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UK loans $2.3 billion to Turkey for high-speed rail line

UK loans $2.3 billion to Turkey for high-speed rail line


The British government has announced a loan to Turkey for a high-speed railway line.

The United Kingdom’s Export Finance department will loan Turkey $2.33 billion to build the 503 kilometers (312 miles) of high-speed electric railway connecting the capital Ankara to the coastal city Izmir. The loan, meant to reduce carbon emissions, is structured by the British financial services firm Standard Chartered and the Swiss bank Credit Suisse, UK Export Finance said in a press release.

Why it matters: The loan is the latest example of strengthening economic cooperation between Turkey and the UK. Turkey is the UK’s second-biggest export market, and the two countries signed a free trade agreement last December. Both countries’ tensions with the European Union have made them somewhat natural allies, Amberin Zaman wrote for Al-Monitor.

The EU sanctioned Turkey last year due to its offshore drilling activities in waters claimed by Greece and Cyprus. The EU is also critical of Turkey’s poor human rights record. The UK’s relationship with the EU, meanwhile, has been strained by Brexit.

Cooperation with Turkey has faced some criticism in Europe, including a boycott campaign in the UK.

Turkey has a mixed record on renewable energy. The environmental watchdog Ember reported that Turkey’s use of wind and solar power increased in 2021, but coal usage remains relatively high.

What’s next: The contracts for the construction of the railway will be awarded to British and Turkish businesses.

A UK Export Finance spokesman told Al-Monitor that the railway is expected to be completed by 2025.

This article was updated to include comments from the UK Export Finance office.





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MoneyMutual: The Most Trusted for Payday Loans & Bad Credit Loans?

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MoneyMutual is a company that offers payday loans that range from $200 to $5,000. Once applied, consumers can access 91 lenders, giving them $200 to $5,000 within just 24 hours in many cases.

What is MoneyMutual?

Everyone has times when they need money but don’t have access to the funds. Emergencies can arise, and most people have to find a way to scrounge up funds that they had no anticipation of needing at all. Other times, medical expenses occur that need to be paid at the time of service. Then, there are some expenses that aren’t quite as urgent but waiting seems like an eternity. No matter the reason, MoneyMutual provides a unique opportunity for consumers to get an advance on their next paycheck.

This website offers payday loans, and the only thing that customers need to do to get started is to fill out the online form at the official website. With a few questions, consumers will have access to several offers that work in their area, allowing borrowers to get up to $5,000. While there are some states that no longer provide the opportunity to get a payday loan, the states that do make it possible to get these loans will be eligible for online payday loans.

MoneyMutual has already served over two million customers, and they are one of the most trustworthy websites for such a loan. They’ve even been featured on television commercials and have the support of spokesperson Montel Williams.

How Does MoneyMutual Work?

On the official website, customers apply for a short-term loan, giving them the funding they need within 1 business day. Part of the incredible appeal is the fact that even people with bad credit can get the support that they need for a loan, giving them funds that they would not have access to otherwise.

To qualify, customers need to be at least 18 years old and make $800 per month with income that they can prove. They also need to have an active checking account, giving a place for the company to make a deposit. Then, they choose from the many lenders who are interested in giving them the loan.

Users will be redirected to the lender’s website to complete the arrangement to provide the additional information required. They’ll then find out how long they have to wait to get their funds. The process goes as such:

  • Fill out the required information at MoneyMutual, allowing the platform to distribute the information to possible lenders.
  • Lenders review the user’s profile to decide on the best loan possible, contacting the applicant for their offer.
  • Customers receive their money within about 24 hours.

How Much Does MoneyMutual Cost?

The services that MoneyMutual provides to connect customers with lenders costs nothing in the application process. Users can put in this application and connect with lenders for free, but the lender they connect with will charge fees associated with the loan. Every applicant should carefully review how much the borrowing costs are with their particular lender.

How Long Does It Take to Use MoneyMutual?

Everything is fairly straightforward, so users should only need about five minutes to find out what lenders work best for them. Returning customers won’t even need that much time because most of their information will already be filled out.

Depending on the lender, it should take about 24 hours or more to get the deposit.

How Do MoneyMutual’s Lenders Work?

With over 90 lenders, customers specifically find options that work for their particular needs. The lender goes over the personal information provided, along with their financial information, to show the best match for their particular needs.

The lenders determine if the customer meets their particular criteria, leading them to make an offer for the loan. With this offer, users will get a contract with specific terms that they can then accept to get the money. Customers will also have to provide their bank account number and finalize the work.

