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Here, at MerchantCashAdvances.org, our goal is to keep merchants informed about business cash advances, to answer all questions pertaining to merchant funding and small business loans, and finally to create standards in this relatively new and growing industry. Many times merchants do not receive the answers they are looking for from lenders until the end of the process, or are surprised by issues that arise during the process. Most times, merchants simply don’t … [Read more]
Mr. Obama Bashes Wall Street – Promises Tax Breaks and Cash Infusion for Small Businesses
Mr. Obama Bashes Wall Street – Promises Tax Breaks and Cash Infusion for Small Businesses In his State of the Union Address, President Obama on Wednesday night promised an infusion of $30 billion to small businesses to help them gain access to loans. The money will come from the $700 billion in payback from the large bank bailouts. In addition The President also is proposing to extend a $38 billion tax break to small businesses, allowing them to write off equipment and investments more quickly. The President blamed much of the economic recession on corruption in Wall Street and ...
$14 Million Annual Gross – Busboys Poets Denied Loan
Andy Shallal owns three popular bookstore cafes in the Washington Dc and Virginia areas. His annual gross sales are over $14 million, and yet he was denied a recent bank loan unless he tied the loan to his house as collateral. Taxpayers and small businesses owners are frustrated as billions of dollars were pumped into the financial system in order to save large banks, but the situation of small businesses has not gotten better as they have not seen much relief and banks continue to tighten their lending. The banking system has developed stricter underwriting criteria for loans, as they want ...
Bank of America to Pump $5 billion into Small Businesses
After a meeting this weekend with President Obama, CEO Ken Lewis of Bank of America Corp pledged that the nation's largest bank would do more for small businesses and reverse some of its declines. All in all Bank of America will expect to increase its lending by $5 billion to small businesses this upcoming year. "Bank of America is determined to do our part to help the economy grow next year and reduce unemployment by making every good loan we can make," Mr. Lewis said in a statement. Mr. Lewis acknowledged the large role that small businesses play in ...
Banks Repay TARP – Small Businesses Still in Trouble
Ciitigroup Inc., Bank of America Corp., and Wells Fargo, are repaying their TARP loans, $20.5 billion, $19 billion, and $25 billion respectively, but unemployment rates are still above 10% and small businesses are still suffering from a lack of access to capital. The Obama administration has recognized the need to reshape TARP money in order to benefit troubled homeowners and small businesses. Few banks have signed up for extra money from the government which would be used to aid small businesses and a $15 billion program to buy securitized small businesses loans announced in March still has not started. Treasury secretary ...
Citigroup Inc. Repays $20 Billion TARP Loan
Citigroup Inc. nearly collapsed back in November 2009, when customer's lost trust in the bank and the government had to infuse $20 billion and Citi issued $7 billion in trust preferred securities to the Federal Deposit Insurance Corp. in exchange for lost guarantees for $306 billion in securities. On Monday, Citigroup announced that it will sell $20.5 billion in stock and debt in order to repay the TARP loan. Yet the government still owns a large chunk of the stock, 34%, and plans to sell an additional $5 billion of its holdings as the bank repays TARP, ...
Federal Reserve Testimony – Challenging Economic Times
Jon D. Greenlee, Associate Director, Division of Banking Supervision and Regulation addressed the Subcommittee on Oversight and Investigations, Committee on Financial Services, U.S. House Of Representatives in Michigan on December 1st, 2009 regarding the current banking system, its underwriting process, the credit available to small businesses, and the overall credit situation. He also touched upon commercial real estate and the availability of credit to businesses and what the federal government is doing to help prop up the banking system. The Federal Reserve Commission is responsible for insuring and enforcing regulations in the United States banking system. Starting in 2007, the banking ...
Merchant Funding Discussions
Good Loan Rates
It is difficult these days to obtain a loan from a bank, let alone obtain a loan at good rates. Many times merchants are shocked... Read More...
Frustration with DocumentationOkay. Let’s put this into perspective. A merchant is receiving an unsecured loan, ranging anywhere from $2,000 to $250,000. ... Read More...
Why Does My Broker Keep Switching Numbers on Me?While it may be a nuisance for merchants that their merchant cash advance lender changes the advanced amount on them, even after... Read More...
The Deal isn’t Done, Until It Is Really Done!Merchants, be aware! Although contracts were signed, the funding has not been deposited into a bank account yet. Merchant... Read More...
Op-Ed
TARP Money for Small Business Loans
U.S. Senator Benjamin L. Cardin proposed a bill that would provide direct loans to small businesses. The bill proposes to use $20 billion in TARP money on small businesses. TARP program was initiated by the Obama administration and is largely accredited with saving large US banks from bankruptcy. The bill would also create a tax credit for small businesses with up to 25 employees offering health insurance to staff.
The legislation comes through as many small businesses which have made it through the economic recession are attempting to climb back on their feet by unsuccessfully accessing money through local and large banks. The funding for the program would come from implementing temporarily a surcharge on individuals with incomes over $500,000 and couples over $1,000,000. Read more