How major banks really decided which businesses got stimulus money - Business Insider

The approach wasn't unusual, though — banks typically favored lending to existing customers that it already vetted and telling others to seek relief from a preexisting banking relationship.

Under anti-money laundering rules, banks have to adhere to "know your customer" protocols to ensure they're not being used as a conduit for corrupt or illicit activity — like when HSBCin 2012 and served a five-year probation over lapses that allowed Mexican drug cartels to launder hundreds of millions of dollars. Knowing your customer means vetting their identity and personal information, but also looking out for sanctioned or suspicious potential clients.

"I'm much more comfortable with them dealing with an existing customer," said Jeremy Rosenblum, a partner at law firm Ballard Spahr who has been advising banks on PPP "The SBA has made it clear they don't have to redo their AML processes for existing customers."still requires lenders to "perform a good faith review, in a reasonable time, of the borrower's calculations and supporting documents concerning average monthly payroll cost.

A lack of experience handling heavy volumes with E-Tran, coupled with new complicated rules for the untested program, presented challenges initially, according to a person familiar with the bank's PPP effort. Technology needed to be upgraded, or in some cases created from scratch, to assist in integrating DocuSign and payroll verification software, and the firm worked with fintech partners to custom build a digital platform for PPP lending.

But the bank was not yet able to accept applications, and other major banks like Chase and Bank of America were limiting access to customers with existing business account relationships.

The decision was delegated to the banks. The banks knew that they did not have enough to help everybody. They had to help their best customers first. The money ran out because $349 Billion for the 30 million small businesses at a maximum loan of $10 million each doesnt equate

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Cuomo to decide whether to reopen businesses, schools in one week - Business InsiderCuomo says he'll decide in a week whether to keep schools and businesses closed past May 15 as the coronavirus ebbs
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

Facing furor, Ruth’s Chris high-end steak chain returns $20 million small business loanThe restaurant chain has been under fire for accepting stimulus loans earmarked for struggling small businesses. when there is Free money' the greedy rich are always first in line with their hands out Awe man, they're gonna have to sell like 7 steaks to make that up. Well done!
La source: NBCNews - 🏆 10. / 86 Lire la suite »

Facing furor, Ruth's Chris high-end steak chain returns $20M small-business loanThe restaurant chain has been under fire for accepting stimulus loans earmarked for struggling small businesses. Good This just in! RUTH'S RISKS WRATH, RETURNS RESCUE RICHES!
La source: YahooNews - 🏆 380. / 59 Lire la suite »

Facing furor, Ruth’s Chris high-end steak chain returns $20M small-business loanThe restaurant chain has been under fire for accepting stimulus loans earmarked for struggling small businesses. But how are they even able to get it in the first place? This is a shocking waste of funds! Who can we shame next? Potbelly sammiches is 'on the clock'
La source: NBCNews - 🏆 10. / 86 Lire la suite »

Global remittance volume set to plunge in 2020 - Business Insider - Business InsiderRemittance firms may struggle to cope with a sudden drop in remittance volume, but focusing on the digital channel could help them survive. CurateByo just a crc introspection for those who rely on diaspora remittances for a living. This covid19 pandemic is real. not really alarmist but to save as a warning for lean budgets in the foreseeable future
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

Discover takes a hit from the pandemic - Business Insider - Business InsiderDiscover posted a 3% annual increase in sales volume in Q1 2020, marking a considerable deceleration from the 7% it reported in Q1 2019. I guess they will......DISCOVER....it soon😃😂😁😀😊☺😆
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »