Business Loans – PSP Book http://pspbook.com/ Fri, 24 Jun 2022 10:30:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://pspbook.com/wp-content/uploads/2021/05/default1-150x150.png Business Loans – PSP Book http://pspbook.com/ 32 32 Oil and banking billionaire George Kaiser says market bottom is still a long way off https://pspbook.com/oil-and-banking-billionaire-george-kaiser-says-market-bottom-is-still-a-long-way-off/ Fri, 24 Jun 2022 10:30:00 +0000 https://pspbook.com/oil-and-banking-billionaire-george-kaiser-says-market-bottom-is-still-a-long-way-off/ George Kaiser. The Washington Post via Getty Images The Oklahoma mogul spoke to Forbes on how he protects his investments before the “virtual certainty” of a recession. With the S&P 500 entering a bear market last week, many American billionaires are convinced that a recession is in sight. George Kaiser, one of the richest people […]]]>

The Oklahoma mogul spoke to Forbes on how he protects his investments before the “virtual certainty” of a recession.


With the S&P 500 entering a bear market last week, many American billionaires are convinced that a recession is in sight. George Kaiser, one of the richest people in Oklahoma with an estimated fortune of $9.5 billion, is one of them.

Kaiser, 79, said Forbes that a “recession seems a virtual certainty” and that he expects the economy to tip into a slowdown in the first two quarters of 2023, with a prolonged decline in the stock market. According to Kaiser, the moment when the market bottoms out — the moment when the stock market hits a bottom and starts rising again — is still a long way off. “Historical analogies would suggest a total decline of 35% from the peak, but that story is largely irrelevant because many factors are unique,” he said.

Kaiser, who appeared on the Forbes list of the 400 richest Americans for over two decades, is no stranger to boom and bust cycles. His fortune is concentrated in oil and gas, with other holdings including a 55.8% stake in the publicly traded Bank of Oklahoma (BOKF), a 20% stake in the NBA’s Oklahoma City Thunder, and several investments in public and private companies through his private company. Argonaut investment company. When oil prices crashed in 2020, Kaiser’s oil business suffered and his estimated net worth fell to a fifteen-year low of $4.9 billion. A year later, his fortune had rebounded to $10 billion, thanks to a rebound in oil prices and private equity investments that took advantage of the 2021 market boom.

Now that stock prices are falling and oil prices continue to rise – the price of US oil benchmark WTI has jumped more than a third since the start of this year – Kaiser is managing its investments to weather a possible recession and emerge victorious.

“The recession seems a virtual certainty, but it doesn’t change the strategies of our operating companies much since each is marching to a different drummer,” he said. “Each investment firm has its own unique adaptation.”

Kaiser’s oil and gas assets include Tulsa-based Kaiser-Francis Oil Company and Oklahoma City-based drilling contractor Cactus Drilling, both privately owned, as well as a 77.5% stake in the transmission of Liquid Natural Gas (LNG) Excelerate Energy, which has gone public. in April. Rising oil prices have given independent oil companies like Kaiser a boost: “We are staying aggressive with drilling and production because it’s a peak time,” he said.

As the Federal Reserve raised interest rates to curb rising inflation, this gave the Bank of Oklahoma’s energy lending business an edge. In its first quarter report, the bank revealed that 15% of its total loans were energy loans, or $3.2 billion in total, including $2.4 billion to oil and gas producers. gas, and an increase of 6% since the beginning of the year. When interest rates rise, banks tend to make more money on the spread between interest paid to customers and interest earned on investments. “Energy loans — where our competitors are pulling their horns — provide an opportunity, and growing spreads from interest rate hikes are improving profitability,” Kaiser said.

Even when the stock market was still hot, growing fears of recession meant Kaiser expected a downturn and was investing accordingly. “Our main new reaction to this [economic] the environment has been S&P short hedges for a (premature) time, which we are slowly breaking down with the hope that we can time it precisely enough to step in long when the market capitulates,” he said. Explain. What it means: He bets that the S&P 500 index will fall. Since the start of the year, the S&P 500 index has fallen by 20%.

It remains unclear how deep or long a recession would be, with Kaiser citing several factors including supply chain issues, the war in Ukraine and soaring inflation. And although average wages in the United States have increased since 2021, these gains risk being swallowed up by rising prices for goods and services. Kaiser also expects it to be difficult to attract people to industries that need more workers, such as hotels, restaurants, nursing, teaching and trucking. “We are lucky to live in interesting times,” he said.

