms and requirements of the loan as well as where and how to make the monthly payments. When the loan is reported to the VA, the certificate of eligibility is annotated to reflect the use of the entitlement and returned to the applicant. The loan closing procedure may vary in some states. Closing costs can be substantial, even with a VA loan, so get details from your realtor and lender before closing and avoid any unpleasant surprises.

Don’t take the lead – before the close, before the assessment, you need to get pre-approvals and compare rates. Use Military.com’s VA loan search engine to compare offers up to five lenders.

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Bengaluru: Another instant loan application company raided, 3 detained | Bangalore News

BENGALURU: Detectives Central Crime Branch (CCB) investigating allegations of extortion and blackmail by companies promising instant loans through mobile apps arrested three staff members of one of these companies in the city and recovered incriminating material, including 35 laptops and 218 mobile phones.
A preliminary investigation found that the apps were run by Chinese citizens with servers based in China. In addition to deducting nearly a third of the loan in advance, racketeers have charged exorbitant interest rates and harassed borrowers by hacking into their phones. They have also formed WhatsApp groups by adding their customers’ contacts and posting slanderous content against them.

Last week, the CCB and CID had recorded more than five cases involving snowshoeing. The CID had raided four businesses and arrested two people. Intelligence Bureau officials have now joined the investigation. Of the four businesses raided, three were run by Chinese citizens.
Police Co-Commissioner (Crime) Sandeep Patil said: “So far we have arrested three men from the town. We have specific clues and evidence against two Chinese people involved in the alleged racketeering. We will stop them soon.
On Sunday, CCB detectives raided Acepearl Services Ltd with an office in Koramangala VII Block and arrested Syed Ahmed, 33, of Shamanna Garden in Hosaguddadahalli, Syed Irfan, 26, of EWS Colony, BTM Layout II Stage and Aditya Senapati, 25, of Ramagondanahalli in Varthur Kodi. CCB police said the accused used seven apps owned by Chinese citizens.
“During the raid, it was discovered that other companies specializing in instant loans via apps – Higeki service Pvt ltd, Eceedwell Service Pvt Ltd, Mascotstar Sevice Pvt Ltd and Aqua Service Pvt Ltd – were also working on the same premises. “said an investigator. .
Further investigation revealed that the accused shared customer data with companies running apps such as Money Day, Paisa Pay, Loan Time, Rupee Day, Rupee Kart and In cash. Call center staff, contracted out by these companies, contacted customers. “The main defendant Syed Ahmed mainly targeted the victims and ordered Irfan and Senapati to harass them so that they could get more interest on the loans,” police said.
“The laptops and smartphones used by the trio will give us more information about the racket. They deleted a lot of messages and voice recordings. However, we will get them back soon, ”said a senior investigating officer.

Emergency loan program could save Rockford-area businesses – News – Rockford Register Star


ROCKFORD – Chad Tuneberg took a three-hour walk downtown Friday afternoon, a day before Illinois residents were asked to take shelter in place.

The alderman of the 3rd district found businesses barely hanging on in the middle of the new coronavirus pandemic. Some business owners said they were in desperate need of help, while others distributed stocks of perishable goods to employees and the needy and closed indefinitely.

There was fear and uncertainty, but also, he said, resilience.

“What I saw was sobering and heartbreaking,” Tuneberg said.

On Wednesday, Tuneberg joined Mayor Tom McNamara, Winnebago County Board Chairman Frank Haney and Rockford Local Development Corp CEO. John Phelps to announce a county-wide program that could help save some small businesses. The plan is to use a one-time collaboration to offer emergency loans to keep them waiting until federal aid arrives.

What is envisioned as 90 day bridging loans would range from $ 5,000 to $ 50,000 at an annual interest rate of 6%.

The loans could help small businesses hold on for a few months until they can be repaid with the proceeds of federal disaster relief loans that the small businesses would subsequently get from the Small Business Administration, the said. city ​​administrator, Todd Cagnoni.

“This will be an attractive and necessary loan program for many small businesses,” Cagnoni said. “Cash flow is a huge problem when you have unpaid expenses and you don’t have the income you had before.”

The COVID-19 pandemic is causing severe damage to the local economy, but data on the extent of the damage will not be available for weeks or months, Cagnoni said. With social distancing and shelter-in-place orders, Cagnoni said, many workers are seeing their hours cut or being made redundant, especially in the service, retail, restaurant and hospitality industries. .

McNamara said small business owners who put their savings into their jobs could be devastated.

Rockford has worked with local banks and private donors to raise $ 2 million for the loan program, which will be administered by Northern Illinois Community Development Corp., a regional nonprofit arm of Rockford Local Development Corp.

The city plans to contribute $ 250,000, and Winnebago County could match the city’s contribution. Other contributors are Illinois Bank & Trust, WinTrust Bank, Associated Bank, Midwest Community Bank, Northwest Bank, Blackhawk Bank, Stillman BancCorp and Sunil Puri, founder and chairman of First Midwest Group.

The loans charge simple annual interest. A three-month $ 20,000 loan would cost $ 300, Phelps said.

The funds are not meant to go to homeowners or creditors, and those taking the loans should show they have deferments for rent and debt payments, Phelps said.

The money is intended to support operational spending until federal small business loans arrive. These federal loans have attractive terms, including an interest rate of 3.75% and terms of up to 30 years.

Haney said he was impressed with the community’s response to the pandemic.

“Normally, banks compete for business,” Haney said. “Hospitals too. But now you see the two coming together to serve the community in new ways to address the immediate challenges resulting from COVID-19. “

Jeff Kolkey: 815-987-1374; [email protected]; @jeffkolkey

Small Business Loan Funds Are Depleted: Here’s What Homeowners Need To Know Now


This is how quickly the nearly $ 350 billion allocated for repayable loans to small businesses under the Paycheck Protection Program has been depleted.

Participating lenders had predicted the rapid depletion of funds as they already had tens of thousands of small businesses waiting to apply once the first-come, first-served program launched on April 3.

They are still at loggerheads, but lawmakers are likely to add more money to the P3 loan pot. How? The talks focused on an additional $ 250 billion. But it is not known when this money would be added.

And lenders and small business advocates say it’s again not enough. About $ 1 trillion all-inclusive could be what the loan program needs to meet the outsized needs in the aftermath of the coronavirus crisis, said Richard Hunt, president and CEO of the Consumer Bankers Association, during of a media call Wednesday.

The SBA can no longer accept applications at this time

In the meantime, the Small business management told lenders on Thursday morning that he will not be able to accept new applications or enroll new PPP lenders in the program.

Participating lenders still have a long line of applications submitted by small businesses that have yet to be approved. “We have AT LEAST ONE MILLION small businesses that will not receive loans because the fund is depleted,” Hunt tweeted Thursday.

These companies should check with their lenders to see if they will at least continue to process claims as much as possible, even if they cannot. be funded now.

For example, Wells Fargo said Thursday, “We will continue to prepare applications in our existing pipeline of small and medium-sized businesses and submit them to the SBA when funds become available. “

Remember to apply anyway

As for small businesses that haven’t applied yet, John Arensmeyer, CEO of Small Business Majority, advises them to do so anyway on the assumption that more money will be added to the PPP loan fund.

Despite the program’s flaws – including a lending process that was hampered by delays and confusion, and banks which, for legal reasons chose to prioritize initially to their existing clients – it’s still the best option available in the federal aid program, Arensmeyer said. the the money would not need to be refunded if used to cover eight weeks of salary expenses and some overhead.

Arensmeyer also recommends that small business owners call their congressional representatives and senators to urge them to quickly add more money to the program.

Find free resources and find other help options

Businesses could also continue to seek private aid resources in their communities and explore business aid programs provided by their state.

Beyond that, for the millions of small businesses who can’t afford to hire lawyers and business strategists to help them get through this disaster, here’s four free resources offering expert advice and other types of support.

Homebuyers in Denver don’t rely on cash so much


Homebuyers who showed up with cash have long had the advantage of beating the competition, but their grip on the market could crumble.

Seattle-based brokerage Redfin estimates that 15.2% of all home sales this year in the Denver metro area went to buyers who paid cash, up from 17.9% last year and the peak of 2012, when a sale of in five homes went to cash buyers.

The last time cash buyers had a smaller share of the Denver market was in 2009, when the country was recovering from a financial shock and left-handed mortgage lenders severely tightened their underwriting standards.

