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It's not every day that a lawsuit from the Department of Justice comes out against a major software company where the issue at hand you experienced personally just 2 days prior, but that happened to me today! As I was doom-scrolling on social media I saw a post that said the US Justice Department had sued Adobe for hiding early termination fees and making it almost impossible to cancel. The FTC referred this complaint to the DOJ when their investigation found that allegedly "Adobe ambushed users with hefty "early termination fees" and threw up obstacles when people tried to cancel", as FTC Chair Lina Khan put it on X earlier today. This is almost exactly what I encountered. To give you some context, I'm one of those who reads subscription terms carefully and sets calendar dates if I know I need to cancel before a trial date ends or some other important renewal option. Saturday I went to cancel Adobe Premier Pro since I was no longer going to need it. To my surprise when I went to cancel, a notification popped up that said if I cancel now I would still be charged a fee that is prorated for the rest of the 12 months. I certainly don't recall committing to a year of service as I chose a monthly billing option instead of the discounted yearly plan. Adobe is saying that the plan I chose was indeed monthly billing but there was a commitment to one year and if I terminated the plan there would be an early termination fee. Now I could have overlooked the plan details or somehow missed something obvious but that doesn't happen very often. When I saw the fee I decided to keep it, of course, and deal with it, as maybe something positive would come out of it. It wasn't going to break the bank so I just moved on. Then there was today's lawsuit news. It will be interesting to see what happens but the FTCs larger point is that too many companies try to get away with deceptive business practices like the ones alleged here. Amazon was sued for something similar. Another example of trying to prevent customers from canceling is major news outlets like the Sun Sentinel that make you call them on the phone to cancel. Seriously? You want me to spend 15+ minutes going through an automated service, waiting for the right representative, then that person trying to sell me on some other option, like it's 1998? No thanks. That's more of a reason to cancel. Anyway, here is an excerpt from the article in The Verge: "Customers encounter similar obstacles when attempting to cancel their subscriptions over the phone or via live chats, the DOJ alleges. The complaint claims “subscribers have had their calls or chats either dropped or disconnected and have had to re-explain their reason for calling when they re-connect.” The lawsuit alleges that these practices break federal laws designed to protect consumers. The lawsuit also targets Adobe executives Maninder Sawhney, the senior vice president of digital go-to-market and sales, as well as David Wadhwani, the president of the company’s digital media business. The complaint says both executives “directed, controlled, had the authority to control, or participated in the acts and practices of Adobe.” Adobe didn’t immediately reply to a request for comment."

In a press release today, June 11th, Pipe, a modern capital platform, has announced the closing of a $100 million credit facility from Victory Park Capital (VPC), a global alternative investment firm specializing in private credit. This strategic partnership aims to bolster Pipe's Capital-as-a-Service solution, enabling access to capital for millions of small and medium-sized businesses (SMBs) that have historically faced challenges in securing traditional financing options. Highlights Expanded Funding Capacity: The $100 million credit facility, with the potential to upsize up to $200 million in the future, will allow Pipe to expand its existing capacity to more than $1 billion per year in originations for SMBs. Innovative Capital-as-a-Service Solution: Pipe's recently launched embedded Capital-as-a-Service solution has already garnered support from leading platforms, including Priority, Infinicept, and Boulevard, representing nearly one million merchants with over $140 billion in gross payment volume. This innovative solution enables vertically integrated software vendors and payment companies to seamlessly embed Pipe's proven capital offering into their ecosystems, improving merchant experience and monetizing payments in a mutually beneficial way. Streamlined Access to Capital: Through Pipe's infrastructure and APIs, end merchants can access capital easily based on their secure transaction data from partner platforms, bypassing many of the hurdles associated with traditional financing. Partnership with Experienced Fintech Player: Pipe's partnership with Victory Park Capital, a seasoned alternative investment firm, underscores the company's commitment to providing innovative capital solutions to underserved businesses. This collaboration leverages the expertise of both organizations, potentially leading to more efficient and effective financing options for SMBs. As the demand for alternative financing solutions continues to grow, Pipe's Capital-as-a-Service offering and its strategic partnership with Victory Park Capital position the company as a key player in the fintech landscape.

