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We do Employee Retention Credit advances and buyouts at Break Bread Lending. The client can get paid in days instead of months, and we give the most commissions on submissions in the industry by far. We can file, and/or buy the credits no matter where the client has filed for the credits. (Ask us about our "residual income ERC-esque product" that we've rolled out now too. Works just like ERC, except we don't have to stop in 2025!) We do 1-5 W2 employee companies as well, and we can have you filed far quicker than any ERC Mill. It's a sleeker, more personalized experience. We're more about quality than quantity, and it shows in our execution. We'd love to work with you! www.ERCflashpass.com (877) 381-8338 🙏 📿

"The report says smaller PPP loan applicants were disdained by one fintech, with staff writing, “delete them” and “Who f------ cares.”" Dec. 1, 2022, 11:00 AM EST By Laura Strickler A couple who founded an Arizona-based financial technology firm in the early days of the pandemic raked in an estimated $120 million in processing fees from handing out billions in Paycheck Protection Program loans even though their company did little to police fraud, according to a congressional report released Thursday.

The Federal Reserve on Wednesday lowered its key interest rate by a quarter percentage point, the third consecutive reduction and one that came with a cautionary tone about additional reductions in coming years. In a move widely anticipated by markets, the Federal Open Market Committee cut its overnight borrowing rate to a target range of 4.25%-4.5%, back to the level where it was in December 2022 when rates were on the move higher. Though there was little intrigue over the decision itself, the main question had been over what the Fed would signal about its future intentions as inflation holds steadily above target and economic growth is fairly solid, conditions that don’t normally coincide with policy easing. In delivering the 25 basis point cut, the Fed indicated that it probably would only lower twice more in 2025, according to the closely watched “dot plot” matrix of individual members’ future rate expectations. The two cuts indicated slice in half the committee’s intentions when the plot was last updated in September. Assuming quarter-point increments, officials indicated two more cuts in 2026 and another in 2027. Over the longer term, the committee sees the “neutral” funds rate at 3%, 0.1 percentage point higher than the September update as the level has drifted gradually higher this year. Fed Chair Jerome Powell will discuss the rate decision Wednesday afternoon. For the second consecutive meeting, one FOMC member dissented: Cleveland Fed President Beth Hammack wanted the Fed to maintain the previous rate. Governor Michelle Bowman voted no in November, the first time a governor voted against a rate decision since 2005. The fed funds rate sets what banks charge each other for overnight lending but also influences a variety of consumer debt such as auto loans, credit cards and mortgages. https://www.cnbc.com/2024/12/18/fed-rate-decision-december-2024-.html

WASHINGTON, Dec. 23, 2024 (GLOBE NEWSWIRE) -- Today, Administrator Isabel Casillas Guzman, head of the U.S. Small Business Administration (SBA) and the voice for America’s more than 34 million small businesses in President Biden’s Cabinet, announced that the SBA has granted Small Business Lending Company (SBLC) licenses to four lending institutions committed to expanding access to capital to underserved markets. The awarding of four new SBLCs—Cooperative Business Services, A10 Capital, Lafayette Square, and Stonehenge Capital—marks the SBLC program’s second expansion during the Biden-Harris Administration and the second made in 40 years. This broadens the availability of 7(a) loans in low-income and other underserved communities nationwide from their locations in Ohio, Idaho, Washington, D.C., and Louisiana, respectively. “For the second time in over 40 years, the Biden-Harris SBA welcomes new lenders with a shared mission of filling capital gaps in underserved communities – the very same communities who are starting businesses at the highest rates in America today,” said Administrator Guzman. “With private markets playing an increasingly important role in small business lending, this expansion delivers against the Biden-Harris Administration’s unwavering commitment to providing affordable financing to the incredible entrepreneurs and new business starts revitalizing Main Streets across America. Congratulations to the four new licensees as they work alongside the mission-focused teams at the SBA to put the American dream of business ownership within reach for more entrepreneurs.” The SBA approves SBLC licenses for selected non-depository lenders to increase responsible small business lending. An SBLC license allows the lending organization to access the SBA’s 7(a) government guarantee program when underwriting small business loans to reduce the level of risk to the lender and cost to the borrower. As a result, SBLCs are positioned to underwrite higher volumes of loans to eligible small businesses than possible without a government guaranty.  Full Story https://www.morningstar.com/news/globe-newswire/9323490/sba-strengthens-lending-network-with-new-public-private-partnerships

According to research company Lumos, this is the data for SBA Loans in 2024. 2025 should be better given the improvements and additional capital providers approved to do SBA loans.