“With interest payments lower than ever before, many buyers would rather take out a home loan and put their money elsewhere, like the stock market, emergency savings accounts or home renovations,” the economist said. Redfin chief Daryl Fairweather in the report. “A lot of buyers who are using all the cash this year are probably trying to beat other bids in a situation with multiple bids.”

Nationally, all-cash home purchases peaked in 2013, when just over one in three home sales were made in cash and investors got good deals. So far this year, 24.3% of sales have been made in cash, the smallest share since 2007.

Fairweather argues buyers may be saving their money given that silver is cheap right now, but Anthony Rael, a local real estate agent at Re / Max Alliance, said the trendy market is also playing against buyers. cash in another way.

They generally wanted a discount in exchange for a faster, less complicated purchase. But in the current market, sellers who are not under contract for the first week, or even the first few days, have missed the mark in the price of a home, Rael said. The ads are spinning so quickly in hot markets like Denver that more and more sellers are realizing that if they can wait a few more weeks, it could earn them $ 10,000 or $ 15,000 more.

“Money is not necessarily king. You will earn more as a seller with a funded buyer, ”said Rael. And that extra money counts toward the next purchase, given the rising house prices.

Additionally, cash buyers tend to be more fickle, canceling offers more frequently than buyers who have struggled to secure financing, Rael said. In his 16 years, he has yet to see a buyer use a VA mortgage with no down payment on an offer.

Rael’s advice to cash buyers accustomed to a discount – “it’s time to pay”.

Airbnb grants second $ 1 billion loan as bookings plummet


Airbnb Inc. received a second cash injection with a $ 1 billion loan from institutional investors, the company ad Wednesday (April 14).

The San Francisco-based online accommodation marketplace said the funding would allow it to continue investing in the company and its hosts and guests in more than 220 countries amid the coronavirus pandemic.

Airbnb did not provide details on the terms of the deal and who provided the funding. The company did not immediately respond to a request for additional information.

The Wall Street Journal reported that a source close to the deal said the five-year loan carries an interest rate of 7.5%.

“I deeply appreciate the trust so many people have shown in our company even as all travel industries weather the pandemic storm,” Brian Chesky, CEO and co-founder of Airbnb, said in a statement. “We know that travel will come back… All of the steps we have taken over the past few weeks ensure that Airbnb emerges even stronger from the pandemic storm, however long the storm lasts.”

The latest funding comes as Airbnb bookings in San Francisco, New York and Seattle fell more than 50% from the week starting Jan.5, according to a report by CityLab.Com last week. During the same period, bookings fell more than 35% in Washington, DC and Chicago, the survey found.

Last week, Airbnb announced two California investors, Silver Lake and Sixth Street Partners, invested $ 1 billion in a combination of debt and equity. The new resources, they said, will support Airbnb’s ongoing work to invest for the long term in its community of hosts who share their homes and experiences, as well as work to serve all stakeholders in the Airbnb community. .

Earlier this month, Airbnb customers were request refunds. Guests told CNBC that instead of cash refunds, they were given travel credits and could only get a refund if they could document cancellations resulting from travel restrictions or other acceptable cancellation requirements. .

In response, an Airbnb spokesperson said it had implemented its “extenuating circumstances” policy to offer customers a full refund or credit.



About the study: UK consumers see local purchases as essential for both supporting the economy and preserving the environment, but many local High Street businesses are struggling to get them in. In the new Making Loyalty Work For Small Businesses study, PYMNTS surveys 1,115 UK consumers to find out how offering personalized loyalty programs can help engage new High Street shoppers.

Buy and cash Refinance home loans


Buy and cash Refinance home loans

In their own words – What the house means

Since 1944, VA and private industry partners have helped fulfill the dream of owning generations of qualifying veterans, service members, and surviving spouses. Here the veterans describe how the benefit of the VA home loan has changed their lives and what the home means.

Buy loans: You can use your VA home loan benefit to buy or build a home that will be owned and occupied by you or an eligible dependent. Using your VA home loan benefit can help you buy a home at a competitive interest rate.

Refinancing loans received: You can use the cash out option to refinance an existing first mortgage on the home you currently own and occupy. This includes the refinancing of construction loans into permanent loans. You can refinance up to 100% of the appraised value. In many cases, borrowers want to use this product to turn their home equity into cash that can be used to improve their home, fund education, or pay off other debt.

About the VA Home Loan Guarantee

The VA Home Loan Guaranty program helps eligible veterans, military personnel and some surviving spouses obtain, maintain and adapt homes. The VA guarantee acts as a back-up from the government to insure part of your loan and help you in certain difficult circumstances. If you are having temporary financial difficulties, VA is ready to work with your maintenance agent to mitigate malfunctions, avoid foreclosures, and provide alternative options if your financial difficulties become long term.

Benefits of the VA home loan

The main advantages of using the VA home loan include:

  • No deposit if the sale price does not exceed the appraised value
  • The program allows borrowers to finance up to 100% of the value of the property
  • No private mortgage insurance required
  • Limits the amount the lender can charge you for closing costs
  • The lender cannot charge you a penalty fee if you prepay the loan
  • Provides assistance to veteran borrowers in default due to temporary financial hardship

You should also know that:

  • It is not necessary to be a first-time buyer to benefit from your mortgage.
  • There is no limit to the number of times you can use your VA home loan benefit.
  • The loans guaranteed by VA are assumable, as long as the person assuming the loan is eligible.

Remaining right

If you currently have a VA home loan, you can apply for a Certificate of Eligibility (COE) to determine if you are eligible to purchase your next home using the VA home loan benefit. The fee remaining available to those who have already used their VA home loan benefit is 25 percent of the county loan limit reduced by the amount of the fee previously used and unrestored. Just like the first use of the VA loan, you are required to make this home your residence when purchasing a home with remaining or reinstated entitlement. Examples of the calculation of the remaining rights are available here.

Learn more about VA home loans:

Mortgage buybacks jump again, but the sums are smaller this time


During the 2020 refinancing boom, US homeowners accelerated cash flow refinancing at their highest level since the easy money frenzy of 15 years ago.

This trend may sound worrisome, but it comes with an important caveat: Unlike last time, Americans are leaving a lot in the piggy bank.

The typical homeowner who tapped his home equity last year withdrew just enough money to cover the closing costs of his refinances, according to new research from the Federal Reserve Bank of New York.

First, the big picture: Homeowners withdrew $ 188 billion in home equity in 2020, the highest level of withdrawals since the boom years before the Great Recession. However, the overall amounts remain well below the withdrawal volumes observed in this frothy time.

In addition, the average amount taken on cash-out refinances decreased from 2019 to 2020, reports the New York Fed. Borrowers who cashed in in 2019 took an average of $ 49,000 from their home equity. In 2020, that level fell to $ 27,000. And most of the owners took out less than $ 7,000.

“The median withdrawal of withdrawals in 2020 was only $ 6,700, suggesting that at least half of refinancers only borrowed enough additional funds to cover the costs of closing the new mortgage,” write New York Fed researchers.

Memories of the last real estate boom persist

A cash refinance replaces your existing home loan with a new mortgage that is higher than the balance you owe.

Refis of withdrawal have advantages and disadvantages. Loans allow homeowners to mine some of the money trapped in their home and use the proceeds to finance home improvements or pay off credit cards.

The appeal is obvious: Mortgages are the cheapest form of debt available to many Americans. Mortgage rates hovered around 3 percent, well below double-digit rates on credit card balances.

Used too liberally, however, rewinds become dangerous. They can burden consumers with new debt and higher payments that can become crippling during a downturn.

Borrowers and bankers learned this lesson during the Great Recession. Homeowners who took equity out of their homes during the bubble were more likely to default when home prices fell.

During the latest refi cash-out boom, homeowners and lenders were much more cautious. In the first few months of the pandemic, lenders withdrew the refis of withdrawals. When it became clear that COVID-19 was creating a real estate boom rather than a collapse, lenders resumed withdrawal refusals – although they limited borrowers to loan amounts of 70-80% of the value of their house.

Even though lenders allow borrowers to withdraw money from their home again, many consumers seem to remember the downsides of taking on additional debt against their home.