The U.S. Small Business Administration (SBA) is set to introduce new government-backed credit lines of up to $5 million for small businesses, aiming to provide more attractive options for both lenders and borrowers. SBA Administrator Isabel Casillas Guzman announced that this working capital pilot program will be launched in the coming months to address ongoing challenges faced by small businesses in securing necessary working capital. This initiative is part of the SBA's broader effort to expand its flagship 7(a) loan program, which saw a significant increase in loan activity last year. The new program aims to simplify access to working capital lines, offering more favorable terms and higher guaranty percentages for lenders, which seems to be the biggest difference in its existing lines of credit products. New SBA credit line key points Introduction of New Credit Lines: The SBA plans to offer new government-backed credit lines of up to $5 million, designed to be more appealing to lenders and borrowers. Launch Timeline: The working capital pilot program is set to be unveiled in the coming months. Program Objective: The program aims to address the need for working capital among small businesses seeking to expand operations or undertake new projects. Existing SBA Programs: The SBA’s 7(a) loan program provided over 57,000 loans worth $27.5 billion last year, with most loans under $350,000. Challenges with Current Products: Existing products like the SBA Express loan and CapLines had limitations, including lower guaranty percentages at 50% and complex fee structures, leading to less uptake. New Program Features: The new credit lines will have an annual fee, interest rates based on the prime rate plus 3% to 6.5%, and guaranties of 75% for loans over $150,000 and 85% for loans under $150,000. Application Process: Business owners can apply through the SBA’s website or its pre-screening lender platform once the program goes live. Additionally Higher Interest Rate Environment: The program is designed to be an option for more businesses in a high interest rate environment, ensuring affordability and accessibility. Purpose of Loans: The credit lines can be used to fund specific projects or as a general working capital, offering flexibility to small business owners. SBA's Goal: The overall aim is to reduce reliance on credit cards and other expensive capital sources, providing a more sustainable financial solution for small businesses.

The Consumer Financial Protection Bureau (CFPB) has finalized a rule to establish a registry to detect and deter corporate offenders who have violated consumer laws and are subject to federal, state, or local government or court orders, per a June 3rd press release. The registry aims to identify repeat offenders and recidivism trends, enabling the CFPB to hold lawbreaking companies accountable and stop corporate recidivism. Key Points The registry will require covered nonbank companies to register with the CFPB when they have been caught violating consumer law, typically through consent or stipulated orders brought under consumer protection laws. Nonbank companies supervised by the CFPB will need to provide a written attestation from an executive confirming compliance with relevant orders. The registry will facilitate a better understanding of bad actors who seek to restart scams, fraudulent schemes, or other illegal conduct that harms the public. The CFPB expects the registry to be used by state attorneys general, state regulators, and other law enforcement agencies, as well as investors, creditors, business partners, and the public conducting due diligence on financial firms. The rule aims to address weaknesses in the oversight of nonbank financial companies exposed by the 2008 financial crisis, as these companies have traditionally faced inconsistent oversight. The CFPB has made changes to the proposed rule based on public feedback, such as allowing registrants with orders published on the NMLS Consumer Access website to use a simplified filing process. Impact The registry will enhance transparency and accountability in the nonbank financial sector, making it easier for regulators and the public to identify and address potential risks to consumers. It will support the CFPB's role in monitoring risks posed by nonbanks to consumers and supplement existing registries like the Nationwide Multistate Licensing System (NMLS). The registry is part of the CFPB's ongoing focus on holding lawbreaking companies accountable and stopping corporate recidivism, including through its Repeat Offender Unit. It will assist law enforcement agencies, investors, creditors, and others in conducting due diligence and research on financial firms bound by law enforcement orders. Online Business Lenders The article does not explicitly mention whether the registry will include online business lenders. However, the rule applies to "covered nonbank companies" that have violated consumer laws and are subject to government or court orders. If online business lenders fall under this category and meet the criteria, they would likely be required to register with the CFPB under this rule. One example that Director Rohit Chopra mentioned in his prepared remarks was "in 2019 the CFPB fined the online lender Enova International $3.2 million for legal violations including withdrawing funds without borrowers’ consent and backtracking on loan extensions. When we investigated Enova’s compliance with the 2019 order, we found the company was continuing its illegal behavior and imposed another $15 million penalty." This seems to be from one of Enova's consumer lending products not one of its business lending products.

