short term – Helviti http://helviti.com/ Fri, 25 Mar 2022 21:09:47 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://helviti.com/wp-content/uploads/2021/10/icon-1-1-120x120.png short term – Helviti http://helviti.com/ 32 32 How does a short-term loan work? https://helviti.com/how-does-a-short-term-loan-work/ https://helviti.com/how-does-a-short-term-loan-work/#respond Tue, 26 Oct 2021 10:38:46 +0000 https://helviti.com/?p=412 A short-term loan from https://greendayonline.com/short-term-loans/ is a loan that’s available to meet a personal or business need. This loan is a great option if you have temporary cash flow issues and can provide quick financing if you need it immediately. Online short-term loans have become more popular due to the growing popularity of the internet. These […]]]>

A short-term loan from https://greendayonline.com/short-term-loans/ is a loan that’s available to meet a personal or business need. This loan is a great option if you have temporary cash flow issues and can provide quick financing if you need it immediately.

Online short-term loans have become more popular due to the growing popularity of the internet. These loans can be accessed via apps or finance websites, but it is important to select the right one. The nature of the credit provided determines the name of short term loans. The loan’s payment structure is shorter and requires no long-term commitments.

You can either repay the entire loan in one day, or you can pay it off over time. The due date is usually within one year. How fast the loan is paid can affect how much interest you pay.

Short term loans

It is important to gather enough information about short-term loans before you decide whether or not to apply. A short term loan may be the right option for you. Traditional lenders such as banks don’t have all of the advantages that short term financiers do. Contrary to popular belief short term loans are not always a last resort. They can be an alternative to traditional credit and may even be more beneficial overall.

The majority of short-term loans on the market operate in a similar way, with a simple and quick process. There are several stages to obtaining a short-term loan.

Initial request

The initial application is the first step to getting a short-term loan. You will need to provide information about yourself and financial details to be considered for a short term loan. This information can include your name, contact details, income, and the reason for your loan application.

After you submit the required information, the lender will use these details to determine your loan limit, which is the maximum amount you can borrow. Your expected income, credit history, and financial sense can all impact your loan limit. Different loan limits are offered to different people at the discretion of the lender.

Request for specific amount and approval

Your background check is the most important factor in determining whether you are approved for a short-term loan. Short term lenders don’t have to be as strict as traditional lenders and can use different methods of determining your eligibility for a loan. Even if your credit is not perfect, you may still be eligible for a short-term loan.

After your application is approved, you will need to request a specific amount within the given loan limit. For example, if you are given a loan limit $1000, you can borrow any amount that is within that limit. Once you have decided on the amount you want, the lender will need to approve your request.

Payment scheduling

You are guaranteed to receive the requested amount as long as you have been granted a loan limit. Last, consider the repayment structure. Most lenders will establish a due date for total loan clearance.

The lender will determine the type of payment plan that is offered. Short term loans may have a fixed due date, which means that you must pay the entire amount within a specified time. You might also be required to pay a specific amount at certain stages. Some short-term loans come with an open-ended due date, which allows you to repay the loan whenever suits you. The interest rate will increase if you delay paying the loan.

Short term loans are ideal for people who urgently need money. The money is typically received within a few hours of approval. While some lenders may offer several options for receiving the money, others may focus on one, easily accessible, public way to receive the money.

Some important things to remember

When taking out a short-term loan, the most important factor to consider is your ability and willingness to repay the amount. Although the maximum amount offered may seem attractive in some cases, it is not wise to borrow more than you can afford. It is crucial to consider how easy it will be to repay the money before deciding on the amount you should request.

You should also pay attention to the interest rate associated with each loan option. Calculating the amount that you owe the lender at due date is a good way to determine whether or not a loan is worthwhile.

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Podcast 244: Scott Stewart of the ILPA https://helviti.com/podcast-244-scott-stewart-of-the-ilpa/ https://helviti.com/podcast-244-scott-stewart-of-the-ilpa/#respond Fri, 22 Oct 2021 15:01:15 +0000 https://helviti.com/?p=293 Small business lenders have been in the spotlight this month as hundreds of billions of dollars in loans are distributed to needy American businesses. While fintech should have been front and center in this initiative it has found itself sitting on the sidelines. But with round two just signed into law today fintech has an […]]]>

Small business lenders have been in the spotlight this month as hundreds of billions of dollars in loans are distributed to needy American businesses. While fintech should have been front and center in this initiative it has found itself sitting on the sidelines. But with round two just signed into law today fintech has an opportunity to help now.

Our next guest on the Lend Academy Podcast is Scott Stewart, the CEO of the Innovative Lending Platform Association (ILPA). Many of the larger online small business lenders in the country are members and Scott has been extremely busy in recent weeks helping them navigate the many challenges of today. The Paycheck Protection Program (PPP) has been occupying most of his time lately. (Editor’s note: this episode was recorded on April 14, so does not include commentary on recent developments).

In this podcast you will learn:

  • How he first became aware of the ILPA and why he took the job.
  • The mission of the association.
  • Why the SMART Box has been a successful initiative for their members.
  • How California and New York are taking up transparency in small business lending.
  • How ILPA members are approaching the PPP.
  • Scott’s view of the application process for fintech lenders to apply as a PPP lender.
  • The constraints that fintech lenders have to deal with in originating PPP loans.
  • How much Scott is talking with leaders of other trade associations.
  • The initiatives that Scott is focused on right now.
  • How the financial crisis is impacting the financial health of ILPA members.
  • Why it is important for the government to get the origination fees to the lenders quickly.
  • Some of the long run impacts of this financial crisis on fintech.
  • What more the government should be doing right now to support small business.

This episode of the Lend Academy Podcast is sponsored by LendIt Fintech USA 2020, the world’s largest fintech event dedicated to lending and digital banking.

Download a PDF of the transcription of Podcast 244 – Scott Stewart.

PODCAST TRANSCRIPTION SESSION NO. 244–SCOTT STEWART

Welcome to the Lend Academy Podcast, Episode No. 244, this is your host, Peter Renton, Founder of Lend Academy and Co-Founder of the LendIt Fintech Conference.

(music)

Today’s episode is sponsored by LendIt Fintech USA, the world’s largest fintech event dedicated to lending and digital banking. It’s happening on our new dates of September 30 and October 1, at the Javits Center in New York. This year, with everything that’s been going on, there will be so much to talk about. It will likely be our most important show ever, so come and join us in New York to meet the people who matter, to learn from the experts, and get business done. LendIt Fintech, lending and banking connected. Sign up at today at lendit.com/usa

Peter Renton: Today on the show, I am delighted to welcome Scott Stewart, he is the CEO of the Innovative Lending Platform Association, also known as the ILPA. Now, they’re a trade organization that is focused on small business lending, they have some of the leading online small business lenders and the largest players in the country as members. I wanted to get Scott on the show because, obviously, small business lending is front and center of the entire economy right now.

We need to be getting the money out to the small businesses for the PPP, the Paycheck Protection Program, we talk about that in some depth. Scott talks about what his members are doing there, we don’t just talk about the PPP, we also talk about other initiatives they’ve been working on such as the SMART Box initiative, we talk about how they’re interacting with some of the other associations, what’s Scott’s view of how the PPP has been handled and what more the government can be doing and much more. It was a fascinating interview, I hope you enjoy the show.

Welcome to the podcast, Scott!

Scott Stewart: Thank you very much, Peter, great to be here.

Peter: Okay, my pleasure. So, I want to get this thing started, you know, to give the listeners a bit of background about yourself. You’ve had an interesting career, looks like in and around Washington, why don’t you tell us the highlights of your career to date.

Scott: Sure. I, actually, consider myself a recovering politician (Peter laughs) and somebody who worked for a long time in both politics and then in the energy sector, in oil and gas, and I think that, you know, I took a detour along the way, after the financial crisis, and actually joined the family business which was an insurance business. It turns out, I was really terrible at slinging property and casualty insurance policies, I was really, really bad at that so, my friends said to me, come back to Washington.

I had a good friend, Eric Hoplin of the Financial Services Roundtable and he said, it’s time for you to come back, I have a job for you, it’s not the right job, but it’s a place for you to get back here and start up again. And so, I became Director of Membership at the Financial Services Roundtable which was a trade association which represented all the CEOs of the largest financial services firms in the country, meaning the banks, the insurance companies and the asset managers, the card companies.

I did all sorts of things for them, including managing the completion of their massive new office build out, I did all the technology build for that and helped with the design of those things. I upgraded all of the stuff from gigantic desktop computers to Microsoft Surface Pro tablets so we could get everybody to be more secure, more efficient and more mobile, and along the way, I met some really interesting leaders.

I met a guy by the name of Steven (inaudible) who’s an international leader on Artificial Intelligence and emerging technologies and he introduced me to Klaus Schwab’s Fourth Industrial Revolution which completely opened up my whole view of the world. Alison Hawkins and I, she was the Director of Communications at the Financial Services Roundtable, she’s now with Wells Fargo, we cooked up a new fintech program for the Roundtable to explore a long term future at the confluence of finance innovation and technology.

I think we’re looking at ten plus years into the future, what is our world going to look like in terms of Artificial Intelligence, block chain technologies, big data and so on and we began to think about that in a way that culminated into the Fintech Ideas Festival which we hosted in San Francisco in 2017. It was a small, small event, 110 CEOs out of 200 participants that included Satya Nadella from Microsoft, Ginni Rometty from IBM, Brian Moynihan from Bank of America, Ajaypal Banga from Mastercard, Dan Schulman from PayPal, Michael Tipsord from State Farm. Along with a whole bunch of what are now my members which is…..Carl Fairbank from Breakout, Rob Frohwein from Kabbage, Jim Salters from The Business Backer and we had a global array of experts on financial technology.

We had them sit into curated small group conversation to talk through what our long term future is going to look like when we start taking this magic elixir of Artificial Intelligence and block chain and big data and many other things and putting it all together in terms of financial services and I think I got noticed along the way. Rob Frohwein from Kabbage actually said it was the greatest event of its kind that he had ever attended. Now, I personally think that LendIt, on the larger side of things, is the greatest event of its kind, but for the small scale and CEO-exclusive focus, it was an amazing experience and I was really lucky to be a part of it, and I got noticed at ILPA.

Peter: Right, right, okay. Thank you for that plug there. So, why did you decide to take the job there. You know, the ILPA sort of was a pretty fledgling organization when you joined, so what was the impetus to take the role on of CEO?

Scott: You know, I was really ready for a new challenge. I had built something pretty important that I thought Financial Services Roundtable and Kabbage and OnDeck had….I knew a bunch of the leaders there pretty well and they approached me and said, look, we’re ready to formalize this organization, the Innovative Lending Platform Association, into a real trade association. We need someone to build it and to harness the power of the members together and I think that I’ve been pretty successful in that. I started with seven members, we now have twelve and we represent, I think, some of the bigger brands in the online small business lending space.

Peter: So then, what’s the mission of the association exactly?

Scott: You know, our members are completely united to a commitment to the health and success of America’s small businesses and we are dedicated to advancing the best practices and standards that support responsible innovation and access to capital for small businesses. So, what does that mean in reality?

It means that we are committed to disclosing the terms of all of our lending agreements to the small business borrowers so they fully understand what they’re taking out, in terms of their access to capital and credit, and we’re interested in serving them. If you take a look at what happened after the financial crisis, banks and financial institutions of all kinds really fled this marketplace for small business lending and we’ve been there, we’ve been there to help them from the very beginning.