“Most of the borrowers who were able to qualify were worried about taking on more debt,” says Rocke Andrews of Lending Arizona in Tucson. “Small business owners who needed the cash struggled to qualify. “

Credit scores hit record highs

Today’s stringent lending standards illustrate another contrast between the coronavirus housing boom and the housing bubble of 2005-2007: Most mortgage borrowers have impeccable credit.

The typical credit score for mortgage borrowers in the fourth quarter of last year was near perfect at 786, matching a record set in the third quarter, according to the New York Fed.

This is the highest level for at least two decades. In the days of the floating loans that led to the Great Recession, the median credit score for mortgage borrowers fell to 707.

Meanwhile, only a quarter of borrowers who obtained home loans from October through December had credit scores below 737. And only 10% had credit scores below 687, according to data from the New Fed. York.

Learn more:

UPDATE 3-Monte dei Paschi says cash call is in limbo as losses soar


* Annual losses up by more than 60%, impacted by exceptional provisions

* Net interest income down 14%, fees are maintained

* In talks with EU and ECB on capital increase plans (adds details, CEO comment)

MILAN, Feb. 10 (Reuters) – Plans by Italian bank Monte dei Paschi di Siena to boost its capital reserves remain in limbo, she said on Wednesday after reporting annual losses that climbed to 1, 69 billion euros ($ 2 billion) in 2020. The government had been working on reprivatizing the bailout Tuscan lender, but progress was hampered by the collapse of the ruling coalition in Italy and a change in leadership at the potential buyer UniCredit, the country’s second-largest bank in terms of assets.

Last month, Monte dei Paschi (MPS) said it would work to close a merger with a stronger par before considering a € 2.5 billion cash call to replenish capital reserves with state support.

Italy owns 64% of MPS after a 2017 bailout that cost taxpayers € 5.4 billion.

After reporting his 63.5% increase in annual losses, MPS said plans to raise capital are clouded by uncertainty as it seeks approval from the European Commission and the European Central Bank.

“The priority of our majority shareholder and of the bank is a structural solution which (…) is accompanied by a capital increase,” MPS CEO Guido Bastianini told analysts.

Bastianini said MPS needs to prepare for the possibility of a merger failing to materialize, adding that it would look to institutional investors rather than minority shareholders for any equity beyond the Treasury’s share in the sale of ‘actions.


The bank’s higher quality capital declined only slightly in the quarter to 12.1% despite a debt cleanup deal that eroded its capital but reduced soured debt to 4.3% of total loans and below the industry average.

This seemingly healthy capital ratio, however, has been bolstered by a state-backed guarantee program that provides only temporary relief.

With its recovery first derailed by low interest rates and then the COVID-19 crisis, MPS is ill-equipped for the fallout from a pandemic that is expected to trigger a series of business bankruptcies.

Unable to meet the restructuring targets agreed with Brussels at the time of its bailout, MPS has been asked to take corrective action while the Commission examines the revised restructuring plans.

The losses in 2020 were largely due to provisions for MPS legal claims recorded after the convictions of two former executives. These provisions represented three quarters of 1.3 billion euros in one-off charges.

Provisions related to pandemics against loan losses also weighed.

Turnover fell 11.2% over one year, penalized by a 14% drop in net interest income. Fee income, meanwhile, was the best for two years in the fourth quarter. ($ 1 = 0.8248 euros) (Report by Valentina Za Editing by David Goodman)

Everyone donates money on Instagram


On March 18, as states sent non-essential workers home and businesses prepared to cut costs, fitness influencer Paige Hathaway posted a message to her more than 4 million Instagram followers.

“I know it’s tough with 40s, especially for those who can’t work, so I wanted to give a gift so that someone would get 5,000 DOLLARS. ” she wrote. The post, which was deleted from Instagram shortly after this article was published, featured Ms Hathaway rolling out a stack of $ 100 bills.

His fans started tagging friends and commenting on how desperately they could use the money. “I could use a miracle right now,” wrote one woman. Several users have posted prayer emojis.

As the coronavirus has continued to disrupt the lives and livelihoods of Americans, Instagram has been overrun with cash giveaways like Ms Hathaway’s. Several popular personalities have offered money to their fans in exchange for tags, follows and comments, including Harry jowsey, a star of the new Netflix reality show “Too Hot to Handle”; lifestyle influencers Caitlin Covington and Laura Beverlin; and the rapper and social media star Bhad Bhabie.

To the more than 26 million U.S. residents who have unemployed Over the past five weeks and the millions more struggling to cover unforeseen expenses like medical bills and weeks of food bought all at once, these cash offers can seem like lifesavers. But while often touted as charity, the giveaways are part of a growth agenda that has become ubiquitous on Instagram.

Ms Hathaway, for example, was paid thousands of dollars by the social media marketing company Social position to promote the giveaway on their feed. Potential entrants were asked to follow a list of roughly 70 accounts that Social Stance was following. The company charged $ 900 for a niche on the list. Those who have purchased “sponsor” slots can expect to gain thousands of new subscribers overnight.

“If you tell someone they can get 50,000 subscribers in three days, they will,” said Nathan Johnson, 19, who helps YouTube and TikTok stars orchestrate giveaways. The business he runs with his 16-year-old friend Carter is simple: they pay a big influencer some money up front to “host” a cash giveaway, then turn around and sell watchlist to make a profit.

“Entrepreneurs buy spots to gain subscribers to sell their courses or ebook,” Johnson said. “Models will do this to gain followers to increase engagement and charge more for branded offerings. Doctors do this for their credibility and to develop their personal brand.

Louisa Warwick, founder of Social Acceleration Group, orchestrated seven Instagram giveaways with influencers and actresses, including Tori Spelling and Natalie Halcro. Her company is currently selling spots on the sponsor list for an upcoming cash giveaway from “Teen Mom” ​​star Farrah Abraham. Interested parties can pay only $ 270 to be on the list; in return, Ms Warwick said they can expect to gain thousands of followers.

Instagram giveaways have been around for years. They first emerged around 2016, when small businesses and bloggers started running ‘loop’ giveaways. To participate, you must follow a group of people, or “loop,” then return to the original person’s page and comment. Loop giveaways are often sponsorless and exist as a collaboration between influencers. The giveaway Ms Covington and Ms Beverlin threw with their friends, for example, was a loop giveaway.

But last summer, the first big wave of sponsored giveaways started to crop up. At the time, most of the stars were gift things like Louis Vuitton bags, but now everyone is giving money. “People really need cash more than handbags, and logistically it’s more difficult to take a promotional photo with the celebrity and the bag when everyone is stranded,” Ms. Warwick said.

With many branded offers and sponsored trips suspended due to the virus, giveaways have provided big influencers with a way to make quick cash from home. “Corona has been tough on influencers and if you’re told you can make $ 20,000 to post a giveaway on Instagram, you probably will,” Mr. Johnson said.

Buying sponsorship spots on giveaways has also become the fastest and cheapest way to grow on Instagram. “You suddenly get this wave of followers,” said Dr Thomas Connelly, a cosmetic dentist, who bought seats in the Kardashian gifts. “What these giveaway campaigns do is force exposure to living human beings. Then these people can choose whether they want to continue following. “

Dr Connelly said he was invited daily to be a sponsor. “In advertising, there really isn’t a lot of choice these days,” he said. “With that, you pay between $ 10,000 and $ 20,000, and you become one of those 70 people that Kim Kardashian or Kylie Jenner says, ‘Hey, follow me if you wanna make some money. “”

As for people who buy free sponsor sites, “the biggest buyers are plastic surgeons and contractors,” Johnson said. Mrs Warwick echoed her assertion; each of the giveaways she organized included doctors.

“This is the demographic and age group that we are targeting,” said Dr. Nicole Nemeth, owner of Plastic Surgery of Westchester. “These are the people that we would like to market, they are the people who are looking at these influencers.”

“Giveaways allow you to target a demographic that you wouldn’t normally be able to reach with such precision,” said Dr Neal Blitz, a foot surgeon known online as Bunion King. In his case, he said, it is “women who wear heels and their feet are devastated by heels.”

“There are of course all the different ways of advertising,” said Dr. Blitz, “but the younger generation is more interested in Instagram and who you are.” He has sponsored several great influencer giveaways and said they result in followers who have a much stronger connection than if they simply found your account through a Google or Facebook ad.