The latest report from OnDeck and Ocrolus highlights a significant rise in optimism among small businesses on Main Street as they navigate through the macroeconomic environment. The Q1 2024 report, which is based on survey responses from 422 small businesses and cash flow data from over 1.9 million small business applications, indicates that small businesses are increasingly positive about future growth prospects and are effectively managing challenges related to inflation and cash flow. There are some interesting statistics about their cashflow and credit habits so let's get into the key points I picked from the report. 40% of small businesses that have been in operation for over 20 years reported they were denied a loan from a big bank. Nearly all small businesses had annual revenues under $10M. Over a third of small businesses (34%) who applied for a loan from a bank reported that the application process was too difficult. 72% of small business owners report having cash on hand to cover up to two months of operating expenses Payroll as a percentage of revenue was 19.5% in Q1 2024 — a year-over-year increase from 18.5% in Q1 2023. 34% of the surveyed businesses preferred non-bank alternative lenders, noting the speed, ease, and flexible financing terms they provide. Small businesses are concerned about the trailing impact of inflation on their operating expenses, with margins starting to improve after having absorbed cost increases in many areas — supplies, transportation, equipment, and even utilities. However, they have been able to turn to experienced specialty lenders to fill the gaps in the capital needs, as evidenced by application rates. Survey shows that 70% of small businesses have less than four months of operating cash Of the tactics they use to ensure they can pay their bills and invest in growth, the number one tactic is a business line of credit In a landscape where economic uncertainty looms large, small businesses on Main Street are demonstrating remarkable resilience and adaptability. The Q1 2024 report from OnDeck and Ocrolus reveals a groundswell of optimism among these businesses.

Thinking of a career switch or launching your own business? Look no further than the exciting world of being a business loan broker! Even in 2024, with its evolving financial landscape and tech advancements, business loan brokers remain the vital link between businesses seeking funding and the funding companies that can provide it. It's a crucial role that offers not only stability and growth potential but also the satisfaction of helping businesses achieve their dreams. But let's be real, it's not all sunshine and rainbows. The business lending market has grown more complex, with a myriad of new fintech products and new regulations in multiple states. Here's a peek at the challenges and rewards you can expect as a business loan broker: Challenges A competitive market: Standing out requires expertise, innovation, and strong relationship-building skills. Navigating a complex landscape: The business lending market is intricate, with new regulations and fintech products popping up constantly. Staying on top of it all requires continuous learning and a sharp mind. Building a client base: It takes time and effort to cultivate strong relationships with businesses and referral partners to earn their trust. Rewards Lucrative career: Successful brokers can earn mid six-figure incomes, and the potential for growth is significant. The total estimated value of the small business lending market is $1.4 trillion, according to the Consumer Financial Protection Bureau (CFPB) Be your own boss: Chart your own course and build a business you're proud of. Make a real difference: Help businesses secure the funding they need to thrive and contribute to the economic engine. The Ease of Entry into the Profession Despite the challenges, entering the profession has become more accessible. The barriers to entry are few. The rise of online learning platforms like ours offers comprehensive courses in commercial finance allowing individuals to gain necessary knowledge more conveniently. Fintech advancements have streamlined many processes, from client acquisition to submission by API and to loan processing. Networking opportunities, both online and offline, like our live events, provide valuable connections and mentorships for newcomers. Funder Intel Broker Course: Your Key to Success At Funder Intel, we're passionate about empowering aspiring business loan brokers. Our comprehensive Business Loan Broker Course is meticulously designed to equip you with the knowledge, skills, and confidence you need to excel in this dynamic field. Here's what sets us apart In-depth curriculum: We cover everything from understanding loan products and regulations to mastering client communication and sales strategies. Real-world application: Our course goes beyond theory, providing practical insights and case studies to prepare you for the actual challenges you'll face. Direct funder connections: We help you connect with a network of funding companies offering diverse financing options, giving your clients the best possible choices. Flexible learning: Our online format allows you to learn at your own pace and convenience, fitting your busy schedule. Can be done in 1 day. Not ready yet to take the first step toward a fulfilling and rewarding career as a business loan broker? We have more information for you including testimonials, course options, bio on the course instructor, and website development services. Remember, Funder Intel is your one-stop shop for success in the fast-paced world of a business loan broker. We'll equip you with the knowledge, skills, and connections you need to thrive. Invest in your future and start your journey today!

