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Biz2Credit’s Small Business Earnings Report  from earlier in December offers a detailed look at the financial health of small businesses from January 2022 through November 2024. The report highlights the lingering effects of inflation, rising operational costs, and shrinking earnings—key factors that directly influence lending decisions and fintech strategies. Here’s a summary of the report’s key findings and an analysis tailored to stakeholders in business lending, fintech, and commercial finance. Inflation’s Persistent Impact Inflation peaked at 6.4% in January 2023 before declining steadily to an average of 2.96% in 2024, closer to the Federal Reserve’s target of 2%. However, the report underscores that even as inflation has moderated, its effects remain profound. Small businesses are grappling with higher costs across the board—ranging from fixed expenses like rent and insurance to variable costs such as labor and materials. Despite initial revenue increases, small businesses saw profits eroded due to escalating expenses. By March 2024, average earnings had plunged to $35,000, down from $213,200 just six months earlier. This downward trend continued into November 2024, where earnings stood at $44,500, one of the lowest points in two years. Revenue and Expense Trends The widening gap between revenues and expenses remains a critical concern: Revenues : Peaked at $689,800 in July 2024 but could not sustain growth in subsequent months. Expenses : Hit a high of $575,300 in April 2024 and remained elevated, despite modest declines in later months. Earnings : Averaged $86,809 for the first 11 months of 2024, reflecting the continued squeeze on small business profitability. For lenders and fintech companies, these trends underscore the need to carefully assess the financial health of prospective borrowers. While revenue might appear stable or even rising, the underlying expense dynamics can drastically alter creditworthiness and repayment capacity. Labor Costs and Fixed Expenses Pose Challenges Labor costs, particularly minimum wage hikes, have become a major factor for small businesses. California’s $20 per hour minimum wage for fast food workers is a harbinger of nationwide trends, with states like Rhode Island, Illinois, and Delaware set to implement $15 minimum wages in 2025. This trend significantly impacts labor-intensive sectors such as retail, food service, and personal care, where automation is not a viable option. Fixed costs are also climbing. Rising commercial rents in urban areas, coupled with increasing insurance and healthcare costs, are creating additional financial strain. For lenders, understanding how these fixed and variable expenses impact cash flow is critical when evaluating risk. Implications for Business Lending The Biz2Credit report highlights a complex environment for lenders and fintech platforms: Higher Risk Profiles : Many small businesses are operating with razor-thin margins. Lending decisions need to account for not just revenue trends but the full cost structure of applicants. Increased Demand for Working Capital : With expenses outpacing revenues, more businesses are likely to seek financing to cover operational shortfalls. Short-term working capital loans may see heightened demand, particularly in industries with higher labor costs. Shift Toward Alternative Financing : Traditional underwriting models may struggle to account for the rapidly changing financial dynamics highlighted in the report. Fintech companies leveraging AI and machine learning to assess real-time financial health may have a competitive edge in providing more accurate risk assessments. Potential Growth in Equipment Financing : Rising labor costs may drive some businesses to invest in technology and equipment to improve efficiency. Equipment financing could present an opportunity for lenders, particularly in industries like manufacturing and logistics. Opportunities for Fintech Companies The report’s findings offer several actionable insights for fintech platforms: Data-Driven Solutions : Offering tools that help small businesses track expenses and manage cash flow can enhance customer loyalty while improving lending outcomes. Customized Loan Products : Developing financing options tailored to sectors most affected by rising costs—such as labor-intensive industries—can help fintech companies meet market demand more effectively. Embedded Finance : Integrating lending solutions directly into platforms small businesses already use for operations, such as payroll or point-of-sale systems, can streamline access to credit while reducing friction for borrowers. Commercial Finance Trends for 2025 As we head into 2025, several broader economic trends will shape the commercial finance landscape: Sticky Inflation : While inflation is declining, it remains above the Federal Reserve’s target, keeping pressure on interest rates. Lenders should prepare for continued tight monetary conditions. Evolving Borrower Needs : Small businesses will likely seek more flexible financing solutions, including revenue-based financing or merchant cash advances, as traditional credit options become harder to secure. Focus on Technology Investments : Automation and efficiency improvements will drive demand for equipment financing and technology loans, particularly as businesses look to offset rising labor costs. Final Analysis The Biz2Credit Small Business Earnings Report highlights significant challenges for small businesses, but it also offers a roadmap for lenders and fintech platforms to adapt and thrive. The first half of 2025 will likely see heightened demand for working capital and innovative financing products as businesses navigate economic uncertainty. For lenders, the ability to evaluate nuanced financial health metrics—beyond surface-level revenue figures—will be essential. For fintech companies, leveraging technology to streamline lending processes and offer real-time insights to borrowers will be a competitive differentiator. While the economic pressures of inflation and rising costs will persist, businesses that successfully adapt their strategies and technologies will be better positioned for growth. For lenders and fintech stakeholders, aligning their offerings with these evolving needs will be key to capturing market share and supporting small businesses in a challenging year ahead.