Preston Million, founder and CEO of digital marketing agency Influential Management, said emerging artists also frequently buy sponsor seats in influencer giveaways. “It helps with perception when trying to shop for labels,” he said. “The alternative is to buy ads through Instagram, which can be more expensive. Normally, it would cost around $ 10,000 to gain 100,000 followers through Instagram ads. With a gift, you could spend $ 2,000 and grow the same amount. “

Jordan Lintz, founder of HighKey Clout, one of the biggest Instagram giveaways companies, said he didn’t like to portray it as buying followers. “It’s like sponsoring an internet event,” he said. Upcoming giveaways are announced on their verified Instagram page, and past winners and campaign results are highlighted on the company website.

Not all giveaways are handled with the same level of transparency. “A lot of memes pages are giving bogus right now,” Mr Johnson said. “Some influencers are too.” Mr Johnson said a legitimate giveaway will always herald and identify a winner. Liraz Roxy, a social media influencer in Los Angeles, said she refuses to participate in sponsored giveaways. “Everything is very fishy,” she said.

A spokesperson for the Facebook company said that many cash gifts could violate the company’s community guidelines. “It’s not the kind of experience we want to create on Instagram,” the spokesperson said via email. Plus, according to Robert Freund, a lawyer who offers a legal education course for influencers, many of these cash giveaways could violate state raffle laws.

“There are many state, federal, and local laws that regulate the sweepstakes promotional space and there are special considerations when running online promotions with influencers,” he said.

For example, these giveaways require clear terms and conditions and must verify the age and location of attendees, which Mr Freund said he hasn’t seen most influencer giveaways do. Influencers should also disclose that they are paid to promote these giveaways.

“Right now there is a trend where influencers are making these cash giveaways appear out of the kindness of their hearts because of Covid,” Mr. Freund said. “But, if they’re paid, they have to disclose that fact when promoting the giveaway and posting about it. Disclosure in influencer marketing is an area the FTC is paying a lot more attention recently and regulators are watching.

However, some influencers don’t get paid to promote free money – they just give it away. On April 15, Katie Sturino and three other body positive influencers pooled $ 6,000 of their own money for a giveaway. Participants were encouraged to follow all four influencers and the winner was selected at random.

Ms Sturino frequently distributes products on her page, but she thought the money would be better spent at this time.

“The reception has been positive,” said Ms. Sturino. “People were thrilled that we were donating the money and they were thrilled to hear more from other Instagrammers who have a positive message. What we did didn’t seem fishy. It was a really cool positive thing.

5 ways to deposit money into someone else’s account


Several large banks no longer allow you to deposit money and coins in someone else’s current account unless you become a co-owner.

While the adoption of the policy is at the discretion of each bank, there is a reasonable chance that you will be affected. The biggest banks – Bank of America, Wells fargo and JPMorgan Chase – have no-cash policies for unauthorized persons.

In the eyes of banks, the decision to ban cash makes it possible to avoid money laundering and fraud – money is hard to trace after all. It is also expensive to process. For you, politics can interfere with anything you want to do. Now for the good news. If your bank does not allow you to deposit money into someone else’s personal account, you have other options to achieve the same result.

Under the Banking secrecy law, financial institutions must take certain steps to detect and combat money laundering, such as reporting suspicious activity and transactions involving more than $ 10,000. But the adoption of certain policies – such as preventing consumers from depositing money into other people’s accounts – is at the discretion of each bank, said Steve Hudak, spokesperson for the bank. Financial Crime Network.

“It is up to the bank to have policies and procedures in place to be able to file these reports and this is also risk based,” says Hudak. There is no rule that says precisely what transactions banks can accept, but they must base their policies on risk.

Five alternatives to cash deposits

While you may feel awkward, you have alternatives, some of which are faster than depositing physical money into someone else’s account at a branch.

1. Make an electronic transfer

You can easily transfer money to a friend or relative’s account through a service like Venmo, Pay Pal or Square silver. Zelle is also a good option to transfer money to someone else’s account. Bonus: Your bank – and the person you’re sending money to – may already offer Zelle in their mobile app or online banking, so you won’t need to sign up for another account.

However, take care when using any of these digital options. When you send money to someone else through these types of services, the payments are often irrevocable. Send money only to people you know and trust to avoid being scammed.

If your bank does not offer Zelle, you can still send an electronic bank transfer through your online bank account in another way. Instead of entering an email address or phone number like you do through Zelle to send money to someone, you will likely need to enter the recipient’s bank account number and routing number to make a transfer. While Zelle transfers money within minutes, this type of bank-to-bank transfer can take a few days.

2. Write a check

While paper checks are falling out of favor, you can still deposit a personal check in someone else’s personal account.

Of course, check fraud is possible. However, checks are less of a threat to banks than cash deposits because financial institutions can trace the money.

“The key question is always, ‘Where did you get this money? Says Marc Trépanier, Senior Fraud Consultant, ACI Worldwide. “With a check, we know where it comes from. It was from another account.

The person receiving the check could also deposit the money through a mobile banking app to avoid a branch visit.

Unlike cash, the downside is that your bank won’t always make the funds available immediately.

“The check can be cleared and settled within hours depending on the circumstances,” says Bob Meara, senior banking analyst at Celent, a financial services research and consulting firm. “But most banks wait a business day for funds to become available to most customers just so they can see if the check clears.”

Each bank will make a risk management decision to decide its policy.

3. Send a mandate

If you don’t want to use a personal check to deposit money into someone else’s account, sending a money order is an old-fashioned alternative.

You can buy money order at banks and credit unions, a U.S. post office, some big box stores, and more. It will cost you, but the price is relatively cheap. For example, the United States Postal Service (USPS) charges $ 1.25 for the purchase of a money order up to $ 500 (as long as the destination is in the United States).

The method of payment is secure: you will receive a receipt for your money order. Even if a money order is lost or stolen, you can usually replace it.

[READ: How to fill out a money order]

4. Add an additional owner to your account

Giving someone direct access to your bank account is perhaps one of the easiest ways to transfer money between your accounts. But like a joint credit card, joint ownership of a bank account can cause problems, especially if something is wrong with the relationship.

“When opening a joint account, it is important to keep in mind that both parties are equal owners of the funds in the account and have access to them without the consent of the other,” says Luis Rosa , CFP, founder of Build a Better Financial Future, a financial consulting firm in Henderson, Nevada. “If the relationship deteriorates, one party may deplete all funds in the account, leaving the other party without their share of the funds.

5. Find out what other banks are offering

Not all major banks have a policy against depositing money into someone else’s personal account. PNC Bank, for example, still allows this practice.

In addition to the ability to deposit money into someone’s personal account, another bank may offer other benefits, such as better prices on CD, savings accounts and mortgages or even a more useful mobile app.

“Look for the bank known to be the most consumer-centric,” says Ciaran Chu, Cloud Payments Manager at ACI Worldwide.

Learn more:

– The discount rate Amanda Dixon wrote the original version of this story.

Andrew Yang on Record Stress and Student Loan Debt


“Our economy is the envy of the world, and we’re going to keep it that way. So that’s very important,” the president said. Donald trump at December 7 from the South Lawn of the White House. Trump has said he must thank this strong economy, which is one of the main thrusts of his 2020 re-election campaign.

If Democratic presidential candidate Andrew Yang were to debate Trump on the economy, Yang said he would highlight the toxicity of the environment in which the the economy is booming.

“I would just like to tell Americans the facts they already know; that you currently have record levels of corporate profits, but also record highs in the United States of America: stress, anxiety, mental illness, depression, even suicides and drug overdoses. Student loan debt, record high, ”Yang told the Freakonomics podcast in an episode released Wednesday.

“And so you have to ask yourself,” Yang said. “What good are corporate profits if people literally die sooner from increases in suicide and drug overdoses? “

Corporate profits are near record highs. The National Income and Product Accounts (NIPA), prepared by the Bureau of Economic Analysis (BEA), show that corporate profits are slightly below record impacted in the third quarter of 2014. And the profits of companies in the S&P 500 (weighted by their market capitalization and measured by the rating agency Standard and Poor’s) show that at the end of the second quarter, the earnings per share of the index were $ 40.14. The record was $ 41.38, reached in the third quarter of 2018.

As for the other side of the coin, there is a record $ 1.6 trillion in outstanding student loan debt in the USA.