Peter: Okay. So maybe, one of the initiatives that the ILPA put out fairly early on, I think it was probably after you got there, I’m guessing, was the SMART Box initiative which I know you just sort of referenced there like the importance of transparency and some of those concepts are being taken up by the states, so maybe just give a little background about that, that specific initiative and how it was successful.

Scott: Sure, sure. It, actually, started before I came on board, it started in 2016. A couple of the original members of ILPA got together, I think it was Kabbage and OnDeck and a couple of others came together, and decided that it was the right time to have some self-regulation in the industry and they came up with this concept called the SMART Box which is straightforward metrics around rate and total cost and it’s a single-page form that comes as part of all the loan documents for our members that shows total cost of capital, APR, monthly cost and cents on a dollar along with any potential pre-payment penalties.

It has been remarkably successful and a lot of folks that have been looking at it, I think, are….they’re concerned about certain aspects of it, but I think it’s become a real selling point for our members to say, look, we’re showing you absolutely every detail in a single, easy to get at TILA-like format and you can see what’s happened recently in the states. You’ve got…. California passed 1235 a couple of years ago and then the California DBO came out and looked at…if imitation is a serious form of flattery, we ought to be very flattered because the form that they came up with to capture all of their disclosures is a box, looks pretty much exactly like the SMART Box. (laughs)

Peter: Right.

Scott: So, we ought to be pretty flattered about that. We’ve been carrying that message to New York as well, we have model disclosure legislation that’s going to be introduced in both the Assembly and the Senate there that will really codify these disclosures to really give small business borrowers confidence in understanding what they’re taking out, in terms of their access to capital and credit.

Peter: Right, that makes sense. So, given your situation, given the position of the ILPA mission to help small business and…. obviously today, probably as never before, at least in our lifetime, have small businesses been suffering like they are right now…..no, I should preface this by saying we’re recording this on April 14th, it’s going to be published on April 24th and ten days right now feels like an eternity, so we need to keep that in mind when they listen to this that this is April 14th, but I wanted to maybe get your perspective on the PPP.

Some of your members have been very active, I know, OnDeck just came out yesterday, they’re starting to offer PPP loans, Kabbage, Lendio. Brock Blake has been one of the real champions from the get go of the whole program, he has been very active. Maybe of you can just describe how ILPA and your members are approaching the PPP.

Scott:  Sure, sure, and I appreciate you mentioning a couple of our members there, Brock Blake of Lendio, fantastic CEO of an amazing company and certainly, Kabbage, OnDeck, Fundbox, BlueVine, BFS are critical brands that can be moving capital very, very quickly along with the Innova small business brands, and The Business Backer and Headway Capital, BreakOut, Mulligan Funding and 6th Avenue, they can all be moving capital very, very quickly. We were involved in the development of the CARES Act, we are paying attention to it and working on it, we’ve been working with the Charter Department on the SBA on the program.

From my perspective, I can’t say the design is exactly what we would have wanted, however….I mean, think about the challenge that the Congress dumped at the doorstep of the SBA. Last year, SBA did a quiet $20 Billion in loans over the course of the year. Then Congress said, well deliver $349 Billion in loans in just a couple of months, there are no additional resources and do your best. That’s a really, really, really tall order and it’s difficult to imagine what they could have done perhaps differently. I think all of our members are very likely, if they haven’t already, they are very likely to be applying to become direct lenders through the PPP program.

I think it is important for SBA to entertain those applications very, very quickly and to authorize those small business lenders to move into the system. It’s a difficult process, though, if you look at the way that they have initially designed it. You go through the 7 (a) standard process which includes a trip through E-Tran, I don’t know if you know how that process works, but you have an application that comes from a borrower into your system, you create an alternative application called the Lender Application that you send to the SBA through this E-Tran system, you get into the queue.

At the end of that queue, at the end of that glorious rainbow there is a human which is…..you know, unfortunately, these people have to be working like mad trying to turn around these government guarantee numbers and then send them back to the lender and then the lender disburses the funds to the borrower at a manual and very slow process that is very, very difficult to manage. There are a series of things that I think they could probably have done differently. If you want me to go into that, I certainly can.

Peter: Yeah, let’s just hold that for a second.

Scott: Sure.

Peter: I think you mentioned that most of your members are going to be applying. So, the application process itself…..I guess let’s just start there because….this only came out, I think it was Wednesday night, I believe, of last week, so it’s been out like five and a half days, the actual way to apply. I know that some of your members have been applying, others have already set up bank partnerships to actually originate loans right now. Hopefully, by the time our listeners listen to this in ten days time, there will be dozens of fintech lenders that will have been approved. That remains to be seen, but I guess….what’s your view on the application process itself, how should that have been handled differently?

Scott: You know, we don’t know how they’re looking at each application and I think that part of the concern….I, actually, was detailed to FIMA during the Katrina and Rita disasters years ago, the hurricanes, and this is, I think, an interesting analogy, but I was detailed to the team that was trying to get debit cards into the hands of those victims that were affected in the Gulf Coast.

Lots of people in the team were consumed with the concern that there was going to be waste, fraud and abuse in the system. I think the same thing is really going on here with potential for additional lenders such as online and alternative lenders to enter the PPP system. There is a concern that there is going to be this kind of bad actor that is able to get through. I think that’s possible, but at this point, who cares.

Peter: Right.

Scott: I mean, like the house is on fire, the world is on fire, we have got to get these dollars into the hands of the small businesses. Here’s what I would recommend and this is just not my members, this just got off at the top of my head, just approve everybody to become an additional lender as, you know, they come in the door with a very short and very sweet contract that says, if you lied to us in your application, or if you abuse this system then your entire c-suite goes to prison (Peter laughs).

That should pretty quickly weed out the really bad actors, right, so you’re going to have a lot less waste, fraud and abuse and get these actual good actors, like our members from the Innovative Lending Platform Association, into the mix to be able to lend at speed to really small businesses that the banks are not equipped to lend to.

Because of what happened after the financial crisis, they really left this entire marketplace behind, either due to regulation, or to their risk committees, they’re not in a place where they’re lending $10,000 to local businesses any longer. They’re just…it’s not their bailiwick and so, we’re there and we’re absolutely ready to get going, they just have to let us in the door.

Peter: Yeah, and I feel like that’s what…..I mean, it’s a shame really that this wasn’t really done ahead of time. As soon as the CARES Act passed, I would have liked to have seen the SBA and Treasury get together and say, right, who is best equipped to move this quickly? Well, you’ve got a whole bunch of really established online lenders that do things in an automated way, many of them do things in a 100% automated way so, let’s just get them involved right off the bat. So, when it kicked off on Friday, April 3rd, we could have had all of these online lenders be approved because I think there’s been so much panic and distress go on Twitter and look at the hashtag #ppploans, particularly on April 3rd, 4th, 5th and 6th, that opening few days.

I mean, people were just beside themselves because, you know, Bank of America was saying, you have to have a loan with them to be able to apply….I mean, the other big banks just said, no, we’re not ready and you see that there’s already billions and billions being processed, oh, my god, we’re going to miss out. The small business owners are freaking out and I think the online lenders could have really done a service for the whole country, if they were up and running by then, but…..

Scott: They certainly could have, but, you’re right, you’re absolutely right, they certainly could have, but let’s give SBA two seconds of coverage here. I mean, considering the magnitude of the challenge, they did what they knew which is, okay, let’s ramp up what we know how to do and we’ll get to the fintechs eventually. It’s unfortunate they didn’t do it right upfront, but, you know, they kind of have like three people running around over there, they’re trying to figure out how to make this happen. To move $349 Billion out the door really, really quickly, it’s tough, and the SBA should have used us by…..do I really lay huge blame at their feet, I don’t think I can.

Peter: Right. I understand, I mean, they’ve got a tiny budget, they’re one of the smallest budgets of any of the government department so they had a monumental task to do. To be honest, they’re not doing a terrible job, money is flowing. I’ve been paying attention the last few days and there is money flowing and there’s a website that I saw on Twitter yesterday about status, you could put in the status of your PPP and it seems like the average time to get funds is 6.8 days, I believe, from actual sending of the application, so, money is flowing which is good.

Now, on that point, I’m just….I mean, if you talk to your members because a lot of these…I mean, your members don’t have access to unlimited capital and they’re not a Bank of America, or a Chase, so is that something that you’re hearing as a constraint there where these members can’t…..like if Kabbage and OnDeck both wanted to put through $25 Billion in PPP loans, they wouldn’t be able to, right. What are you hearing on the constraint on that side?

Scott: The liquidity problem is significant, and on the 6.8 days to get the funding, that is light years slower than what our members could be doing. Our members could certainly be underwriting and moving loans within, you know, hours, 24 hours, but there is a constraint that is very, very serious which is this liquidity question because our members don’t have unlimited access to billions and billions of dollars to lend to this program and hold these loans for the eight weeks that the SBA says we need to hang on to them for.

The Treasury and the Federal Reserve have announced a system, at least we have a term sheet on what it’s going to look like as an offtake as a secondary market that they’re going to create, a special purpose vehicle. Take these off the hands of the banks and of the fintechs and I think that’s critically important. We’ve been hearing rumors that this is going to be a 5-day offtake period which may end up being too slow, you know, okay, our members will make whatever they can make in terms of loans within a few hours and then wait for five days, offload them all and do it again. That seems to be too slow.

You would think that there is going to have to probably be some sort of interim step where they can offload this into a facility either run by……we’ve been hearing rumors that Goldman, Bank of America and a few others are giving the other to try to create an immediate term secondary market where we can drop them into that sort of a process, they can hold them for the five days and then move them into the Treasury facility, the Fed facility. I think that, one way or another, in real-time, the Federal government is going to have to take these loans off of our hands, there’s no other choice.

It’s not just us, you look at what all of the banks have been saying, they don’t have unlimited liquidity to be pouring out these loans on behalf of the government. They want to do it, they want to help, they can help as much as possible, but they’ve got to find a way to put this on to the Federal government’s books sooner than later.

Peter: Yes, it would great if that happens within 24 hours and who knows, by the time we publish it may have happened. Another question I’ve got is there are other, obviously, organizations out there, there’s the Marketplace Lending Association, there’s the Small Business Finance Association and others, how much are you interfacing with the leaderships of those organizations and providing a united front in Washington right now?

Scott: You know, I know the majority of these fintech trade leaders pretty well and we really do our best to find areas of common ground because we have such this great membership in different focuses, but we found a great way to collaborate on things like the Madden versus Midland fix and the valid when made problem. The entire working group worked pretty well together on legislation, and then on the FixIt, the OCC and the FDIC from a regulatory perspective.

But, if you look at how diverse the membership is….you have Stephen Denis with the Small Business Finance Association primarily focused on merchant cash advance providers, you’ve got Nat Hoopes with the Marketplace Lenders Association focused on consumer lenders, Brian Peters with Financial Innovation Now on the larger tech players, Scott Talbott over at the Electronic Transactions Association with their diverse membership, including banks and card companies.

Then you’ve got the US Chamber of Commerce, Tom Sullivan and (inaudible), now it’s Julie Stitzel and I communicate with these folks as often as I can and we work together. We try to drive at least a united front on things like we’ve mentioned already which is liquidity challenges and the access to the PPP program, I think we’re all on the same page there. They should let us in the door as soon as they possibly can to offer these PPP loans and they should fix the liquidity question in the background using a Special Purpose Vehicle through the Federal Reserve.

Peter: How much of your time, right now, is spent really on the PPP-type initiatives, is this like 100% of your focus, 50%, what are you focused on right now?

Scott: I would say working on this specific program really consumes an awful lot of my time, but there are quite a few things that are coming soon that we ought to be thinking about, the main street Special Purpose Vehicle which may be a way for my members and small businesses, potentially, to get access to some capital to prop them up and keep them lending. I think that’s certainly a process that I’ll be focusing on and thinking about, the Phase 4 when Congress comes together and thinks about either Phase 3.5, or Phase 4, what is that going to look like.

We think that sometime in the next week or so, Congress is going to add a whole bunch more in terms of dollars into the PPP program. They’re talking about somewhere around $250 Billion more to the program now, unclear whether that’s going to be enough by the time they get around to it, but I think those are some of the areas…..for the moment, I think it’s important for all of us to be focused on this catastrophe and preparing for, you know, what our world is going to look like afterwards.

Peter: Right, right, for sure. You just mentioned something there I want to touch on and that is the health of small business lenders in general. I mean, many of the fintech companies have stopped lending, there’s been some layoffs that we’ve read about, how are you positioned as an organization to help your members, you know, through this because let’s face it, there’s not many small business loans happening right now beyond the PPP. So, how is that going to affect your members, you know, the health, the financial health of your members?

Scott: I think this is truly a black swan event, unlike anything that we’ve ever seen in our lifetime, so I think all of our members, along with smart companies everywhere were really prepared for a major national terrorist attack, a natural disaster, a major swift downturn in the economy, but I don’t think anyone prepared for a global shutdown of the entire global economy in real-time immediately and revenues go to zero. I think that was a very…. certainly for my members, a major shock to the system.

I think they’re muddling through, it’s difficult, I think that my members, some of the largest players in the space, and so I think they have some of the resources to be able to withstand a shock like this, but I think that they need to get access to capital and maybe that’ll be through the main street facility that’ll be coming maybe in the next few weeks. I think a lifeline for them would be if they’re able to lend through the PPP and give them that small sliver to keep on going and I think it’s in the Federal government’s interest to want that to be the case because you want innovation to be progressing when this is all said and done. You want the innovative companies to be still there, still working and still lending.

Peter: Right, right. Have you heard how quickly….like the origination fee now is 5% for sub-350 and 3% and 1% up to $10 Million, but have you heard how quickly this money, the origination fees are going to flow in to the lenders?

Scott: I have not and I certainly wish I had a good answer to that (Peter laughs). If I had a good answer to that, that would be stupendous. I think the government’s going to have to figure a way to get those fees to my members and to the banks relatively quickly in order to keep them alive and afloat……..

Peter: Right, right, for sure.

Scott:….so they can keep lending.

Peter: Okay. So then, we’re almost out of time, but a couple more questions before you go. I’d like you to sort of step back for a second and think about the impact this crisis is going to have, particularly, I’m interested in the impact on the small business lending landscape over the medium to long term. What do you think is going to change?

Scott: I think, to begin with, small businesses around the country are completely devastated and it’s going to take some time to unwind these extraordinary actions taken by the Federal government. You know, if you look at the CARES Act, the PPP program, the Treasury and the Federal Reserve Special Purpose Vehicle, we are really…..hopefully, short term, quasi nationalizing America’s small business economy and we hope that is a short term effort which is critically required.

I think on the small business lending side of things from a fintech perspective, I think that in the long run this is going to completely expose manual paper-based underwriting as completely antiquated. The fact that at the end of the E-Tran rainbow, the SBA is a human is unfair to the small business borrower. These things should be done in an automated way and much more rapidly. If you look at the systems that financial institutions are using currently, if you have ever taken out a mortgage…I actually applied for a mortgage with the bank I had been with for 20 years and they asked me to print out my last several months of bank statements and send it to them. I mean, this is completely bananas and I think those kinds of things are going to go by the wayside and that’s going to change pretty dramatically on the small business lending side as well.

That’s not to say that fintechs are going to be replacing, or supplanting the banks, banks are critical to this ecosystem and I think that you’re going to need….you’re always going to need a safe place to put your money. Over the next several years, you’re going to see this, I think, great resurgence and an acceleration of innovation between banks and fintechs and there’s going to be a cooperation and a collaboration that we really never dreamed of before. The real winners are going to be the small business borrower and innovation is absolutely going to be accelerating.

Peter: I really hope that’s the case. I completely agree that this needs to happen and I hope this crisis provides an impetus for that. Last question, I’m just curious if there’s anything else that you think the government should be doing to help small business beyond what they’re doing right now with the PPP?

Scott: Sure. I think that they have got to, in a word, pull down the barriers to capital access and innovation. Take down barriers that are up currently and let innovation flourish. For example, we saw the real-time effects of the Madden decision increase bankruptcies and decrease access to capital and the effects it has made, we call it the development of capital desert in certain places.

We should have fintech charters as Congressman Patrick McHenry recommends, we should have innovation offices in every financial agency and then we should see the proliferation of fintech sandboxes around the country, both the state and federal level, with the government figuring out how to shoulder the short term liability cost associated with limited testing of new products.

Look, I think it’s time to let the industry alongside traditional financial institutions price risk and move capital in real-time. I think it’s time to harness the forces that are re-shaping our civilization today, and that’s the Internet of Things, big data and machine learning on the way toward Artificial Intelligence, all enabled by block chain technologies. When you take that magic elixir of forces and you put them together, harnessing them with financial institutions and small business lenders such as our members, you’re going to see an unimaginable change in the way that people access financial services.

If you look at some of the leaders in the space, somebody by the name of …….one of our great members Bill Phelan of PayNet, one of the leading figure in the space, describe us as on the road to one click credit. When you start thinking about your accounting system offering you an alert that says, look, in about three months, we’re going to have a cash concern and so here are three, or four different ways that you can find access to capital and credit.

Beyond that, one step beyond that, you look at what Peter Domingos from the University of Washington thinks is going to happen, one of the globe-leading thinkers on Artificial Intelligence, through his book “The Master Algorithm.” He actually thinks that at some point your algorithm is going to know you so well that those decisions of small business borrowers will not even be offered to you, they will simply appear. It will price and select the access to capital and credit and it will appear in your box. I think that’s our longer term hopeful future beyond what this crisis is and hopefully, that’s something that financial institutions and fintechs can work on together.

Peter: Well, that would be fantastic, a fantastic future, I hope we get there soon. Anyway, Scott, I really appreciate you taking the time today, you’ve got very important work to do right now and I appreciate taking time out of your day to talk to us.

Scott: Thank you, Peter, really enjoyed it.

Peter: Okay, see you.

We can trace the rise of fintech certainly in the small business lending space to the financial crisis of 2008/2009 when banks pulled back from small business lending they let a lot of their long term customers down and people were ripe for alternatives and we had entrepreneurs, at that time, creating new companies, new ways of doing things. So, I often wonder, this is a more significant crisis, I would argue, than the Great Recession and we are going to have enterprising entrepreneurs all over the this country that are going to create new businesses born out of this crisis.

And, you know, we also have the entrepreneurial spirit of those companies that are already in existence and there’s going to be a lot of new developments like Scott just talked about there from some of the incumbents. Once we get through this and it’s going to be tough to get through this, but once we do, we are going to see, I believe, a rise of fintech 3.0 where we’re going to have many new companies, many new ideas and I think the small business lending landscape, in fact I would argue, the entire financial landscape will look remarkably different then.

Anyway on that note, I will sign off. I very much appreciate you listening and I’ll catch you next time. Bye.

Today’s episode was sponsored by LendIt Fintech USA, the world’s largest fintech event dedicated to lending and digital banking. It’s happening on our new dates of September 30 and October 1st at the Javits Center in New York. This year, with everything that’s been going on, there will be so much to talk about. It will likely be our most important show ever. Come and join us in New York to meet the people who matter, to learn from the experts and get business done. LendIt Fintech, lending and banking connected. Sign up today at lendit.com/usa.[/expand]

You can subscribe to the Lend Academy Podcast via iTunes or Stitcher. To listen to this podcast episode there is an audio player directly below or you can download the MP3 file here.



Peter Renton is the chairman and co-founder of LendIt Fintech, the world’s first and largest digital media and events company focused on fintech.

LendIt Fintech conducts three conferences a year for the leading fintech markets of the USA, Europe, and Latin America. LendIt also provides cutting-edge content all year long via audio, video, and written channels.

Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.

Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.

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Capturing Los Angeles’ COVID-Closed Venues https://helviti.com/capturing-los-angeles-covid-closed-venues/ https://helviti.com/capturing-los-angeles-covid-closed-venues/#respond Fri, 22 Oct 2021 15:01:08 +0000 https://helviti.com/?p=335 In the current coronavirus/COVID-19 pandemic, music creators and many of the professionals who support them have been greatly affected. The Recording Academy’s Los Angeles, San Francisco, Pacific Northwest and Texas chapters are committed to creating, amplifying, and sharing resources that will provide some form of comfort. Below you will find resources available to those in […]]]>

In the current coronavirus/COVID-19 pandemic, music creators and many of the professionals who support them have been greatly affected. The Recording Academy’s Los Angeles, San Francisco, Pacific Northwest and Texas chapters are committed to creating, amplifying, and sharing resources that will provide some form of comfort.

Below you will find resources available to those in the music community who live in the Recording Academy’s West Region. Please visit regularly for updates.

ARIZONA

Tucson Musicians COVID19 Relief (GoFundMe)
The COVID-19 outbreak has created an unprecedented loss of work for Tucson’s local musicians. This fund is set up to temporarily help those who could use some money for food, medicine, bills, childcare and other essentials.

CALIFORNIA

Los Angeles Department of Cultural Affairs

This program provides emergency relief grants to City of Los Angeles-based dance, music, and theatre artists, as well as small ensembles who have had their public performances, shows, or concerts canceled. Solo artists are eligible for up to $400 and ensembles up to $1,200 to cover losses in time and/or materials that were committed toward events, which were to have taken place at a venue within the City of Los Angeles and were to be open to the general public. Eligible events should have been publicly advertised and scheduled to take between March 16, 2020 and May 16, 2020, AND must have been canceled (or postponed to after August 30, 2020).

Due to a modest amount of available fund in round one of this fund, artists who were scheduled to perform pieces within a festival, teach private solo or group lessons, or perform at a private function for an invite-only audience are not eligible. The first round will focus on artists and groups who were headlining an entire public event/evening.

COVID-19 Emergency Health Grant for Artists
In light of the rapidly escalating impacts of COVID-19 on the health and wellbeing of our Southern California creative community, Women’s Center for Creative Work has re-worked its 2020 Emergency Health Grant for Artists, and is now offering $1,000 grants. Low-income artists who work in any genre or medium, who identify as a woman, as Trans or non-binary, and/or as a person of color, who live in Los Angeles, Orange, Riverside or San Bernardino Counties are eligible to apply.

Creative Community Fund
Winston House, a musician’s social club based in Venice, CA, has set up a fund that pairs people in the music industry who need financial help due to COVID-19 with people who can help.

Backline Care
Billed as “The Music Industry’s Mental Health and Wellness Hub,” this organization’s mission connects music industry professionals and their family with a trusted network of mental health and wellness providers.

COVID-19 California Arts Field Survey
The California Arts Council is surveying the arts field at-large to gather data on the potential financial impacts of this public health emergency. If you are an organization or individual in the arts field that anticipates losing personal or business income related to COVID-19, consider filling out this brief survey. This data will be an important resource to inform the California Arts Council and the state of California.

