Articles by deBanked Staff
Most Brokers Plan to Minimize Use of a Central Office Post-COVID, Survey Suggests
May 26, 2020
A survey conducted by Overland Park, KS-based Strategic Capital revealed that only 36.8% of respondents plan to completely return to the office full-time after cities fully open back up. The vast majority of respondents were small business finance brokers.
44.7% selected that they would minimize office space or only use office space to house core team members while 18.4% planned to terminate their office lease altogether and adopt a work from home model permanently.
Deloitte Sued Over Audits of Failed DLI Fund
May 7, 2020Those affected by the failure of Direct Lending Investments (DLI) have added a new target to blame, Deloitte & Touche LLP and related entities.
A lawsuit filed last week in the Superior Court of California says that Deloitte was engaged by DLI to audit the Funds’ financial statements and accompanying footnotes in accordance with GAAP for the years ending 2016 – 2018 and issued clean unqualified audit reports that “negligently ratified and confirmed the false valuations contained in the financial statements and footnotes disseminated to the Plaintiffs.”
Enova On Their Small Business Lending Exposure
April 30, 2020Enova’s exposure to the small business lending crisis is limited, the company said during its earnings call yesterday. The Business Backer and Headway Capital are two of the international consumer lending company’s small business lending divisions.
In terms of their overall loan book, small business loans only make up a percentage worth in the teens. “It’s very much manageable for us,” CEO David Fisher said. Fisher also said that they did not have large exposures to entertainment, hospitality and restaurants in their small business loan portfolio and were well diversified.
“Defaults […] have not increased anywhere near as much as we would have expected. Lots of payment deferrals and modifications, but with the PPP checks coming in and states opening back up, we are somewhat encouraged that we haven’t seen very high levels of default yet.”
Enova reported a consolidated Q1 net income of $5.7M.
Fundry Donates $25,000 to Community FoodBank of New Jersey
April 29, 2020Jersey-City based Fundry made a $25,000 donation the Community FoodBank of New Jersey this week. CFBNJ is an organization that “fights hunger and poverty in New Jersey by assisting those in need and seeking long-term solutions.” In addition to the over 40 million Americans who struggle with hunger every day, an estimated 17.1 million more people will experience food insecurity during this crisis, the organization says on its website.
Thank you, @FundryC, for such a generous donation! Support like this is essential as we continue to meet the growing need. https://t.co/kLhDxn5orJ
— Comm. FoodBank of NJ (@CFBNJ) April 28, 2020
Lending Club Sheds 460 Employees
April 21, 2020In response to changing economic conditions, Lending Club announced that it has put a plan in place that will reduce its workforce by 460 employees.
That comes in addition to temporary reduced salaries for the company’s top executives including CEO Scott Sanborn who agreed to a 30% cut in his base compensation.
The company’s stock closed $7.39 on Tuesday, up from its April 3rd all-time low of $6.85.
United Capital Source CEO Jared Weitz Appeared on Fox News
April 21, 2020This week, Jared Weitz, CEO of United Capital Source, appeared on Fox News to talk about the PPP, EIDL, and small business lending. Video below:
IOU Financial Has Applied to Become a PPP Lender
April 10, 2020IOU Financial applied to become a PPP lender on Thursday, according to a note posted to social media by President and COO Robert Gloer.
“We are all hoping the SBA will be able to quickly get FinTech lenders up and running. We have helped thousands of Small Businesses Nationwide since 2009. We are built to deploy capital efficiently and expeditiously,” he added.
OnDeck Has Applied to Become a PPP Lender
April 10, 2020OnDeck has applied to become a lender for the Paycheck Protection Program (PPP), according to a post the company made on social media. The online lender is one of the first to publicly announce an official entry for consideration since the application went live for fintech companies Wednesday evening.
OnDeck CEO Noah Breslow said on LinkedIn, “We are excited to be one of the fintechs delivering PPP loans as a direct lender – our team has been working around the clock getting us ready and now we wait and hope we are approved soon!”