All fees must be legally disclosed to consumers, and they are strictly prohibited from charging annual interest rates that are considered “excessive.”

Is MoneyMutual A Scam?

This opportunity isn’t a scam, and there’s no catch associated with it. The website does exactly what the company claims that it does – connecting users with lenders who offer short loans that work with the user. However, customers need to read through the provided terms of the agreement to make sure that they understand.

Requirements to Get A Loan Through MoneyMutual’s Services

Luckily for newcomers to these types of loans, there are only a few requirements for customers:

  • Must be at least 18 years of age or older.
  • Must make at least $800 per month that can be verified.
  • Must have an active checking account.

While there are some details that lenders need additionally – like the customer’s social security number – MoneyMutual doesn’t have these requirements itself.

Contacting MoneyMutual

To get a hold of MoneyMutual, consumers can either send an email to [email protected] or call 844-276-2063.

Final Word

MoneyMutual provides a unique opportunity to get a payday loan, helping consumers who would otherwise be left unable to cover these expenses. Considering that nearly half of all Americans couldn’t randomly come up with $400 if they needed it, it is clear that this platform benefits many people. Excellent credit isn’t a necessity, and consumers review every fee and condition in their agreement before they ever sign. The process is affordable and easy, though consumers will need to check with their local laws to ensure that they can get such a loan in their state.

To learn more about MoneyMutual and how it works, be sure to visit the official website by clicking here! >>>

ALSO READ: Bad Credit Loans: Compare the Best Bad Credit Lenders in 2022

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Disclaimer:

Please understand that any advice or guidelines revealed here are not even remotely substitutes for sound medical or financial advice from a licensed healthcare provider or certified financial advisor. Make sure to consult with a professional physician or financial consultant before making any purchasing decision if you use medications or have concerns following the review details shared above. Individual results may vary as the statements regarding these products have not been evaluated by the Food and Drug Administration or Health Canada. The efficacy of these products has not been confirmed by FDA, or Health Canada approved research. These products are not intended to diagnose, treat, cure or prevent any disease or provide any kind of get-rich money scheme.



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Someone Used Flash Loans To Exploit $800,000 In ApeCoin Tokens – Ethereum – United States Dollar ($ETH)

Someone Used Flash Loans To Exploit $800,000 In ApeCoin Tokens


An anonymous user took advantage of a vulnerability in the ApeCoin (CRYPTO: APE) airdrop process to exploit more than $800,000 worth of APE tokens.

What Happened: A transaction on Etherscan shared by Parsec founder Will Sheehan we Twitter Inc (NYSE:TWTR) revealed that an attacker used a flash loan attack to obtain 60,564 APE tokens.

An analysis of the incident by CertiK revealed that the hacker orchestrated the attack by borrowing NFT 1060 from OpenSea and using it as the loan fee to flash loan 5.2 BAYC tokens from the NFTX Vault.

See Also: DeFi Flash Loans Will Become The New Standard Of Financial Security | Opinion

The attacker then used the borrowed BAYC tokens to redeem BAYC NFTs and claim 60,564 ApeCoin tokens as a reward in the airdrop contract.

The hacker then sold the majority of these APE tokens for 293 Ethereum (CRYPTO: ETH) earning him a profit of around $820,000. He minted the BAYC NFTs to BAYC tokens in order to pay back the flash loan and the fees.

“We think the issue here is that the AirDrop of APE token only considers the spot state that whether NFTs are hold by someone [sic],” wrote blockchain security firm BlockSec in its own analysis of the event.

“This is fragile since the attacker can manipulate the spot state using a flash loan. If the cost of the flash loan is smaller than the value of the AirDrop token, then it creates an attack opportunity.”

Price Action: According to data from CoinGecko, APE was trading at $11.44, up 83% from a low of $6.21 earlier today. The token has amassed a market cap of over $1.3 billion in under 24-hours from its launch.

Read Next: ApeCoin Launched: Here Are The Details And How To Get It

Photo courtesy: ApeCoin.com





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The Student Loan Moratorium Could Get Extended Again. That Would Be Very Bad for SoFi in 2022

 The Student Loan Moratorium Could Get Extended Again.  That Would Be Very Bad for SoFi in 2022


Recently, Morgan Stanley analysts Betsy Graseck and Jeffrey Adelson downgraded SoFi ( SOFI 10.77% ) from an overweight to an equal weight rating. The two analysts also significantly trimmed their price target on the one-stop-shop financial services company from $18 to $10. The main reason for the downgrade is that the two now expect the federal student loan moratorium, which has already been extended twice and is supposed to expire on May 1, to be extended yet again.