If you work in banking, lending, or fintech, a government shutdown might feel like the financial world has hit turbulence. While your day-to-day operations will likely continue, the ripple effects of a shutdown could still land on your desk. Here's what you need to know as someone in the financial sector. What Happens to Banks and Financial Institutions? The good news is that most banks, credit unions, and financial institutions remain open during a government shutdown. Regulatory agencies like the Federal Reserve, FDIC, and OCC are funded outside of congressional appropriations, so they keep running. However, there are some key challenges: 1. Customer Assistance Becomes Crucial Many banks step up during shutdowns to support furloughed federal employees and contractors. Programs often include: Loan payment deferrals Waived fees Special rates on lines of credit For employees at banks or lenders, this means an uptick in customer inquiries and requests for assistance. 2. Disrupted Loan Processing If your institution works with government-backed loans—like FHA mortgages or SBA loans—expect delays. The Small Business Administration (SBA) typically halts new loan approvals during a shutdown. This can frustrate small business clients relying on financing for expansion or payroll. 3. Increased Demand for Short-Term Credit Furloughed workers and contractors may turn to personal loans or credit cards to cover expenses. As a lender, you might see higher demand for these products but also need to manage the risk of defaults if the shutdown drags on. How Does This Affect Your Clients? If you serve small businesses or government employees, their challenges will likely become yours: Small Business Owners: Without access to SBA loans, many small businesses could face cash flow issues or delayed growth plans. As their banker or lender, you may need to offer alternative financing options. Federal Employees: With paychecks on hold, federal workers may struggle with mortgages, car payments, or daily expenses. Financial counseling and flexible repayment options can help maintain client relationships during tough times. Fintech and Commercial Finance: A Mixed Bag For fintech companies or commercial lenders, the impact depends on your clientele: If you serve government contractors or rely on federal data (like IRS income verification), expect disruptions. Fintech platforms offering alternative lending could see increased demand from furloughed workers or small businesses unable to secure traditional loans. What About Regulatory Oversight? While core banking regulators remain operational, agencies like the SEC and CFTC often scale back during a shutdown. This means fewer approvals for new financial products and slower regulatory processes—something fintech companies in particular should watch out for. The Bottom Line As someone working in banking or finance, a government shutdown isn’t just a political headline—it’s a real-world challenge that could affect your customers and workload. Whether it’s helping furloughed workers stay afloat or guiding small businesses through loan delays, your role becomes even more critical during these uncertain times. Keep an eye on how long the shutdown lasts (if it happens), it could mean the difference between minor inconveniences and major disruptions for both you and your clients.