Asked when he thought the stock market might rebound, Kaiser — whose fortunes have been roughly flat since January, a better performance than dozens of other billionaires and most other investors — dared to assume that the market may bottom around March or April next year. “Personal income will be the driving force behind this, once we bring all government grants back to recurring rates here and around the world,” he said.

Still, Kaiser thinks guessing the exact timing of the market rebound is a mistake: “Like pornography, you know it when you see it.”

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The MOBUCK$ program offers low-interest loans to small businesses https://pspbook.com/the-mobuck-program-offers-low-interest-loans-to-small-businesses/ Wed, 22 Jun 2022 09:32:00 +0000 https://pspbook.com/the-mobuck-program-offers-low-interest-loans-to-small-businesses/ SPRINGFIELD, Mo. (KY3) — As interest rates rise, it could become difficult for farmers, business owners and communities to borrow much-needed funds. The Missouri Treasurer’s Office works with local lenders to lower interest rates for qualified borrowers. “We’re at a point where interest rates are going up, and I believe they’re going to keep going […]]]>

SPRINGFIELD, Mo. (KY3) — As interest rates rise, it could become difficult for farmers, business owners and communities to borrow much-needed funds.

The Missouri Treasurer’s Office works with local lenders to lower interest rates for qualified borrowers.

“We’re at a point where interest rates are going up, and I believe they’re going to keep going up,” Missouri Treasurer Scott Fitzpatrick said. “If we end up in a recession of some kind, or if we end up on a bumpy road economically. It is important that businesses have access to affordable capital.

MOBUCK$ is a linked deposit program that helps institutions obtain funds at lower interest rates. This means that the Missouri Treasurer’s Office will provide money to a lender to fund a loan. The money is provided to the lender at a market discount rate. Then the lender passes on the savings to the borrower.

“The bigger the loan, the bigger the savings will be,” Fitzpatrick said. “But not all loans are, you know, million dollars, are they? It could be anything, you buy a vehicle and you need to finance a vehicle or a small piece of equipment. It could be up to building a brand new manufacturing plant, or it could be a loan for a farmer, or it could be a loan against livestock, whatever that need is, the program can meet that.

Through this program, lenders can reduce the interest rate by 2-3%. The program was previously known as ____. The Treasurer’s Office has partnered with more than 140 state lenders to provide these loans to qualified borrowers. Terry Harden of Terry’s Towing received a MOBUCK$ loan and was able to pay off the bill sooner thanks to the lower interest rate.

“If you want to save money, it is better to take the MOBUCK$ loan. More money in your pocket is less money than someone else,” Harden said. “So it’s a win-win for you.”

There are six different program categories, and they all have different requirements. For more information on the MOBUCKS program, click HERE.

To report a correction or typo, please email digitalnews@ky3.com

Copyright 2022 KY3. All rights reserved.

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Covid loans, the billionaire… and Starling, the very fast-growing bank | fintech https://pspbook.com/covid-loans-the-billionaire-and-starling-the-very-fast-growing-bank-fintech/ Sat, 18 Jun 2022 15:11:00 +0000 https://pspbook.com/covid-loans-the-billionaire-and-starling-the-very-fast-growing-bank-fintech/ Aboard his 92ft yacht in the Bahamas in June 2015, reclusive Austrian-born billionaire Harald McPike was investigating a new money-making opportunity. Decades after apparently making his first fortune at blackjack, the player-turned-investor had set his sights on Britain’s booming fintech market and invited Starling Bank founder Anne Boden on board. The three-day New Life introductory […]]]>

Aboard his 92ft yacht in the Bahamas in June 2015, reclusive Austrian-born billionaire Harald McPike was investigating a new money-making opportunity.

Decades after apparently making his first fortune at blackjack, the player-turned-investor had set his sights on Britain’s booming fintech market and invited Starling Bank founder Anne Boden on board.

The three-day New Life introductory meeting proved to be lucrative. McPike promised to invest £48m in Boden’s business in exchange for nearly two-thirds of the business – far more than the £3m she had hoped to get. This made it one of the largest seed funding rounds ever for a London-based startup. McPike would go on to invest at least £133m in the business, holding shares through his offshore family office in the Caribbean tax haven.