The rate of mental illness among American adults is at the highest level it has been in the past decade, if only slightly, according to the US Department of Health and Human Services. And according to the Center for Disease Control and Prevention, suicide rates have been slightly increasing trend and the rate of drug overdose death has increased sharply in recent decades.

All of this shows that high corporate profits don’t translate into a happy country, Yang says.

“When I campaign across the country, I can’t tell you how many heads are nodding when I talk about the fact that their lived experience has nothing to do with corporate profits, the overall unemployment rate or the GDP, ”Yang told Freakonomics.

Part of Yang’s solution to this problem is his most well-known platform: give people free money.

The entrepreneur and tech executive focused his campaign primarily on giving every US citizen over the age of 18 in the US $ 1,000 a month.

See also:

Andrew Yang: You should receive a check in the mail from Facebook, Amazon, Google for your data

Why everyone is talking about giving away free money – a universal basic income explainer

Billionaire Marc Benioff: Capitalism has “led to horrible inequalities” and must be corrected

Here’s why we’re not too worried about the silver consumption situation of Iovance Biotherapeutics (NASDAQ: IOVA)


Even when a business loses money, it is possible for shareholders to make money if they buy a good business at the right price. For example, although Amazon.com suffered losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. But the harsh reality is that many, many loss-making companies burn all their money and go bankrupt.

So the natural question for Iovance Biotherapeutics (NASDAQ: IOVA) is whether they should be concerned about its rate of cash consumption. In this report, we will consider the company’s annual negative free cash flow, which we now call “cash burn”. The first step is to compare its cash consumption with its cash reserves, to give us its “cash flow track”.

See our latest review for Iovance Biotherapeutics

When could Iovance Biotherapeutics run out of money?

You can calculate a company’s cash flow trail by dividing the amount of cash it has by the rate at which it spends that cash. As of December 2020, Iovance Biotherapeutics had US $ 629 million in cash and was debt free. Looking at last year, the company spent US $ 252 million. This means it had a cash flow trail of around 2.5 years as of December 2020. Importantly, analysts believe that Iovance Biotherapeutics will hit cash flow in 3 years. So there is a very good chance that it will not need more money, considering that the burn rate will decrease during this period. Pictured below, you can see how his cash holdings have changed over time.

NasdaqGM: IOVA History of debt to equity March 16, 2021

How does Iovance Biotherapeutics’ silver consumption change over time?

As Iovance Biotherapeutics does not currently generate any revenue, we consider it to be a start-up company. So while we can’t look at sales to understand growth, we can look at changes in cash consumption to understand changes in expenses over time. In the last twelve months, its cash consumption has actually increased by 52%. Often times, increased cash consumption just means that a business is speeding up its business development, but it should always be kept in mind that this leads to a reduction in the cash flow trail. If the past is always worth studying, it is the future that matters most. Then you might want to take a look at how much the company is expected to grow over the next few years.

Can Iovance Biotherapeutics Easily Raise More Money?

Given its cash-consuming trajectory, Iovance Biotherapeutics shareholders may want to consider how easily it could raise more cash, despite its strong cash trail. In general, a listed company can raise new liquidity by issuing shares or going into debt. Usually, a company will sell new stocks on its own to raise funds and stimulate growth. We can compare a company’s cash consumption to its market capitalization to get an idea of ​​how many new shares a company would need to issue to fund its one-year operations.

Iovance Biotherapeutics has a market capitalization of US $ 5.1 billion and spent US $ 252 million last year, which is 4.9% of the market value of the company. Given that this is a rather small percentage, it would probably be very easy for the company to finance the growth of another year by issuing new shares to investors, or even taking out a loan.

So, should we be worried about the loss of money from Iovance Biotherapeutics?

It may already be obvious to you that we are relatively comfortable with the way Iovance Biotherapeutics burns its money. For example, we think its consumption of cash relative to its market capitalization suggests that the company is on the right track. Although its growing consumption of cash has not been significant, the other factors mentioned in this article more than make up for the weakness of this measure. A real bright spot is that analysts expect the company to break even. Looking at all of the metrics in this article, together, we’re not worried about its rate of cash consumption; the business appears to be well above its medium-term spending needs. It is important for readers to be aware of the risks that can affect business operations, and we have selected 3 warning signs for Iovance Biotherapeutics that investors need to know when investing in stocks.

Of course, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies, and this list of growth stocks (according to analysts’ forecasts)

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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How I used an FHA loan to buy my first investment property


For most people interested in rental property investment, the biggest hurdle is the amount of capital it takes to acquire a property. Here’s why it can be so hard to find the money to buy your first investment property – and how I was able to buy my first with only a few thousand dollars down.

With practically all traditional means of financing, investment properties require down payments of 20 to 25% of the purchase price. This is in addition to the typical requirement of at least six months of reserves and the set-up and other closing costs you have to pay. For an investment property of $ 150,000, it is common to need $ 50,000 or more in available cash to close. And that’s not to mention the fact that investment home loans tend to have significantly higher interest rates than the same borrower might get for a primary residence mortgage. In many cases, the difference can be two whole percentage points or more.

The bottom line is that while rental properties can be great ways to build wealth and generate passive income streams over time, capital requirements create a barrier to entry for many investors. potentials. Here’s how I got around that – and how you can too.

Home hacking with an FHA loan

An FHA loan is a popular choice among first-time home buyers, and it’s easy to see why. With as little as a 580 FICO credit score, you can buy a home with as little as 3.5% down. There is just one small problem for investors. FHA loans are exclusively for properties occupied by their owner. In other words, you have to live in the house.

However, there is a big loophole. FHA loans can be done on a property with up to four residential units. As long as you plan to live in one of the units after the purchase closes, you can potentially use an FHA loan to purchase the property. For example, you could buy a triplex, live in one unit, and rent the other two – and with just 3.5% off.

Additionally, FHA rules only require you to live in the property for 12 months after closing. After this period, you can leave the property, rent all units, and repeat the process with a new property if you choose to do so.

My first real estate investment was a house purchased with an FHA loan. At the time, my then-fiancé and I were living in Key West, Florida, a very expensive real estate market, especially for a teacher and nurse in their mid-twenties.

On the advice of my excellent real estate agent, we started looking for a multi-unit property to generate income to offset the high cost of owning a home. We found a great duplex with a two bedroom main unit we could live in comfortably and a one bedroom unit we could rent a few blocks from the school where I was teaching, and we concluded the purchase with an FHA ready a few months later. We quickly found a tenant for the smaller unit and ended up living in the house for less than what we would pay in rent for a typical one bedroom apartment in the area.

Disadvantages of Home Hacking with FHA Loans

To be fair, home hacking isn’t for everyone. Not everyone wants to be a homeowner, and those who don’t feel comfortable with their own the tenants being right next door. And I can tell you firsthand that it can create uncomfortable situations. It is important to have your own backyard and the general privacy that comes with a single unit property.

Plus, there is no such thing as a perfect loan product, and the FHA mortgage is certainly no exception. Although the down payment and credit requirements are low, FHA loans have expensive mortgage insurance premiums (both initial and ongoing) which can make these loans much more expensive than their interest rate. involved.

Is it better to buy a house with cash or a mortgage?


The idea of ​​living without a mortgage can be particularly appealing to people approaching retirement. It is also common today for empty nesters to consider selling the large family home in favor of a smaller property or an easier to maintain condo. Homeowners who have lived in a house for a long time and now have a low mortgage balance or perhaps no mortgage at all may wonder if it pays to buy a new property with the proceeds of the sale in cash. instead of getting a mortgage. Even though early retirees may be reluctant to take on debt until retirement, leverage can pay off.

Use leverage

Leverage is when the expected rate of return on your investment portfolio is greater than the interest rate on a loan. If you can borrow the money for less than what you can reasonably expect to earn by investing the funds instead, then it makes sense to consider the loan. Of course, deciding to buy cash or get a mortgage involves more than the gap between your expectations and current interest rates, but it’s a useful starting point.

Ultra-conservative investors, buyers during periods of high interest rates, or individuals looking for variable rate mortgages may find it more difficult to operate leverage for them with a reasonable level of certainty.

Here is an example :

Suppose the Millers, aged 60, sell their house for $ 700,000 and their mortgage payment is $ 200,000. They plan to buy a condo for $ 500,000 and put 20% into it. The Millers can get a 30-year fixed mortgage at an interest rate of 4.5% and their expected average annual return on their long-term investments is 6%. The couple plan to work until the age of 66.