The Federal Deposit Insurance Corporation (FDIC) has intensified its regulatory efforts to address the complexities of partnerships between banks and fintech companies. These collaborations, while expanding access to financial services, have raised concerns about transparency, customer fund security, and operational accountability. Here’s a summary of the key points from the FDIC’s recent proposals: Enhanced Recordkeeping and Daily Reconciliation The FDIC is proposing new requirements for banks that hold custodial accounts tied to fintech partners. These rules aim to ensure that banks maintain detailed and accurate records identifying individual account holders and reconcile these accounts daily. This stems from situations where nonbank fintech companies deposit customer funds into banks without clear visibility of individual account ownership, which can complicate protections under FDIC insurance. Context: Increasing FinTech Integration As fintech companies play a growing role in delivering banking products and services, their reliance on third-party processors and middleware providers has expanded. These intermediaries perform critical functions, such as transaction recording and deposit management, yet lack the regulatory safeguards of traditional banking institutions. This framework poses risks, particularly in events like insolvency or operational failures, as demonstrated in past cases like Synapse’s bankruptcy. Industry Concerns and Feedback While the FDIC argues that these measures will bolster consumer protections, the proposals have drawn mixed reactions. Some fintech companies have expressed concerns about the operational burdens these rules could impose, potentially hindering innovation in areas like stablecoins. On the other hand, banking industry groups have suggested that the FDIC carefully consider feedback before finalizing rules to avoid unintended consequences. The Bigger Picture This move reflects a broader regulatory push to adapt to the evolving financial landscape. As fintech firms continue to offer innovative financial products, ensuring the security and transparency of these arrangements is critical. The proposed rules not only aim to protect consumers but also reinforce confidence in the integration of fintech and traditional banking services. Key Deadlines and Next Steps The FDIC has extended the public commentary period for these proposed rules until mid-January 2025 . This extension provides industry stakeholders additional time to voice their perspectives, which will shape the final regulations . This development underscores the balancing act regulators face in fostering financial innovation while safeguarding systemic integrity. As bank-fintech collaborations grow, ensuring clear accountability will remain a central focus for regulators and industry players.

Press Release Strong Year Highlights Industry Demand for Underwriting Automation Software   San Diego, Calif.  (December 12, 2024) –  MoneyThumb , a leader in automated document evaluation and fraud detection solutions, announced today that the company is exiting 2024 with record annual growth.  MoneyThumb processed over $2B transactions, more than doubled its workforce, and achieved 60 percent year-over-year in conversions per day. The company's strong performance reflects its laser focus on streamlining workflows for financial professionals. Lenders rely on MoneyThumb’s software to manage risk while delivering more capital, faster, to small businesses nationwide.     “Our strong momentum is a result of our team's seamless execution and our ability to instantly convert bank statements and detect fraud in seconds,” said Ryan Campbell, chief executive officer, MoneyThumb. “MoneyThumb continues to play a critical role in the small business lending industry by eliminating the burden of manual processes, empowering lenders to focus on what truly matters—helping entrepreneurs succeed and grow."       Automation in lending has become mission critical for staying competitive. Lenders who embrace automation position themselves to better serve their customers and expand their lending capabilities. MoneyThumb is transforming the lending industry by leading the shift from manual document processes to full automation. Its advanced technology streamlines data extraction and analysis, enabling lenders to make faster, more accurate decisions.      The company also helps detect fraud with its Thumbprint® product, an AI file tampering detection tool that identifies fraudulent activity in seconds, giving lenders a powerful defense against risk and loan losses. Up to seven percent of revenue, billions of dollars and thousands of hours are lost every year due to fraudulent applications in the lending industry.       MoneyThumb announced in August 2024 that it was acquired by Iron Creek, marking another milestone for the company, which plans to expand to additional industry verticals in 2025. The company also opened its new headquartered office in San Diego.     For more information on MoneyThumb, please visit www.moneythumb.com .      About MoneyThumb    MoneyThumb is an advanced automation software solution that streamlines the lending underwriting process by converting bank statements instantly into actionable data. By exponentially increasing efficiency, accuracy and the detection of fraud – MoneyThumb empowers lenders and accountants to make faster, more informed and accurate decisions. MoneyThumb is headquartered in Encinitas, California, and serves customers globally. For more information visit   www.moneythumb.com .         Media Contact :  Tracy Rubin         JCUTLER media group      tracy@jcmg.com

Our fifth business lending/fintech industry mixer was on Monday and we had an incredible time hosting everyone who came out to  Moxies in Ft Lauderdale !! Thank you to all for again showing up to grow your network and business including our sponsors for the continued support! We look forward to many more events where we will always try to be better than the last one because the bottom line is value for you. Below you can click to view all of our event pictures but first , let me tell you some exciting news! Our next networking event is already set! We are partnering with the  Revenue Based Finance Coalition  to host the networking reception after their 2nd annual Golf Tournament in Miami Beach on Jan. 16th, 2025 . Information for the Funder Intel Reception event can be found HERE . We hope to see you there, whether you want to play golf or just come to the reception, it will be worth your while!