The billionaire’s stake has since been reduced to 36%, according to Starling, although the bank did not respond to questions about whether McPike’s position had been diluted in a fundraising or sold to new investors, who have piled money into Starling after its incredible growth. during the Covid crisis. The new funding, worth around £400m, took the bank’s valuation from over £1bn last spring to £2.5bn earlier this year, valuing McPike’s remaining stake at over £900m.

The pandemic turned out to be Starling’s moment in the sun. One of the new banks that aims to challenge Britain’s banking giants with technology, it has sucked in business customers during the crisis, handing out loans backed by state money. Starling is now expected to report its first annual profit in the coming weeks – a step that could translate into a lucrative payout for shareholders, including McPike, if Boden follows through on plans to take the bank public as early as the year. next.

But Starling’s journey from scrappy startup to fintech unicorn has touched choppy waters, after a former minister raised concerns about Starling’s pace of growth, particularly through government-sponsored programs , including the Covid Business Loan Scheme. Lord Agnew, a former joint Cabinet minister and Treasury minister whose dossier included an anti-fraud role, went into battle with Boden last month after he claimed in a speech that Starling had used the Covid loan scheme “against the interests of government and taxpayers”, and as “a free marketing exercise to build their loan portfolio and thus their business valuation”. He also claimed that Starling failed to perform adequate checks on borrowers before issuing taxpayer-backed loans.

Agnew had resigned in January following the government’s “lamentable” efforts to control fraud under the wider Covid loan scheme, which is expected to cost the taxpayer up to £5billion. Some cases have been linked to individuals exaggerating their income or spending money on cars and gambling, while others are believed to be linked to organized crime.

Lord Agnew said in a speech that Starling had used the BBLS “against the interest of the taxpayer” and “to build up its loan portfolio and therefore its business valuation”. Photography: PjrNews/Alamy

Boden said she was “shocked” by Agnew’s comments and has since signaled she may take legal action against the ex-minister over what she called defamatory statements.. Boden said Starling had been open and transparent about its approach to the Bounce Back Loan Program (BBLS) and was one of the “most active and effective banks in the fight against fraud.” The bank told the Observer he ‘very quickly informed regulators of the misrepresentations made by Lord Agnew’.

The row has drawn fresh attention to Starling’s meteoric growth and its use of Covid loan schemes. Boden, a former executive of the Royal Bank of Scotland and Allied Irish Banks (AIB), founded Starling in 2014 after 30 years in the industry. The start-up was among the first of so-called neo-banks, alongside Revolut and Monzo, to try to disrupt Britain’s big four lenders by ditching expensive branches and popularizing online-only services.

As Agnew pointed out in his controversial speech, Starling had only loaned out £23million, excluding loans bought from other companies, before the pandemic in November 2019. But as of June 2021, according to a business update from the company, it had distributed £1.6bn of BBLS. loans.

These loans offered up to £50,000 per customer and were 100% government guaranteed, meaning taxpayers foot the bill if a customer defaults. It loaned out a further £640m under the wider Coronavirus Business Interruption Loan (CBILS) scheme, which offered up to £5m to a borrower.

It also means that almost all of Starling’s customer loan portfolio – excluding mortgages – is now backed by government guarantees.

Starling’s first alliance with government programs was to land a £100million grant in 2019 under a program funded by the Royal Bank of Scotland (partly state-owned) to improve competition in corporate banking. Starling credited the grant with ensuring it was “well positioned” to become a “significant lender” of Covid loans.

But unlike the big banks, which limited these Covid loans to existing customers who they said posed a lower risk of fraud, Starling opened its doors to new business customers, including sole traders and limited liability companies.

“Some of our new customers were established businesses that had been customers of major banks but were unable to get the timely support they needed from those banks due to their outdated systems and the fact that those banks have closed,” Starling said.

In its latest annual report, covering the 16 months to March 2021, Starling said it was managing 330,000 individual entrepreneur and business accounts, up from just 87,000 before the November 2019 pandemic. That means Starling may have taken on as many as 243,000 new customers over this period – an average of more than 15,000 per month – despite only having 1,245 employees at the end of this period.

By contrast, some of Britain’s biggest banks have told the Observer they generally “integrate” between 1,500 and 8,000 new professional clients per month.

