Small businesses file a lawsuit against JP Morgan Chase, Wells Fargo, and other banks over Paycheck Protection Program (PPP) loans. [ Blog Post ]
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47 comments
Hey Sebby. Just a correction. It was not just a matter of negative goodwill for Shake Shack to return the money, but was the fact that they were not able to justify keeping all the employees on-board for the 8 weeks loan forgiveness eligibility. Also, considering this, they were able to get a loan at a lower interest (as opposed to the interest they would have had to pay on the PPP loan as they would have not been eligible for the forgiveness).
I got 6 employees, I applied on the first day Chase portal came live, missed out on the first round of PPP cause Chase sucks. Paypal also funds PPP, they processed my application in one day, just waiting on second round of funding now. Give Paypal a look guys.
So if you're Sebastian, Who is the world is Sebby?
We were told today during our huddle lol Crazy
There is so much fraud going on out there already on these. My Private Investigators and I have been finding the fraud and building the cases. Very crazy times. Chase definitely mishandled the whole PPP funding and it was definitely not on a first come, first served basis. No oversight and greed.
If I had gone back in time and told you guys about this fallout AND Sebby's new haircut nobody would have believed me
I’m down with opp.
When I first saw "small business" and "Chase" in the title, I had thought you'd give your take on Chase tightening their criteria on their business cards. Now I cringe and feel sad when I think about the Ink cards because their signup bonus' are so valuable and were so easy to get not long ago. I planned on getting the Ink Unlimited this summer. If I get denied, missing out on that 50K UR points will be a tough pill to swallow 😞😥
Can you make a video addressing EDD concerns? They appear to be slumped… What's going to happen to all those apps?
I love you seby!
I blame our Federal reserved and shit who refuses to print money just because they don't want to ruin their stupid foreign currency ratio. Not like that matters anymore when you cannot even provide for the people.
Ruth Chris and shake shack got PPP loans mind blown smh publicly traded companies acting as small business the program is trash
the law is the law! sba said first come first serve
Interesting and balanced reporting. Probably a bit of the old Wells Fargo Commission issue and then big business being better prepared.
One minor issue. The money isn’t because there isn’t work available but I am not allowed to open my business.
Wells Fargo should be put out of business. Their natural default is to defraud, scam, get an advantage by what ever means necessary. This is a proven track record of doing the wrong thing when the opportunity arises
Viva capitalism
Show love for Sebby. Hit the Subscrebby.
This to me further makes me believe it makes sense to have a relationship with a local/regional bank as as business.
Watch Louis Rossmans video on this
LET THIS SINK IN…
. Almost half (47.3%) of the US workforce is employed by the 59.9 million small businesses in this country.
. The firms with fewer than 100 employees have the largest share of employees.
. 80% of businesses who applied for a PPP loan are still awaiting funds.
. Larger firms got first dibs. There are lawsuits being filed over this. But it boils down to who had the resources and connections in place to get processed the fastest.
. They are saying a lot of businesses are "underbanked" and that is why the loans did not reach them. But 80% who applied got shut out.
. Several large businesses made the news for getting multiple 10 million dollar loans through their subsidiaries, which put them under the 500 employee threshold.
. There is no provision in the law to even attempt to allocate funds to the businesses that needs them the most.
. Many of the firms who got PPP loans are still operating and only minimally impacted by COVID-19.
. Owners only have to certify that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant.” Economic uncertainty is a reality for any business right now, even if revenues are up.
. The initial $349 billion allocated for this program was gone in two weeks.
. An additional $310 billion in funding is about to be allocated, but the rules are largely unchanged.
. It is predicted that the additional funds will be exhausted even faster. Several large banks are not even taking any new applications, as there are too many still in the queue.
. There is no transparency and oversight for this program, and no requirement to disclose who received this funding.
. Who gets lucky in round 2?
Why is it that the government keeps doing this to us? Businesses get free money and the people get @#$%? Every single time. =D
Wells Fargo is a known financial criminal and will use every trick in the book to make an extra buck. They were fined multi-millions for illegal and unsavory banking practices.
As always the big fish eat 1st & MOST.
If you didn’t know this was going to happen from the get go you live in la-la land. The world is a lot more corrupt than even I know it to be and I know it’s corrupt as hell. I’ll let y’all in on a secret, it’s all about who you know and what they’re willing to do for you.
I also did not receive an Email from Chase that the PPP Portal went live until Tuesday. April 7th. I found the portal was live via Instagram Monday Night. I know that other clients received a call that the portal was opening. I am in the SBA waiting for Approval that is 14 days Chase had my applications!
PPP aka open season on banks. Thanks US gov't.
It's always starts up top. It's culture and the way the lower levels are trained and instructed to work. Over the up top passing the blame because "their" name is not directly associated.
