HARVEST SMALL BUSINESS FINANCE PLUS

seems to have been a poor allocation of capital,вЂќ they wrote. saved relatively few jobs at a high cost, provides growing evidence that the P.P.P. вЂњOur evidence, along with evidence that the P.P.P. The researchers said they hoped their work would help inform the ongoing policy debate about the Paycheck Protection ProgramвЂ™s effectiveness. while providing a traditionally overlooked population with access to the funds they needed and deserved.вЂќ and other authorities to ensure the integrity of the P.P.P. вЂњAlong the way, we partnered with the S.B.A. вЂњAs we reviewed increasing volumes of loan applications, we learned, adapted, and enhanced our fraud detection capabilities and protocols,вЂќ Barry Calhoun, BlueacornвЂ™s chief executive, said in a written statement. Nearly 157,000 applications - about 16 percent of all of the loans BlueacornвЂ™s lenders approved - were canceled by the lenders before they were paid out. ended, the study counted loans that its lenders initially approved but later canceled because of suspicious traits. Blueacorn said that by relying on interim data released by the Small Business Administration before the P.P.P. call to action and did not limit the program to existing customers.вЂќД«efore the study was released, Blueacorn sent a letter Jay Hartzell, the president of the University of Texas at Austin, objecting to the researchersвЂ™ approach.

вЂњUnlike other lenders who prioritized their own customers, Cross River addressed the S.B.A. вЂњCross River is a state-chartered, F.D.I.C.-insured bank with robust regulatory standards,вЂќ said Phil Goldfeder, a bank spokesman. вЂњMy team work day and night to support the smallest-of-small businesses, and we are proud of the work we did so the critical emergency funds reached all eligible applicants.вЂќ вЂњWe made every effort to screen out ineligible applications,вЂќ said JosГ© Martinez, the president of Prestamos CDFI. At the same time, they emphasized that the populations they focused on - particularly solo entrepreneurs and tiny companies, including those without traditional business banking relationships - were inherently riskier. Two other large online lenders, Cross River Bank and Harvest Small Business Finance, also had exceptionally high rates of suspicious loans, the researchers said.ДЄll four lenders said they strongly objected to the studyвЂ™s methodology, data and conclusions. Both of those lenders made nearly all of their loans through Blueacorn, a loan facilitator that drew in borrowers through a marketing blitz and steered them to its partners.

HARVEST SMALL BUSINESS FINANCE PLUS

In particular, the study cites two lenders, Capital Plus and Prestamos CDFI, as having fraud flags on roughly half their loans.

None has any contracts related to the Paycheck Protection Program, he said. Griffin, the teamвЂ™s lead researcher, is an owner of four companies that do consulting work on financial fraud investigations. вЂњIt seems like the fraud cost was high on this program.вЂќДr. Griffin, a finance professor at the university. вЂњWe were fairly conservative in the way we approached the whole analysis, so thereвЂ™s also probably billions that weвЂ™re missing,вЂќ said Dr.

Harvest small business finance