Last week Bankruptcy Court judge Robert E. Littlefield, Jr. ruled that the property of Kris Roglieri, owner of Prime Commercial Lending, worth approximately $7 million was to be immediately turned over in the ongoing bankruptcy case to pay back his creditors. The May 22nd ruling meant that Mr. Roglieris's remaining 3 cars, multiple high-end watches, and twenty firearms would be taken from him for debts that total about $3 million. However, the missing funds from the civil cases regarding his business Prime Capital Ventures total more than $120 million. That is where the additional value from the assets will go towards. The following images show the list of items from court documents, which includes two Mercedes, 5 Rolexs, 2 Richard Mille watches, and highly valued art. The ruling stemmed from the motion made by the trustee, Christian H. Dribusch, in this Chapter 7 case, which was recently converted from Chapter 11 as filed by Kris Roglieri. Earlier this year the court allowed for searches of his Queensbury home which resulted in the seizure of several supercars, watches, jewelry, and other items that were likely gained by the funds at issue in those cases. As of now, there are no formal criminal fraud charges against Kris Roglieri even though there is an ongoing investigation after the FBI raided his home. Mr. Roglieri has denied any wrongdoing in the cases.

NEW YORK, NY. May 29, 2024 – CFG Merchant Solutions, LLC (“CFGMS” or the “Company”), a technology-enabled specialty finance and alternative funding provider, announced the successful completion of a $100.0 million senior credit facility.  The credit facility is expandable up to an additional $45.0 million, representing a total capital raise of up to $145.0 million.  Proceeds from the funding, secured from a prominent, U.S.-based institutional investor focused on private structured credit, will serve to further fuel the Company's mission to empower and support the growth of small and medium-sized businesses (SMBs). Since its founding in 2015, CFGMS has a proven track record of asset performance and profitability and has funded more than $1.4 billion to over 33,000 SMBs across diverse industries throughout the U.S.  With the infusion of additional capital, CFGMS will continue to focus on delivering flexible and accessible financing solutions that empower small businesses to seize growth opportunities, create jobs, and contribute to the overall economic prosperity of the communities they serve. “We are thrilled to have secured this substantial capital raise, as it reaffirms our commitment to empowering small businesses,” said Andrew Coon, Chief Executive Officer of CFGMS.  “We extend our heartfelt gratitude to our investors for their continued trust and support.  With this new credit facility, we will be able to reach a wider range of small businesses and provide them with the financial resources they need to thrive." Bill Gallagher, President of CFGMS, expressed enthusiasm for the future impact of the capital raise, stating, “This new facility will strengthen our position to ensure our small business clients have access to fast and efficient financing solutions tailored to their unique needs.  We are excited to leverage this capital to expand our operations and deepen our commitment to empower U.S. small businesses to succeed.” Brean Capital, LLC served as the Company’s exclusive financial advisor and sole placement agent in connection with the transaction. About CFG Merchant Solutions CFG Merchant Solutions (“CFGMS”) is an independent, technology-enabled alternative funding platform focused on providing capital access to small and mid-sized businesses that have historically been underserved by traditional financial institutions and may have experienced challenges obtaining timely financing.  The Company uses its historical transactional data, proprietary underwriting, predictive analytics, and electronic payment technologies and platforms to assess risk and provide access to flexible and timely capital. For additional information about the Company, visit https://cfgmerchantsolutions.com/. Contact: Name: Richard Polgar Title: Chief Financial Officer rpolgar@cfgms.com