From my personal experience in having some bankers in the household, this whole application process was a cluster fuck. Rule changes up until the final minutes, no one knew processes or how to audit these companies. It did seem that there was some cherry picking in the sense you mentioned of giving businesses a heads up but it was/is still a giant mess.
In our small business we have always found it best to bank with several smaller community banks and build a one on one relationship with them. They are the TRUE small business banks. With bigger banks such as Chase, Wells Fargo and Citi it’s nearly impossible to build relationships as they are more geared towards big businesses. Even the regional banks are not really geared towards small business. It’s no different than anything else; a bank will take care of its most important clients. Small community banks tend to see all their customers a important.
I think that PPP was a well-intentioned program that was ill-conceived.
Of course they chose the larger loan amounts. its a bank. they make money from deposits and loans. that's the point of a bank. Unethical in this case, however.
I can't even enroll online at Wellsfargo. My mom has an account there but she never enrolled online so now I can't sign up the PPP for her.
I think Wells Fargo is Great with excellent customer service. Man Fuck Chase I closed that bitch down with Credit Cards and All. They are absolutely horrible but I left on good terms.
Wait till this is over. The CEO and Chairman of the Board will be back in Congress to answer for this. Shake Shack n Ruth Chris don't need it. They were stupid, they too will have to answer for it.
I had helped three of my friends apply for a PPP loans through Paypal before the money dried up. ALL three of them got approved within a matter of 10 minutes to 2 hours, and had money deposited to their bank account in less than 16 hours since they applied for the loan!
Two of these guys had tried applying through Chase but Chase flat out denied them because they only had Chase credit card and not a business checking with them. Chase gave them all sorts of nonsense about having to verify identity which can only be done through a Chase business checking account! Oh the scumbags.
If any of you have not applied for the loan, DEFINITELY apply through Paypal (or one of the fintech company – I think Square and Intuit are the other two among many more.) DO NOT apply through a big bank unless if you've parked several millions with Chase.
So the banks can't make loans independently from the government PPP loan such as the banks using their loaning power that they regularly use for credit cards for their own kind of PPP loan?
The big banks prioritized businesses that had existing lending relationship with them because they wanted to insure their loans were paid back. This is an obvious conflict of interest and should have never been allowed.
Chase dragged their feet on this intentionally. I've had our business account with Chase for over 10 years. When trying to apply for this Chase website said they were still finalizing the application and our rep said we needed to "hold tight" and check back in a day or two. Knowing this was going to preclude us from the PPP, we went to a smaller local bank and they helped us set up a new account and submit the application immediately. We were successful in our application for PPP and have already been funded. Thank you FirstUnited Bank of Texas.
cooperate uptop
Fk Ruth Chris’s, this where my wife and I met. We go there at least once or twice a month(1 hour drive), bc it’s special to us. Now I we will settle for lone star 10 mins away.
Great video! I’m also sharing info about the stimulus checks 👏🏾👏🏾👏🏾👏🏾
Chase published some stats about their loans. I have been told that my little 12500.00 loan is at SBA for approval. Chase has a habit of stepping up when things get bad. in 2008, they forgave a second mortgage and my girl was able to keep here house. Here's what Chase says about their loans:
So far, our smallest business clients received more than twice as many loans as the rest of the firm combined. Business Banking funded around 18,000 loans, which collectively employ approximately 350,000 employees – and will fund many more if additional funds become available. Our other businesses that serve different businesses, including Commercial Banking, Dealer Commercial Services, and the Private Bank, all combined funded roughly 8,500 loans for businesses that employ over 750,000 employees.
Upsetting but I guess I should not be surprised.
There is something very wrong. CHASE has been our business bank for 9 years. We got on their list for PPP minutes after they opened on Apr. 3rd. Chase responded by email asking us to submit our application on Apr. 7th and so we did. As part of the application we sent them our CARES PPP Payroll Report PREPARED BY ADP, (our processor for the last 9 years) which details all of 2019. Also, WE HAVE 2 ACCTS. AT CHASE, ONE OF THEM IS USED EXCLUSIVELY FOR PAYROLL SO THEY CAN SEE IT.
On April 23rd CHASE SAID THIS…: "Your original loan application was not approved because we were unable to verify average monthly payroll cost from information you provided". HOW THE F IS THAT POSSIBLE?? Please post who is suing them??? so I can join in a class action…..
These banks just want to make a profit out of the Stimulus check. Bull shit.
I know of a certain person that he received his loan from the bank that he doesn’t have to pay back before the stimulus passed. This was maybe 2 to 3 weeks ago. What the hell? He didn’t even have to pay the $300,000 one so you probably won’t have to pay the other $300,000. This guy doesn’t even
I know of a certain person that he received his loan from the bank that he doesn’t have to pay back before the stimulus passed.