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Disclosure: TABbank is now one of our advertisers on the site. (GLOBE NEWSWIRE) -- TAB Bank successfully closed $98.4 million in credit facilities across 385 deals during the third quarter of 2024. The financing includes a diverse range of loans such as working capital, equipment, commercial real estate, small business lines of credit and accounts receivable funding across numerous sectors, including homeware, restaurant, manufacturing, real estate, transportation, and more. TAB Bank remains a solid financial partner for businesses nationwide, offering crucial capital for growth and success to turn goals into reality. Highlights of the largest Q3 2024 deals include: • $12 million–A multifamily community developer based in Texas. • $10 million–Mobility Trust Group, a company based in Virginia, specializing in financing wheelchair-accessible vehicles (WAV) and home mobility equipment for people living with disabilities. • $5 million–CoreCentric Solutions, a leader in the repair, remanufacture and product returns industry based in Illinois. • $4.5 million–The Fiesta Tableware Co., the American-made tableware company based in West Virginia. • $4 million–A full-service metal manufacturer based in Colorado serving the aerospace, defense, medical, marine and renewable energy industries. • $2 million–Dirty Dough, a rapidly expanding gourmet cookie company based in Utah. With its roots in serving over-the-road truckers and the broader transportation industry for over 25 years, TAB Bank provided term loans and lines of credit in the third quarter ranging from $30,000 to $250,000 to transportation and logistics companies to help create consistent operational cash flow. “At TAB Bank, we’re all about providing personalized financial solutions to empower businesses to thrive. Whether businesses need working capital to sustain growth or equipment loans to expand operations, we deliver flexible financing options designed to meet unique needs,” said Tyler Heap, President at TAB Bank. “We are proud of our work in Q3 and remain committed to helping companies, especially those in underserved markets, access the capital they need to scale and succeed." The bank’s services include working capital, equipment financing, term loans, lines of credit and commercial real estate loans. TAB Bank’s specialists ensure each client is matched with the right financial product for their industry and growth stage. The bank supports businesses with stellar credit and those without, requiring alternative assessments. To determine creditworthiness, the bank considers various factors, such as income and operational history. https://www.morningstar.com/news/globe-newswire/9263918/tab-bank-secures-nearly-100-million-in-q3-financing-deals-empowering-385-businesses-nationwide

SAN FRANCISCO, Sept. 17, 2024 (GLOBE NEWSWIRE) -- Fundbox, a leading embedded capital platform for SMBs, announces a new credit facility with Cross River, a technology infrastructure provider that offers embedded financial solutions, and Waterfall Asset Management, a global alternative investment advisor. The agreement brings Fundbox’s total annual origination capacity to over $2B, including existing capacity. The financing facilities will support Fundbox’s mission to empower the SMB economy by meeting the working capital needs of small businesses, primarily through embedded experiences in the tools they use every day. Fundbox’s cross-platform data sharing and cutting-edge underwriting technology enable SMB platforms to offer capital to their customers right within their products. The backing of Cross River and Waterfall will further enable Fundbox to develop innovative products to help platform partners deliver the funding their small business customers need. “Small businesses need capital more than ever before. The number of US small businesses grew 3x the rate of the US consumer population in the last decade, while bank funding for SMBs has fallen 15% year-over-year,” said Renuka Nayani, Fundbox CFO. “Credit capacity from Cross River and Waterfall help ensure we are well-capitalized to meet this need. We are thrilled to work with these established institutions to help close the trillion-dollar gap in small business funding.” Full story below: https://www.globenewswire.com/news-release/2024/09/17/2947664/0/en/Fundbox-Secures-Warehouse-Capacity-from-Cross-River-and-Waterfall-Asset-Management.html