If they get a mortgage, they will make the mortgage payments out of their income while they are working. Without a mortgage, they will invest the funds instead. If they retire with a mortgage, the Millers will use their investment account for payments after they stop working.

The question is: should they get a mortgage or buy the new home with the cash proceeds from the sale of their old home?

In this example, it is better to use leverage. Thanks to the power of compounding, after 30 years, the Miller’s investment account would be almost $ 260,000 higher if they bought the house with a mortgage than if they paid for the condo in cash, tax-free.

It is useful to note that many variables in this analysis are correlated. If the Millers increased their purchase price, the benefits of getting a mortgage would also increase. However, if the spread between current mortgage interest rates and expected returns on investments narrows, the benefits of getting a loan will diminish.

A complex analysis

Unless you’re comparing a fixed rate mortgage to owning a 30-year bond, homebuyers need to make several key assumptions for the analysis. Since there is no way to know for sure what will happen in the future, it is important to consider all aspects of the decision.

Here are some additional financial considerations:

  • Taxes. Homeownership offers tax benefits and a mortgage plays a key role in realizing these benefits. Taxpayers who itemize their tax deductions can usually deduct mortgage interest on the first $ 750,000 of primary or secondary residence debt, although there are other considerations as a result of the tax reform legislation. of 2017. This can be particularly useful for retirees who have lost many of their other options for reducing their taxable income (eg 401 (k) contributions). While tax implications are an important part of any financial decision, it’s important not to let the tax tail wag the dog – laws can change at any time.
  • Market volatility. Even if an investor makes an average annual return of 6% (as assumed in the example above), the actual return will vary significantly from the average for any given year. The order in which the returns occur can have a huge impact on the result of the scan. For example, in Miller’s case, if their rate of return was -4% in the first year and 6% for the remainder of the 30-year analysis, the benefit of getting a mortgage would be reduced to 56. 000 $, against 260 000 $! Likewise, if the market outperformed the average return in the first year of the simulation, the relative advantage of getting a mortgage versus buying cash would increase.
  • Variable rate mortgages. An ARM alters the analysis a bit as more complexities and unknowns are introduced. An adjustable rate mortgage is generally more beneficial when the owners do not plan to live in the home for much longer than the initial fixed period. In this situation, buyers will also need to consider the likelihood of staying in the home longer than expected, how rate increases are determined, and their expectations for future interest rates. While the risk is heightened, when an ARM is appropriate, this is a great example of using leverage.

Practical Considerations When Buying a Home

Buyers may also face logistical challenges or the pressure of a competitive market. Especially for people who have lived in their homes for a very long time, decluttering, downsizing, and moving can be quite a challenge. Unless you can negotiate a sale-leaseback, or manage to align the two house closings perfectly, cash buyers may be forced to stay in a hotel or rent during the interval.

Obtaining a mortgage loan may ease the transition for some buyers who already have a down payment and are still eligible for their loan while carrying both homes, as they may be able to buy a new house before selling the old one. Convenience comes at a price though, and there is a risk that the home won’t sell as quickly or at the price you expect.

All cash offers are the preferred tool of buyers in competitive markets. If a mortgage is preferable but you are struggling to compete with unconditional offers, one option might be to buy the new home or condo with the cash proceeds from the sale of your old home and apply for a loan afterwards. fence.

While buying or selling a home is an emotional decision, it’s important not to let your personal feelings cloud your better judgment. Buying too many homes or deciding to buy cash just because you can could slow down your retirement lifestyle in the long run.

Chinese court blacklists cash-strapped apartment rental startup Danke – TechCrunch


As financial woes intensify in Danke, Chinese authorities are stepping in to hold the once promising apartment rental and sharing company to account.

In recent weeks, landlords who haven’t received payments from Danke, who works as a sub-lessor, have started evicting tenants. After a flurry of local reports exposing the company’s massive debt, which is said to be as high as $ 520 million, a district court in Shanghai put Ziwutong Beijing Asset Management, Danke’s parent organization, is on the country’s “social credit” blacklist.

The Chinese government’s social credit system is a set of mechanisms aimed at improving the enforcement of existing laws and violators may face restrictions in their daily activities. In Danke’s case, founder and CEO Gao Jing was barred from “heavy expenses,” which include everything from flying first class, taking a high-speed train, buying property and going on vacation, to registering. of children in “expensive” private schools, according to a court notice.

The move came after a senior judge at China’s Supreme People’s Court told the press that Danke was under investigation by the relevant authorities for his cash flow problems.

Danke – founded in 2015 and backed by leading investors like Ant Financial, Tiger Global, and former Chinese director of LinkedIn, Derek Shen, are committed to making urban housing affordable and enjoyable for Chinese white-collar workers. The catch is that it is progressing through aggressive debt-fueled expansion.

Instead of the traditional rental model, Danke relies on an elaborate financing plan to maintain its cash flow. Tenants are offered incentive prices to pay up front for one year and are encouraged to cover the sums by taking out loans, which are provided by Danke’s partner banks. Tenants who refuse to take out the loans are asked to pay more.

With the capital financed by the loans, Danke then pays the owners, but only on a monthly or quarterly basis. This gives the startup great financial flexibility to rent to owners and spend on renovating apartments, which are then sublet to tenants for a mark-up.

Danke’s model embodies the promises of internet platforms or the so-called sharing economy – a small asset, rapidly evolving, but it also creates huge risks for the providers and consumers it engages in. to serve. When the COVID-19 pandemic hit, the rental market in China cooled, straining Danke’s finance vehicle.

When TechCrunch spoke to angel investor and Danke chairman Derek Shen last year about the company’s financial risks, he had this to say: “There is nothing wrong with the financial instrument itself. The real problem is when the real estate operator is struggling to repay, so the key is to make sure the business is running smoothly.

“What is needed is tighter market surveillance to prevent such cases from happening again,” said one opinion piece published in the public newspaper China Daily. “The involvement of banks and loans made the risks even higher. Given the unsustainable nature of Danke’s business model, it is time for financial supervision departments to consider putting in place stricter financial rules prohibiting such risky practices.

Listed in New York, Danke saw its shares dip to $ 2 last month, from $ 13.5 when it went public in January. So far this year, the company has only released its first quarter earnings report, which posted a net loss of $ 174.3 million.

The financial turmoil is also putting WeBank, Danke’s main partner bank, in the spotlight for its stake in a highly leveraged rental business in exchange for handsome interest. Online banking supported by Tencent ad on social media that he would transfer tenant loan obligations to Danke, who was already subsidizing tenant loan interest at WeBank. In the three months ended in March, Danke paid a total of $ 7.9 million in interest related to “rent finance.”

Danke cannot be immediately reached for comment on the story.

How Much Are All-Cash Home Buyers Saving?


When Shermika Bennett entered a bidding war for her dream house last month, she didn’t expect to win, especially at $ 25,000 less than other bidders. But she won, and now Bennett and his family are the proud owners of a six-bedroom, three-fireplace home in the heart of Atlanta.

“I was surprised and amazed when I was told my offer was successful,” Bennett says. “I certainly didn’t think a lower bid would win. Everyone always goes with the highest bid.

The secret to Bennett’s good deal? His offer was not dependent on mortgage financing. With the help of an emerging new home buying solution, Bennett was able to make a cash offer. And the cash offers, well, they usually mean big savings.

According to a new study from researchers at the University of California at San Diego, stories like Bennett’s are not that uncommon. Over the past 40 years, cash buyers have paid about 12% less than those who use a mortgage. This is the difference between a prize of $ 200,000 and a prize of $ 176,000.

There are many reasons for the discount, but the main driver is the certainty that the money provides to sellers. On mortgaged offers, there is always a chance the deal will fail – either due to appraisal, an inspection issue, or the buyer’s failure to qualify for the loan itself. .

“Many sellers are willing to accept a lower offer in return for the certainty that the deal will be done,” said Kristina Morales, real estate agent in Cleveland. “With a cash offer, there is no funding contingency and, most often, no valuation contingency. Without these contingencies, sellers are more confident in the conclusion of the transaction. “

It seems, however, that sellers are more suspicious than warranted. According to the National Association of Realtors, only about 6% of all contracts fail – and funding issues are only a small part of those.