Los Angeles County Economic Development Corporation COVID-19 Response Page
This online hub is designed to help employers and related workforce in L.A. County respond to the challenges of the COVID-19/coronavirus. Updates are made daily. 

The Musicians Union of Los Angeles – Coronavirus COVID-19 Emergency Relief Funds
AFM Local 47 and the Music Fund of Los Angeles have established Emergency Relief Funds to assist members in need who have been subject to work stoppages relating to the coronavirus COVID-19 outbreak.

Music Fund of Los Angeles Emergency Relief Fund
The Music Fund of Los Angeles Executive Board has established an Emergency Relief Fund for AFM Local members who have lost revenue due to work stoppages resulting from the coronavirus COVID-19 emergency. This fund will be able to extend a limited amount of grants for members who work for employers covered by a Local 47 contract or collective bargaining agreement (CBA).

Musicians Union Local 6 – San Francisco
For members of this union who have lost their income from playing and teaching, run the risk of losing their homes or healthcare due to their inability to pay. The Local 6 Board of Directors is meeting on March 30, 2020, to evaluate all applications, and evaluate relative need.

LA Mayor’s Economic Relief Package
Los Angeles Mayor Eric Garcetti announced an $11 million economic relief package for small businesses impacted by COVID-19. Small businesses anchored in the city of Los Angeles can apply for no-fee microloans of $5,000–$20,000 that may be used to cover working capital. The program will offer relaxed underwriting with no credit score minimum, a generous allowance to meet debt service and a 100% loan-to-value ratio.

Opera San José Artists and Musicians Relief Fund
The opera company has set up an emergency cash reserve to support the “musicians, singers, carpenters, stitchers, designers and other hourly company members” that make its productions possible.

COLORADO

Denver Metro Area Artist COVID-19 Relief Fund
Artists are one of the largest segments of the Denver metro area population that make up the “gig economy” and are being hit hard by the COVID-19 pandemic. This fund aims to help said artists basic daily expenses. Priority will be given to those artists who are part of historically marginalized groups “because of the intersectional economic realities they face already.”

NEW MEXICO

New Mexico Musicians Relief Fund amid COVID-19
Freelance classical musician and music educator Thomas Goodrich organized this fund, with a goal of raising $30,000 to help New Mexico musicians who have been financially impacted by coronavirus-related cancellations. Priority will be given to artists of color, LGBTQ and non-binary artists, and disabled artists.

OKLAHOMA

Red Dirt Relief Fund
The Red Dirt Relief Fund has offered financial assistance to Oklahoma music professionals in times of need since 2012. It has pledged $50,000 to a new coronavirus relief fund, offering one-time emergency grants of up to $250 on a first-come, first-served basis. Apply for a grant here.

PACIFIC NORTHWEST

Northwest Folklife: COVID-19 Artist & Community Resource List
Northwest Folklife is committed to supporting artists and community groups and has compiled a list of resources for financial assistance, mutual aid and advocacy, and informational support.

Seattle Artists Relief Fund Amid COVID-19
This fund is aimed at helping those in the greater Seattle arts community who have been financially impacted by cancellations due to COVID-19. Depending on funding levels and amount of requests, priority may be given to artists from communities that have been historically and systemically economically disadvantaged in the Seattle Area: BIPOC artists, transgender & non-binary artists, and disabled artists

Seattle Foundation COVID-19 Response Fund
A coalition of philanthropy, government, and business partners has joined together to create a COVID-19 Response Fund that will rapidly deploy resources to community-based organizations at the frontlines of the coronavirus outbreak in the Puget Sound region.

Seattle Hospitality Emergency Fund
Seattle hospitality workers are currently able to apply for full or partial unemployment, and the city is working to pass a ban on evictions during this time. Despite these reliefs, there is no 100% rent forgiveness, and unemployment payments take time to arrive and are often not enough to cover basic living costs in one of the most expensive cities in the nation. Additionally, those laid off from jobs that also pay for their medical insurance may have to buy into COBRA or the open market, which can be a devastating cost while relying on unemployment payments alone. The aim is to provide everyone who applies with emergency funds, but the fund will prioritize the BIPOC, LGBTQIA+, disabled, and immunocompromised members of the community.

Seattle Independent Artist Sustainability Effort
A comprehensive document listing all available resources for every gig-based sector, including actors, musicians, composers, choreographers, dancers, designers, directors, drag performers, DJs, and more.

Seattle Music Teachers Fund
For musicians living and working in Seattle “the odds are you make 30%-50% of your income teaching lessons.” Often the length of shifts falls short of state requirements for state income programs like disability or worker’s compensation. This fund is meant to help with income lost due to canceled lessons and other non-performance music work.

Financial Resources for Washington Residents Impacted by COVID-19
The Washington State Department of Financial Institutions has developed a list of financial resources for Washington consumers impacted by the coronavirus.

COVID-19 Oregon Musicians Relief Fund
This fund organized by the Jeremy Wilson Foundation is raising $25,000 to go toward medical expenses, lodging, food and other vital living expenses for musicians based in Oregon and Clark County, Washington, impacted by sickness or loss of work due to the pandemic.

Seattle Mayor Jenny Durkan’s Arts Stabilization Fund
In addition to donating $50,000 to the Seattle Artists Relief Fund and another $50,000 to the Artist Trust COVID-19 Artist Relief Fund, the city’s mayor has launched a $1 million Arts Stabilization Fund to help mitigate revenue losses due to the moratorium on events and public gatherings.

Seattle Musicians Access to Sustainable Healthcare
SMASH helps connect Seattle musicians to healthcare, dental services and health education.

COVID-19 Handbook for Creative Industries
King County, Washington has created an online handbook that “is being rapidly updated to bring together resources to take care of yourself and your family; to support the arts and culture community; and to prepare for recovery.”

COVID-19 AND THE FILM, MUSIC, NIGHTLIFE, AND EVENT INDUSTRIES
Seattle’s Office of Film + Music and Special Events’ online resource for current activity and updates on permit restrictions and resources small businesses, employees, contractors, and gig workers can take advantage of during the current climate.

COVID-19 Relief Resources for Hawaii Based Artists
List of resources available to Hawaii locals seeking information on relief funds, health and prevention tips, resources for musicians, information for small businesses and ways to donate to help those in need. 

GRAMMYs

TEXAS

Houston Music Foundation
Houston Music Foundation is a crisis relief fund created to help our city’s musicians in times of need. The goal of Houston Music Foundation is to raise funds for local musicians residing in Harris County during times of crisis, and to get donations into the hands of those in need as quickly as possible. Qualified applicants are eligible for a one-time grant of $500. 

Banding Together – ATX
The Red River Cultural District is Banding Together with the Austin live music community to support the venues, artists, creatives, service/hospitality and production workers, businesses and additional organizations that rely on SXSW, regular programming and continual income to survive. Donations to the local non-profit will help provide financial relief to those in the Austin live music community that have been economically impacted by the cancellation of SXSW and COVID-19.

DFW Musician & Gig Worker Fund
This fund aims to assist two groups of people: full-time musicians who perform at bars, restaurants, weddings, and private gigs; and live music gig workers (stagehands, FOH, box office employees, etc.) who are having a hard time paying necessary living expenses.

Health Alliance for Austin Musicians
HAAM provides access to affordable healthcare for Austin’s low-income working musicians, with a focus on prevention and wellness. Many Austin musicians are self-employed and have no access to health insurance or basic healthcare. They often work multiple jobs and struggle to pay for food, clothing and shelter, with nothing left for healthcare. Since 2005, HAAM has helped 5,300 musicians access over $73 million dollars in healthcare value. These include routine dental work, doctor visits and prescriptions, psychiatric counseling sessions, eye exams, out-patient procedures, specialist referrals, hearing screenings and more.

Southern Smoke Foundation
Southern Smoke Foundation provides funding to individuals in the food and beverage industry who are in crisis. Established in 2017, our emergency relief fund has distributed more than $830,000 to individuals in the food and beverage industry in crisis. The application process is completely anonymous.

SIMS Foundation
SIMS Foundation provides mental health and substance use recovery services for musicians, music industry professionals, and their families to support the well-being of the Austin music community.

Creating Our Future Dallas Low Income Artist Relief Fund
For Dallas area artists and/or freelancers who are experiencing a decline in business as a result of Covid-19 closures.

Austin Texas Musicians
The musician advocacy nonprofit formed by local artist Nakia Reynoso is working to secure relief funds and resources for musicians. In the meantime, it has created a continually-updated resource list.

Dallas Artist Relief Fund
Creating Our Future is a group of artists and arts advocates in Dallas who are raising money to support artists and freelancers who are taking financial hits as a result of closures and lost income from COVID-19. The GoFundMe campaign has set a goal of $5,000 to raise funds to provide emergency and preventative resources to those at financial risk. The support is aimed at helping support for low-income, BIPOC, trans/GNC/NB/Queer artists who can apply here.

Health Alliance for Austin Musicians
HAAM provides access to affordable healthcare for low-income musicians living in Austin.

Housing Opportunities for Musicians and Entertainers
H.O.M.E provides financial housing assistance for needy aging musicians in Austin with grant assistance and other support, including referrals to additional available resources.

I Lost My Gig- Austin
Designed to benefit Austin locals who lost work due to SXSW’s cancellation, I Lost My Gig is currently soliciting donations. As of Sunday (March 15), it had already received over 750 submissions representing over $4.2 million in lost income.

Small Business Administration Economic Injury Disaster Loan Program
This centralized guide was created for small businesses and nonprofits in Texas who have been impacted by the coronavirus pandemic and are looking to apply for SBA loans. Those who have suffered “substantial economic injury” from COVID-19 may be eligible for economic injury disaster loans of up to $2 million.

Texas Music Office
Though the office isn’t offering benefits itself, it can help music workers affected by the pandemic apply for the state’s disaster unemployment assistance, which extends unemployment benefits to those who don’t traditionally qualify.

Texas Workforce Commission
Texas residents can submit an application for unemployment benefits here.

Workforce Solutions Capital Area
WFS, the nonprofit governing body for the regional workforce, is offering layoff support both for businesses and workers in light of the coronavirus outbreak.

GENERAL RESOURCES:

Crew Nation
Live Nation has committed $10 million to Crew Nation – contributing an initial $5 million to the fund, then matching the next $5 million given by artists, fans and employees dollar for dollar. Crew Nation is powered by Music Forward Foundation, a charitable 501c3 organization that will be administering the fund.

Coronavirus (COVID-19): Small Business Guidance & Disaster Loans
The U.S. Small Business Administration notes small business owners in the following designated states are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19): California, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Indiana, Maine, Massachusetts, Montana, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Rhode Island, Utah, and Washington.

Creative Capital’s List of Arts Resources During the COVID-19 Outbreak
Creative Capital has created a list of resources for artists working in all disciplines, as well as arts philanthropists, and arts professionals.

Foundation for the Contemporary Arts Emergency Fund
The Foundation for Contemporary Arts has created a temporary fund to meet the needs of artists who have been impacted by the economic fallout from postponed or canceled performances and exhibitions. For as long as the foundation’s Board of Directors determines it is necessary and prudent to do so, the Foundation will disburse $1,000 grants to artists who have had performances or exhibitions canceled or postponed because of the COVID-19 virus.

Jazz Foundation of America
The Jazz Foundation’s Musicians’ Emergency Fund provides housing assistance, pro bono medical care, disaster relief and direct financial support in times of crisis.

