Articles by Sean Murray
OnDeck Status Update
May 28, 2020OnDeck submitted an unprompted mid-quarter update with the SEC early this morning on its status. Unlike previous submissions, the company prepared a visual of its debt situation. The bad news is that there is a good amount of negotiating with creditors left to be done. The good news was that there was an uptick in […] |
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OnDeck Hits Payout Event Trigger on $105M Credit Facility
May 22, 2020Earlier today, OnDeck filed a status update to shareholders with the SEC. The company’s portfolio performance triggered an Asset Performance Payout Event (Level 1 they say) with a credit agreement that at present has an outstanding balance of $105 million. The event triggers monthly principal repayments which, if not cured or amended, would commence with […] |
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Broker Fair, Not a Webinar… A Virtual Reality Conference
May 21, 2020Coming June 11th, Broker Fair in Virtual Reality. Much different from a webinar, Broker Fair Virtual will actually be a virtual world with a lobby, exhibit hall, networking lounge, and auditorium. Attendees will be able to interact with each other as well as visit and interact with sponsors at their virtual booths. There will be […] |
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Hidden Tax Liabilities: Assessing Small Business Borrower Risk Before, During, and After The Pandemic
May 19, 2020How lenders assess the risk of small business borrowers is changing and one important factor that no one will be able to ignore is tax liabilities. Hansen Rada, CEO of Tax Guard, told deBanked that outstanding tax liabilities are not always readily apparent in the form of a lien. Tax Guard can fill in the […] |
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The Latest With OnDeck
May 18, 2020
A Week after OnDeck reported Q1 earnings, the company experienced its first early amortization event brought on by the COVID-19 crisis. The news was publicized in a May 11th filing with the SEC: On May 7th, an early amortization event occurred with respect to the Series 2019-1 notes issued by OnDeck Asset Securitization Trust II […]
Forgiven Debts: The Hidden Tax Time Bomb That Could Kick Small Businesses While They’re Down
May 12, 2020
Small businesses that stay out of bankruptcy but have some portion or all of their debts forgiven (excluding PPP debt) are in for a rude awakening come tax time next year. In a variety of circumstances, cancelled debt can be classified as taxable income for the debtor per the IRS. This, according to a new […]
$100 Million in PPP Fees
May 12, 2020
$100 million. That’s the gross revenue floor that Ready Capital reported yesterday will be earned from its PPP loan origination efforts. PPP lenders earn between 1% to 5% of the loan amount in the form of a fee from the SBA and Ready Capital was the 15th largest PPP lender by dollars in the first […]
Interview With Polling Expert Scott Rasmussen
May 7, 2020
On Tuesday, I interviewed nationally recognized public opinion pollster Scott Rasmussen, who is the publisher of ScottRasmussen.com and is the editor-at-large for Ballotpedia, about the trajectory of the presidential race and how the current environment is affecting how people think. Mr. Rasmussen will be a guest speaker at Broker Fair 2020 Virtual on June 11, […]
Shopify Shows Strength in Q1 Results, Issues $162.4M in MCAs and Loans
May 6, 2020
eCommerce platform Shopify, 2nd only to Amazon in retail eCommerce sales, issued $162.4M in merchant cash advances and business loans in Q1, up from $115.9M in the previous quarter. The statistic pushed them past the $1 billion threshold of funds cumulatively issued since inception. The company’s provision and allowance for loan losses ticked up from […]
Round Two of PPP Is Targeting Much Smaller Businesses
May 4, 2020
$79,000. That’s the average loan size reported in Round Two of the PPP so far. The figure is about a third of the average size approved in Round 1. Some of that is by the SBA’s design. On April 29th, the SBA disabled submission access to all lenders whose assets exceed $1 billion to prioritize […]
OnDeck Reports Q1 Net Loss of $59M, Suspends Non-PPP Lending Activities
April 30, 2020
OnDeck has suspended the funding of its Core loans and lines of credit to new or existing customers (unless the loan agreement has already been executed). The company has also suspended its pursuit of a bank charter. The company has instituted a 15% pay reduction for its full-time employees, a 60% pay reduction for part-time […]
Ready Capital Was The Biggest PPP Lender By Volume in Round 1 of PPP Funding
April 22, 2020
Ready Capital, a multi-strategy real estate finance company and one of the largest non-bank SBA lenders in the country, was the top PPP lender by loan volume in the country. Company CEO Thomas Capasse appeared on Fox Business yesterday and announced key statistics that aligned with data published by the SBA. By dollars, Ready Capital […]
Small Business Group Advocates For Community Anchor Loan Program (CAP) In Wake Of PPP Wind Down and Possible Refresh
April 17, 2020
At last tally, more than 800,000 small business PPP applications have gone unfunded since the program reached its limit, many of which are genuine mom-and-pop shops that employ less than 25 people. Congress is considering another round of additional PPP funding but Americans may be worrying that such funds will once again go into the […]
That’s All Folks? – The PPP Money Is Already Gone
April 15, 2020
Update 4/16/20: The SBA has put up an official statement on its website that says “The SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. Similarly, we are unable to enroll new PPP lenders at this time.” A number of fintech companies have just joined the […]
Should I Apply to Become a PPP Lender?
April 10, 2020
One question being posed in the small business finance community is whether or not you should apply to become a PPP lender. Unless you are a very large well-capitalized company with a deep legal and compliance bench, you probably shouldn’t. Here’s why: You must supply the capital. While a federal mechanism is being put in […]
Kabbage Can Accept PPP Applications, But They Are Not a PPP Lender
April 8, 2020
When CNN announced on April 1st that Kabbage had been approved to provide PPP loans, many in the fintech world wondered how they did it when a PPP Lender Application for fintech companies had yet to be released. #FinTech firm @KabbageInc, has approval to provide quick loans from the $350bn SME loan fund. "The smallest […]
Sorry, You’re Not Eligible For PPP Money
April 8, 2020
The rush to submit your PPP application may be for naught if you own an ineligible business. The SBA prohibits loan guarantees to “businesses primarily engaged in lending, investments, or to an otherwise eligible business engaged in financing or factoring.” If there’s any confusion as to what that includes, the SBA lists 7 specific ineligible […]
Sen. Rubio: PPP Application For Fintech Lenders Expected This Week
April 6, 2020
Update: 4/8/20 The PPP Application for Fintech Lenders is Here Senator Marco Rubio tweeted on Saturday that he expects the US Treasury Department to release a separate PPP application for non-bank lenders early this week. The Treasury and SBA have previously issued guidance on the minimum criteria a fintech lender would have to meet to […]
StreetShares Posts Another Loss
April 2, 2020
Sales and Marketing Expenses declined dramatically for StreetShares for the six-month period ending December 31, 2019, according to the company’s latest SEC filing, but the company’s payroll expense still wildly exceeded revenue, putting them yet again into deep net loss territory. StreetShares recorded total operating revenues of $2.43M, payroll expenses of $3.49M, and a net […]
How to Become a PPP Approved Lender With the SBA
March 31, 2020
Update 4/8/20: The PPP Lender Application for Non-banks/fintech Companies is HERE Update 4/3/20: The PPP Lender Application for Banks is HERE The Treasury Department has set an April 3rd expected start time for lenders to begin accepting Payroll Protection Program loan applications. But who exactly can make the loans? Are fintech lenders in or out? […]