Graseck and Adelson said in their report that the moratorium could now extend all the way until 2023. If that’s the case, that would be very bad for SoFi’s outlook in 2022. Here’s why.

Student lending makes up a decent part of the business

SoFi offers many products, including cash-management accounts, online investing, and various lending products, including credit cards, personal loans, mortgages, and student loans. The lending business is easily the greatest contribution to revenue and profit at the company. In 2021, the lending division generated nearly $12.7 billion of originations, contributing nearly $764 million of its more than $1 billion of total adjusted revenue. It also added almost $400 million in profit, again far surpassing SoFi’s other two divisions.

Image source: Getty Images.

Before the pandemic, student lending was easily SoFi’s largest loan product. Of its $11.2 billion of total originations in 2019, close to $6.7 billion were student loan originations. The bulk of these student loans come from refinancing existing loans, but as Graseck and Adelson note in their report, borrowers don’t need to refinance as much with the current pause on federal student loan payments. The pain is evident, with student loan originations coming in at nearly $4.3 billion in 2021, which is even smaller than 2020’s depressed levels.

Management projected the pain would continue in the current quarter, telling investors and analysts that because the moratorium hadn’t expired on Jan. 31 as initially expected, adjusted revenue for the quarter would come in at least $25 million lower than if the moratorium had been lifted, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) would come in at least $15 million less.

In the fourth quarter, SoFi actually saw a resurgence in student loan originations. Over the past six quarters, the fintech company hasn’t had student loan originations surpass $1.04 billion, but in Q4, originations jumped up to $1.46 billion. Management attributed the sudden boost to borrowers anticipating the Jan. 31 moratorium expiration and the Federal Reserve’s looming increase to its benchmark overnight lending rate, which the Fed has now formally done. SoFi management noted on the recent earnings call that the surprise extension of the moratorium in December caused a reduction in student loan refi demand during the last week of December.

Still some uncertainty

It’s not a foregone conclusion that the moratorium will be extended, although more and more analysts and experts now see it as a possibility. Marketplace reports that while loan servicers are telling borrowers about expected payments when the moratorium expires, the US Department of Education is telling servicers not to bill borrowers yet, which has led to some confusion.

President Biden faces pressure from both sides, with some arguing that bringing back student loan payments will cut into economic recovery and hurt consumers already dealing with high inflation. On the other side, proponents say that the consumer has been in great shape for a while now and that the moratorium should have ended months ago.

For SoFi, there is still some uncertainty. With the Fed now saying that it expects to raise rates at each of its next six policy meetings the year, it’s possible that might create some more urgency for borrowers to refinance.

The other somewhat positive takeaway from all of this is that SoFi has managed to increase total origination volume well past 2019 levels even without strength in the student loan business, which is a good sign for investors. But if the moratorium is delayed until 2023 as Graseck and Adelson expect, that’s likely going to dent SoFi’s outlook on adjusted revenue and EBITDA this year.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.





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How to calculate student loan interest on federal and private loans

How to calculate student loan interest on federal and private loans


Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders who compensate us for our services, all opinions are our own.

Learn how to calculate student loan interest on federal and private loans, as well as the factors that affect interest costs. (Shutterstock)

If you need to take out student loans for college, it’s important to know how much that borrowed money will cost you in the end. To figure that out, you’ll need to do some calculations. Knowing your interest rate, principal, and repayment term is a good start. Here’s a look at how to calculate student loan interest on federal and private student loans.

If you’re looking to refinance your student loans, visit Credible to compare student loan refinance rates from various lenders.

Two types of student loan interest: Simple vs. compound interest

When it comes to calculating student loan interest, you need to consider two different types, especially if you have private student loans: simple interest and compound interest.

Federal student loans all increased simple interest. Despite the name, the calculation for simple interest is a bit complicated.

Lenders use a daily formula that multiplies your outstanding principal loan balance by your interest rate factor (your interest rate divided by the number of days in the year). That number is then multiplied by the number of days since your last student loan payment. Here’s the calculation:

  • Simple daily interest = [Remaining principal balance x interest rate factor] x number of days since last payment

Though all federal loans and most private student loans use a simple interest formula, some private student loans use compound interest. This means lenders add unpaid interest charges to the remaining principal balance.

The next time lenders calculate interest, they use that new principal balance — meaning that you’re charged interest on your interest. As a result, student loans with compound interest are more expensive to repay than loans with simple interest, when all other variables are the same.