Rauschenberg Emergency Grants Program
New York Foundation for The Arts has partnered with the Robert Rauschenberg Foundation to administer a new emergency grant program that will provide one-time grants of up to $5,000 for medical emergencies. The grants are available to visual and media artists and choreographers who are U.S. citizens or permanent residents in the United States, District of Columbia, or U.S. Territories.

SAG-AFTRA Foundation COVID-19 DISASTER FUND
The SAG-AFTRA Foundation and the SAG-AFTRA Motion Picture Players Welfare Fund (MPPWF) have created the COVID-19 Disaster Fund that is now available to eligible SAG-AFTRA members who have been impacted by this pandemic.

Sound Girls
Sound Girls, an organization that supports women working in professional audio and music production, is compiling a list of resources to utilize during this forced downtime and unemployment. From best business practices, career development, continuing education, and side hustles to get you through this trying time.

Sweet Relief Musicians Fund
Sweet Relief Musicians Fund provides financial assistance to all types of career musicians and music industry workers who are struggling to make ends meet while facing illness, disability, or age-related problems.

American Association of Independent Music
A2IM is surveying indie music companies about how the coronavirus pandemic is disrupting their businesses. The results will inform the organization’s discussions with the New York Mayor’s Office of Media and Entertainment, as well as its investigations of federal assistance programs.

American Guild of Musical Artists Relief Fund
Any AGMA member in good standing is invited to apply for financial assistance under the AGMA Relief Fund, which has temporarily doubled the amount of assistance available to those in need during the coronavirus pandemic.

Artist Relief Tree
Anyone who is an artist can request funds from the Artist Relief Tree, which plans to fulfill every request with a flat $250 on a first-come-first-serve basis. The fund is currently not accepting new requests until it can secure more funding, but if you would like to be informed if and when the opportunity becomes available again, click here.

AudioAssemble.com
AudioAssmeble.com has put together a list of online remote opportunities for musicians that are available for U.S.-based musicians during the COVID-19 outbreak. Their financial resources page has short-term and long-term job opportunities, as well as governmental resources to help musicians generate revenue.

Blues Foundation HART Fund
The HART Fund helps underinsured or uninsured blues musicians and their families in financial need due to a range of health concerns.

COVID-19 Music Production Response Group*
A Facebook group meant as an “open forum for constructive debate about the effects of COVID-19 on music production industry professionals,” according to administrators. Its nearly 4,000 members (as of March 18) are sharing news updates, suggested actions, job opportunities and other resources.

Equal Sound Corona Relief Fund*
Equal Sound, an organization that strives to break down traditional genre boundaries through events and advocacy, is inviting musicians who have lost income due to the pandemic to apply for funds. Applicants must provide proof they had a confirmed concert canceled over the coronavirus to receive the money.

Facebook Small Business Grants Program
In response to the pandemic, Facebook is offering $100 million in cash grants and ad credits for up to 30,000 eligible small businesses around the world, including music and live events businesses. More details to come (you can sign up for updates here). Facebook also has a new Business Resource Hub to help small businesses prepare for and manage disruptions like COVID-19.

Freelance Coop Emergency Fund
The Freelance Coop, which connects creative freelancers with business resources, created an emergency fund for freelancers adversely affected by the pandemic. Examples of funding usage are unexpected childcare costs due to school closures, client cancellations, and medical expenses due to the virus itself. As of March 18, the fund had $35,279 in requests and $5,299.69 raised, and is continuing to call for donations to keep up with demand.

Gospel Music Trust Fund
Individuals working in the gospel music field can submit a request for financial assistance to the Gospel Music Trust Fund, which grants funding in the event “of an emergency or major catastrophe, terminal or severe illness,” according to their website.

Independent Venue Week*
Non-profit organization Independent Venue Week has compiled a list of indie music venues that have launched GoFundMe and other fundraising campaigns to stay afloat during the nation-wide closures.

International Bluegrass Music Association’s BlueGrass Trust Fund
Current or former bluegrass music professionals can apply here for financial grants and loans, which are generally between $500 and $5,000. The association has also created a coronavirus-specific resource page.

Leveler.info
The “peer-to-peer wealth distribution” service is a tool for salaried workers to donate funds across a database of freelancers, service industry and gig economy workers who are impacted by coronavirus health and safety restrictions.

Missed Tour*
Artists and bands who have been displaced from touring due to the pandemic can list their merchandise on this site to help offset lost revenue — with zero charges or fees. Apply to be added to the site here.

Music Health Alliance
The Nashville-based Music Health Alliance provides healthcare support services to uninsured members of the music industry.

Music Maker Relief Foundation
The foundation, which provides ongoing support to American artists 55 and older who live in chronic poverty, also gives out emergency grants to artists in crisis. It is now soliciting donations to ensure the stability of vulnerable elderly musicians during the pandemic.

NOMAD Fundraiser for the Touring Crew (GoFundMe)
Touring manager Frank Fanelli is aiming to raise $20,000 for touring crew members and roadies who have lost income due to gig cancellations and postponements. Donations close at the end of March.

Pinetop Perkins Foundation’s Assistance League
PAL provides financial assistance to elderly musicians for medical and living expenses. Preference is given to blues artists, though musicians in other genres may be eligible depending on available funds.

Small Business Administration Economic Injury Disaster Loan Program
The Small Business Administration has designated COVID-19 as a qualifying event for economic injury disaster loans. However, you must be located in a “declared disaster area” to apply for assistance. Check if your state qualifies here.

Tour Support Free Online Therapy
Tour Support, a mental health nonprofit for the live music industry, is offering independent touring contractors whose tours have been postponed or canceled one month of free online therapy through Better Help.  

Viral Music — Because Kindness is Contagious
Independent musicians are invited to use this more than 21,000-member Facebook support group to connect with music fans. “Use this joint to post links to your merch store, online shows, Patreon, or online music lessons,” organizers write. “If you’ve had a gig canceled, post the city and your Venmo/PayPal — many of us would love to pass along our ticket refunds to you.”

Resources for Writers in the Time of Coronavirus
As writers, teachers, publishers, and booksellers in local, national, and international communities “grapple with how to proceed in their creative, financial, professional, and personal lives during this time of uncertainty,” POETS & WRITERS has compiled a list of resources.

Queer Writers of Color Relief Fund
Started by Luther Hughes, founder of Shade Literary Arts, this relief fund seeks to “help at least 100 queer writers of color who have been financially impacted by the current COVID-19. Priority will be given to queer Trans women, and queer disabled writers of color. The minimum disbursement is $100, and the maximum is $500.

The New Music Solidarity Fund 
This fund is an artist-led initiative that aims to grant emergency funding to musicians impacted by COVID-19.
The Fund has raised over $130,000, primarily from fellow musicians, composers, and music professionals. At least two hundred and sixty, $500 emergency assistance grants will be made available to applicants who meet the criteria.

American Guild of Musical Artists Relief Fund
Any AGMA member in good standing is invited to apply for financial assistance under the AGMA Relief Fund, which has temporarily doubled the amount of assistance available to those in need during the coronavirus pandemic.

AudioAssemble.com Online Resources For Musicians The website has compiled a list of online remote opportunities that are available for U.S.-based musicians during the COVID-19 outbreak. Their financial resources page has short-term and long-term job opportunities, as well as governmental resources to help musicians generate revenue. 

Coronavirus: Resources for Property Owners
National Association of Realtors has compiled an online hub of resources for property owners impacted by the global pandemic

The Creator Fund
The fund covers up to $500 per creator to help cover medical, childcare, housing or grocery needs.

Federal Housing Finance Agency’s Mortgage Help for Homeowners Impacted by Coronavirus (COVID-19)
Fannie Mae, Freddie Mac (the Enterprises) and the Federal Home Loan Banks are taking steps to help people who have been impacted by the coronavirus.   If your ability to pay your mortgage is impacted, and your loan is owned by Fannie Mae or Freddie Mac, you may be eligible to delay making your monthly mortgage payments for a temporary period

Feeding America
The Feeding America nationwide network of food banks secures and distributes 4.3 billion meals each year through food pantries and meal programs throughout the United States and leads the nation to engage in the fight against hunger.

HART Fund (Handy Artists Relief Trust)
The Blues foundation’s fund helps underinsured or uninsured blues musicians and their families in financial need due to a range of health concerns.

THE INNER LIGHT CHALLENGE
The Material World Foundation, created by George Harrison in 1973, is today donating $500,000 to the MusiCares COVID-19 Relief Fund, Save the Children, and Medecins Sans Frontieres (Doctors Without Borders) charities, which are providing much-needed aid and care during this COVID-19 pandemic. For every person that shares their own “Inner Light” moment on social media using the hashtag #innerlight2020, the MWF will give another $1 to help those affected by COVID-19 (up to $100k.)

Harpo Foundation Visual Arts Grant
This grant provides direct support to under-recognized artists 21 years or older. Amount awarded can be up to $10,000. Application deadline is May 1, 2020

MORE RESOURCES:

Resources For Music Creators & Professionals Affected By COVID-19: East Region
Resources For Music Creators & Professionals Affected By COVID-19: South Region

Recording Academy And MusiCares Establish COVID-19 Relief Fund

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Opinion: Skip these “free” sources of financial advice – they will cost you dearly https://helviti.com/opinion-skip-these-free-sources-of-financial-advice-they-will-cost-you-dearly/ Thu, 11 Mar 2021 05:33:53 +0000 https://helviti.com/opinion-skip-these-free-sources-of-financial-advice-they-will-cost-you-dearly/ For free is great marketing – four letters that attract more attention and sell more products than any other word. But free isn’t a great source of solid financial information. Free in the financial world is fraught with problems. your own assumptions. “We always thought…” and “I believed…” are dangerous financial perceptions that often show […]]]>

For free is great marketing – four letters that attract more attention and sell more products than any other word. But free isn’t a great source of solid financial information. Free in the financial world is fraught with problems.

your own assumptions. “We always thought…” and “I believed…” are dangerous financial perceptions that often show a person doesn’t know what they don’t know.

Each time you sign or co-sign a loan, you are responsible for paying it back. One businessman confided in me, “I never thought my daughters’ college loans would show up on my credit report.” Due to a misunderstanding, she had to delay expanding her business because she couldn’t get the credit she needed.

Marriage is as much a legal contract as a promise of love. However, marriage does not automatically provide legal documents for health care, financial powers of attorney and wills.

A happily married couple mistakenly believed that all of their wealth would pass to the other. Since they each had children from previous marriages, this was not the case. Instead, state law dictated where assets went after someone died because they didn’t have a will.

Read: Avoid these 3 estate planning mistakes and make inheritance cheaper and easier for your loved ones

Rules change and hearsay and our belief systems get in the way. Find out today’s facts. Check your assumptions.

A seller with a personal interest. Many investment professionals make their money through commissions or as a percentage of your assets under management. There are professionals who will do a good job for you no matter how much they charge. However, there are others who care more about their wallets than yours.

Be wary of people telling you “these investments are a safe bet,” or when investment advisors claim, “I can make you more money in the stock market than you have right now.” They may want you to defer your retirement money or invest through them. Then they charge 1% or more of your money every year as a management fee. They cannot guarantee that you will make more money. Nobody can do that, especially not in the short term.

A new client told me she didn’t want to pay money for financial advice. After all, she had already received it as a gift from a “very nice, helpful gentleman”. Then she showed me the annuity she bought through him. The Commission? Well over $10,000. Because she didn’t give him a check, she thought it was free.