12/4 UPDATE: SENTENCING HEARING INFO Almost 3 years after the SEC launched a fraud investigation into MJ Capital and almost a year after a grand jury charged Johanna Michely Garcia with multiple counts of wire fraud and mail fraud, she made her way into a courtroom to change her plea on Tuesday morning. That plea? Guilty.  Not looking like the person in earlier pictures, a handcuffed Johanna Michely Garcia clad in her brown jumpsuit with her hair in a bun sat with her two attorneys in a Miami Federal courthouse opposite prosecutors with just a few others in attendance. Appearing composed, the moment she faced today had to be one of the most difficult she's ever encountered.  The hearing began with the prosecutor stating the reasons for being there today. The judge then asked her a series of questions to determine if she was competent and understood what she was agreeing to in her new plea. She answered in the affirmative to all of the judge's questions, while at one point her voice crackled a little bit as the emotions became too much when asked if she understood the length of the maximum possible prison term of 20 years. Johanna Michely Garcia, 41, once hailed as a successful, Mother Theresa-like figure in the community, understood and admitted she committed wire fraud, mail fraud, and conspiracy to commit wire fraud in an over $150 million Ponzi scheme from her offices in South Florida.  Ms Garcia and her other accomplices, one of whom already pleaded guilty, ran this investment scheme that was supposed to use money from investors to fund merchant cash advances, a form of short-term business financing. Ms. Garcia, the owner of MJ Capital and other entities, and Pavel Ramon Ruiz Hernandez hired almost 70 representatives to raise funds from over 2000 investors.  Instead, they didn't fund many advances at all, used the money to pay back only some investors, and then took money from the rest to fund their lavish lifestyle. They continued to raise money but weren’t ever going to be able to pay back all of the money with the promised returns of over 100% annually.   The whole operation came to an end in August of 2021 when a civil complaint  was filed by the Securities and Exchange Commission. In 2022, Pavel Ramon Ruiz Hernandez was charged criminally with fraud and then pled guilty in 2023. He received just over 9 years in prison. In August of 2023, a South Florida federal grand jury charged Johanna Michely Garcia with conducting a fraud scheme, totaling approximately $190,700,000. Victims turned plaintiffs in this case as they brought a class action lawsuit against Wells Fargo Bank, N.A. (“Wells Fargo”) alleging that it aided and abetted MJ Capital in the fraud. The case was settled  for $26.625 million. The settlement was reached “to avoid the uncertainties, delays, and expenses of ongoing litigation”. Now that she has pleaded guilty, the last critical date, barring any issues with the case, is sentencing. The maximum sentence is 20 years plus a $250,000 fine. She was described as the ring leader by Pavel Hernandez. There wasn’t any leverage for her to get a great deal with the prosecutors as there was no one above her. Since Ruiz Hernandez got 9 years, Ms Garcia will almost certainly get more than that amount. Prosecutors did say there is still time to negotiate recommendations for sentencing to the court. Sentencing is set for September 20th, 2024. While the sentencing will bring this case to closure, today was a day Johanna Michely Garcia probably never thought would happen to her when she started this investment scheme. She said she attained an Associates degree in Criminal Justice in response to the court's question about what was her highest level of education. As she walked away with her hands and legs shackled, she learned the hard way how the criminal justice system works.

