So Wells just got their app to me and I filled it out. Basically now it's a wait and see if PayPal or Wells comes back first

Our other company banks with Chase. That application was in before our Amegy Application. Literally the only info we have was an email that said they would email us once the application was reviewed (nothing so far) and an email today saying the branches were going to have a conference call tomorrow to discuss the PPP loan.

So almost 2 weeks on that and absolutely nothing.

I'm not a litigious person, but I'll be surprised if there aren't some class action law suites for banks like Chase where they took an application and did nothing for weeks while the available money was allocated else where. They really screwed their customers.

IrishTxAggie said:

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So Wells just got their app to me and I filled it out. Basically now it's a wait and see if PayPal or Wells comes back first

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I got mine this evening too. Can you fill out two apps and see which fills first? One of the questions I answered was "have you filed an application for a similar loan from the SBA?" Or something to that effect.

The question I saw was "have you received funds associated with the SBA Loan" I thought. Guess I'll find out.

Maybe that was it.

AgLA06 said:

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Our other company banks with Chase. That application was in before our Amegy Application. Literally the only info we have was an email that said they would email us once the application was reviewed (nothing so far) and an email today saying the branches were going to have a conference call tomorrow to discuss the PPP loan.

So almost 2 weeks on that and absolutely nothing.

I'm not a litigious person, but I'll be surprised if there aren't some class action law suites for banks like Chase where they took an application and did nothing for weeks while the available money was allocated else where. They really screwed their customers.

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FYI - there were two "class action" lawsuits filed in Houston so far. One against Wells and one against Frost. The suits are from the same attorney and are almost identical. They claim that the plaintiff was damaged because the banks prioritized their customers over non customers. I guarantee there will be more of those, as well as suits claiming banks played favorites or neglected certain applications which resulted in them not getting the money.

I really doubt this spigot gets turned off. They're going to keep filling up the fund.

ChipFTAC01 said:

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I really doubt this spigot gets turned off. They're going to keep filling up the fund.

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Republicans are trying. Democrats are playing politics for pet projects (and I never discuss politics on here).

My understanding is 70% of small business have applied. If that is correct, it's kind of difficult not to approve funding so the remaining 30% can be funded if they choose to apply. Especially if they submitted paperwork to a bank before the money ran out. Considering it appears the main hurdle to approval is the banks (distribution / approval agent). That would seem awful discriminate.

Banks really had no choice but to prioritize existing customers.

I Have Spoken said:

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Banks really had no choice but to prioritize existing customers.

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Midway through the process, banks were told we would have liability for KYC (know your customer) regulations with these loans. Existing customers have already passed KYC and would be easier to process.

Most of my banker friends at community banks have exceeded their annual volume of both loans and dollars in the last two weeks. That is absolutely unprecedented in every way imaginable. Most banks had to build a massive lending platform (with a technology partner) in less than a week.

Did mistakes happen? Probably. Could things have been done better/more efficient? With the benefit of hindsight, of course.

Every banker I know is still working with their clients that did not get funds to make sure their applications are ready to go if there is a round 2.

So, back to the original comment- this was an overwhelming effort and the fact that we approved $349B in small business loans in this short of a time is nothing short of spectacular. Hopefully we will get the chance to support the rest of the small businesses who didn't get money on the first go round.

cgh1999 said:

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I Have Spoken said:

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Banks really had no choice but to prioritize existing customers.

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Midway through the process, banks were told we would have liability for KYC (know your customer) regulations with these loans. Existing customers have already passed KYC and would be easier to process.

Most of my banker friends at community banks have exceeded their annual volume of both loans and dollars in the last two weeks. That is absolutely unprecedented in every way imaginable. Most banks had to build a massive lending platform (with a technology partner) in less than a week.

Did mistakes happen? Probably. Could things have been done better/more efficient? With the benefit of hindsight, of course.

Every banker I know is still working with their clients that did not get funds to make sure their applications are ready to go if there is a round 2.

So, back to the original comment- this was an overwhelming effort and the fact that we approved $349B in small business loans in this short of a time is nothing short of spectacular. Hopefully we will get the chance to support the rest of the small businesses who didn't get money on the first go round.

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Blue star

cgh1999 said:

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I Have Spoken said:

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Banks really had no choice but to prioritize existing customers.

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Most of my banker friends at community banks have exceeded their annual volume of both loans and dollars in the last two weeks. That is absolutely unprecedented in every way imaginable. Most banks had to build a massive lending platform (with a technology partner) in less than a week.

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I think this is my biggest knock against the industry. Lots of small local banks with much less technology and support were able to pull this off magnificently. They communicated, they had a process ready to go, and they quickly got customers approved and funded. They didn't have issues getting things ready and taking care of their customers.