Friends with free time may spend retirement learning personal finance tips at free seminars that include lunch. People of a certain age in every state, including sparsely populated Vermont, receive these invitations. Most likely an investment firm bought your name from a mailing list. They want to sell you investments or a pension.

If you are so compelled and strong enough to say “no” to anything that is offered, by all means go and learn something. Otherwise spend some money to pay for your own lunch. You will most likely save a lot of money on commissions, unnecessary fees and that “once in a lifetime opportunity”.

Read: My grandson says my financial advisor is misdirecting me and charging me twice

Well meaning family and friends. You don’t know all of your personal financial situation or needs. Why? Because over decades of my experience, no customer was exactly like the other. Their situations and fortunes all had detailed nuances. Any opinion offered from personal experience without knowing the whole situation can cause problems in the future.

A relative once learned that “you can give $15,000 a year tax-free to individuals”—which is true. She encouraged her mother to do this so Medicaid could pay her bills. Had my client done this and not consulted me first, this elderly woman would have been financially vulnerable and unable to qualify for Medicaid when she needed it.

Medicaid has a tracing rule about where your assets went; in most states it is five years. The advice the daughter was given was about her situation, not her mother’s.

Don’t underestimate the bad information out there – from newsletters, from “experts” on the internet and TV. You are there to do a job and to take care of your overall personal situation is not.

The power of example. My dad (or aunt or friend) did it and it worked for her. The world has changed, and so have tax regulations and investment opportunities. What worked in the past may or may not work for the future. What matters is what is best for you today.

In my father’s day, there was only one type of mortgage (fixed rate), two types of life insurance (full-term and term), and IRAs didn’t come into play until I was a teenager and he was about to retire. Times have changed and there are many opportunities.

A 50-year-old customer kept her $5,000 lifetime insurance policy, which cost $180 a year. She didn’t want to make a change because her father said it was a good policy when he gave it to her at the age of 21. She could have gotten $100,000 life insurance for a few dollars more a year.

Sure, take dear old dad’s path or Aunt Suzy’s as a guide. But apply today’s rules, regulations, and your personal goals as an overlay to find the best decision for you.

Columns like this address many concerns, but shouldn’t be your exclusive source of information. I therefore ask you to seek personal advice. Ask questions and understand your situation. Make decisions based on what you (and your partner) need. Understand the full implications of every decision.

Ensure your financial decisions are made based on your full financial picture with objective advice. Leave “free” to the marketing world.

CD Moriarty, CFP, is a MarketWatch columnist and speaker, author and personal finance coach. She blogs at MoneyPeace. You can ask questions that can be published by clicking here.

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GM’s strategy shift shows how “cash is king” during the COVID-19 crisis https://helviti.com/gms-strategy-shift-shows-how-cash-is-king-during-the-covid-19-crisis/ Thu, 11 Mar 2021 05:33:53 +0000 https://helviti.com/gms-strategy-shift-shows-how-cash-is-king-during-the-covid-19-crisis/ NEW YORK, April 28 (LPC) – General Motors Co’s (GM) decision to opt for a larger $16.5 billion credit facility just weeks since the coronavirus outbreak in the United States took a turn for the worse. The automaker sought to extend the terms of $6 billion in revolving credit instead of refinancing a $16.5 billion […]]]>

NEW YORK, April 28 (LPC) – General Motors Co’s (GM) decision to opt for a larger $16.5 billion credit facility just weeks since the coronavirus outbreak in the United States took a turn for the worse.

The automaker sought to extend the terms of $6 billion in revolving credit instead of refinancing a $16.5 billion credit facility after talks with its banking group during the height of the COVID-19 crisis.

“They knew they wouldn’t get any interest for the five years,” a bank source said, referring to the $10.5 billion the company left in place. “(The banks) had to tell them it wasn’t happening.”

Concerns about the impact of the virus on the economy have prompted companies in the US to start hoarding capital. Since March, companies like Heinz, Anheuser-Busch InBev and Petrobras have drawn down their normally unfunded lines of credit, often in full, to prepare to withstand the slowdown caused by the pandemic.

The inability of the banks to repay their liabilities with sufficient liquid funds is considered to be one of the main causes of the financial crisis. Liquidity is currently tight, advising issuers to exercise caution when it comes to extending existing multi-year working capital facilities. So is the additional liquidity, which is currently weighted between 1-year facilities and 18-month loans.

As of the first week of April, investment-grade issuers had structured 34 tranches totaling over $65.4 billion with maturities of less than five years, compared to 23 tranches totaling $50.4 billion with five-year structures, according to data from Refinitiv LPC.

“Any time the market is a bit unstable, people prefer to lend on shorter terms,” ​​said a second bank source. “And there’s so much uncertainty right now.”

GM originally went to its JP Morgan and Citigroup-led banking group in early March and asked to extend maturities on its $16.5 billion revolving credit facility.

The deal should extend maturities but leave prices unchanged, multiple sources familiar with the discussions said.

However, GM’s decision to refinance comes at a time when the company is facing a longer-than-expected shutdown of its plants and a significant drop in sales amid a crisis of exceptional proportions that has created a very different playing field from the last refinancing talks of the year 2019

To further complicate negotiations, the company decided to pull $16 billion on its turret on March 27 while refinancing talks with its banking group were taking place.

“To support liquidity and strengthen its financial position amid global market uncertainty from the coronavirus pandemic,” the company said on March 24 of its plans to draw on the facility.

The original proposed refinancing included a $2 billion 364-day loan and a $4 billion three-year loan. It also included a $10.5 billion five-year facility, multiple sources familiar with the original refinancing talks said.

The new plan only refinanced the short-term maturities, including the $2 billion loan, which was reduced to $1.95 billion, and the $4 billion three-year loan, the sources said.

GM’s plan change indicates three things: elevated prices in the market, a strong preference for shorter-term commitments and concerns about the auto sector, a third bank source said.

The spreading virus forced most of North America’s auto factories to close, at least temporarily. Ford, General Motors, Fiat Chrysler, Honda, Toyota, Nissan and Hyundai are all affected.

PRICING

The one-year loan pays 25bp undrawn while the three-year loan pays 40bp undrawn.

At full drawdown, the loans will pay 175 basis points above Libor, sources familiar with the transaction said.

An option to convert the one-year revolving credit to a term credit after one year from the current deal has been removed, the sources said.

GM’s 364-day loan was previously at 12.5 bps and undrawn, and the three-year loan was at 15 bps and undrawn. The margin drawn on the two facilities was 125 bp above Libor. The company offered 30 basis points to lenders who chose to roll over their existing holdings.

The new refinancing plan left the $10.5 billion credit facility in place. Prices for the five-year bonds remain unchanged at 125 basis points above Libor and 17.5 basis points without a drawing.

GM also has a $3 billion revolving credit facility that it originated in January 2019 when it refinanced the other three tranches. This loan increased the company’s borrowing capacity to $19.5 billion.

Citigroup and JP Morgan spokesmen declined to comment. A spokesman for GM did not respond to requests for comment. (Reporting by Michelle Sierra. Editing by Kristen Haunss.)

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Advice for debt collectors in pandemic times: watch your language https://helviti.com/advice-for-debt-collectors-in-pandemic-times-watch-your-language/ Thu, 11 Mar 2021 05:33:53 +0000 https://helviti.com/advice-for-debt-collectors-in-pandemic-times-watch-your-language/ Banks have braced themselves for the first wave of struggling borrowers in response to the coronavirus pandemic, but a second and potentially larger wave lies ahead when it comes time to collect. Accordingly McKinseyUp to a third of US jobs are “at risk,” meaning they face potential furlough, layoffs, or become unproductive due to the […]]]>

Banks have braced themselves for the first wave of struggling borrowers in response to the coronavirus pandemic, but a second and potentially larger wave lies ahead when it comes time to collect.

Accordingly McKinseyUp to a third of US jobs are “at risk,” meaning they face potential furlough, layoffs, or become unproductive due to the pandemic.

In the interim loan forbearance and deferral programs have provided a runway for banks to prepare for such a critical moment. But when these utilities end a new era of customer loyalty and collection efforts need to take shape.

During this time, well-managed collections can effectively unleash a “growth lever” while acquisition and cross-selling proceed slowly. Past crises have shown that banks with strong customer relationships that demonstrate empathy and flexibility towards their customers weather the storm better than those that don’t.

It starts with the language used to communicate with customers – language that is both mindful and data-driven.

First, financial institutions need to identify vulnerable customers quickly and intervene early (if they haven’t already).

The rapidity of the impact of the coronavirus on the economy has shocked many customers and tried to get a grip on their new financial situation. Banks that quickly identify at-risk customers and use a multichannel approach to communications will keep those customers engaged and responsive during times of financial distress.

This will allow banks to maintain these relationships well beyond the end of the crisis. The key here is to improve and protect the customer experience to reduce chargeouts and losses at the institution.

The pace of the debt collection crisis and the call center burden on creditors will come fast and furious. Banks and lenders need to move beyond the “we’re here for you” phase and implement systematic, data-driven customer retention capabilities as part of the pre-collection and early collections processes.

Look for simple signals in the data – such as B. Changes in deposit flow and credit activity or geographic location and employed industry – to create predictive segmentation.

Regulatory guidance recently issued in response to the pandemic offers significant scope to offer loan modifications early and reach at-risk customers before they miss a payment. This is a critical window of engagement. Early intervention also gives a creditor more leeway to achieve a preferred ranking in the order of creditors demanding payment.

Second, one of the biggest short-term challenges banks face is adopting a more attentive, context-sensitive, and tone-adapted approach to brand communications—while retaining customer payments and managing losses. Mindful messaging balances empathy with performance.

The language used during this time is crucial and need not be left to guesswork when it can be informed by data and artificial intelligence to balance effective messaging with empathy and sensitivity. Most messages are written by a copywriter using pattern recognition and intuition. But natural language generation, a form of AI, can augment that experience and create deeper human connections than a copywriter could alone.

If every lender uses similar, generic language, the message will never get through to desensitized customers. Prioritizing important information and providing customers with clear, concise next steps helps them know what to do and when to do it.

For example, by using AI-based language insights, phrases like “We strive to give you extra peace of mind” are more effective when communicating with customers in the pre-collection journey. Conversely, banks should not use language that conveys undue urgency or references “news,” which should be left to actual updates about the pandemic.

Third, don’t put yours Call center on the back burner.

Call center agents are at the forefront of the customer experience and are critical to building, maintaining and repairing customer relationships.

Unfortunately, many call centers are seeing triple-digit increases in demand, even as some have made the Herculean effort to move large groups of agents to work remotely.

With many banks now adopting digital banking at a greater pace to meet the influx of customer demands, long hold times result in poor experiences. What call center agents say and how they say it can do a lot to create or destroy customer loyalty and value.

To amplify these efforts, many inbound calls should be routed to self-service channels, resulting in significant cost savings and freeing agents to handle more difficult cases.

The most innovative banks are already arming their call centers with intelligent routing to match specific customers to specific agents and using AI-tested speech to improve the performance of interactive voice prompts and call center scripts.

This increases call routing rates and encourages adoption of self-service channels.

Finally, maintaining customer trust should be every bank’s priority so that when customers return to a stronger financial footing, they know where to turn for their next long-term loan or investment. Also, customers who now feel a greater sense of loyalty may be more willing to keep up with their payments, even if they have to do it in smaller increments over a longer period of time.