“Vendors leave a lot of money on the table,” says Michael Reher, one of the report’s authors and assistant professor of finance at UCSD. “They are more worried that the funding will fail than they should be.”

Why do sellers prefer cash?

Whether the data supports it or not, experts say sellers do fear mortgage problems, and this fear plays a big role in why buyers like Bennett win.

When funding fails, sellers are forced to go back to square one, often delaying their sale for weeks or even months. This can be especially difficult if they are trying to buy a new home at the same time.

It also hurts the market value of the home, which could delay the sale even longer.

“If that happens, they will have to relist their home on the market, which could drastically reduce the amount they can get for the home,” says Vanessa Famulener, vice president of HomeLight’s Cash Close program. “A house put back on the market is like damaged property.

But that’s not the only attraction of cash offers for sellers. According to Shaival Shah, CEO and co-founder of the Ribbon cash offer solution, cash offers are also faster. With cash offers, closings can take as little as 14 days. A typical mortgage closing takes between 30 and 60 days in most cases.

This speed, coupled with the added certainty these offers bring, can often give cash buyers the edge in bidding wars – a common occurrence in today’s short-supply market. According to real estate broker Redfin, around 56% of its listings were the subject of a bidding war in January.

“My teams like to say money is king,” says Keli James, real estate agent at eXp Realty in Las Vegas. “Cash offers will usually make your bid the strongest on the table and make it more likely that you walk away with the keys to your new home. “

Even more savings for buyers

As if 12% off and an edge in the bidding wars weren’t enough, cash offers also come with additional savings. These arise from all kinds of mortgage related costs, the most important of which is interest.

If you were to finance a $ 200,000 house today (using a 30-year fixed rate mortgage at Freddie Mac’s current average rate of 3.02%), you would end up spending $ 104,332 in interest over the course of over the next three decades. With a cash offer? You would have no interest charges.

Cash buyers also avoid certain closing costs – which typically add up to 2-5% of the loan amount – as well as mortgage insurance, which can range from $ 30 to $ 70 per month on a conventional loan.

“Cash offers don’t have to deal with the costs of working with a bank, including appraisal fees, processing fees, mortgage interest over time and more,” notes Tony Rodriguez- Tellaheche, co-founder of Prestige Realty Group in Miami. “Depending on the property, this could represent tens of thousands of dollars in savings.”

To be fair, a cash offer does not entirely remove all closing costs. According to Paul Buege, president of Atlanta Mortgage in Menomonee Falls, Wisc., Cash buyers will still need to cover things like title insurance and registration fees to transfer title to the home. These fees vary by location, but you can generally expect to pay between $ 1,000 and $ 2,000.

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No money? no problem

The cash offers probably seem a little intimidating to most buyers, especially with the average home price close to $ 304,000. But thanks to a few creative solutions, you actually don’t need an empty bank account or tons of savings to get a lot of benefits.

Programs like Ribbon, HomeLight’s Cash Close, and the Opendoor-backed offers – which Bennett used to save $ 25,000 – are just a few of the options that allow you to make cash offers without paying the bill yourself.

With these programs, the company makes a cash offer on your behalf and you mortgage the property in a separate transaction without involving the seller. This allows you to take advantage of those cash price discounts, set yourself apart from other buyers, and potentially win a bidding war, all without dipping into that emergency fund or dipping into your savings. (Although, of course, you still end up paying the closing costs and interest payments associated with your eventual loan.)

As Famulener says, “It’s the best of both worlds, especially in a competitive market where money is king for sellers.”

According to Tom Willerer, product manager at Opendoor, buyers who use his company’s cash offer program see their offers winning 50% more often than those with traditional mortgage offers. Bennett is just one example among many.

“For buyers right now, the real benefit of making an all-cash offer is having a leg up on other interested parties when competing for the home,” said Willerer. “With low interest rates, limited inventory and high demand, buyers need to find ways to make their offer as attractive as possible to the seller. In this case, the cash component made it even stronger and our buyer won the house.

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To start

The downside of paying in cash

Despite its advantages, there are some drawbacks to buying with cash. More specifically, it immobilizes your money.

Real estate is what is called illiquid. It can help you build wealth, but it is not as easy to access it as it is with other investments, like stocks or money market accounts. If you find yourself in a financial bind down the line, it could cause a problem, especially if you’ve put all your savings in the house.

Paying everything in cash also takes money away from other potential investments – those that may equal higher returns in the long run.

“With interest rates currently so low, borrowers can get better interest rates by investing their money instead of spending it all on buying their home,” says Buege. “Yes, homeowners with a mortgage will have to pay interest on the money owed, but if they can get a higher rate of return by investing the funds, it might be in their best financial interest to take out a mortgage.”

Still, there is something to be said about life without a mortgage. Take Rick Patterson, for example. Patterson bought his home in Tulsa, Oklahoma, using all of his cash in December 2019, and now, he says, he has “virtually no debt of any kind and minimal bills to pay each month.”

As he says, “The real benefit is peace of mind and a stress free lifestyle. I will always have a home no matter what.

More money :

Thinking of using your 401 (k) for a down payment on a house? Read this first

Low rates put 15-year mortgages – and big savings – within reach of millions of homeowners

The new rules for buying a house while selling your old one

Taking on Schwab, Robinhood and Wealthfront, the VCs continue to throw money – now $ 153 million – at M1 Finance that it doesn’t need to burn


Latest $ 75 million venture capital comes after spike in growth, M1 says, correlates with weary Robinhood investors after GameStop fiasco

Brooke’s Note: All PR is good PR. It’s a journalist’s selfish spiel to get editorial attention. But it also has its plausible points of proof. No sooner had M1 risen to prominence for a crash with Wealthfront (we had never heard of it before at RIABiz), than he raised $ 75 million in a D round. barely touched his turn B. Do the math. It’s a big change. Of course, there’s more to the story, hence the article below, although Coatue and other VCs love them. M1 is growing, and, yes, he says internally that he sees a strong correlation in the timing of his peak growth with Robinhood’s GameStop struggles. As the most prominent online broker on the planet decides who he is and when to stop the game of insane trading on his platform, M1 says he’s ready to eat his lunch. See: Robinhood allegedly implied a fiduciary duty to newbie investors in marketing its ‘game type’ trading app, even though it is a FINRA regulated securities broker, new class action charges.

M1 Finance just raised $ 75 million shortly after raising the thorns of Wealthfront and – he claims – is doing a land office business with disgruntled Robinhood investors fleeing after the GameStop controversy. See: Wealthfront calls on M1 Finance.

David Goldstone: This increase will put pressure on M1 to maintain rapid growth.

Chicago’s robo-advisor, which allows investors to drive in the background, announced its latest raise on March 9 and quickly outlined plans to double its workforce to 300, after tripling it in 2020.

“[M1’s] the vision is to dominate the self-directed space with an application positioned like the super SoFi [a burgeoning neo-bank] and as the antithesis of Robinhood, ”said Will Trout, director of wealth management at Pleasanton, Calif., consultant, Javelin Strategy & Research, via email.

M1’s goal, say its executives, is to be the Charles Schwab & Co. of the next generation – making it all cheaper and silkier.

“M1 believes it can do better with lower costs, a more modern platform and integrated tools for all of the clients’ financial needs. No one is saying it’s a five-year vision – it’s a very long term, everything was, and is, with Schwab, ”said Bob Armor, chief marketing officer.

“We can be a next generation Charles Schwab,” Brian Barnes, founder and CEO of M1, told BusinessInsider. “We want to go after the banks. We don’t want you to mess around with the JPMorgans, the Wells Fargos, the Bank of Americas.”


What M1 hopes to capture is the desire for a forward-thinking brand and mobile technology, but without the aura of an online casino sometimes attributed to Robinhood, says Trout.

Will Trout: ‘[M1’s] the vision is to dominate the self-directed space. ‘

“This [goal] will mean discouraging day traders and ensuring a seamless user experience, defined by the absence of crashes or outages, hence the need to hire an army of engineers and marketers, ”he explains.

The company’s decision to double its workforce is also tied to its attempt to become anti-Robinhood, Trout continues.

Software engineers and product management positions will make up the majority of M1’s new hires, though it will also join its customer support team, according to the company.

M1 will likely add cryptocurrency trading at a future date, Trout predicts.