Non-QM loans — to serve borrowers who don’t meet traditional lending requirements. Non-QM loans have their own distinct set of criteria, including flexible income and credit requirements. In exchange, borrowers may need to make a larger down payment and pay a higher interest rate.Non-QM loans: flexibility at a costNon-QM loans are aimed at borrowers with financial profiles that don’t meet the requirements of a typical qualified mortgage. This often involves an inconsistent or nontraditional income structure, a major credit event or high debt. Features associated with non-QM loans include:Alternative income documentation. Depending on the lender’s requirements, borrowers may demonstrate their ability to repay the loan using tax returns, bank statements, asset qualifiers or 1099s.No waiting period after bankruptcy. Some lenders offer non-QM loans that cater to borrowers with a history of bankruptcy or foreclosure, allowing them to get a mortgage as soon as one day after the event. Comparatively, qualified mortgages may require a waiting period of one to four years after bankruptcy, and two to seven years after a foreclosure.Higher debt limits. Qualified mortgages have a maximum debt-to-income ratio (the percentage of your income that goes toward monthly debt payments) of 43%, while some non-QM loans allow for ratios over 50%.Higher down payment requirements. Non-QM loan borrowers may be required to put a minimum down payment of 15% to 20%. Meanwhile, the typical down payment was 8% for first-time home buyers and 19% for repeat buyers in 2023, according to the National Association of Realtors.Higher interest rates. Non-QM loans typically have higher interest rates than qualified mortgages. So while it may be easier to meet their requirements than a qualified mortgage, non-QM loans are also a more expensive way to borrow.No government backing. Because non-QM loans don’t have to follow CFPB standards, they can’t be purchased by Fannie Mae or Freddie Mac, nor can they be backed by the Department of Veterans Affairs, U.S. Department of Agriculture, or the Federal Housing Administration. So instead, the lender is taking on all the risk of issuing the loan.Repayment terms may be interest-onlyThe Consumer Financial Protection Bureau defined the standards for qualified mortgages in response to the wave of delinquencies and foreclosures that came with the 2008 economic crisis. At that time, loans were being issued to borrowers who couldn’t afford to pay them. Many of these loans had features the CFPB deemed “toxic,” including interest-only payments. This is not unusual with non-QM loans and can make borrowers more prone to delinquency.Some borrowers may be attracted to interest-only payments because they are less expensive, but larger payments will eventually come due. And a borrower may not be building equity when making interest-only payments because the loan’s principal balance doesn’t change.If you’re considering a non-QM loan, you’ll want to review the repayment terms offered carefully. The good news is that riskier factors like balloon payments (which require a substantial lump-sum payment at the end of the term) and negative amortization (where the minimum required payment doesn’t cover the interest, so the loan balance is growing with time instead of shrinking) are much less common today than they were before 2008. Still, you’ll want to enter any loan agreement confident that you fully understand what is expected and can make all required payments.» MORE: Mortgage payment calculatorBorrowers who may consider a non-QM loanThe requirements associated with qualified mortgages are designed to increase the likelihood that the borrower can stay current on their payments. A non-QM loan may be a good fit for you if you are confident that you can take on the required down payment and monthly amount due and if any of the following apply to you:You’re a contractor, self-employed, retired or otherwise unable to meet the income documentation requirements for a qualified mortgage.You’ve recently experienced a major credit event, such as foreclosure or bankruptcy.You’re a landlord and you want to use the cash flow from your other properties to qualify for a home.More than 43% of your income goes toward paying your monthly debts. Steve Benjamin Professional Business Loans 522 ContessaIrvine, CA 92620 steveprobiz@gmail.com https://probizloans.net/ Broker, Underwriter, general business loan expert 949.228.1050

It is a pleasure to join the Funder Intel business community, Catalyst is a well established direct lender specialized in both equipment financing and working capital transactions ranging from $5k to $500k throughout Canada. Feel free to contact me if you touch Canadian business and are looking for a consistent, reliable and service oriented funding partner. Thank you, Dean Morrison dmorrison@catalystfc.com (954) 224-3390

Feb. 5, 2025-- Cantaloupe, Inc. (Nasdaq: CTLP), a global leading provider of end-to-end technology solutions for self-service commerce, is excited to announce its newest platform, Cantaloupe Capital, in collaboration with Fundbox, a leading working capital platform for small businesses. This new offering provides small businesses with streamlined access to capital for expansion through equipment investments and flexible access to cash flow. In the self-service retail industry, small businesses often face challenges accessing traditional financing options. In fact, according to the 2024 Federal Reserve Small Business Startup Credit Survey, only 43% of startup small businesses (with employees) that applied for traditional financing received funding and only 29% of owner-operated startups received funding. The Cantaloupe Capital offering directly addresses these financing-related pain points by focusing on factors like steady business performance and growth potential. With eligibility criteria tailored to small businesses, the platform ensures that more operators can access the capital they need to thrive. "The majority of our customers are small and growing businesses, many of them sole proprietors. Cantaloupe understands their need for accessible financing solutions that can help them scale their operations," said Elyssa Steiner, Chief Marketing Officer of Cantaloupe, Inc. "With Cantaloupe Capital, we're breaking down barriers to funding by facilitating quick and easy online access to capital for owner-operators that will allow them to invest in new equipment, manage seasonal fluctuations, and capitalize on growth opportunities in the rapidly evolving self-service retail space." https://www.businesswire.com/news/home/20250205421401/en/