As this recovery takes shape, it is critical for banks to develop a clear understanding of consumer insights, new segmentation and a new foundation for acquisition, cross-selling and customer retention at scale.

However, as the current crisis ebbs and flows, banks need to go a step further to ensure their messaging is aligned with changing customer expectations. The cost of such a mistake means significant customer churn, increased payment defaults and (again) declining reputation.

Banks can successfully mitigate the debt collection crisis and call center surge by engaging early, identifying the most vulnerable customers, and shifting to sensitive, attentive messaging through the use of AI and data-driven customer engagement. In a crisis of this magnitude, machines could actually be the ones helping banks become more human.

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How a microcredit can help your new small business https://helviti.com/how-a-microcredit-can-help-your-new-small-business/ Thu, 11 Mar 2021 05:33:53 +0000 https://helviti.com/how-a-microcredit-can-help-your-new-small-business/ Microcredit can help small businesses start and grow through small loans. Although microcredit is widely recognized as a great way to build a credit file for your business, very few lenders in the US offer microcredit. Unlike some business loans, microloans can be used for a variety of items or needs. This article is intended […]]]>
  • Microcredit can help small businesses start and grow through small loans.
  • Although microcredit is widely recognized as a great way to build a credit file for your business, very few lenders in the US offer microcredit.
  • Unlike some business loans, microloans can be used for a variety of items or needs.
  • This article is intended for entrepreneurs who want to learn more about microcredit, how to get one and the merits of using it.

If you’re starting a business and need money to get started, or trying to grow your small business and need money to hire employees or buy new equipment, you’ve probably considered applying for a loan. However, unless you have an extensive credit history, many popular credit options may not be available to you. However, a lesser-known solution called microcredit can give you a small injection of cash with reasonable interest rates while boosting your company’s local economy.

What is microcredit and how does it work?

There is a lot in the field of business loans Loan Opportunities for Small Businesses. Each type of loan has its own terms and payment terms, interest rates, and qualification requirements. Microcredit is no different.

A microcredit is a small loan between 500 and 50,000 euros that has to be repaid in the short term. These loans are generally provided by non-profit organizations and represent only a small fraction of US business loans cabbage It is estimated that only 400 financial institutions currently offer them to entrepreneurs. These loans typically have interest rates between 12% and 18%, with the intention of helping small businesses get off the ground and continue to grow.

In many cases the US Small Business Administration provides the funds for microcredits to non-profit organizations acting as intermediary lenders through the SBA microloan program. Although the SBA’s lending program “does not review, underwrite, or have the authority to approve or deny a microloan on a microloan,” the government agency sets guidelines for the microloan program, such as: B. the previously mentioned maximum of $50,000. Other regulations provide for a maximum credit term of six years, a stipulation that the funds cannot be used to pay down existing debt or to purchase real estate, and a requirement that the “microborrower” must attempt to obtain credit from a private source before applying for a microcredit .

Microcredit is useful for short bursts of capital that you use for things like buying inventory, paying employees, and covering seasonal expenses. They’re also a great way to help your business build credit.

Key taking: Microcredit is funded by the SBA through intermediary lenders to give young businesses a head start.

Editor’s Note: Do you need a loan for your business? Fill out the questionnaire below to have our distributors contact you with free information.

For whom is a microcredit worthwhile?

At its inception, microcredit is developed to help small businesses get started and run. So, if you’re looking to quickly get a small amount of financing to start a business and don’t necessarily have good enough credit to get a loan from traditional lenders, a microcredit could be for you. Microlenders generally have less restrictive credit requirements, making microcredit much easier to obtain than traditional options.

Many microlenders not only help small businesses get started, but also use their loans to address existing inequalities in the supply of capital to small businesses in certain parts of the country. While it is quite difficult for any climber to get a traditional bank loan for a small business, women and people of color trying to get their businesses off the ground have a much higher chance of being denied financing than theirs own white male colleagues. The prospects are even worse in predominantly non-white, struggling communities.

To this end, microlenders or order-oriented/order-based lenders typically offer these loans to minority or women-owned businesses, businesses serving disadvantaged communities, or low-income entrepreneurs. That’s not to say that businesses owned by white males can’t get microcredit, but lenders tend to look at the overall scope of a microborrower and their business, with the overarching mission that the lender wants to support.

Key taking: Microlenders focus on brand new businesses and specific groups of entrepreneurs.

Are you eligible for a microcredit?

Because microcredit is often viewed by professionals as a type of “starter” loan to help a business build credit before moving on to a traditional loan, it is generally much easier for entrepreneurs to obtain than regular loans. Though the process is quicker and less rigorous, experts suggest there are still things you can do to prepare for the loan application process.

The following are things you can do now as a new small business owner to improve your chances of getting a microcredit approval. [Related content: How SBA Loans Differ From Conventional Loans]

1. Create a business plan.

As a new entrepreneur, you’ve probably already created a high-level business plan for how you’re going to grow from a startup business into a profitable venture. If you’ve previously applied for a business loan from a traditional bank, you’ve probably already completed this step. Being able to show potential lenders your plans and how seriously you will take the business gives the lending organization some peace of mind. If you haven’t already drawn up a business plan, you will need to outline, among other things, how your company will make money, what goods or services the company will trade in, and how you will attract new customers. [Read related article: The Do’s and Don’ts of Writing a Great Business Plan]

2. Get your credit and finance houses in order.

When applying for a loan, it is important to take a good look at your financial situation. Proper calculations of how much you can pay each month will give you a basis for how much you can realistically borrow and how long your repayment period should be. Although a microlender is generally more relaxed about the money they provide to small businesses, they still need to be repaid. If you don’t do this, it can mean as many financial problems as a late payment or Deferral of a traditional loan. You should also make sure your business and personal credit scores are in good shape. Although microcredit is typically suitable for businesses with little or no credit, lenders often look at an applicant’s personal credit history to see how that person is managing their own money. Find mistakes and have them corrected, lower your own loan balances if possible, and clean up a few other aspects of your credit report, and you should be an easier approval for most lenders. [Read related article: 8 Factors That Keep You From Getting a Small Business Loan]

3. Prepare collateral or a loan guarantee.

Microcredit is made available to small businesses and entrepreneurs with little to no credit history. Without reliable records to see how trustworthy a borrower is, most lenders need some reassurance form of security. Offering valuable property as collateral can prove to the bank that you are committed to paying back the balance in full. If you default on the loan, you lose that collateral and your credit score suffers.

Key taking: Microcredit may be easier to obtain than traditional credit, but there are some steps you can take now to make the process easier.

The downside of microcredit

While there are many reasons that microcredit is highly beneficial to the small businesses they serve, it also has some limitations that can hamper its overall usefulness. For example, most microcredit interest rates range from 12% to 18%. These rates are lower than the interest rates on most traditional loans, but they are among the highest lending rates provided by the SBA.

If you are looking for a loan worth more than $50,000, a micro loan may not be the right choice for you. Microloans not covered by the SBA can be as high as $100,000, but these are generally made available to larger businesses. If you need a repayment period longer than six years, you probably won’t get a microcredit because it poses a higher risk for the lenders. [Related content: What is Microfinance?]

microcredit providers

The following organizations provide microcredit to small businesses. Inquire with each provider whether and which credit requirements have recently been adjusted. Loan amounts and regulations are subject to change at any time.

[Related content: Guide to Choosing a Small Business Loan]

SBA

The most popular microcredit provider is the US Small Business Administration. the SBA offers up to $50,000 to help small businesses start or expand their business. On average, the SBA provides $13,000 per microloan. Most SBA microloans have to be repaid within six years. The US Treasury sets the interest rate for SBA microloans, but they typically average between 8% and 13%.

USDA

The USDA Microcredit Program is designed to help farmers who are just starting out or want to break into a niche. USDA microloans include direct farm operation microloans and direct farm ownership microloans. Both microcredits require some farming experience to qualify. Each loan program has a maximum limit of $50,000. Applicants can apply for both programs. Refund Policy vary but not exceed 25 years.

Grameen America

Grameen America is a non-profit organization that helps women business owners. To qualify for a microcredit, the organization asks you to form a small group of four female professionals and attend financial seminars together. At the end of the program, each participant will receive a $1,500 microloan.

Pursue

Pursue is a lender specializing in microcredit for those who do not typically qualify for traditional credit, including startups and companies with poor credit ratings. You can apply online and applications can be processed within five days. Loan amounts go up to $100,000.

Non-Profit Organizations

Nonprofit organizations serving specific regions of the United States can also be an additional source of microcredit. For example the Business center for new Americans provides microcredit financing ranging from $500 to $50,000 for businesses operating in New York City.

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3 must-have growth stocks for Robinhood investors https://helviti.com/3-must-have-growth-stocks-for-robinhood-investors/ Thu, 11 Mar 2021 05:33:53 +0000 https://helviti.com/3-must-have-growth-stocks-for-robinhood-investors/ Investing in 2020 has been quite an adventure – and there are still 2 1/2 months until the end of the year. So far we’ve seen a record-breaking 34% drop in price S&P500 that lasted less than five weeks, as well as the fastest rebound in history from a bear market bottom to new highs. […]]]>

Investing in 2020 has been quite an adventure – and there are still 2 1/2 months until the end of the year. So far we’ve seen a record-breaking 34% drop in price S&P500 that lasted less than five weeks, as well as the fastest rebound in history from a bear market bottom to new highs.

While this volatility has been a boon to long-term investors, it has also proven quite enticing to short-term traders.

Image source: Getty Images.

Online investing app Robinhood, known for offering new members commission-free trading, fractional stock investments, and free shares of random stocks, has been particularly adept at attracting these short-sighted traders, many of whom are young or inexperienced investors.

On the one hand, it’s good news that young people are putting their money to work in the stock market. After all, over the long run, there hasn’t been a better wealth creator than stocks. However, Robinhood has failed to provide these newer investors with the knowledge and tools they need to be successful over the long term. As a result, far too many of its members chase so-called growth stocks that turn out to be growth stocks terrible company.

stacking growth stocks is a fantastic strategy for younger investors as long as they intend to hold it for the long term. With millennials having time on their side, buying into innovative, high-growth companies gives them their best chance of generating game-changing investment returns.

With that in mind, here are three growth stocks that I consider must-owns for Robinhood investors.

A person inserting a credit card into a Square card reader at the point of sale.

Image source: square.

square

fintech stock square (SQ 7.07% ) is maybe the most exciting stock in the entire market now, and it’s not a company you have to twist your arms at to encourage young investors to buy. That’s because Square’s peer-to-peer payments platform Cash App is initially targeting a younger audience.

square The bread-and-butter business segment is the seller ecosystem. The company has provided point-of-sale devices, credit, and analytics to businesses for nearly a decade. Between 2012 and 2019, gross payment volume (GPV) on its platform grew from just $6.5 billion to $106.2 billion. Since Square’s seller ecosystem is primarily powered by merchant fees, growing GPV and increased usage by medium-sized and large businesses could really drive up fee collection.

But it’s the Cash App that will be Square’s knight in shining armor for the long haul. We saw a push toward digital payments well before the 2019 coronavirus disease (COVID-19) pandemic. Since cash is not only considered obsolete today, but also a harbinger of germs, the desire for digitization is even greater.

Cash App monthly active users over a 30-month period from the end of 2017 to June 2020 more than quadrupled to 30 million. Additionally, 7 million users are now using Cash Card – a traditional debit card linked to users’ Cash App balance. With the Cash App, Square can collect merchant fees via Cash Card. Square also uses it to collect transfer fees to and from Cash App and traditional bank accounts, as well as Bitcoin-related investment/exchange fees.

