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Long-term customers shocked as Bank of America restricts coronavirus bailout loans to businesses who’ve borrowed before – RT

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5 years ago

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Bank of America customers trying to apply for their piece of the $350 billion small business bailout were appalled to learn the bank was restricting loans to businesses who’d borrowed previously – despite claiming otherwise.

Outraged customers discovered on Friday that the massive financial institution is unilaterally denying loans through the Paycheck Protection Program – the small business bailout passed as part of last month’s coronavirus economic stimulus – to any business that hasn’t borrowed from Bank of America previously.

While the bank’s CEO Brian Moynihan told CNBC it was merely prioritizing existing business loan customers, the policy posted on its website contradicted that claim, revealing that a prerequisite for applying to the scheme was a “small business lending relationship, inclusive of credit card,” that existed prior to February 15. Bank of America was the first of the ‘big banks’ to begin accepting applications – and, as of Friday morning, the only one, though the program’s website was supposed to go live at midnight on Thursday.

Social media was filled with outraged reports from customers, some of whom said their relationship with the bank goes back years.

Some pointed out they were literally being punished for running a debt-free business and not requiring loans in the past.

Others chalked it up to a long-term pattern of “greed and crookedness” at the bank.

President Donald Trump seemed unaware of the issue, however, praising Bank of America on Twitter.

Moynihan also told CNBC that the bank had already received 10,000 loan applications within an hour of the website going live. Small businesses shut out of Bank of America’s portal are concerned that by the time its competitors have their websites up and running – Wells Fargo has already acknowledged its own portal won’t be ready on Friday at all – the money will all be gone. The widespread delays appear to be due to the Treasury waiting until hours before the program was scheduled to go live to deliver much-needed guidance to participating lenders on how to accept and process applications.

In the week leading up to the Paycheck Protection Program’s debut, banks warned that the terms dictated by the Trump administration, requiring that lenders vet all applicants and conduct terrorism and money-laundering screenings, would make it impossible to approve the expected volume of loans in the few months allotted as the application period. While some institutions have threatened not to participate at all, others merely pushed for a guarantee from the Treasury Department and Small Business Administration, who are administering the loans, that they will not be held responsible for any applicants misrepresenting their qualifications.




Also on rt.com
US small business bailout program may be doomed to flop before it starts, as banks balk at terms



The coronavirus crisis and related lockdowns keeping most of the American population indoors have utterly devastated the nation’s economy, forcing thousands of businesses to close their doors and leaving millions out of work. In the last two weeks, nearly 10 million Americans have filed for unemployment, overwhelming states’ benefits websites and exceeding the number who were laid off during the 2008 financial crisis.

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Carry On Canadian Business. Carry On!

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33 mins ago

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October 22, 2024

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business to start in Canada

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

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Imperial to cut prices in NWT community after low river prevented resupply by barges

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4 hours ago

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October 22, 2024

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NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

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4 hours ago

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October 22, 2024

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TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

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