Business Lending

OnDeck Status Update

May 28, 2020
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OnDeck 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 […]

Most Brokers Plan to Minimize Use of a Central Office Post-COVID, Survey Suggests

May 26, 2020
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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 […]

OnDeck Hits Payout Event Trigger on $105M Credit Facility

May 22, 2020
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Earlier 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 […]

Broker Fair, Not a Webinar… A Virtual Reality Conference

May 21, 2020
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Coming 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 […]

Hidden Tax Liabilities: Assessing Small Business Borrower Risk Before, During, and After The Pandemic

May 19, 2020
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Tax Guard - deBanked

How 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 […]

The Latest With OnDeck

May 18, 2020
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OnDeck NYSE

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 […]

Ireland’s Alternative Finance Industry and the Coronavirus

May 18, 2020
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Grafton Street, Dublin

As the effects of the coronavirus continue to slow down the American economy, around the world, many countries remain in lockdown, with their businesses having been halted. Be it to the north, south, east, or west, of the United States, the results are the same: money has stopped flowing. As such, we took the opportunity […]

$100 Million in PPP Fees

May 12, 2020
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$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 […]

Shopify Shows Strength in Q1 Results, Issues $162.4M in MCAs and Loans

May 6, 2020
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shopify glyph

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
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Main Street Brick

$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 […]

Enova On Their Small Business Lending Exposure

April 30, 2020
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enova

Enova’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. […]

OnDeck Reports Q1 Net Loss of $59M, Suspends Non-PPP Lending Activities

April 30, 2020
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OnDeck

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 […]

Treasury Warns of Audits as Public Companies Return PPP Money

April 28, 2020
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US Treasury

In the wake of public outrage at the news that public companies have received millions of dollars from the Paycheck Protection Program, Treasury Secretary Steven Mnuchin today spoke out against such businesses. His comments come after the SBA and Treasury further clarified which businesses actually qualify for PPP, noting that only companies with no access […]

The Front Line of PPP Lending

April 24, 2020
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Front Line of PPP Lending

This story appeared in deBanked’s Mar/Apr 2020 magazine issue. To receive copies in print, SUBSCRIBE FREE Susan Lyon, managing director at an independent commercial film company in Solana Beach, California, can’t say enough good things about the quick action her bank took to help her secure emergency government funding during the current pandemic. “They sent […]

Ready Capital Was The Biggest PPP Lender By Volume in Round 1 of PPP Funding

April 22, 2020
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ready capital

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 […]

United Capital Source CEO Jared Weitz Appeared on Fox News

April 21, 2020
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Fox News - Jared Weitz - United Capital Source

This week, Jared Weitz, CEO of United Capital Source, appeared on Fox News to talk about the PPP, EIDL, and small business lending. Video below:

Lendio Facilitated More Than 4% of All PPP Transactions

April 21, 2020
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Brock Blake Lendio

Lendio processed $5.7 billion of the $342 billion funded to businesses through the Paycheck Protection Program. With this amount going to just over 70,000 business owners, the Utah company facilitated 4.2% of the total 1.66 million deals through its platform. “The last few weeks have been an all-out brawl, from solving technical issues to deciphering […]

Small Business Group Advocates For Community Anchor Loan Program (CAP) In Wake Of PPP Wind Down and Possible Refresh

April 17, 2020
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Corner of Maple Street and Main Street

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 […]

Online Lenders Are Waiting On The Bench For The PPP To Be Refreshed

April 16, 2020
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On the PPP Bench

This week proved mixed for many fintech and non-bank lenders who received approval from the SBA to issue Paycheck Protection Program funds, only for the $349 billion allotted to the program to run dry almost immediately afterwards. On Wednesday evening Senator Marco Rubio tweeted that the funds would run short, leaving at least 700,000 small […]

Clearbanc Launches Runway in Response to Covid-19

April 16, 2020
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Michele Andrew Clearbanc

This month Clearbanc announced its latest product, Runway, in response to the impact of the novel coronavirus. Having historically served the needs of those businesses that are seeking funds for digital marketing, with Runway Clearbanc is expanding into capital for more generalized purposes in the face of covid-19. “All companies are concerned about one thing […]