From Forbes: Almost from its inception, the IRS and employers have experienced headaches from the employee retention credit (ERC). Much of the frustration now stems from the agency’s long processing times. According to the government, it needs more time to review and weed out dubious ERC claims from legitimate claims. But this explanation is of no help to employers with valid claims who contend the agency should act more quickly. As these frustrations grow, the IRS finds itself mired in more litigation involving the ERC. On December 1, 2023, a California employer filed a lawsuit against the agency alleging that its ERC guidance violated the Administrative Procedure Act. Shortly thereafter, on January 12, 2024, a Texas employer filed a lawsuit contending that the IRS had failed to issue an ERC refund even though the company had waited roughly two years. In a more recent lawsuit, an Arizona company has taken aim at the IRS’ decision to impose a moratorium on processing ERC claims that were submitted on or after September 14, 2023. See Stenson Tamaddon, LLC v. IRS, No. 2:24-cv-01123 (D. Ariz.). After filing a complaint for declaratory and injunctive relief on May 14, 2024, the company filed a motion for a preliminary injunction on May 30, 2024, asking the court to stop the moratorium. The government filed its response on June 14, 2024. In its response, the government raises numerous procedural arguments, including that the company lacks standing to bring its claims and that the government has not waived its sovereign immunity. Notably, the government also contends that the moratorium has not harmed employers—they remain free to file refund suits in federal court, provided the statutory six-month waiting period has passed, and will receive interest on their claims if they are meritorious. Although the dispute between the parties in Stenson Tamaddon LLC is interesting, perhaps more interesting are certain statements made by IRS Deputy Commissioner Douglas O’Donnell (Deputy O’Donnell) in an attached declaration supporting the government’s response. In that declaration, Deputy O’Donnell highlights the various headwinds the IRS has experienced in attempting to process pending ERC claims. He also provides some insights into what the agency intends to do to try to clear the backlog. Regarding causes for the delays, Deputy O’Donnell cites two dominant factors: the IRS’ archaic system for processing ERC claims and the sheer number of ERC claims the agency received. He notes that because ERC claims were generally filed via amended paper returns, the agency must scan each return into an “aged Correspondence Image Inventory (CII) system,” which cannot independently analyze them. Rather, that analysis must come from an individual IRS employee who “manually review[s] each amended return to determine whether it includes an ERC claim, and [who] must mark it with special coding to indicate that it is an ERC claim.” Read full story: https://www.forbes.com/sites/matthewroberts/2024/06/17/in-pending-litigation-irs-reveals-strategy-for-managing-erc-backlog/

Published today on our blog! @Carolyn McClure https://www.funderintel.com/post/our-interview-with-carolyn-mcclure-of-loeb

From the Times Union on July 5th: Lawyers involved in the federal bankruptcy cases involving embattled Albany financier Kris Roglieri and his now-defunct commercial lending firm Prime Capital Ventures may have reached a financial settlement to pay off creditors. Terms of the negotiations are not yet available but an attorney involved in the case recently notified Bankruptcy Court judge Robert E. Littlefield Jr. that those involved in the matter have agreements to resolve Roglieri’s bankruptcy and the bankruptcy of his firm. “We are pleased to report that Mr. (Paul) Levine as permanent receiver of the debtor and Christian H. Dribusch as Chapter 7 trustee of the estate of Kris Roglieri, have been able to craft a term sheet for a path forward which, in (Levine and Dribusch’s) view, is the best way to maximize the recovery to creditors in both cases,” attorney Stephen Donato, an attorney for Prime Capital Ventures, wrote in a letter to the judge. “It is anticipated that a motion for approval of the term sheet will be filed shortly.” The disintegration of Roglieri’s company prompted his creditors to file lawsuits over the last year alleging he stole millions of dollars for loans they never received. In May, Roglieri was arrested by the FBI and charged with one count of wire fraud in connection with the company. Before it was shut down, Prime Capital Ventures offered up large, interest-only commercial lines of credit in exchange for large cash deposits of roughly 20 percent of the loan. Federal prosecutors handling the case against Roglieri have so far pursued just a single count of wire fraud, but it is alleged in both the criminal complaint and previously filed lawsuits that Roglieri took the cash deposits and spent them on luxury cars, watches and artwork. FBI raided his Queensbury home over the winter as part of the criminal investigation to seize a dozen cars, But Roglieri’s estate has millions of dollars in assets that include other cars, antiques and collectible watches. Much of Roglieri’s debts are tied up in tax and legal bills. https://www.timesunion.com/business/article/roglieri-prime-capital-ventures-bankruptcy-cases-19556000.php