STUDENT LOAN REFINANCING CAN POTENTIALLY SAVE BORROWERS $5K

How to calculate student loan interest: The basics

Determining how much interest your loans will cost you over a specific period of time involves a few important calculations.

To find the daily interest rate, also known as the interest rate factor, divide your loan’s interest rate by the number of days in the year (usually 365). This represents the interest rate applied to your loan each day that you carry a balance. So, if your loan has an APR of 10.99%, your daily rate is calculated this way: 0.1099 / 365 = 0.000301, or 0.0301%.

Tea daily interest charge is how much your loan will cost you daily, expressed as a dollar amount. To calculate this, multiply your daily interest rate by your loan’s remaining principal balance.

So, if you owe $20,000 on the day you calculate your daily interest — and have that same 10.99% APR — your daily interest amount will be about $6: 0.000301 x $20,000 = $6.02.

Tea monthly interest charge is how much your loan will cost you each month, and this calculation is also simple once you have the other two numbers. Multiply the daily interest charge by the number of days since your last payment.

Let’s say you made a payment on June 1 and your next payment is due on July 1 (30 days later). With that same loan ($20,000 and 10.99% APR), you could expect a monthly interest charge on that statement of about $180. This is what the calculation looks like: [$20,000 x 0.000301 ] x 30 = $180.60 monthly.

Other factors can affect your interest costs too, but this is a good place to start when calculating how much borrowing will cost you.

When does interest start to increase on student loans?

All student loans—federal and private—begin increasing interest as soon as the money is disbursed to you or your school. This means your loan will technically begin costing you money even before you graduate and start paying off the debt.

The difference is who’s responsible for paying that interest if you’re still enrolled.

federal student loans

With some federal student loans, the government subsidizes your interest as long as you’re enrolled in classes at least half-time, and for the first six months after you graduate. This means that any interest on the loan won’t be added to your balance until you reduce your course load or reach the end of your grace period after graduation.

Other federal loans are unsubsidized, meaning the government doesn’t pay your interest. Instead, this interest — which also begins accruing at disbursement — is added to your loan balance and is your responsibility. Once you graduate and are past the grace period or unenroll and begin repaying that balance, it’ll include the increased interest from when you were in school.

Private student loans

Private student loans are also unsubsidized. They begin increasing interest immediately, which is added to your loan balance. When you graduate, you’ll be responsible for the original loan amount and any interest charges that have accrued.

Forbearance and deferment

Federal student loan borrowers may be eligible for forbearance and deferment periods if they’re unable to make loan payments as scheduled.

With forbearance, interest will continue to increase, even if you’re not required to make payments. With deferment, you may or may not be required to pay the interest that accrued, depending on your loan type (you generally don’t have to pay interest during this time if you have a Direct Subsidized Loan, Subsidized Federal Stafford Loan, Federal Perkins Loan, or the subsidized portion of an FFEL Consolidation Loan).

If you don’t pay the interest as it accrues, it may be added to the principal loan balance. This is called capitalization, and it impacts your loan the same way that compound interest does.

With Credible, you can compare student loan refinance rates from multiple lenders, all in one place.

How student loan payments are applied to principal and interest

Student loans typically have a set monthly payment amount for the duration of the repayment period. While your minimum monthly payment typically doesn’t change from one month to the next (unless you have a variable-rate loan), the portion of that payment that’s applied to your principal — versus the portion that goes toward interest — does change.

As long as the loan has a simple interest calculation, the monthly interest charge is calculated for each statement cycle. This determines how much interest is charged on the remaining principal balance for that month, according to the interest rate and the number of days in that cycle.

Your monthly payment first goes toward paying interest charges. Any remaining funds from your monthly payment amount are then applied to your principal balance. This reduces your outstanding balance. Next month, when the same calculation is applied, the amount of interest charged will be slightly lower, meaning that more of your payment will be applied to the principal.

When you first begin repaying your loan, a significant portion of your monthly payment will go toward interest. Over the life of the loan, however, more and more of your monthly payment will go toward your principal. This is called amortization.

Factors that can make student loan interest snowball

Federal student loans typically limit the amount you can borrow. Many private lenders also impose loan limits, depending on your credit score and other personal factors.

So, if the amount you can borrow for college is limited, how do people end up with daunting amounts of student loan debt? This can happen for a few different reasons.

capitalization

Capitalization occurs when a federal borrower fails to pay the accruing interest on their student loans due to forbearance, deferment, or default. These unpaid interest charges are added to the loan’s principal balance; when lenders calculate future interest charges on the loan, they calculate on both the original principal and the added interest.

Essentially, you’re paying interest on your previous interest charges. This increases the overall loan amount and can lead to balances that grow over time instead of shrinking.

Variable interest rates

Student loans with a variable interest rate can also cause interest costs to build over time. If rates increase, so will the monthly interest charges, costing you more money. And unless you make a larger monthly payment, less of that minimum payment will go toward the principal balance.

Compound interest

Compound-interest loans can also result in interest charges that build over time. Any increased finance charges on a compound-interest loan will be added to the principal balance. The next month, when interest is applied again, it’ll be calculated on the now-increased outstanding balance.

7 BEST WAYS TO GET OUT OF STUDENT LOAN DEBT

How to keep student loan interest costs low

You can do a few things to help keep your student loan interest costs as low as possible:

  • Comparison shop for the lowest rate on a private student loan. If you must take out private student loans, finding loans with the lowest possible fixed rate will save you interest every month. If you make the same monthly payment, you’ll also get out of debt sooner with a lower rate than you would paying down a loan with a higher interest rate.
  • Make interest payments while still in school. If your student loans aren’t subsidized, you’ll be responsible for any interest that accrues while you’re still in school. Rather than allow your loan balance to grow unchecked, you can choose to make interest payments even before you graduate.
  • Consolidate federal student loans. With a Direct Consolidation Loan, you can combine your federal student loans into a single loan. The loan’s interest rate is calculated as an average of the rates from the loans you’re consolidating, and can also switch any variable-rate loans into one fixed-rate loan. That can potentially save you money over the course of your repayment.
  • Refinances private student loans. By refinancing your private student loans, you can simplify your repayment and potentially reduce your interest rate in the process. Refinancing can also allow you to release a co-signer from your loans and switch variable-rate loans to a fixed-rate loan.
  • Avoid refinancing into a longer-term loan. While it can be tempting to choose a longer loan term when refinancing private student loans (and get a smaller monthly payment), this isn’t usually the most cost-effective option. Instead, this can result in paying more interest over the life of the loan.
  • Avoid forbearance. Forbearance can be necessary in some cases if you’re experiencing financial hardship. But any unpaid interest that accrued during this time will capitalize, or be added to the loan’s outstanding balance. This results in greater interest charges in the future, and a higher overall cost for your debt.

Credible lets you compare student loan refinance rates from various lenders in minutes.



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What Is Delayed Financing For Cash Buyers?


Why Take On Debt When Your House Is Paid Off?

While paying off debt and keeping it off is always appealing, mortgage loan debt is often considered a good debt because, over time, it can increase your wealth.

Low Interest Rates

Today’s mortgage rates at the time of writing are hovering just over 4% for a 30-year fixed-rate mortgage. By contrast, 20 years ago, the best rate you could have gotten would have been just below 7%.

In this low-interest environment, doesn’t it make sense to take the bulk of your cash back, get a mortgage to buy your house and find another use for your savings? What if you invested that money? What if you had major renovations for your new home in mind?

Build Credit

It may seem counterintuitive, but having no debt isn’t the key to being a good credit risk. In fact, it’s probably going to hurt you when it’s time to get a mortgage loan.

By having mortgage debt and repaying it faithfully and punctually, you’re building a favorable credit history. In the future, when you need a loan, it’ll be available to you, and at the lowest possible rates.

It’s important to note that it will help to have a preexisting credit history with credit cards, personal, student or auto loans prior to getting a mortgage. Your home loan is just one more thing that helps add to your history.

Credit Usage

Having a solid history of repaying debt is only one factor that lenders analyze when evaluating your creditworthiness. Another factor they consider is your credit utilization ratio, which is the amount of credit you’re actually using at any given time. Lenders like to see that you know how to manage your credit.

Liquidity, Gold Cash On Hand To Invest

If you’re an investor or you want to become one, you know the value of having cash on hand. While mortgage rates are low, and the stock market and real estate investments are offering the potential for high returns, it makes more sense to get your cash back out of your home and use it to build your investment portfolio.

When considering an investment strategy, make sure to evaluate your risk tolerance and balance your portfolio periodically to mitigate risk.



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Senators push for more disclosure on SBA franchise loans

Senators push for more disclosure on SBA franchise loans


Photo by Jon Springer

An effort to require franchisors to provide more information when they received government-backed loans appeared to have won some key support this week.