12/4 UPDATE: WATCH THIS VIDEO TO LEARN WHAT HAPPENED AT MS. GARCIAS SENTENCING The MJ Capital saga is winding its way through the court system with the latest updates from Johanna Garcia's case in late June being a Notice of Change of Plea hearing scheduled for July 9th . Since an update on April 29th revealed Garcia was trying to reach a resolution with the government, it stands to reason that they may have come to some agreement that she will plead guilty as one of the other parties involved already has. If you aren’t familiar with the case, Johanna Garcia, Pavel Ramon Ruiz Hernandez , and others are accused of misleading investors  in merchant cash advances in what the prosecution says amounted to a Ponzi scheme. Ruiz Hernandez pleaded guilty to conspiring to commit wire fraud and then was sentenced to 110 months  in prison. Garcia is looking at least that amount since she was the ring leader. Here are the updates from the website  of the Receiver in the case: 6/23/24 – In the United States of America’s criminal case against Johanna Garcia (Case No. 23-20350), the Court has reset the Notice of Change of Plea Hearing to July 9, 2024 at 11:30AM before the United States District Judge Jose E. Martinez. 6/14/24 – In the United States of America’s criminal case against Johanna Garcia (Case No. 23-20350), the Court has entered a Notice of Change of Plea Hearing, and set the Change of Plea Hearing for June 24, 2024 at 11:30AM before the United States District Judge Jose E. Martinez. 4/29/24 – In the United States of America’s criminal case against Johanna Garcia (Case No. 23-20350), Garcia filed a motion seeking to continue trial because Garcia’s counsel is attempting to reach a resolution with the government and working through the voluminous discovery. United States District Judge Jose E. Martinez entered an order granting the motion, and resetting trial to a two-week trial period starting June 3, 2024 at 9:30 AM, and scheduling the calendar call for May 30, 2024 at 1:30 PM. You can view the motion and order on the Court Documents page. How much money has been recovered? As of March 28, 2024, the receivership estate has a balance of approximately $14.6 million, and the Wells Fargo settlement fund has a balance of approximately $20.28 million. These amounts will change based on expenses and fees paid, and additional amounts recovered. How many claims have been filed against the Receivership and Wells Fargo settlement fund? In total, approximately 14,188 claims have been filed against the receivership estate and the Wells Fargo settlement fund for an estimated total of $264 million.

Wayflyer, a Dublin-based fintech company, has emerged as a leader in revenue-based financing (RBF), particularly for e-commerce businesses. Recently recognized as the winner of the prestigious Deloitte Technology Fast 50 for 2024, Wayflyer demonstrated extraordinary revenue growth of 3,000% over the last four years. This accolade underscores the company’s ability to meet pressing market needs while solidifying its position as a fintech innovator. Its success story is making waves both locally and internationally with a major push into the United States market. With over $4 billion in funding provided to more than 4,500 companies worldwide, Wayflyer is proving itself as a critical player in the alternative business finance industry. Addressing Unmet Needs in a Shifting Financial Landscape Wayflyer’s core offering is revenue-based financing, a flexible alternative to traditional loans that's non-dillutive, and tailored to e-commerce businesses. With banks increasingly retreating from this space, Wayflyer has stepped in to address critical pain points, offering funding solutions that help businesses manage cash flow and seize growth opportunities. “We are solving the problems that keep our customers awake at night,” said Aidan Corbett, Wayflyer’s co-founder and CEO. This customer-centric approach has resonated deeply, particularly in a macroeconomic climate marked by rising interest rates and fluctuating venture capital trends. As the fintech industry rebounds with renewed investor interest, Wayflyer’s strategy and execution have positioned it as a beacon of resilience and innovation. U.S. Expansion: A Strategic Move A key driver of Wayflyer’s explosive growth has been its rapid international expansion, with the U.S. market playing a pivotal role. Today, the U.S. accounts for 60-65% of Wayflyer’s business, a testament to the company’s successful entry into one of the world’s most lucrative yet challenging markets. “The U.S. is not just a large market; it’s culturally and linguistically homogeneous, and business people there are ready to make decisions quickly,” Corbett explained. While entering the U.S. required careful planning and execution, the market’s openness to working with start-ups and smaller businesses has been a significant advantage. Corbett emphasized the U.S. culture of giving smaller companies a chance and its ability to make decisions promptly, attributes that have fueled Wayflyer’s success. Leveraging Recognition for Growth Winning the Deloitte Technology Fast 50 has not only validated Wayflyer’s business model but also bolstered its reputation in the fintech ecosystem. The award highlights the company’s sustained growth and innovative approach, serving as a powerful recruitment tool to attract top talent. “You are, effectively, advertising the fact that you’re a fast-growing business,” Corbett noted, underlining the practical benefits of such accolades in scaling operations. Lessons in Scaling a Start-Up Corbett’s journey with Wayflyer is shaped by lessons from his previous entrepreneurial ventures. Reflecting on his experience, he emphasized the importance of securing funding early on to scale effectively. “If you want to grow, you need to be working on it full-time – and you need to be hiring at least two or three people right at the start to develop a first version of a product,” he shared. This focus on early investment and team-building has been central to Wayflyer’s ability to scale quickly and enter international markets like the U.S. The Road Ahead As Wayflyer continues to expand its footprint in the U.S. and beyond, its success story highlights the potential of fintech to address critical gaps in the financing landscape. With a proven model, a growing client base, and increasing investor confidence, Wayflyer is well-positioned to be a key player for many years to come in revenue-based financing on a global scale.