Article on PYMNTS: Banks used to be the only game in town for small businesses looking to set up an account, get credit and hear advice about managing their cash flow.   Luke Voiles, Chief Executive Officer of embedded solutions FinTech Pipe, told Karen Webster that the point of interaction — for capital, for credit — is shifting from the bank branches to the software platforms SMBs leverage to help them do everything from match up with customers to manage the back office.  That’s especially true, he said, when the banks’ definition of small businesses are the companies with $25 million in sales, so they don’t give these smaller firms a second glance.  That presents an opportunity for Pipe’s “capital-as-a-service” operations — embedded within those software-as-a-service platforms and solutions, and launched about six months ago — to solve several pain points. As many as 85% of small businesses, Voiles said, use the capital they get from the likes of Square and Intuit (where he previously led those firms’ small business lending operations), and now Pipe, to grow their businesses. Pipe embeds financial services within its partners’ software stacks. “If you’re the owner of a nail salon that does $500K a year at your small location,” he said, “if you can borrow $80,000 with three clicks of a mouse, you can go and open a new location and buy the equipment you need to scale your business.” But for the smallest firms — the micro-businesses that line Main Street — well, those firms are underserved.  Especially when seeking access to a credit product that helps manage day-to-day operations and their working capital.   “There’s a huge gap in the market for the micro-merchants that just can’t get those same features they’d want from an Amex card, or from the cards offered by digital only neobanks that are typically offered to larger firms,” Voiles said. Those features include spend management options and rewards.  All too often, these same business owners wind up running their firms via their own personal credit cards. Introducing the Pipe Business Card Pipe’s sweet spot lies with the firms that see sales of $100,000 to about $1 million on an annualized basis (a range that encompasses most of the firms in the United States). Fresh off the heels of its expansion into a new market — the U.K. — on Monday (Oct. 28th), and broadening its reach to help SaaS clients target the smaller firms, Pipe announced that it launched an embedded Pipe Business Card for software and payments companies based in the U.S.  Pipe Business Card is a charge card that provides an extension of working capital that must be paid in full at the end of the billing cycle. The nail salons, hair salons, spas, coffee shops, “the physical mom and pop retail stores are all perfect fits,” said Voiles. The cards are issued by First Internet Bank of Indiana, and exist as a pay-in-full card, wherein balances must be paid in full within 15 days of a statement closing date. Pipe’s customers can draw down money from a line of credit to pay the balance, but the new Pipe offering is not a credit card. The same risk underwriting models that underpin Pipe’s core embedded capital-as-a-service product can be leveraged by Pipe’s SaaS partners, based on revenue from their own end customers, to offer those cards to improve micro-businesses’ access to capital.  The SaaS firms don’t manage the underwriting or take on the credit risk. “When you partner with a software company that has a year-long or two-year-long relationship with that small business customer, you can see real transactions…and that ‘de-risks’” the card issuance, the capital tied to those cards and the underwriting on Pipe’s part, Voiles told Webster. The embedded card programs can be launched in a matter of days, where that process has typically taken months.  Rewards include 1.5% cash back, the firm noted on Monday, and the cards carry no annual fees. Asked by Webster about the economics of the cards, Voiles said that interchange pays for the rewards. “We’re not trying to make the card a massive profit center,” said Voiles. He explained, further, that if an end customer gets to the end of the aforementioned 15 day period to pay off the card, they can pay with cash or draw down Pipe capital lines (“we’re monetizing this with our core product,” said Voiles) to pay off the cards and keep spending.  If they don’t pay, the card is locked and a percentage of the firms’ daily sales will be used to reduce the balance until the card’s paid in full.  Pipe creates bespoke models for every partner, said Voiles, with five years worth of data and history — with real-time inputs that help fine tune underwriting efforts. “I want businesses to be able to spend money knowing that they’ll have the available capital to do so,” said Voiles. Pipe will be rolling out additional services through its partner firms through the next several months, said Voiles, including spend management solutions that reconcile automatically with accounting and billing, which cuts down on the manual tasks of running the business. https://www.pymnts.com/news/digital-banking/2024/pipe-ceo-says-business-card-product-shifts-small-business-capital-from-banks-to-software-platforms/