How The Big Banks are Working the System at Your Expense
as i posted on the stimulus thread...Hancock Whitney took care of the larger accounts first. A company moving 10-20mm annually thru the bank vs 1-2mm annually go theirs and the 1-2mm got a "sorry PPP out of money" reply.
They went right to the larger commercial accounts to satisfy them and retain their business.
The smaller guys got nothing but " hey we need more documentation" - Client in Belle Chasse was asked EVERY DAY for 10 days for a new document. 10 straight days of thinking complete only to be asked for another document the following day. Delay delay til finally - oops out of $$$.
Our company applied- we compiled and submitted 211 pages of documents. No go.
Its actually quite simple...this was fraught with abuse ability from outset. It had zero oversight and no ability to reach the small mom n pops as intended. This was a simple cash grab for businesses that said " oh look free $$$"
And make no mistake. a 1% loan with first 6 mo payments deferred is NOT A PENALTY ( but the Fed Govt says it is ) lolol
its the difference between the haves and have nots. System is designed this way. Just as the market is.
IF you were around post Katrina, this should have come as NO SURPRISE.
Our CFO filled ours out the first day which I believe was the 3rd. He had to redo it the 5th because they were all lost or whatever. Our banker held his hand and made sure it got done. We received confirmation and a prommissory note yesterday and funds are to be discharged tomorrow.
I'm not the biggest customer of the bank, but they do value us as clients.
From a bank's standpoint, I can easily see why they'd prioritize their clients with bigger needs as they get paid by size of the loan and their own downside if the larger clients fail is much higher.
I'm not sure why this is wrong or why it's surprising. I can see how it would suck if you weren't one of the big dogs or someone with at least enough clout for the bank to help you, but that's also what round 2 is for and thankfully that's been approved.
Let me put this another way.
They are trying to give away money as fast as they can with as few strings attached as possible all while not letting strippers, porn producers or drug dealers get any. That takes time. Frankly, it's amazing that it's been as quick as it has been, but with that quickness comes problems and future discoveries of fraud and misuse.
I think it's high time we grow up.