While only a portion of Starling’s staff would have been tasked with checking all red flags associated with accounts – including those with potentially fraudulent applications for taxpayer-backed loans – Starling said he had “coverage and adequate hiring of staff”.[s] continuously as the portfolio grows”.

Starling has since grown its total commercial account pool to 470,000 and estimates it now represents 8% of the small business banking market.

Some experts believe the bank’s technology has probably been nimble enough to handle so many customers and their loan applications. But one tech investor, speaking anonymously, said that even if Boden was a high-caliber leader who wouldn’t intentionally cut corners, this rate of customer growth would have been an “insane” feat, even according to the fintech standards: “If there is so much volume added to the loan book so quickly, there are inevitably things that will be missed or overlooked.

In Starling’s own words, the “speed of response” of its technical team in May 2020, when it was accredited with the BBLS, “was breathtaking”, according to its annual report. He added in a statement that he had “one of the best banking platforms in the world, which we built from the ground up”, and that its systems “have been designed and built to routinely handle customer volumes at this level and beyond.”

He also said that when it came to government-backed Covid loans, every application was checked for ‘fraud flags’. It said it had more checks in place than most other lenders and more than required by the program, including systematic checks that automatically cross-checked BBLS applicants with the Companies House register and the date of establishment of the company.

“These were no ordinary loan programs. Banks were not allowed to perform financial capability checks on applicants,” Starling said. “We were audited twice and received the highest audit…both times.”

This growth has served its funders well. Boden’s remaining 4.9% stake is now worth around £123m, and McPike has seen the value of his stake – held through his special purpose vehicle JTC Starling Holdings – also soar.

McPike’s vehicle is managed by the Bahamas-based McPike Family Office, where there are no income or capital gains taxes. The Caribbean country was ranked the 12th worst tax haven in the world last year according to the Tax Justice Network index.

McPike did not respond to requests for comment, and Starling did not respond to questions about whether Boden’s or McPike’s stake had been diluted or sold at a profit in subsequent funding rounds.

Boden said in a statement that “The government-backed loan schemes have been designed to facilitate fast and affordable loans, at scale, to support UK SMEs in times of crisis. As such, Starling was excited to pitch in to help small businesses.

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Ford CFO reports rising auto loan delinquencies https://pspbook.com/ford-cfo-reports-rising-auto-loan-delinquencies/ Fri, 17 Jun 2022 06:04:34 +0000 https://pspbook.com/ford-cfo-reports-rising-auto-loan-delinquencies/ Slatestone Wealth Chief Market Strategist Kenny Polcari discusses the Federal Reserve’s decision to raise rates. A rise in auto loan delinquencies, or late payments, could be the next signal that the U.S. economy is headed for a potential recession, according to a new warning from Ford Credit, the automaker’s financing arm. “We are seeing delinquencies […]]]>

A rise in auto loan delinquencies, or late payments, could be the next signal that the U.S. economy is headed for a potential recession, according to a new warning from Ford Credit, the automaker’s financing arm.

“We are seeing delinquencies starting to increase,” Ford Chief Financial Officer John Lawler said Wednesday at the Deutsche Bank 2022 Global Automotive Conference. “It’s not a concern for us yet because at the end of last year and in the first part of this year they were very low. It looks like we’re getting back more towards the average.”

“We’re looking for every indication and every data point we can as to where the consumer is, where they’re headed given everything we’re seeing out there, inflationary pressures, economic issues, etc.” , did he declare. continued. “So we’re seeing a bit of headwinds there in terms of delinquencies as maybe a leading indicator.”

Teleprinter Security Last To change To change %
F FORD MOTOR CO. 11.26 -1.01 -8.23%

Automotive research firm Edmunds reported that the average monthly consumer auto loan payment hit a record high of $656 for new vehicles and $546 for used vehicles in May. The average annual percentage rate for new vehicles reached 5.1%, the highest level since March 2020, and the average loan term for a used vehicle reached a record 70.8 months.

These borrowing costs are expected to rise even further as the Federal Reserve raises interest rates to tame searing inflation.