US Sen. Ben Cardin, D-Md., chair of the Senate Committee on Small Business and Entrepreneurship, backed a pair of proposals by Sen. Catherine Cortez Masto, D-Nev., that would increase the amount of information franchise brands would have to disclose if they receive SBA loans.

One would require the agency to publish franchise brands’ default rate on SBA loans every quarter. Another would require such brands to provide prospective franchisees with more financial information.

To backers of the legislation, it would give prospective operators more information to determine the quality of the franchise in which they want to invest. “For many small business owners, franchising has been a path to the middle class and financial security,” Cardin said in a statement opening a hearing on the SBA’s role in franchising. “For many others, opening a franchise has led to financial ruin. The model has its risks, with a disproportionate amount falling on the franchisee.”

The proposals have their critics, notably the International Franchise Association, which argues that the bills are trying to fulfill a need that doesn’t exist and that they unfairly target franchisors.

“Our view is that requiring a special kind of disclosure—for franchisors only—that would add additional data to the (franchise disclosure document) would not be useful to prospective franchisees or serve a particularly useful purpose,” Matt Haller, CEO of the IFA , said in a statement for the record submitted to Cardin’s committee. He added that the Federal Trade Commission, which regulates franchises, is a better forum for franchise disclosure than the SBA.

The hearing also became bogged down by concerns about inflation and whether the government should back business loans in the first place.

US Sen. Rand Paul, a Republican from Kentucky and the ranking minority member, complained that proposed regulations would not do anything to ease inflation or balance the budget, lower taxes or repeal legislation. He said the proposals would “weaken a business model that has been successful.”

He then argued this: “The best way to avoid risk for the taxpayers is to stop having them foot the bill for SBA grants and loans.”

Bryan Tipton, owner of the Arby’s franchisee Tipton Investments, argued in testimony at the hearing that if a borrower needs to get SBA-backed funding, then they’re “probably not doing something right.”

“Taxpayers are taking on risky business loans,” he said. “Most small business owners’ needs can be met in the private lending market.”

The SBA will back loans to small businesses that struggle to get lending from the private market. The agency backed some $36.8 billion worth of loans in its 7(a) program and another $7.6 billion in the 504 program, the two most popular such programs.

Many small businesses cannot get started without them, including franchises. “The IFA is very supportive of SBA loan programs,” Leanne Strapf, chief operating officer and a multi-unit franchise owner of The Cleaning Authority out of Columbia, Md., speaking for the association. “These loan programs are essential to helping small businesses get off the ground, giving the opportunity to those who may not have access to capital realize the American dream.”

The legislation from Cortez Masto comes in reaction to a handful of problems in the franchise sector, notably Burgerim, which signed up more than 1,500 franchisees in a three-year period, the vast majority of which never were able to open a store. Most of those who did lost money and many went bankrupt.

The FTC has since sued Burgerim, arguing that the company violated federal disclosure laws in signing up many of the franchisees. The state of California has ordered the company to pay a $4 million fine and refund franchise fees. The actions followed a 2020 investigation by Restaurant Business into problems at the franchise.

The SBA has backed more than 100 loans to the franchise and many argue that the agency should refund those loans in light of the actions by the FTC and California. But many note that the agency should do more to give franchisees information on the investments they’re making.

“They absolutely deserve to know what they are getting into,” Cortez Masto said. “That is not always the case.”

Robert Emerson, a professor of business law with the University of Florida, said he is concerned that bad franchises are a drag on the business model. He doesn’t believe that the disclosure proposals would impact franchisors’ costs because a lot of that work is already being done. Franchisees, he said, “should have better access to information.”

Yet Aaron Yelowitz, a senior fellow with the Cato Institute, a conservative think tank, argued that there is a “statistically insignificant” difference in charge-off rates for SBA loans made to independent businesses or franchises. And he argued that better franchisees will choose brands that provide more information.

“Those providing transparent products will find takers,” he said. “The private market will solve many of these issues.”

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Deadline Approaching for SBA Disaster Loans for Property Damage Due to December 15 Storms and Wildfires

Deadline Approaching for SBA Disaster Loans for Property Damage Due to December 15 Storms and Wildfires


Local

Written By: Press Release
Published Date: 03-18-2022

Director Tanya Garfield of the US Small Business Administration’s Disaster Field Operations Center-West reminds Kansas private nonprofit organizations of the April 18, 2022 deadline to apply for an SBA federal disaster loan for property damage caused by severe storms and straight-line winds that occurred Dec 15, 2021.