Two Democratic senators have urged regulators to ban the use of the Federal Deposit Insurance Corp. name or logo by firms that provide products only eligible for pass-through FDIC insurance and establish clear rules for banking-as-a-service companies. In a letter sent Wednesday, Sens. Elizabeth Warren, D-MA, and Chris Van Hollen, D-MD, highlighted that the partnerships between banks, BaaS providers like Stripe, Finastra, Synapse, and Marqueta and fintechs like Venmo, Cash App, Yotta, and Chime pose a threat to consumer safety and soundness. They asked the heads of the Federal Reserve, Office of the Comptroller of the Currency, and the FDIC to exercise their power under the Bank Service Company Act and the Federal Deposit Insurance Act to directly monitor the organizations and bring enforcement action against the companies if they violate the established rules. “The rapid growth of these partnerships risks harming consumers while posing a broader threat to the stability of our banking system and the economy,” the senators wrote. “The risks are clear.” Revenue from BaaS is expected to reach $17.3 billion in 2026, according to the letter.  Bank-fintech partnerships “can involve elevated risks,”  including providing misleading or insufficient information to end users, the senators wrote. Warren and Van Hollen pressed the heads of the federal agencies to prohibit the use of misrepresentations related to FDIC insurance. Companies like Yotta, they wrote, put more emphasis on “FDIC-insured” in large text on their websites while explaining what the term means – that the money is held in an account eligible for pass-through FDIC insurance of up to $250,000 through the partner bank – in smaller text. https://www.bankingdive.com/news/lawmakers-warren-van-hollen-push-crackdown-fintech-ban-false-claims/727005/

Good article for those who need a refresher or are just trying to keep up with the law changes in several states. Connecticut and Kansas recently joined California, New York, Florida, Utah, Virginia, and Georgia in enacting laws requiring lenders to provide consumer-like financing disclosures for certain commercial financing transactions. Like other jurisdictions’ so-called “Business Truth in Lending” laws, Connecticut and Kansas’s newly enacted laws cover, at a minimum, traditional business-purpose loans, along with accounts receivable financing, factoring, and merchant cash advances. Both laws took effect July 1, 2024, but Connecticut took a “no-action position” on companies providing the required disclosures until Sept. 30, 2024. This GT Alert is intended to remind industry participants of the changes in these state laws requiring such disclosures and, potentially, registration with a state regulatory agency. Connecticut SB 1032, a commercial financing registration and disclosure law, requires providers of “sales-based financing” to provide disclosures to commercial borrowers beginning July 1, 2024, and register with the Connecticut Department of Banking by Oct. 1, 2024. The law defines “sales-based financing” as “a transaction that is repaid by the recipient to the provider over time (A) as a percentage of sales or revenue, in which the payment amount may increase or decrease according to the volume of sales made or revenue received by the recipient, or (B) according to a fixed payment mechanism that provides for a reconciliation process that adjusts the payment to an amount that is a percentage of sales or revenue.” At a minimum, the term brings accounts receivable financing, factoring, and merchant cash advances within its scope. Significantly, the disclosure and registration requirements only apply to sales-based financing amounts up to $250,000. Moreover, the law exempts the following entities from the requirements: • Any bank, out-of-state bank, bank holding company, Connecticut credit union, federal credit union, out-of-state credit union, or any subsidiary or affiliate, as defined in applicable Connecticut law; • Any person acting as a technology services provider to an entity exempt under SB 1032, as long as the technology services provider is not involved in or profiting from the commercial financing transactions made by the exempt entity; • A lender regulated under the federal Farm Credit Act; • Any person or provider who extends or brokers a commercial financing transaction secured by real property; • Any person or provider who extends or brokers a lease, as defined in applicable Connecticut laws; • Any person or provider who extends or brokers a purchase-money obligation, as defined in applicable Connecticut laws; • Any person or provider who extends not more than five commercial financing transactions in Connecticut in a 12-month period; • Any person or provider who extends or brokers a commercial financing transaction entered into pursuant to a commercial financing agreement or commercial open-end credit plan of at least $50,000, in which the recipient is (i) a dealer, as defined in applicable Connecticut laws, or an affiliate of such a dealer, or (ii) a motor vehicle rental company, or an affiliate of such company; or • Any person or provider who extends or brokers a commercial financing transaction relating to the sale of products or services that such person or provider manufactures, licenses, or distributes, or whose parent company, subsidiary, or affiliate manufactures, licenses, or distributes. Disclosure Requirement Since July 1, 2024, non-exempt commercial financing providers and commercial financing brokers have been required to provide the following disclosures when extending a specific offer of financing in Connecticut: • The total amount of the financing; • The disbursement amount; • The finance charge; • The total repayment amount; • The estimated time period required for periodic payments; • The payment amounts and frequency, or a payment schedule and the amount of the average projected payments per month; • A description of all other potential fees and charges not included in the finance charge; • Any finance charge the recipient is required to pay if the recipient prepays the repayment amount, with some exclusions; • Any additional fees, not already included in the finance charge, if the recipient prepays the repayment amount; • A description of collateral requirements or security interests; • Whether the provider will pay compensation directly to a commercial financing broker out of the financed amount and, if so, the amount of the compensation; and • If the provider requires the recipient to pay off the balance of an existing commercial financing from the same provider, the amount of the new commercial financing that is used to pay off the portion of the existing commercial financing that consists of prepayment charges required to be paid and any unpaid interest expense that was not forgiven at the time of renewal. The Connecticut Department of Banking published guidance and a commercial financing disclosure form a few weeks prior to the July 1, 2024, effective date and issued a “no-action position,” stating that it will not take enforcement action for a provider’s failure to provide the required disclosures for specific offers of commercial financing issued from July 1 to Sept. 30, 2024. Providers have until Oct. 1, 2024, to comply with the disclosure requirement, which coincides with the date upon which such providers must be registered with the Department of Banking for such activities. Please note that the exact disclosures required may vary based on the specifics of the financing transaction. To ensure compliance, market participants should consider reviewing the entire text of SB 1032 and consulting with legal counsel to ascertain the exact disclosures required with respect to any applicable financing transaction. Registration Requirement The Connecticut Department of Banking recently released applications through the Nationwide Multistate Licensing System & Registry (NMLS) for a Commercial Financing Broker Registration and Commercial Financing Provider Registration. The applications are relatively light and do not require providers to submit much supplementary information beyond what is contained in the company MU1 Form. Providers may wish to submit their applications in short order, as the state will require all non-exempt providers to register with the Department of Banking by Oct. 1. FULL STORY https://www.gtlaw.com/en/insights/2024/9/new-commercial-financing-laws-take-effect-in-connecticut-kansas?utm_source=mondaq&utm_medium=syndication&utm_content=articleoriginal&utm_campaign=article