HOT INFLATION COSTS AMERICANS ANE XTRA $460 PER MONTH, ANALYSIS SHOWS

On Wednesday, the Fed raised rates by 75 basis points for the first time in nearly three decades and charted an aggressive rate hike path for the rest of the year. New economic projections released after the Fed’s two-day meeting showed policymakers expect interest rates to reach 3.4% by the end of 2022, which would be the lowest level high since 2008.

Federal Reserve Chairman Jerome Powell speaks during a press conference following an Open Market Committee meeting at the Federal Reserve Board Building, Wednesday, June 15, 2022, in Washington. (AP Photo/Jacquelyn Martin) ((AP Photo/Jacquelyn Martin)/AP Newsroom)

“As Fed rate hikes continue, automakers will find themselves in a bit of a difficult position because lower interest rates will be a costlier marketing incentive at a time when consumers are more reliant on interest rates. lower interest to combat rising prices,” the Edmunds executive said. ideas director Jessica Caldwell said in a statement.

“While the used market has been quicker to reflect these increases, the fact that the new market is now squeezed without supply chain issues clearly being addressed means car buyers are going to face an even tougher market. With auto loan delinquencies expected to rise, it’s now more important than ever for car buyers to understand the risks associated with financing more than they can afford. afford.”

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Despite the latest headwind, Lawler noted that consumer demand for Ford vehicles remains strong. The company is working to cut costs to offset inflation, raw material and supply chain pressures.

“Given the environment we’re in, I don’t think you’ll see a lot of extra prize money,” he added. “If there’s one area where I think we still have some ability to price, it’s our electric vehicles. But we’ll think about that a lot.”

As Ford has begun to model possible scenarios in the event of an economic downturn, Lawler pointed out that the company and the broader auto industry are in a very different position from previous recessions, where stocks and incentives to exit older models are usually high.

“We are very lean on inventory. We have a large order bank with over 300,000 units,” he explained. “So it’s a completely different environment heading into what could be a potential recession than anything I’ve seen in the past.”

Ford Motor Co. F-150 pickup trucks for sale at a Ford Motor Co. dealership in Colma, California, U.S., on Monday, Feb. 1, 2021. Photographer: David Paul Morris/Bloomberg via Getty Images (David Paul Morris/Bloomberg via Getty Images)

In addition to auto loan delinquencies, Ford closely monitors the prices of used trucks, large vehicles and SUVs. In May, used car prices jumped 16.1% year over year, according to consumer price data from the Bureau of Labor Statistics.

Ford shares, which fell more than 8% in Thursday’s trading session, are down more than 45% year-to-date.

Fox Business’ Megan Henney contributed to this report.

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Suriname government denies secret loan with Italian company https://pspbook.com/suriname-government-denies-secret-loan-with-italian-company/ Wed, 15 Jun 2022 05:40:58 +0000 https://pspbook.com/suriname-government-denies-secret-loan-with-italian-company/ Suriname’s government has broken its silence over allegations it signed a multibillion-dollar loan deal with an Italian building and construction company last year amid criticism from opposition lawmakers. The government of President Chandrikapersad “Chan” Santokhi has reportedly sought a loan deal with Italian company MAEC 87 SRL, in case talks with the International Monetary Fund […]]]>

Suriname’s government has broken its silence over allegations it signed a multibillion-dollar loan deal with an Italian building and construction company last year amid criticism from opposition lawmakers.

The government of President Chandrikapersad “Chan” Santokhi has reportedly sought a loan deal with Italian company MAEC 87 SRL, in case talks with the International Monetary Fund (IMF) do not materialize.

“This is completely far from the truth. The intention of this loan was never realized, so the financial transactions never took place. During this period, it was a possible loan option of two billion US dollars at an interest rate of 0.5%. However, this never took effect,” the president’s office said in a statement.

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In April last year, the IMF announced that it had concluded a three-year, US$690 million program under the Extended Financing Facility (EFF).

Opposition lawmaker Rabin Parmessa told parliament last Friday that the government had secretly entered into a US$2 billion loan deal with MAEC 87 SRL, against any government’s rules for acquiring such loans. from the Dutch-speaking country.

He said a government guarantee of US$4 billion had been provided for the loan, submitting to parliament what he said was a memorandum of understanding between MAEC 87 SRL and the government, along with the government guarantee. State.

The documents were reportedly signed by the Minister of Finance and Planning, Armand Achaibersing, and the Minister of Foreign Affairs, International Trade and International Cooperation, Albert Ramdin.