Then you have large banks like Chase, Wells Fargo, and Amegy, who couldn't hardly do any of that with vast networks of capital, IT support, and technology platforms they love to tought over smaller banks. Hell, in Chase's case I still haven't heard of a single approval.

I'm sorry, but based on that it appears to be nothing but excuses or ineptitude from the banks that couldn't make this happen. You can't say it's the government's fault when much smaller and less equipped entities didn't have any issues getting this done not only for their customers, but also non-customers as well.

Yup I will be closing out my business accounts with chase and looking elsewhere. I have not heard a single thing back regarding this and now it's dried up. Incompetence all around.

As someone who worked at a big bank, at a regional bank, and at a community bank I can point to pros and cons about each.

When I worked at a big bank, I always argued that a good banker was more important than the actual bank. 99% of the time that was true. I was able to take care of my clients because I knew what the bank could do and how to get it done. In conversations with friends at the big banks, EVERYTHING was taken out of their hands on PPP. The bankers ability to advocate for their client was gone. (For good reason which I'll explain later)

At community banks, we have fewer customers, so we were able to upsize our technology to accommodate our customers and throw the people resources to get it done. As I mentioned earlier, I'm sure some applications fell through the cracks, and some mistakes were made, but we accomplished a LOT in a very short time.

Back to the issue of advocating for your clients. We all knew the money would run out. As a result, we can't play favorites. I saw $2500 loans approved and $10MM loans approved. If someone didn't get their info in on time, it didn't get funded. The big banks never had a chance to help small businesses because they have SO many. When I was in business banking, we had over 7500 clients in Houston with annual revenue between $2MM and $30MM. That doesn't count all of the accounts domiciled in the branches (micro business) or the smaller end of middle market. Their massive technology systems are great for supporting day to day business, but The idea of scaling up to support millions of requests for small loans is mind boggling.

At the end of the day, it's still about the banker being your advocate.

There will be more. Just be sure to go with a smaller proven bank.

I was reading the guidance from the treasury and SBA as it came out and had all of my documents and the first draft application to my community bank before they could even accept applications. It's a small community bank where I know everybody and I helped get them all the information to ensure they'd be ready to go when the SBA portal opened.

kaleb_allison said:

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I was reading the guidance from the treasury and SBA as it came out and had all of my documents and the first draft application to my community bank before they could even accept applications. It's a small community bank where I know everybody and I helped get them all the information to ensure they'd be ready to go when the SBA portal opened.

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We did the same with big banks, but it didn't matter. And in the end only 1 of 2 companies were approved. Both companies will be looking to move to smaller banks in the future.

cgh1999 said:

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If someone didn't get their info in on time, it didn't get funded.

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This is where my frustration comes from. We had everything ready and submitted both applications the second we could. Only 1 of 2 was submitted and approved (two different large banks). It gives the impression that one bank either played favorites or was negligent.

AgLA06 said:

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cgh1999 said:

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If someone didn't get their info in on time, it didn't get funded.

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This is where my frustration comes from. We had everything ready and submitted both applications the second we could. Only 1 of 2 was submitted and approved (two different large banks). It gives the impression that one bank either played favorites or was negligent.

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There is a third option where it just slipped through the cracks. An analogy is having a ten gallon bucket of water and trying to pour it into a cup as fast as you can. You're going to spill some water.

I'm not trying to apologize or even fully defend the big banks...but I feel like it's being ignored how challenging this was. The banks that were very successful at it had large percentages of their staff doing nothing but PPP for 6-7 days a week 14-18 hours a day. These people were trained and put to work immediately. I can't comprehend the effort it would take to do that at a large scale, national institution.

Texas Capital took care of us, we have a SBA filing number and are in line for funding.

cgh1999 said:

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AgLA06 said:

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cgh1999 said:

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If someone didn't get their info in on time, it didn't get funded.

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This is where my frustration comes from. We had everything ready and submitted both applications the second we could. Only 1 of 2 was submitted and approved (two different large banks). It gives the impression that one bank either played favorites or was negligent.

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There is a third option where it just slipped through the cracks. An analogy is having a ten gallon bucket of water and trying to pour it into a cup as fast as you can. You're going to spill some water.

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Funny, the opportunity to sell you a new service or product never seems to slip through the cracks with these big banks.

It's almost like they are focused more on metrics than service.

For reference, my wife works at a regional bank. She is the marketing person. She did PPP approvals once they had a process ready to go. It was all-hands on deck and a complete reallocation of resources. I imagine a larger institution could not have pulled this off.

Proposition Joe said:

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cgh1999 said:

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AgLA06 said:

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cgh1999 said:

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If someone didn't get their info in on time, it didn't get funded.

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This is where my frustration comes from. We had everything ready and submitted both applications the second we could. Only 1 of 2 was submitted and approved (two different large banks). It gives the impression that one bank either played favorites or was negligent.