Iron Horse Credit (“Iron Horse”), a leading non-bank, asset-based lender, is pleased to announce it has secured a $40MM senior credit line from Forbright Bank and MA Asset Management (formerly Blue Elephant Capital Management) with an additional $30MM accordion. Iron Horse has also locked in an additional $5MM of Subordinate Capital from PruVista Capital.  These new facilities will allow IHC to continue the expansion of its loan origination footprint and fuel growth initiatives. With the completion of these transactions, Iron Horse will continue to provide asset-based debt capital solutions to small-to-medium sized enterprises that regularly face capital constraints and cannot easily access traditional sources of financing through banks. “We are pleased to have collaborated with the Forbright Bank, MA Asset Management & PruVista Capital teams to successfully establish this credit facility,” said Bill DiPaula, CEO of Iron Horse Credit. “These relationships enhance our capacity to accomplish our strategic growth plans.” https://www.sfnet.com/home/industry-data-publications/the-secured-lender/tsl-express-daily-articles-news/tsl-express-daily-articles-news/2024/07/29/iron-horse-credit-secures-a-%2440-million-senior-credit-facility-and-%245mm-of-subordinate-capital?utm_source=iContact&utm_medium=email&utm_campaign=tsl-express&utm_content=TSL+Express+-+Tuesday%2C+July+30%2C+2024

The Internal Revenue Service (IRS) issued yet another update regarding the processing of Employee Retention Credits (ERC), warning taxpayers to thoroughly check their claims for “warning signs” of incorrect information. These warning signs flag claims as being fraudulent to the service, and the IRS is offering more opportunities to correct or withdraw such claims before further “compliance efforts” are announced in “the coming days.” Last month, the IRS announced that the moratorium was over and it would again begin processing low risk ERC claims. While many in the tax world begroaned the IRS for not simply processing those low-risk claims, it was still seen as a good sign that the claims were again going to be processed. Concerning to most taxpayers, however, was that 85% of the claims held by the IRS were seen as medium or high-risk claims and would undergo further scrutiny. Last week’s announcement by the IRS details further signs that the IRS will consider claims to be fraudulent, or “incorrect,” and asks taxpayers to review their claims—processed and unprocessed—to ensure they do not exhibit these signs. The five warning signs published by the IRS last week are in addition to the seven warning signs they previously warned the public about. Businesses and individuals with pending claims are being asked to review paid and unprocessed claims for these warning signs to ensure they are accurate. Anyone finding these warning signs or having questions about their claims is asked to speak with a trusted tax professional. The IRS again touted the ERC Withdrawal Program as a way for taxpayers to remove those claims they now believe may not fit the requirements of the program. Resolving incorrect claims now can help taxpayers avoid audits, repayment, penalties and interest. The service stops short of suggesting that these claims were filed with the intent to deceive. Instead, the IRS has doubled down on criticism of various so-called ERC promotors who they believe are the cause for the influx of high-risk claims. IRS communications regarding ERC claims often target so-called Promoters, accusing them of purposefully luring taxpayers to file claims for which they are not eligible. “The IRS continues working aggressively to pursue improper claims as well as increase payments going out to businesses with legitimate claims on these complex credits,” said IRS Commissioner Danny Werfel. “As we prepare for the next major announcement, we want businesses to be aware of common errors our compliance teams are seeing, many of which reflect bad advice coming from promoters. The IRS continues to urge people with pending claims or previously approved payments to talk to a trusted tax professional rather than a promoter and see if any of these red flags apply to them.” https://www.forbes.com/sites/irswatch/2024/08/05/spotlight-shifts-to-warning-signs-in-latest-erc-update-from-irs/