David Goldstone, head of research for Backend Benchmarking, an analytics company in Martinsville, NJ, also expects M1 to add new robot-like managed accounts and financial advice.

Barnes, in a Release, has played a lot on its online competitor.

“Our goal is to improve our clients’ finances, as opposed to their financial entertainment,” he says. “Wealth is built through long-term ownership, not playing on short-term price movements.”

$ 10 billion goal

Client M1 has grown its assets nearly five times since the start of 2020, from $ 800 million in January to nearly $ 4 billion by year-end. The goal is to reach $ 10 billion in customer assets by the end of 2021

“We are growing in all areas of our business,” said Amour.

But if M1 hopes to reach $ 10 billion in client assets by January 2022, it is expected to triple its monthly asset inflow, Goldstone says.

The feat is made all the more difficult by the fact that its 12 months of mind-blowing asset gains may soon recede.

“M1 may very well have a hard time sustaining this growth rate. It is easier to go from 100,000 users to 500,000 users than it is to go from one million users to five million,” he said via e- mail.

For now, the company is only seeing growth. “There is no evidence of a cap anytime soon,” Armor retorts.

Slice the apple

M1 has already gained a huge advantage over Robinhood, which is that he is untouched by the GameStop controversy.

Bob Armor
Bob Armor: M1 thinks he can do better [than Schwab].

Robinhood faces lawsuits and regulatory review after briefly banning outraged customers from trading GameStop and other actions in February.

“The growth schedule mentioned in the [latest] the version reflects that, ”says Armor.

M1 advertises itself as “no charge” to customers as it does not charge any commissions or fees based on assets under management for its basic service.

But it takes two bites of apple on the back.

Like Robinhood, he is paid by market makers for order flow, and like Schwab, it lends securities to short sellers (limited to 5% of its assets), collects spreads on deposits, collects debit card transaction fees from traders and earns interest from investors who borrow using their securities as collateral.

The free service includes one trading window per day, access to portfolios to build your own or rebalance, a debit account, and the ability to get personal loans.

Up to the task

For a Schwab-like annual subscription of $ 125, M1 customers also get a second daily trading window, lower loan rates, and 1% interest on cash.

Daniel Senft
Daniel Senft, who will serve on M1’s board of directors, expects the company to reach a market cap of $ 10 billion.

In contrast, Robinhood offers its customers standard and extended market hours.

Wealthfront’s automated investment service is discretionary, meaning that account holders cannot influence specific investment decisions or the execution of trades, according to his website blog.

Today, the company manages $ 23 billion, six and a half times the amount M1 oversees. New York robo-rival Betterment manages $ 27 billion.

M1 administers $ 3.5 billion in client assets, up from $ 3 billion in January and $ 1 billion last February, an increase of 350% in just 12 months, which equates to an average of $ 208 million. dollars of monthly asset growth.

All three offer banking services, but Wealthfront’s introduction of custom wallets and its potential offer for a banking charter have put it on a much closer collision course with M1. See: Wealthfront’s unlikely exploitation of signals from Sheila Bair and Tom Curry will likely push for bank charter, analysts say.

Wealthfront offers planning services. M1 has “no plan” to introduce consulting or planning services, Armor says. See: Wealthfront calls M1 Finance on pretext, but some experts see its damnation as low praise for a growing competitor

Big things

The company’s latest increase also brings its ‘barely touched’ war fund to nearly $ 153 million – an amount M1 has brought in on three rounds of funding in the past 12 months for a total of $ 173.2 million. dollars over the six rounds of funding.

Michel gilroy
Michael Gilroy: We research and invest in companies that we believe to be innovative, impactful and built for the long term.

Coatue Management, based in New York, led the $ 75 million Series D funding round. Clocktower Technology Ventures in Santa Monica, Calif., And Left Lane Capital in New York increased their holdings in the towers M1 series B and C series financing.

Oddly enough, M1 says he has no intention of dipping into the funds he just raised on his D turn – or even his C turn. Round B is practically intact.

“We had no intention of raising new capital. The D-series funding sets M1 up for big things,” he says.

The ultra-surplus capital fills a need in the high-stakes hiring process to show that resources are not objective, Barnes said.

M1 will also soon become a unicorn, or a company valued at over $ 1 billion, according to Barnes. “[We’re] get closer “, he said Business intern.

But even tons of uninvested capital is increasing the pressure, according to Goldstone.

“This increase will put pressure on M1 to maintain rapid growth,” he says.

IPO dream

Coatue’s decision to back M1 is the belief that it will eventually trade in the public markets with a market capitalization of at least $ 10 billion.

Indeed, Coatue’s senior managing partner, Daniel Senft, who will soon be joining M1’s board, insisted he had no interest in supporting a start-up that has not reached this market capitalization target, Barnes told BusinessInsider.

“A partner who supports this vision and who has a big portfolio to fund this vision over long periods of time… is a perfect partner,” he said.

“We research and invest in companies that we believe to be innovative, impactful and built on the long term … [and] M1 Finance has all of these characteristics, ”adds Michael Gilroy, general partner of Coatue, in a press release.

Led by billionaire investor and company founder Phillip Laffont, Coatue declined a request for comment.

Coatue may also have had a bonus look under the hood of the M1.

He recently participated in a $ 850 million investment led by SPAC in custodian Apex Clearing, the custodian of M1. See: After Reaching Nearly $ 100 Billion In Hold, Apex Clearing Closes “IPO” Deal To Raise “Up To” $ 1 Billion To Disrupt Existing RIA Guard.

Trump’s student loan interest hiatus makes no sense


In response to the coronavirus pandemic, President Trump announced that he would waive interest on student loans held by federal government agencies. The reason for such a waiver is to put extra money in the pockets of student loan borrowers. But the way the policy is structured, it will provide little immediate relief to borrowers, while potentially increasing costs after the pandemic ends.

The Ministry of Education had not issued any official guidelines regarding the student loan policy of interest at time of writing. But Ron Lieber, New York Times Financial Columnist reports that monthly student loan payments will not decrease at all due to the policy, according to conversations with ministry spokespersons. The president of an association of student loan managers said the same thing in a interview with Kery Murakami from Inside Higher Ed.

The interest relief will prevent student loan interest from accruing while the policy is in effect, but the monthly payments will remain the same. This will prevent balances from increasing while the waiver is in place, but most borrowers will only see a benefit once they are about to repay their loans.

How would that work? Let’s say you have $ 15,000 left on your student loan, which carries an interest rate of 5%. You make payments of $ 283 per month. About $ 60 of this goes to interest, while the rest goes to principal. At this rate, you will fully repay this loan over five years and your payments will total $ 16,984.

Now imagine that the federal government waives your interest for the next three months due to the coronavirus pandemic. You still make a monthly payment of $ 283, but for three months it will all be used to pay off the principal rather than the interest. Due to the reduced interest charges, your payments will total $ 16,750.

This equates to a saving of $ 234, which does not make sense for many households. But the borrower will not realize these savings for five years, when he repays the loan. It doesn’t help much for borrowers facing a cash shortage due to the pandemic. But it will cost the federal government money later, hopefully once the pandemic is over.

The interest exemption on student loans could make borrowers who are facing financial difficulties feel better about suspending their loans. In forbearance, borrowers do not have to make payments, but regularly scheduled interest continues to accumulate. Watching your balance increase can be overwhelming, so waiving interest could lead borrowers to make this choice. But the policy still provides no cash relief today, as most borrowers were still eligible for forbearance, pandemic, or no pandemic.

The interest exemption on student loans fails to help distressed borrowers today, although the federal government will still incur costs related to lost interest income in the future. This makes it a poor response to the financial pressures the coronavirus pandemic has placed on American households.

Even if the Trump administration found a way to cut monthly payments today, it would still be a poorly targeted response to the pandemic. Student debt is concentrated among high-income households; rich families hold about $ 3 in student debt for every dollar held by poor families. But low-income people, who are more likely to have service-sector jobs affected by the pandemic, are most in need of financial assistance.

A better way to help people who have been hurt financially by the pandemic is to send money directly to them, rather than providing delayed and inconsistent relief through the student loan system. Fortunately, the White House announced Tuesday afternoon that he was working on a plan to do just that. President Trump should reconsider his flawed student loan interest waiver and instead spend the money in direct relief for families who need it most.