The allure of easy access to capital is a siren song for many business owners, particularly in the crucial startup phase. This is where the concept of credit card stacking enters the picture. It has been around for many years but is the zero percent interest business funding a legitimate financial strategy or a dangerous trap disguised as a shortcut? I started exploring the topic after clicking on a few videos on social media that led me to more and more and more. They are everywhere. So because business owners often turn to business credit cards for funding, more statistics on that later, I thought I would delve into the world of credit card stacking, exploring its pros, cons, and the recent surge in its promotion. What is Credit Card Stacking? Credit card stacking refers to applying for multiple business credit cards from major banks in a short period to accumulate a larger pool of credit at 0% interest as a promotional rate. The goal is to unlock a significant amount of unsecured credit at o% that can be used to finance business operations, growth initiatives, or to build business credit. Proponents of credit card stacking often highlight the perceived ease of obtaining approvals compared to traditional small business loans, which can involve lengthy applications and stricter qualification requirements. The claim is all you need is a FICO score above 680 (some say 700), a business entity, and an idea, not even an existing business with any revenue! How simple right?! The keys to this process from the service providers are knowing who to apply to, when to apply to them, having existing relationships with the credit card issuing banks, and some say they can help you buy an aged entity so that you can get approved for more. The service provider gets their service fee from the business owner as a percentage of the amount approved. However, to liquidate the credit into cash there is an additional fee. The Double-Edged Sword: Pros and Cons There are two sides to the credit card stacking coin. Here's a breakdown of the potential benefits and drawbacks: Pros: Faster Access to Funds: Credit cards often have quicker application processes and approval times than traditional loans. This can be crucial for businesses needing immediate funds. Potential Rewards: Some business credit cards offer attractive rewards programs, such as cash back on purchases or travel points. These rewards can be used to offset operational costs or provide travel benefits for business trips. Building Business Credit: Responsible management of credit card debt can help establish a positive business credit history, which can be beneficial in securing future financing. Be sure the card does report to the business credit bureaus and not to personal, as some do. Cons: High-Interest Rates: Business credit cards will likely have higher interest rates after any promotional rate than traditional loans from banks and even some alternative funding options. This can lead to a snowball effect of debt if not managed carefully. Debt Burden: Stacking multiple credit cards creates a significant debt burden, requiring consistent and high minimum payments. This can strain cash flow and limit your ability to invest in other areas of the business. Credit Score Impact: Applying for multiple cards in a short timeframe can trigger numerous hard inquiries on your credit report, potentially lowering your credit score. The Rise of Credit Card Stacking Brokers and Affiliates The perceived ease of credit card stacking has fueled the growth of brokers and affiliates who market these strategies to business owners. If you click on any post or ad pitching business credit card stacking on the most popular social media platforms you will be inundated by people pitching the service. These entities often paint a rosy picture, downplaying the risks and mainly emphasizing the potential rewards. This aggressive marketing can be misleading, particularly for new business owners unfamiliar with the financial implications. Most never talk about repayment of any funds used, as if it's a given the business owner will get a 100K in new credit, spend it, and have no problem paying it back within the timeframe of zero percent interest. Statistics: Business Credit Card Usage According to the 2024 BOSS Report by Bluevine, 55% of those business owners seeking access to capital in 2024, a new credit card tops the list. A Borrowing Dynamics report by PYMNTS Intelligence from January 2024 which surveyed 2,668 SMBs derived that 51% of SMBs use rewards credit cards as a financing tool for their business. These statistics highlight the prevalence of credit cards as a funding source for small businesses. It gives business loan brokers and other funding companies insight into how SMBs use financing, what the business owners value in obtaining funding, and how a broker or funder can use this information in their sales process to convert more clients. However, it's important to distinguish between responsible credit card usage and the risky practice of stacking. Entrepreneurs must approach credit card stacking with caution and a well-defined repayment strategy. Credit card stacking can be a valuable tool for business owners who need quick, unsecured financing and can manage multiple credit accounts effectively. For those who find the process daunting, working with a reputable credit card stacking company can provide guidance and help mitigate risks.

A former IRS officer and his brother have been sentenced to prison for their role in a multi-million dollar scheme to steal COVID-19 relief funds, according to a DOJ press release. Key Points: Frank Mosley (58) and Reginald Mosley (60) were sentenced to 30 and 12 months in prison, respectively. The brothers obtained over $3 million in fraudulent Paycheck Protection Program (PPP) loans. They achieved this by inflating payroll figures and using a company name they didn't own. Four others were charged for aiding the scheme by allowing the Mosleys to use their businesses for loan applications, receiving a 15% cut in return. Frank Mosley, a former IRS revenue officer, is accused of using his expertise to cover up the crime. Pandemic Relief Funds Abused Prosecutors allege that the Mosley brothers, along with their co-conspirators, exploited the PPP program designed to aid struggling businesses during the COVID-19 pandemic. The brothers submitted fraudulent loan applications in 2020 and 2021, inflating employee numbers and payroll costs for their own company, Forward Thinking Investors Inc. This resulted in them receiving over $1 million in relief funds. Their scheme didn't stop there. The Mosleys then recruited three other individuals to submit additional fraudulent applications using their legitimate businesses. In exchange for their participation, the co-conspirators were promised a 15% share of the fraudulently obtained funds. A sixth defendant is accused of aiding the Mosleys and others with their fraudulent applications and securing nearly $300,000 in relief funds under a company name she wasn't affiliated with. All Six Plead Guilty The two brothers and the four other defendants, Marcus Wilborn, 50, of Elk Grove; Aaron Boren, 56, of Roseville; Scott Conway, 52, of Rocklin; and Kenya Ellis, 55, of Los Angeles, involved in the scheme pleaded guilty to their respective charges. The Mosley brothers received the harshest sentences due to the severity of their crimes and Frank Mosley's prior position with the IRS. The remaining defendants received sentences ranging from 12 to 18 months in prison. IRS Reiterates Commitment to Accountability The IRS emphasized its commitment to pursuing those who abuse the financial system, particularly during times of crisis. "No one is above the law," stated IRS-CI Acting Special Agent in Charge Michael Mosley (no relation). This case serves as a reminder that even those entrusted with upholding financial regulations can be held accountable for their actions.