Just as the SBA opened up comments to their new Working Capital Pilot program the trade group SFnet wrote a letter to the SBA with its thoughts on the issues this program they felt would cause. Their main point from the letter is that the unintended consequences "will be to put the SBA’s Working Capital Pilot Program in direct competition with those(ABL) existing private lenders, many of whom are our members, who presently lend in the identical marketplace which the Proposed Rule intends to serve." Download the letter here

Banks have long placed limitations on their lending to small and medium-sized businesses for a variety of reasons: business strategy focused on larger loans, staffing levels ill-suited to administer a high volume of small-sized loans, process inefficiency, regulatory compliance; and an overall industry mindset that tends to deprioritize SMB lending. While many regional and community banks prioritize small business lending, businesses owners have often found it difficult to secure the funding efficiently from big banks. In fact, the Federal Reserve assesses that almost 50% of small businesses in the U.S. do not receive all or part of the financing they seek. Further, some estimates of the global funding gap for SMBs exceed $5 trillion. This funding gap hinders small business expansion, especially when one considers the huge role of small businesses in the overall U.S. economy. Indeed, small businesses account for an estimated 40% of the $29 trillion gross domestic product (GDP) in the U.S. Thus, the gap represents a major obstacle to the country’s economic growth. Fortunately, small businesses lending is undergoing a technological transformation that is helping to expand access to capital while significantly improving the digital experience in the process. Advances in technology, data analytics, combined with embedded financing, and new, non-bank sources of credit have set the stage for an unprecedented shift. Access to capital is expanding, while lender exposure to risk has improved dramatically. Biz2Credit recently partnered with the Boston Consulting Group (BCG) on a white paper to examine the revolution in small business finance. Funding challenges confront small business To confront today’s economic challenges and support growth, small businesses need funding. Research has found that they are not receiving funding at the levels they need, and that they are frustrated by the slow approval process. The speed of funding is especially critical to SMBs, who generally lack the organization and human resources to anticipate needs into the more distant future. They are often willing to accept slightly higher rates in return for the swift provision of funding. Meanwhile, many small businesses have found that lenders are unwilling to extend credit at acceptable terms. FULL ARTICLE: https://www.forbes.com/sites/rohitarora/2025/02/28/digitization-of-small-business-lending-helps-fill-the-lending-gap/

Six months into 2023, a much-predicted recession is yet to arrive – and some experts now suggest the risk may have blown over. "As things cool down with the Fed rate hikes, we're just not likely to tip over into recession," said Seth Carpenter, Morgan Stanley's chief economist. Here's a selection of recent upbeat takes on the economy from prominent market voices. Since the start of 2023, American companies and investors have been bracing for a dreaded economic downturn spawned by the steepest surge in interest rates since the 1980s. But six months later, the most predicted recession in recent memory is yet to materialize – and some experts are now suggesting the risk may have blown over. Encouraging economic data – highlighted by a combination of resilient job-market numbers and cooling inflation – gives some support to that argument too.  On its part, the stock market has defied Wall Street's doom-and-gloom predictions for the economy to notch the best first-half gain since 2019 – thanks in part to an explosion of investor interest in artificial intelligence. Morgan Stanley's chief economist Seth Carpenter and Nobel laureate Paul Krugman are among top voices that remain bullish on the trajectory of the economy. Here's what they had to say:  Seth Carpenter, global chief economist at Morgan Stanley "The labor market is one of the key stories so far this year," the bank's top economist recently told Yahoo Finance. "There has been clear slowing, however, the rate of job gains has been pretty strong and we think that's been contributing to resilience spending."  "That also means as things do cool down with the Fed rate hikes, we're just not likely to tip over into recession," he added. Paul Krugman, Nobel-prize winning economist  "US economic news has been increasingly encouraging: falling inflation, no sign of a recession," the economics professor at the City University of New York tweeted in late June.  More recently, he wrote in a New York Times op-ed this week: "The plunge in the misery index reflects both what didn't happen and what did. What didn't happen, despite a drumbeat of dire warnings in the news media, was a recession. The U.S. economy added four million jobs over the past year, and the unemployment rate has remained near a 50-year low." READ MORE BELOW