Dust off those dress shoes and polish up your networking skills because Funder Intel’s next mixer is here to bring a little holiday cheer to Fort Lauderdale! You asked for more mixers, and we are happy to oblige! Mark your calendars for Monday, December 9th, and get ready to mix, mingle, and celebrate at Moxies, where the cocktails are flowing, and the holiday spirit is already buzzing. Our last mixer was a sell-out, and this one’s also looking to be a hot ticket. So grab your spot before they’re gone faster than holiday cookies! Why You Don’t Want to Miss This: Moxies is the place to be in Fort Lauderdale right now—an upscale spot with serious style and an ambiance that brings out the best in every conversation. It’s the kind of vibe that pairs perfectly with festive cocktails and trust us, Moxies knows how to craft them. Whether you’re here to connect with fellow pros, celebrate the season, or simply bask in the glow of great company, this is the event for you. 🎄 What’s in Store: Festive Family-Style Feast & Cocktails: Get into the holiday spirit with a family-style spread that’s as delicious as it is shareable, plus those signature Moxies cocktails to toast to new connections. Meet Our Jolly Sponsors: With our fantastic sponsors, you’ll get a chance to meet some of the most influential players in our industry, spreading goodwill and connections all around. Holiday Atmosphere: Moxies knows how to do cozy, classy, and a little bit fancy. So bring your holiday cheer, your best “networking nice,” and prepare for an evening where business meets holiday magic. Event Details: 📅 When : Monday, December 9th, 6:30 PM - 8:30 PM 📍 Where: Moxies, Fort Lauderdale 👔 Dress Code: Business Casual (and maybe a touch of holiday sparkle!) If you’re coming in from out of town or looking for parking options, we’ve got you covered on our registration page. Sponsorships are available , on a first come first serve basis. Grab Your Tickets Now! Tickets are limited, and with Moxies on everyone’s must-visit list this season, we’re expecting another sell-out event. Don’t wait until the last minute – bring your business cards, and get ready to wrap up the year with a little holiday networking magic! See you there – let’s make it merry!

In an effort to better serve small businesses, Rapid Finance has expanded its Rapid Access Prepaid Mastercard program to include all eligible business line of credit clients. This program provides these clients with an easier and more flexible way to access their line of credit funds. What is the Rapid Access Card program? The Rapid Access Card program is a collaboration between Rapid Finance and Galileo Financial Technologies. It provides Rapid Finance's business line of credit clients with a Mastercard that is linked to their line of credit. This innovative solution allows cardholders to make purchases wherever Mastercard is accepted, providing greater convenience and flexibility in managing their cash flow. There are no extra fees associated with using the card, apart from those outlined in the LOC agreement. Eligible new clients will receive their cards within 5-7 business days of opening their LOC. Why is this important for small businesses? Small businesses often face challenges when it comes to accessing capital. Traditional bank loans can be difficult to qualify for, and the approval process can be slow. The Rapid Access Card program provides small businesses with a quick and easy way to access the funds from their Line of Credit to keep their businesses running smoothly. A Bigger Picture: Lenders and New Products for Small Businesses Rapid Finance's expansion of the Rapid Access Card program is part of a larger trend of lenders introducing new products and services to meet the needs of small businesses. As the small business landscape continues to evolve, lenders are recognizing the need to provide more flexible and innovative financing solutions. The Rapid Access Card program is a great example of how lenders are working to make it easier for small businesses to access the capital they need. It provides them with a more flexible and convenient way to access their line of credit funds.