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There is a third option where it just slipped through the cracks. An analogy is having a ten gallon bucket of water and trying to pour it into a cup as fast as you can. You're going to spill some water.

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Funny, the opportunity to sell you a new service or product never seems to slip through the cracks with these big banks.

It's almost like they are focused more on metrics than service.

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You're absolutely right. That's why I said it is all about the banker.

I have a question. Our bank wasn't a SBA bank so they sent us off to a third party entity to apply. We got in a que, but never received an application, after over a week. Funds ran out, so that is that. When/If round 2 happens and the fund the program more, obviously want to not be at the mercy of a que that we can't even receive an application from.

1) Is PayPal likely the best way to go if you don't have a relationship with an SBA bank?

2) If you can find a SBA bank you don't have a relationship with to work with you, is that better than using PayPal?

TIA!

katlong said:

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I have a question. Our bank wasn't a SBA bank so they sent us off to a third party entity to apply. We got in a que, but never received an application, after over a week. Funds ran out, so that is that. When/If round 2 happens and the fund the program more, obviously want to not be at the mercy of a que that we can't even receive an application from.

1) Is PayPal likely the best way to go if you don't have a relationship with an SBA bank?

2) If you can find a SBA bank you don't have a relationship with to work with you, is that better than using PayPal?

TIA!

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I'd open an account at one of the banks that have gotten through and I'd open it today! I was in the same boat as you and gave it one day before going to my second option at Plains Capital. Plains Capital got it done. My first bank finally decided to cancel their third party broker and process the loans on their own which by then was too late.

cgh1999 said:

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AgLA06 said:

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cgh1999 said:

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If someone didn't get their info in on time, it didn't get funded.

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I'm not trying to apologize or even fully defend the big banks...but I feel like it's being ignored how challenging this was. The banks that were very successful at it had large percentages of their staff doing nothing but PPP for 6-7 days a week 14-18 hours a day. These people were trained and put to work immediately. I can't comprehend the effort it would take to do that at a large scale, national institution.

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this is what happened with my bank (good-sized regional bank). They put all their resources into this round the clock. I helped provide my banker with legal analysis of the bill even before it became law. The lesson I've been preaching to my clients (which I did before this, but now am hammering the point) is have a relationship with a real business banker.

Pignorant got this done for us. Contacted off of this thread and got our company submitted/accepted/funded quickly! My original bank is still stuck in neutral on these loans.

Highly recommend contacting Pignorant if you need to submit for Round 2!

https://www.cnbc.com/2020/04/21/large-public-companies-are-taking-small-businesses-payroll-loans.html

My group put in our application on April 5th with SunTrust (Now Truist, about to become Our Former Bank). We do probably $15-20 million per year through that bank, and most of the owners of our group also have accounts with the bank. Not only have we not gotten our funding ($1.6 million was our loan amount, based on our payroll), Truist cannot even tell us the status of our application (completed, SBA number assigned, awarded but funding ran out, etc.). At this point, we are re-submitting an application with another bank, although doing this probably carries the risk of having our previous application (assuming it exists somewhere) being kicked out as well should Congress get its act together and increase funding for PPP loans. This is the most unbelievable thing to me. Incompetence and lack of accountability at its worst.

Quick question...
We processed a payroll 4/20, but the payroll won't clear the bank until 4/22. We will receive our PPP funding on 4/22.

Does the 4/20 payroll count towards our PPP payback?

Don't have an answer, but a couple of my clients are in the same position. We haven't seen anything declaring cash vs accrual for forgiveness calculation. We've talked to a couple regional banks so far this week and nothing concrete, so we're basically waiting for guidance from lenders or SBA.

Our guess is that it'll be cash basis, but who knows.

tk for tu juan said:

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https://www.cnbc.com/2020/04/21/large-public-companies-are-taking-small-businesses-payroll-loans.html

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Not to be a d-bag on this but $450 market cap doesn't make you a big company by any means. Now I get the point that these companies could offer warrants but some of the companies they listed are practically penny stocks.

FFS, my tiny ass company could raise $6M if we listed on a stock exchange

STL_aTm said:

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Quick question...
We processed a payroll 4/20, but the payroll won't clear the bank until 4/22. We will receive our PPP funding on 4/22.

Does the 4/20 payroll count towards our PPP payback?

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My guess is it really just comes down to accounting. Keep track of how you spend every dollar. Obviously, ask for guidance from your lender but to be frank, is my experience is even the lenders don't have a clue. This was thrown together so quickly, I can't get a straight answer from anyone one on anything.

sir charles said:

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Pignorant got this done for us. Contacted off of this thread and got our company submitted/accepted/funded quickly! My original bank is still stuck in neutral on these loans.

Highly recommend contacting Pignorant if you need to submit for Round 2!

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Contact information?