You can gain a lot of knowledge from Courses. Coursera, HubSpot course, Google Digital Marketing. Social media content on sales, and marketing, Free classes online in sales, and marketing from reputable companies. Researching from forums, networking. When it comes to the finance industry, targeting, branding, persistence, and adapting to changes will make you successful. You can generate leads for free from most sources, but the problem is the contact information, the time, and the effort you have to research to find the contact information. You will have to go to the DNC List, State DNC List, and Litigation Scrubbing. If you do not have the money to scrub, You will have to email while being compliant with the CAN-Spam Act. Please, do not cold call without scrubbing your data, legal action will happen and it will hurt your reputation. You can do business-to-business, social media marketing, and engage in forums. You can work with brokers, and referrals, and even hold events to get your clientele. Specialize in certain industries you are targeting, and see where the business owners meet together forums, and events. Learn the industry, and see the pain and woes of the businesses. Build a relationship with the business owners even if they're not your client. You can gain referrals and start building your reputation through genuine, honest business relationships.

Bank of America has been ordered to pay $250 million in fines and customer compensation for deceptive practices that harmed "hundreds of thousands of consumers," according to the Consumer Financial Protection Bureau. The federal regulator on Tuesday said the bank withheld credit card rewards, illegally double-dipped on fees and opened accounts without consent. It’s one of the highest financial penalties in years against the country’s second-largest bank, which was also ordered to pay a $10 million civil penalty over unlawful garnishments and $225 million in fines for "botched" state unemployment benefit disbursements in 2022.  The latest penalty includes $90 million to the CFPB and $60 million to the Office of the Comptroller of the Currency. The bank must also pay $80.4 million in consumer redress on top of the $23 million it had already paid to customers denied rewards bonuses. 'Double-dipping' to harvest junk fees Part of the penalties stem from a now-defunct Bank of America policy that charged customers $35 when the bank declined a transaction because a customer did not have enough funds in their account, also called a non-sufficient funds fee. The CFPB found the bank allowed fees to be repeatedly charged for the same transaction, allowing the bank to generate “substantial additional revenue.” Bank of America eliminated all non-sufficient fund fees and reduced overdraft fees from $35 to $10 in the first half of 2022. As a result, "revenue from these fees has dropped more than 90 percent,” the bank said in a statement to USA TODAY.    Fake accounts CFPB said Bank of America withheld credit card rewards to tens of thousands of consumers who submitted applications in person or over the phone instead of online. The regulator said the bank also had employees that, since at least 2012, illegally applied for and enrolled consumers in credit card accounts without their knowledge to reach now disbanded sales-based incentive goals. This resulted in unjustified fees and harms to consumers’ credit profiles, CFPB found. The order comes less than a year after the CFPB's largest fine against any bank to date in late 2022, when the agency ordered Wells Fargo to pay $2 billion to customers and a $1.7 billion penalty to settle charges after a series of scandals tied to its sales practices. Read More:

Your paycheck could clear faster now that the FedNow instant payment service for banks has launched. Here is information from the Federal Reserve website about the launch and the participants so far: "The Federal Reserve’s FedNow Service is an instant payments infrastructure that allows participating banks and credit unions to send and receive transactions within seconds on behalf of their customers — 24 hours a day, seven days a week. This page lists participating financial institutions that are currently live on the service, as well as financial institutions serving as settlement and liquidity providers. Financial institutions that have completed testing and certification will be added to the list once they are live on the service. Also listed are certified service providers that have completed testing certification to support payment processing for participants. More information about the offerings of these organizations — and those of other vendors that support instant payment services such as bill pay, payroll processing, digital wallet and API development — may be found at the FedNow Service Provider Showcase (Off-site)." Read More below To learn more about the Fednow instant payment system, they have set up an Instant Payments University.