Report: Banks earned more than $10 billion in fees processing small business loans

[babylonsister]

https://thehill.com/policy/finance/494065-report-banks-earned-more-than-10-billion-in-fees-processing-small-business


Report: Banks earned more than $10 billion in fees processing small business loans
By J. Edward Moreno - 04/22/20 10:02 AM EDT


Banks that processed the small business loans allocated by Congress in the $2.2 trillion stimulus bill made $10 billion in fees, according to financial records obtained by NPR.

The fees were earned while processing loans that require less review than regular bank loans and have little risk for banks.

All federally insured banks and credit unions could process the loans before they are approved by the Small Business Administration (SBA) .

Banks took 1 to 5 percent in fees per loan, which very from tens of thousands to $10 million, according to NPR.

Major banks have processed SBA loans in the past but Congress’ historic $2.2 trillion stimulus bill, with put $350 billion more into the SBA, resulted in a record high volume of applications. Some banks reported being out of applications for SBA loans within minutes.

Bank of America told NPR it has 8,000 employees vetting the applications this month which had "significant vetting requirements" and required "collecting, personally examining, and storing data" that is required for each application.

The Treasury Department told lenders that the requirements for SBA loans would be less rigorous than regular loans.

"Lenders are permitted to rely on borrower certifications and representations," the department told lenders, according to NPR.

[Baitball Blogger]

1. So wrong.

Is this why they went for the big loans? They made more profit with less work?

[Marrah_Goodman]

2. Doing things the way we do does nothing but make the rich richer and more powerful

Our government could have loaned the money directly but then how would a profit be made on it?

[uponit7771]

3. Sssssssssssssscum

[BeckyDem]

4. Hat tip to Sen. Durbin and note the date: Posted on April 29, 2009. What's changed?

Sen. Durbin: Banks "Own The Place"

Sen. Dick Durbin (D-IL) on the influence of banks: "the banks, hard to believe in a time when we're facing a banking crisis that many of the banks created, are still the most powerful lobby on Capitol Hill. And they frankly own the place."

https://www.realclearpolitics.com/video/2009/04/29/sen_durbin_banks_own_the_place.html

[crickets]

5. K&R for the post and the discussion.

[customerserviceguy]

6. Very clever

of Munchkin to use this crisis to help out his "too big to fail" bankster buddies. I wonder why the news media didn't see that. Oh, probably too busy running sob stories on the evening news about how the little guys on Main Street needed help, instead of checking out how Wall Street was going to clean up on a program that was too politically important to pass without reading the bill.

[Celerity]

7. and this is just the tip of the iceberg in terms of graft, grifting, and outright theft going on

[jayfish]

8. Here's Another Example.

My son has a checking account with Chase that's "free" If you have $500 in direct deposits per month. He hasn't worked for a month so no DD. Chase charged him a fee which overdrafted his account which generated another fee. He can't get through to Chase to speak with someone so I gave him some $ to cover his shortfall +. He's 19.