Experts say its time to take a close look at your finances--and start digging your trench.
As the official legal services partner to NEWITY’s network, LegalShield will provide affordable legal and cybersecurity protection
NEWITY, America’s Small Business Marketplace, has selected award-winning insurtech Mylo to provide its members with expert insurance coverage. NEWITY’s marketplace provides entrepreneurs with equitable access to SBA loan solutions and trusted business services within its smart, digital platform. Mylo’s proprietary technology delivers customized insurance advice and solutions from top carriers for a wide range of needs. This powerful combination will enable business owners to finance and protect their companies – all in one place.
NEW YORK - FEBRUARY 28, 2022 - Breef (www.breef.com), the world’s first online agency marketplace, has announced a partnership with NEWITY, the small business marketplace dedicated to supporting equitable access to SBA loans and trusted business service providers. As NEWITY’s official Marketing Services Partner, Breef is helping NEWITY’s community of 115,000 and growing small business members more easily access marketing agency resources and extend their growth opportunities.
Praxent is helping NEWITY transform from a loan purchaser and servicer to delivering a fully integrated technology platform that offers affordable loan options and back-office capabilities to small businesses, a dramatically underserved market. With Praxent’s design and development expertise, NEWITY’s user experience, functionality and integrations have all been significantly enhanced, better positioning the fintech for strong growth.
NEWITY is now launching a nationwide small-dollar Small Business Administration 7(a) business. NEWITY, a company created to purchase and service Paycheck Protection Program loans, always knew it would have to pivot its business model once PPP activity began winding down.
We’ve changed our name, however our dedication to our members and partners remains the same.
In 2020, the Minneapolis Fed was given a special assignment in response to the COVID-19 pandemic—to set up and lead one of the Federal Reserve System’s emergency lending facilities. The Paycheck Protection Program Liquidity Facility, or PPPLF, was created jointly with the U.S. Treasury for the purpose of supporting lenders who provide even the smallest businesses with forgivable loans through the Small Business Administration’s Paycheck Protection Program, or PPP.
The Federal Reserve’s decision to extend the life of its Paycheck Protection Program Loan Facility through March should give lenders mulling the sale of PPP portfolios more time to weigh options and — potentially — strike deals. Several banks have already sold originations under the $659 billion emergency loan program for small businesses, either to free up resources or to avoid having to navigate the complicated forgiveness process. It also expedites the influx of fee income.
Northeast Bank recorded a sharp increase in income in the recent three-month period, helped in part by reselling its PPP loans. The Portland-based bank, which has nine branch offices, reported net income of $7.8 million, or 94 cents a share, up from $4.8 million, or 52 cents, in the comparable quarter a year ago. It is Northeast Bank’s fiscal first quarter.
ACAP SME LLC, a non-bank lender and national loan aggregator (purchaser) of Paycheck Protection Program (PPP) loans, in partnership with The Loan Source, Inc., ACAP’s servicing team, today announced it has signed a deal to utilize Biz2Credit’s Biz2X PPP Forgiveness Platform. ACAP and The Loan Source will also be using Biz2X for loan originations if and when the federal government launches another round of the PPP (referred to as PPP 2).
Peapack-Gladstone Bank, the wholly owned subsidiary of Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC), announced the sale of $354.9 million of Paycheck Protection Program loans to The Loan Source, Inc. The Bank expects to realize a pre-tax gain of approximately $7.4 million in the current quarter as a result of the sale. After giving effect to the sale, Peapack-Gladstone Bank will hold approximately $203.5 million of Paycheck Protection Loans, almost all of which exceed $2.0 million in original principal amount.
More and more banks are eager to unload their Paycheck Protection Program loans — and some nonbanks are more than happy to take them off their hands.
The Loan Source, a nonbank small-business lender in New York, said it has acquired more than 20,000 PPP loans, with more than $2.9 billion in outstanding balances, in recent weeks. The company, which has finalized deals with 14 lenders, has more in the works.
A Nevada credit union has joined the ranks of Paycheck Protection Program lenders who have opted to sell their portfolios.
Greater Nevada Credit Union in Carson City has sold “substantially all” of its $556 million PPP portfolio to Fountainhead Commercial Capital in Lake Mary, Fla., Fountainhead CEO Chris Hurn said Monday in an interview. The $1.1 billion-asset Greater Nevada did not disclose sale terms.
As the period for originating Paycheck Protection Program loans draws to a close, lenders are now looking for the best way to handle the process for loan forgiveness.
With guidance from the Small Business Administration still scarce, several banks have decided to either seek outside help to navigate PPP’s complexities or to simply sell their loans to other companies.
The first round of $349 billion in funding for the Paycheck Protection Program ran out in less than two weeks. Now that the new Paycheck Protection Program and Health Care Enhancement Act has been signed into law, an additional $310 billion has been designated to help small businesses keep employees on the payroll. The U.S. Small Business Administration says it will start accepting applications from approved PPP lenders again on Monday.
Several banks are recognizing millions in fees and avoiding a potentially fraught government process by taking advantage of a developing secondary market for Paycheck Protection Program loans.
Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based full-service bank, today reported net income of $11.2 million, or $1.33 per diluted common share, for the quarter ended June 30, 2020, compared to a net loss of $603 thousand, or ($0.07) per diluted common share, for the quarter ended June 30, 2019. Net income for the year ended June 30, 2020 was $22.7 million, or $2.53 per diluted common share, compared to $13.9 million, or $1.52 per diluted common share, for the year ended June 30, 2019. Earnings were positively impacted in the quarter ended June 30, 2020 by the sale of $457.6 million in Paycheck Protection Program (“PPP”) loans to The Loan Source, Inc. (“Loan Source”) which resulted in a pre-tax net gain of $9.7 million, or approximately $6.7 million net of tax.
A government-backed emergency loan program for small businesses struggling to survive the COVID-19 pandemic was supposed to be a surefire payday for banks.
Indeed, many banks will earn millions from the Paycheck Protection Program: More than 30 banks could earn as much from emergency small-business loans as they reported in net revenue for all of 2019.