Private nonprofits that provide essential services of a governmental nature are eligible for assistance.

According to Garfield, eligible private nonprofits of any size may apply for SBA federal disaster loans of up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. SBA can also lend additional funds to help with the cost of making improvements that protect, prevent or minimize the same type of disaster damage from occurring in the future.

In addition, SBA offers Economic Injury Disaster Loans to help eligible private nonprofits meet working capital needs caused by the disaster. Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. Economic injury assistance is available regardless of whether the private nonprofit suffered any property damage. Private nonprofits have until Nov. 17, 2022, to apply for an SBA Economic Injury Disaster Loan.

These low-interest federal disaster loans are available in Barton, Brown, Clay, Cloud, Doniphan, Edwards, Ellis, Ellsworth, Ford, Geary, Gove, Graham, Grant, Gray, Greeley, Hamilton, Haskell, Hodgeman, Jewell, Kearny, Lane, Lincoln, Logan, Marshall, Meade, Mitchell, Morris, Morton, Nemaha, Ness, Osborne, Ottawa, Pawnee, Republic, Rice, Riley, Rooks, Rush, Russell, Saline, Scott, Sheridan, Smith, Stafford, Stanton, Stevens, Sumner, Trego, Wabaunsee, Wallace, Washington, Wichita and Wyandotte counties.

The interest rate is 1.875 percent with terms up to 30 years. Loan amounts and terms are set by SBA and based on each applicant’s financial condition.

Applicants may apply online, receive additional disaster assistance information and download applications at disasterloanassistance.sba.gov. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 711 to access telecommunications relay services. Completed applications should be mailed to US Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155.



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What minority business owners need to know about getting bank loans

What minority business owners need to know about getting bank loans


As main street businesses are continuing to make a post-pandemic comeback, they’re facing down the triple threat of supply chain headwinds, labor constraints and historic inflation. For some, borrowing to invest, grow, or simply stay afloat, is top of mind.

Data from Goldman Sachs’ 10,000 Small Business Voices “Small Businesses on the Brink” survey finds that 86% of owners find broader economic trends are having a negative impact on business. Nearly 30% of owners are expecting to take out a line of credit or loan for their business this year, and 31% say they feel very confident in their business’ ability to access capital. But Black-owned small businesses reported expecting to borrow at a higher rate of 48%, with less confidence about their ability to gain access to capital, at 19%. The survey was released in late January, with responses from more than 1,400 small business owners, including 225 Black-owned businesses.

Business owner Letha Pugh has had experience with funding inequities that predate the pandemic’s toll. Pugh owns Bake Me Happy, a wholesale and retail gluten-free bakery and coffee shop. When initially seeking capital for the Columbus, Ohio-based business in 2013, Pugh said she was lowballed.

“Just having an account at a bank isn’t a relationship with a bank. We were offered an SBA 7(a) loan for a piece of equipment, and it was specifically for that piece of equipment,” Pugh said. “There wasn’t a discussion of working capital and things like that, I think that is the disconnect.”

Letha Pugh and her wife Wendy own Bake Me Happy in Columbus, Ohio. Pugh has worked for years to build up banking relationships and a network to continue to grow the business.

Courtesy: Letha Pugh

Pugh and her wife Wendy turned to their savings to get off the ground, and over the last few years, Pugh said the focus has been on building up a network to support the small business. She’s leaned on local resources in the city, attending webinars and participating in Goldman Sachs 10,000 Small Business Voices program, along with courses from the National Minority Supplier Development Council and the National Restaurant Association. As the business grew, banks sought to work with the bakery. A relationship with State Bank in Dublin, Ohio, helped the bakery to get access to Paycheck Protection Program loans early on, when other small businesses were shut out.

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“I think establishing a banking relationship as early on as possible, even if it’s a $5,000 line of credit, or access to credit, just so that you can pick up the phone and reach out … I think being able to reach a person at the bank, who knows you and understands you, makes a huge difference” she said.

The pandemic highlighted inequities in lending, with minority-owned businesses getting funding from programs like the PPP at lower rates than white counterparts. The Federal Reserve’s Small Business Credit Survey 2021 Report on Firms Owned by People of Color showed that even among firms with good credit scores, Black-owned firms were half as likely as white-owned firms to receive all of the financing they sought at 24% versus 48% of borrowers.

Community banks wound up being a lifeline for smaller businesses during the pandemic. Winnie Sun, managing director of Sun Group Wealth Partners, said it’s key for businesses setting out to establish banking relationships to prioritize service quality over the size of the bank. Start with a personal or business banker and set up multiple meetings to ensure that person is a good fit for your company and goals.