The Supreme Court, in a 7-2 decision, upheld the funding structure of the Consumer Financial Protection Bureau (CFPB), rejecting a conservative-led challenge. The ruling affirms that the CFPB’s funding, sourced from the Federal Reserve rather than the congressional budget process, does not violate the Constitution. This decision is significant for the financial industry, particularly for commercial lenders, banks, and fintech companies. Key Points: Supreme Court Decision: The ruling reversed a lower court decision that found the CFPB's funding structure unconstitutional. The majority opinion, written by Justice Clarence Thomas, was supported by seven justices, with Justices Samuel Alito and Neil Gorsuch dissenting. Background of the CFPB: The CFPB was established after the 2008 financial crisis to regulate various consumer finance products, including mortgages and car loans. The agency has faced consistent opposition from Republicans and financial entities. Case Origin: The case was brought by payday lenders opposing a CFPB rule limiting their ability to withdraw funds from borrowers' bank accounts. The federal appeals court in New Orleans had previously ruled that the CFPB’s funding mechanism violated the Constitution’s appropriations clause. Majority and Dissenting Opinions: Justice Thomas referenced early congressional practices to justify the CFPB’s funding mechanism. Justice Alito, in dissent, argued that the funding structure allows the CFPB to operate without congressional oversight, which he viewed as problematic. Reactions: Consumer groups and Democratic leaders, including President Joe Biden and Senator Elizabeth Warren, praised the ruling. Financial entities, including payday lenders and the U.S. Chamber of Commerce, had supported the challenge but now must adapt to the upheld CFPB structure. Implications for the Financial Industry: Continued Regulation and Enforcement: The CFPB will maintain its current funding structure, allowing it to continue enforcing regulations without annual congressional approval. Financial institutions must remain compliant with CFPB regulations, anticipating robust oversight and potential penalties for non-compliance. Strategic Adjustments for Businesses Commercial Lenders and Banks: These entities should review and strengthen their compliance programs to align with CFPB regulations, as the agency’s enforcement capabilities remain intact. Fintech Companies: Innovation in financial products should be pursued with caution, ensuring adherence to CFPB guidelines to avoid regulatory pitfalls. Market Stability: The decision mitigates potential MAJOR disruptions in the financial markets, for example, mortgages and car loans, that could have arisen from defunding the CFPB. Companies should focus on sustainable practices that promote consumer protection and financial stability. Suggestions for Companies Opposing the CFPB: Enhance Compliance Efforts: Invest in compliance infrastructure and training to ensure all operations meet CFPB standards. Conduct regular audits and risk assessments to identify and address potential regulatory issues. Engage in Policy Advocacy: Join industry groups to collectively advocate for reasonable regulatory reforms that balance consumer protection with business interests. Maintain open communication with policymakers to influence future regulatory developments. Focus on Consumer-Centric Practices: Develop products and services that prioritize consumer protection and transparency. Foster trust and credibility with consumers by adhering to fair lending and business practices. The Supreme Court's decision is a significant victory for consumer advocates and a blow to those seeking to curtail the CFPB's authority. By upholding the agency's funding structure, the ruling ensures that the CFPB can continue its mission of protecting consumers in the financial sector without undue interference from Congress or industry opponents. Companies that have opposed the CFPB's regulations may need to reevaluate their strategies and prepare for continued regulatory scrutiny and enforcement actions.

Shopify digs in deeper with Merchant Cash Advances and Loans to its merchants. The company reported its earnings on Wednesday. They said, "In the three months ended March 31, 2024, and 2023, the Company purchased $587(in millions) and $362, respectively, of merchant cash advances and loans to Shopify merchants". That's a 225 million dollar increase year over year! That's almost the opposite of what PayPal reported as they had a $247 million drop in loans and advances. So whose stock is looking better right now? They are almost identical with Shopify at $62.73 and PayPal at $63.63 at mid-day on May 9th. They offer a lot of similar services like loans and advances, and payment processing but are also very different companies. We will see by next quarter if they both continue in the same direction with regard to their lending business units.