According to the memorandum of understanding, the loan would benefit a limited company, Surfin NV, created by the government, which would be used to carry out development projects.

Parmessar told parliament that Surfin NV apparently does not exist because it is not on the register of the Chamber of Commerce and Industry.

According to the letter, the loan is a “private loan facility” for financing development projects to be carried out by Surfin NV in Suriname. The loan has an annual interest rate of 0.5% with a term of 20 years. It has a grace period of five years.

For the loan, Surfin NV opened a bank account with the Federal Reserve Bank of New York in New York.

But in a statement, the government claimed that the National Democratic Party (NDP) led by former President Desi Bouterse presented a confidential memorandum of understanding from January 2021, falsely giving the impression that it had contracted a two billion dollar loan and that the funds have since been transferred to private accounts.

The government said many unfavorable loans at high interest rates had been taken out by the previous government, referring to the Oppenheimer loans amounting to US$675 million with an interest rate of almost 13% .

He said that as a result, Suriname found itself in a situation of default, a situation in which creditors were told they could not repay. The heavy debt burden is the origin and fundamental reason why the country is currently going through a financial and economic crisis.

The creditors have expressed their willingness to discuss with the current government, but on condition that an IMF program is launched.

The government said at the time that there was still no idea of ​​the outcome of the IMF option, adding “so it was important to have a fallback in case the program failed. of the IMF”.

The statement adds that in this context, President Santokhi has appointed a committee of government ministers to explore debt restructuring options, with the aim of reducing the level of interest rates from almost 13% to manageable proportions. .

To this end, confidential talks and negotiations have been held with various national and international parties in a transparent manner involving the Central Bank of Suriname.

According to the government, the loan would be used to repay part of the existing loans as well as to raise funds for the management of the assumed financial debt, the reduction of poverty and the stimulation of investments in the manufacturing sector.

CMC/

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The EHPAD Orpea, under pressure on its practices, obtains new funding https://pspbook.com/the-ehpad-orpea-under-pressure-on-its-practices-obtains-new-funding/ Mon, 13 Jun 2022 06:03:00 +0000 https://pspbook.com/the-ehpad-orpea-under-pressure-on-its-practices-obtains-new-funding/ A view shows the logo of French care home company Orpea at the entrance to a retirement home (EHPAD – Housing establishment for dependent elderly people) in Reze near Nantes, France, February 2, 2022. REUTERS/ Stephane Mahe Join now for FREE unlimited access to Reuters.com Register PARIS, June 13 (Reuters) – French nursing home company […]]]>

A view shows the logo of French care home company Orpea at the entrance to a retirement home (EHPAD – Housing establishment for dependent elderly people) in Reze near Nantes, France, February 2, 2022. REUTERS/ Stephane Mahe

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PARIS, June 13 (Reuters) – French nursing home company Orpea (ORP.PA), under pressure over its business practices and the management of its homes, said on Monday it had approved new funding that would result in a new levy for her of 250 million euros (260 million dollars).

“The agreement reached is therefore extremely beneficial for the ORPEA group and for all of its stakeholders, including in particular its 255,000 residents and patients, 71,676 employees and creditors,” added the company.

Orpea said this month that an audit found evidence of financial wrongdoing but did not substantiate all the allegations against the company. Police also raided Orpea’s headquarters this month. Read more

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A 62-page report by auditors Grant Thornton and Alvarez & Marsal said Orpea had inflated labor costs and made suspicious large payments to third parties, confirming some claims in “Les Fossoyeurs” (“The Fossoyeurs “), a book published this year.

Shares of Orpea and its rival Korian (KORI.PA) have slumped this year since the book was published. The author wrote that there had been serious shortcomings at an Orpea center in an affluent suburb of Paris.

This sparked a national debate on the conditions of care for the elderly.