“It’s really important to remember that the relationship you have with your bank is a two-way street. They want to do business with you. But you also get a chance to decide whether you want to do business with them. And that’s key, “Sun said.

Through persistence, Pugh has continued to grow the bakery, even in the face of the pandemic’s many challenges. Sales are up 40% over 2019 levels, but supply costs have also gone up 25%. Pugh just closed on a building last month with an SBA 504 loan after the bakery lost its lease and rent doubled. The new location should open in June or July.

“We sat down and decided we’re not going to lose money again on building out a space and renovating that space for the business owner or the building owner, and paying their property taxes. … Let us take advantage of owning the building,” she said.

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MIDAS SHARE TIPS: Reap rewards from Cordiant loans to fruit farmers

Healthy profit: Cordiant Global Agricultural Income will allow investors to take advantage of Latin America's bounty and help farmers to grow more with less


MIDAS SHARE TIPS: Reap rewards from loans to fruit farmers with Cordiant Global Agricultural Income, set up to increase supply, but keeping costs low

UK consumers munch their way through more than 650million avocados every year – almost two million a day. Most come from Peru and Chile, which also produce piles of the blueberries, grapes, oranges and mandarins found on our supermarket shelves.

Russia and Ukraine may be known as the breadbasket of Europe, but Latin America is the world’s fruit bowl. Blessed with warm climates and fertile land, the continent exports tons of fruit and vegetables annually, as well as coffee, sugar and crops such as soy, corn and millet, which are key constituents of vegetable oil and animal feed.

As such, agriculture plays a crucial role in the Latin American economy and is expected to continue in that vein for the foreseeable future. Fortunately too, trade ties between the UK and South America date back for centuries.

Healthy profit: Cordiant Global Agricultural Income will allow investors to take advantage of Latin America’s bounty and help farmers to grow more with less

Cordiant Global Agricultural Income will allow investors to take advantage of Latin America’s bounty and help farmers to grow more with less. The group is listing on the stock market early next month, targeting a 4 per cent dividend yield in the first year, rising to at least 6.5 per cent by 2024. Share price growth should take annual returns to at least 10 per cent, making this well worth a closer look.

Cordiant managers have been investing in Latin American agriculture for years, focusing on Brazil, Mexico, Chile and Peru. Over that time they have come to understand how the market works and where the opportunities lie.

They discovered that many farmers, even those with large estates and multi-million-dollar turnovers, find it hard to access the cash they need to expand. In the past, these large, established producers would rely on banks to finance their growth, but long-term loans have been in short supply since the financial crisis.

This is where Cordiant steps in. The group lends money to farmers to help them become both more efficient and more sustainable.

The firm intends to focus on farms with an established record, multi-generational expertise and extensive tracts of land – some as big as Manchester.

With Cordiant funds and advice these farmers can construct clever ‘drip’ irrigation techniques, which reduce water use by around 90 per cent and can almost double yields per acre.

They can acquire kit to convert by-products into energy, buy low-emission machinery and adopt precision farming, which uses technology to boost yields in an environmentally conscious way.

Loans will range from $5 (£3.80) to $50million, though most will be around $25million to be repaid over four to seven years. Demand is substantial so Cordiant can afford to be very choosy, turning down many more requests than it accepts.

With a team of about a dozen on the ground, Cordiant will also keep a watchful eye on creditors, to make sure they are using their money wisely.

In addition, the group will only lend to farmers who have end customers in place, from huge trading groups such as Cargill in the US to supermarket chains including Sainsbury’s, Waitrose and Lidl.

Cordiant will start out with eight loans worth more than $115million, but managers have identified a pipeline of almost $1billion so they should be able to lend out the proceeds from the float pretty swiftly.

Global trade in crops is conducted almost exclusively in dollars so Cordiant is offering its shares at $1 each and hopes to raise $300million. Investors will also receive one bonus share for every five they buy.

MIDAS VERDICT: Food prices were already soaring before the Ukraine war. Looking ahead, further increases seem inevitable. Cordiant Global Agricultural Income has been set up to help farmers increase supply, while keeping costs low.

Over time, that should feed through to more stable prices in the shops. And in the shorter term, Cordiant offers investors access to the agricultural sector, generous dividends and the prospect of steady share growth. At $1, the shares are a buy.

To be traded on: Mainmarket Ticker: CAI Contact: cordiantagtrust.com or 02081585829

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