As we approach 2025, U.S. businesses are facing a significant regulatory change with the implementation of the Financial Crimes Enforcement Network (FinCEN)'s Beneficial Ownership Information (BOI) rule under the Corporate Transparency Act (CTA). What is the BOI Rule? The BOI rule requires "reporting companies" to provide FinCEN with detailed information about the individuals who own or control the business. This includes full legal names, dates of birth, current addresses, and unique identifiers such as passport or driver's license numbers. Key Points for Businesses 1. Deadline: Companies created or registered before January 1, 2024, have until January 1, 2025, to submit their BOI reports . Those founded or registered on or after January 1, 2024, must report within 90 calendar days of registration. 2. Exemptions: Larger entities, including publicly traded companies, banks, credit unions, and nonprofits, as well as companies meeting certain size and revenue criteria, are exempt from these requirements. 3. Purpose: The goal is to create a comprehensive database to help law enforcement combat money laundering, tax evasion, and other financial crimes. 4. Confidentiality: FinCEN assures that the database will remain confidential and accessible only to authorized entities. Penalties for Non-Compliance The penalties for failing to comply with the BOI reporting requirements are significant: A fine of $591 per day for each day a violation continues or has not been remedied. Criminal penalties of up to $10,000 and/or imprisonment for up to two years for willful violations. Enhanced criminal penalties of up to $500,000 and/or imprisonment for up to 10 years if the violation is combined with certain other illegal activities. Unauthorized Disclosure Penalties The CTA also imposes strict penalties for the unauthorized disclosure or use of BOI: Civil penalties of $591 per day (increased from $500) for each day a violation continues. Criminal penalties of up to $250,000 and/or imprisonment for up to 5 years. Enhanced criminal penalties of up to $500,000 and/or imprisonment for up to 10 years for violations combined with other illegal activities. Impact on Small Businesses While the new rule aims to enhance transparency, it may pose challenges for smaller enterprises: Many small business owners may be unaware of the new reporting requirements. The administrative burden could be significant, especially for businesses without dedicated compliance teams. Technology Solutions The market is responding to these new requirements with innovative solutions: AI-driven compliance systems are emerging to help businesses navigate the reporting process more efficiently. These tools can potentially reduce costs associated with manual processing and allow employees to focus on higher-value tasks. As the financial crime prevention landscape continues to evolve, businesses must stay informed and prepared. Don't Wait Until the Last Minute. The deadline for filing these reports is January 1, 2025 . By taking proactive steps now, businesses can avoid potential penalties and maintain a strong compliance posture.

As I woke up at 3:30 AM on the day after the election to catch a flight to NYC for the Brokers Expo, I could only think this conference had better be worth it. After getting delayed on the plane for almost 2 hours it made me wonder that even more. Then once the Funders Forum Brokers Expo was over and the day ended, I had no doubts that it was absolutely worth it. All the things that make up a good conference like the attendees, location, venue, food, service, and more, all exceeded expectations. Although I did not get to see Kevin Harrington speak because my flight was late, thanks JetBlue, I did hear he had some powerful messages for the audience. The feedback I got from attendees was much in the same light. I think people always want more of their potential clients/partners there but they still could enhance their existing ones and be creative about developing others with the attendees. You will hear directly from the attendees themselves in the video as I interview several people from a variety of companies. Hope you enjoy it, let us know in the comments! See you next time, New York! UPDATE: BECAUSE OF THE UPLOAD QUALITY WITH SOME OF THE VIDEO CLIPS WE ARE LISTING THEM SEPARATELY BELOW Interview with Matthew Knatz - CFG Merchant Solutions Interview with Captain Don Campbell - Moneythumb Interview with Frankie DiAntonio - Lexington Capital Interview with Brian Kandinov- FundFi Interview with Daniel Lenefsky - Aspire Funding Interview with Mark and Rivka of InstaFunders Interview with Abe Siegel - Meged Funding Interview with Marissa Gaudette - Tenthly Interview with John Otar