Korian also denied any widespread wrongdoing and said he would always cooperate with authorities. Read more

($1 = 0.9531 euros)

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Reporting by Sudip Kar-Gupta; Editing by Bradley Perrett

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Aging dams could soon benefit from a $7 billion federal loan program https://pspbook.com/aging-dams-could-soon-benefit-from-a-7-billion-federal-loan-program/ Sat, 11 Jun 2022 04:55:42 +0000 https://pspbook.com/aging-dams-could-soon-benefit-from-a-7-billion-federal-loan-program/ ]]>

FILE - The El Capitan Reservoir Dam is seen April 8, 2022 in Lakeside, California.  Eight years after the program was created by Congress, the U.S. Army Corps of Engineers is taking a first step Friday, June 10, 2022, toward providing more than $7 billion in federally guaranteed <a class=loans to repair aging dams owned to states, local governments and private entities across the United States (AP Photo/Gregory Bull, File)” title=”FILE – The El Capitan Reservoir Dam is seen April 8, 2022 in Lakeside, California. Eight years after the program was created by Congress, the U.S. Army Corps of Engineers is taking a first step Friday, June 10, 2022, toward providing more than $7 billion in federally guaranteed loans to repair aging dams owned to states, local governments and private entities across the United States (AP Photo/Gregory Bull, File)” loading=”lazy”/>

FILE – The El Capitan Reservoir Dam is seen April 8, 2022 in Lakeside, California. Eight years after the program was created by Congress, the U.S. Army Corps of Engineers is taking a first step Friday, June 10, 2022, toward providing more than $7 billion in federally guaranteed loans to repair aging dams owned to states, local governments and private entities across the United States (AP Photo/Gregory Bull, File)

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Eight years after the program was created by Congress, the U.S. Army Corps of Engineers is taking the first step toward providing more than $7 billion in federally guaranteed loans to repair aging dams owned by states, governments local and private entities across the United States.

The Corps released a proposed rule for the low-interest loan program on Friday, kicking off a process that is expected to open aid applications in 2023, said Aaron Snyder, acting director of the water infrastructure financing program. from the body.

The Corps National Dam Inventory lists more than 92,000 structures across the United States, most of which are privately owned. The safety of the nation’s dams has come under increased public scrutiny in recent years, in part because of high-profile failures that forced the evacuation of thousands of residents in Michigan and California.

“There is a need to rehabilitate a number of our dams in the United States,” said Chuck Thompson, chief of the New Mexico Office of Dam Safety and president of the Association of State Dam Safety Officials.

But he added: “Rehabilitating a large facility like a dam requires quite a lot of funding, and that’s the kind of thing that even the biggest owners often struggle with.”

A recent Associated Press analysis counted more than 2,200 poor or unsatisfactory dams that are classified as high risk, meaning their failure would likely trigger a flood killing at least one person. That figure was up sharply from a similar AP analysis three years earlier.

The country’s dams have an average age of 61 years and often pose a greater risk than when they were designed and built. Homes, businesses and highways have been built under dams that once stood in remote places. A changing climate with intense thunderstorms has strained some dams beyond their original design. Maintenance has also been postponed, often because dam owners cannot afford to pay for it.

The Association of State Dam Safety Officials estimates that it could cost nearly $76 billion to rehabilitate the nearly 89,000 dams owned by individuals, businesses, community associations, states, local governments and governments. other entities in addition to the US government.

The new federal loan program “puts a pretty good dent in existing needs,” Snyder said.

Most states do not have grant or loan programs specifically for repairing dams. Until recently, federal funds for dam improvements were also limited.

Since 2019, the Federal Emergency Management Agency has allocated nearly $32 million among 35 states and Puerto Rico to design and perform repairs on high-risk dams. Last year’s infrastructure act injected an additional $585 million into this program, including $75 million set aside for dam removal. It has also provided $118 million to rehabilitate aging dams built through the National Resources Conservation Service, among others.

But all of that pales in comparison to the billions of dollars in loans that will soon be available through the Corps.

“This program is critically important to improving public safety, reducing risk to vulnerable communities, and improving climate resilience to bring our aging infrastructure into the future,” said Michael L. Connor, Deputy Secretary of the army for the civil works, in a press release. announcing the proposed rule.

The Corps loan program was authorized under a 2014 law that also allowed loans for Environmental Protection Agency water systems. The EPA has issued 88 loans totaling $15 billion from 2018 to this year.

But until recently, Congress had not earmarked money specifically for dam-related loans. Therefore, the Corps had not developed rules necessary to issue loans for these repairs, Snyder said.

That changed in December 2020 when Congress began taking a series of actions by earmarking money to support the loan program. It received a big financial boost from the Infrastructure Investment and Jobs Act signed by President Joe Biden last November.