Square could be the fastest-growing financial stock this decade, making it a must-have for young investors.

An elderly person using a blood glucose meter to check their blood glucose levels.

Image source: Getty Images.

DexCom

Within Healthcare Robinhood Investors would be wise to create stocks of the medical device manufacturer DexCom (DXCM 8.61% ).

Although medical device manufacturers constantly struggle with commercialization and competition, these are not major concerns for DexCom, a world leader in continuous glucose monitoring (CGM) systems. DexCom’s CGM devices allow diabetics to continuously monitor their blood glucose levels without having to prick their fingers. These devices help patients better control their blood sugar levels and work hand-in-hand with an insulin pump.

Why DexCom? While I do not wish ill health on anyone, there are 34.2 million diabetics in the US alone (that’s more than 10% of the US population), with an additional 88 million people ages 18 and older showing signs of prediabetes. The number of people with diabetes is increasing, not decreasing, suggesting that DexCom’s devices will find a growing audience in the coming years.

Best of all, DexCom is set up as a monthly subscription service. Subscription earnings are very transparent and predictable; It’s responsible for keeping DexCom’s gross margin well above the 60% mark.

Investors should expect DexCom’s innovations and high-margin revenue streams to grow its revenue by nearly 20% annually for the foreseeable future. That is Growth appreciated by young investors.

A key in a lock surrounded by dozens of digital alphanumeric codes.

Image source: Getty Images.

CrowdStrike Holdings

One final must-have growth stock for Robinhood investors is the cloud-native cybersecurity company CrowdStrike Holdings (CRWD 13.01% ).

Cybersecurity companies offer what has become a basic service. Hackers and robots don’t take vacation days, and they don’t care if the global economy goes into recession. The coronavirus pandemic has pushed more businesses into an online/cloud environment than ever before, and they will rely more than ever on cybersecurity solution providers like CrowdStrike to protect their data and that of their customers.

CrowdStrike’s cloud-based Falcon platform has helped set it apart. falcon is powered by artificial intelligenceand gets smarter with every new CrowdStrike customer. Being cloud-native also enables seamless threat response at a generally lower cost than cloud protection in the office.

Signing up new customers is great, and CrowdStrike hasn’t had any issues with it for the past four years. What’s most impressive, however, is the growth in spending from existing customers. In the first quarter of fiscal 2018, only 9% of customers had at least four cloud module subscriptions. Beginning in the second quarter of fiscal year 2021 57% of its customers Had at least four cloud module subscriptions. CrowdStrike grows with its customers, with CrowdStrike’s margins getting their biggest boost from existing customer add-ons.

Between fiscal 2020 and fiscal 2023, Wall Street expects the company to do so around three times the turnovermaking it the perfect innovative technology stock for young and inexperienced investors.

This article represents the opinion of the author, who may disagree with the “official” endorsement position of a Motley Fool premium advisory service. We are colourful! Challenging an investing thesis — including one of our own — helps us all think critically about investing and make decisions that help us be smarter, happier, and wealthier.

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7 tips for international students during COVID-19 • The College Post https://helviti.com/7-tips-for-international-students-during-covid-19-the-college-post/ Thu, 11 Mar 2021 05:33:53 +0000 https://helviti.com/7-tips-for-international-students-during-covid-19-the-college-post/ The coronavirus has changed life as we know it. In the midst of health problems and economic downturns, universities in particular have become virtually unrecognizable. campus closed, Teaching has moved to the internetand foreign students struggle with time zone differences and poor internet connections. Colleges and universities are making every effort to monitor the rapidly […]]]>

The coronavirus has changed life as we know it. In the midst of health problems and economic downturns, universities in particular have become virtually unrecognizable. campus closed, Teaching has moved to the internetand foreign students struggle with time zone differences and poor internet connections.

Colleges and universities are making every effort to monitor the rapidly evolving situation. While some universities may reopen campuses, “normal” university life may not resume anytime soon.

Meanwhile, colleges are doing their best to support their students around the world. While the crisis can be overwhelming, don’t let it stop you from achieving your goals.

Here are seven tips for international students to continue Nagel University during a global pandemic.

1. Minimize your expenses

College is expensive – and it’s even more expensive if you’re an international student. International students are often dependent on grants, grants, and student loans to further their education. They also take part-time jobs to supplement their income.

Gone are the days of clubbing with friends on the weekends. As the economic recession deepens, it is time to do so reduce your expenses. Write down your income and find ways to reduce costs. Prepare an emergency budget so you have something to fall back on. If you need help, download a budgeting app mint or bag protection Are popular to track your spending.

Finally, if you can’t cross anything, you can try checking with your college to see if you are eligible for a larger student loan.

2. Insurance is a must

Foreign students who have secured an offer of admission in the US are usually enrolled in compulsory health insurance. If you’re an international student, you might also want to check if your insurance covers COVID-19 testing and treatment. Otherwise, if you contract the virus and end up in the hospital, you may have to face a huge bill.

Also, find out if your college offers pandemic-related counseling services or free protective equipment for resident students. Takes care of yours Mental health is vital and if the situation gets worse you can never have enough face masks.

3. Think twice before you travel

Countries are slowly opening their borders to foreign travel. Nevertheless, travel restrictions apply almost everywhere and will not be lifted in the foreseeable future. Lots international students are stranded in the countries where they study.

If you’re not affected by travel restrictions and are considering returning home, pause first. Ask yourself if you want to take the risk of traveling abroad. If you do this anyway, make sure you are perfectly healthy and have no symptoms of COVID-19. Check your travel insurance to see if it covers COVID-19 testing. Finally, observe social distancing during your travels at all costs.

4. Find safe shelter

have educational institutions close their campus and switched to online classes. Students have been ordered to leave campus and work remotely. Due to the travel restrictions in place, many students were unable to fly home. Since most international students in dormitoriesthis sudden announcement has forced students to look for off-campus accommodation.

However, some universities such as the University of California, San Diego and Georgia Technical University allow foreign students to remain on campus. If you are an international student and are wondering about living in a shared apartment on a college campus or finding private housing elsewhere, contact your college’s Admissions Advisor or International Office

Many US colleges and universities have increased their efforts to help students find alternative housing. They also provide clues as to whether students should go home.

5. Create a better resume

With the ongoing recession, students graduating this year face challenges securing employment. The situation is even worse for international students. Given how expensive higher education in a foreign country can be, most international students look forward to it securing a job after they graduate. Unfortunately, the economic crisis this year has dashed their hopes.

The first step to overcoming any crisis is acceptance. Accept that the hiring process will move at a rapid pace due to the economic slowdown. But do not refrain from sending applications.

Use this time to acquire new skills. You can even review online courses that fit your career path. Apply for virtual internships. Readjust your expectations so you don’t get frustrated too easily. Some people get hired during recessions. Use the lockdown to work on yourself and Build a strong resume.

6. Communication is key

The COVID-19 pandemic has dominated the headlines since early 2020. It caused panic around the world. Markets have collapsed, economies have collapsed and a cloud of uncertainty has engulfed the globe.

For international students who are away from home, the situation could be even more stressful. If you are afraid because of the current situation, talk to your university and ask for help. College counselors can help you find ways to overcome stress.

7. Focus on school

The rise in COVID-19 cases has prompted higher education institutions to switch to online learning. This disruption can be overwhelming. But it’s important to stay focused and avoid distractions during this phase.

Avoid lounging on the couch in your pajamas and instead treat it like a normal workday. If anything, use this time to focus on your goals. Establish a daily routine and stick to it. If you’re tired of being cooped up on campus, go outside for a walk or find other ways to take breaks.

What will the future bring?

During travel bans, distance learning and the suspension of SAT and TOEFL tests Student mobility will be reviewed in the short term, and the recession will also cause that The number of international students is falling long-term.

Studying abroad is expensive, especially for international students. Many continue to survive student loans, so it is necessary to find a decent job after graduation. And while colleges across the US are slated to open for the fall semester, some or all courses may continue online.

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Questions and Answers: Your Money and Coronavirus https://helviti.com/questions-and-answers-your-money-and-coronavirus/ Thu, 11 Mar 2021 05:33:53 +0000 https://helviti.com/questions-and-answers-your-money-and-coronavirus/ Many families and businesses are feeling the financial strain of the COVID-19 outbreak. In recent days, the stock market has seen its worst day since 1987, Colorado has seen an unprecedented surge in jobless claims, and businesses large and small have been forced to make cuts. Chris Hughen is Associate Professor at the Reiman School […]]]>

Many families and businesses are feeling the financial strain of the COVID-19 outbreak. In recent days, the stock market has seen its worst day since 1987, Colorado has seen an unprecedented surge in jobless claims, and businesses large and small have been forced to make cuts. Chris Hughen is Associate Professor at the Reiman School of Finance at Daniels College of Business, and he shared his expertise in an email conversation with the DU Newsroom.

Chris Hughen

What kind of financial contingency plans should families make?

Families should use this as an opportunity to develop a long-term financial plan. The most important element of this plan is to eventually save at least six months of living expenses in cash. Put that money in a separate bank account and solemnly promise not to touch it when times are good.

How should individuals and families who may not have enough money to meet all of their financial obligations prioritize paying their bills in the coming months?

People need to prioritize their bills to ensure they can provide for their families’ essential needs — food, medical care and childcare. You also need to prioritize expenses necessary to keep or get a job. In this environment, hopefully, lenders will be more sympathetic to late payment on a mortgage or car loan. It is important to communicate with your lender if you are late in paying; Inform them of your plan to resume payments when possible.

What should individuals do with their investments during this pandemic?

The stock market is a great long-term investment. Since 1900, stocks have returned 9.6% per year. Investors in a diversified stock portfolio have rarely lost money if they’ve held their investment for at least 20 years. The lesson is to ignore short-term volatility and stay invested for decades, not days.

What’s your advice when it comes to 401(k) plans?

Focus on a long-term financial plan that includes a monthly contribution to your investment portfolio. It’s important to make saving a regular habit and increase your contributions over time. Pay yourself first by increasing your monthly investment contribution with each increase. Developing a long-term financial plan is the easy part. Sticking to the plan in good times and bad is the big challenge.

The Federal Reserve cut interest rates to almost 0%. What does this mean for the average person?

The Federal Reserve set the target interest rate for short-term interbank lending at nearly 0%. However, actual interest rates for consumers will vary depending on the risk and duration of the loan. Many homeowners can refinance and save on their mortgage payments. However, mortgage rates may not fall as much as government bond rates.

What does the public need to know about the IRS’ deferral of tax returns and payments?

Individuals can delay tax payments that were due from April 15 through July 15. At a time when many businesses have had to close their doors, liquidity (the availability of cash to pay for day-to-day expenses) is a critical issue for our economy. . This extension of the deadline gives many individuals the flexibility they need and costs the government next to nothing in times of low interest rates. This is a valuable policy change that will be made [prevent] To prevent bankruptcies and foreclosures and to enable our economy to recover quickly after the end of the crisis.

There is talk of the government sending checks to the American people to help with the financial burdens of COVID-19. Does that make a difference?

Unfortunately, many state instruments for combating an economic crisis only take effect after a long delay. Direct cash payments are an immediate boost to our economy. Unlike tax cuts, direct payments support people who have lost their jobs. Sending checks is one of the best ways to avoid a prolonged economic downturn.

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