Under the proposed rule released Friday, loans would only be available for projects of at least $20 million, though repairs on multiple dams could be pooled together to meet that threshold, Snyder said. Loans can usually cover up to 49% of costs. But that could extend to up to 80% of project costs serving “economically disadvantaged communities” with low income levels, persistent poverty or high unemployment.

Recipients could have up to 35 years to repay the loans.

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Follow David A. Lieb at: http://twitter.com/DavidALieb

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Lending activity fell in the first quarter https://pspbook.com/lending-activity-fell-in-the-first-quarter/ Thu, 09 Jun 2022 04:11:35 +0000 https://pspbook.com/lending-activity-fell-in-the-first-quarter/ A report found that overall residential lending fell 32% between the first quarters of 2021 and 2022, with refinance lending falling 22% and mortgage lending down 18%. Throughout June, we dig deeper into mortgages and securities – looking at where the mortgage market is heading, product developments and game-changing alternative financing options. join us for […]]]>

A report found that overall residential lending fell 32% between the first quarters of 2021 and 2022, with refinance lending falling 22% and mortgage lending down 18%.

Throughout June, we dig deeper into mortgages and securities – looking at where the mortgage market is heading, product developments and game-changing alternative financing options. join us for Mortgage and alternative financing month. And subscribe to Additional credit from Inman for weekly updates throughout the year.

Mortgages fell in the United States during the first quarter of 2022, marking the fastest year-over-year decline in eight years, as mortgage rates climbed to 5%, according to a new report released Thursday. by real estate data curator Attom. .

It found that overall residential lending fell 32% between the first quarters of 2021 and 2022, with refinance lending falling 22% and mortgage lending 18%.

The most important factor behind the fall was a decline in refinancing deals, according to Attom, which found that only 1.45 million residential loans had been converted into new mortgages in the first three months of 2022, a decrease of 46% compared to the same period of 2021 and a decrease of 22% compared to the fourth quarter of 2021.

The decline in refinancing was expected with rising mortgage rates, but experts were caught off guard by the sharp drop in loans to purchase – which fell 12% a year and 18% quarterly, lenders n having granted only 1.01 million mortgages to buyers.

“The decline in refinancing activity in the first quarter is no surprise, with mortgage rates rising as quickly as they have,” said Rick Sharga, executive vice president of market intelligence at Atom, in a statement. “But many forecasts predicted that purchase loans would remain strong in 2022, and even increase both the number of loans made and the dollar volume of those loans. The weakness in purchase loan activity shows how much the combination of rising house prices and rising interest rates has impacted borrower activity this year.

Rick Sharga | Photo credit: Atom Data Solutions

The value of loans taken out for home purchases fell to $371.3 billion, down 16% from the fourth quarter and down 1% year-on-year.

One area that bucked the trend was home loans, which rose 6% quarterly and 28% annually according to Attom, as more homeowners took advantage of soaring home valuations. .

The decline in residential loans represents a sharp turnaround for the sector, which saw its activity nearly triple between the start of 2019 and the start of 2021, the report notes. The forces behind the slowdown – high mortgage rates and record house prices – are poised to continue to hit the market, suggesting the trend will continue.

The drop in lending activity itself is another sign that the US housing market is finally calming down, as more and more buyers find themselves locked out of home ownership.

Email Ben Verde

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Defacto secures €15m led by Northzone with Headline and GFC to become Europe’s largest API-first B2B lending platform https://pspbook.com/defacto-secures-e15m-led-by-northzone-with-headline-and-gfc-to-become-europes-largest-api-first-b2b-lending-platform/ Tue, 07 Jun 2022 06:00:00 +0000 https://pspbook.com/defacto-secures-e15m-led-by-northzone-with-headline-and-gfc-to-become-europes-largest-api-first-b2b-lending-platform/ PARIS–(BUSINESS WIRE)–Founded in June 2021 by Jordane Giuly, the former co-founder of Spendesk (the expense management platform recently valued at more than 1.5 billion euros), Morgan O’hana and Marc-Henri Gires, Defacto provides transparent and instant financing to small and medium-sized enterprises (SMEs). The €15m Series A round, led by new investor Northzone (FinTech backer Klarna,) […]]]>

PARIS–(BUSINESS WIRE)–Founded in June 2021 by Jordane Giuly, the former co-founder of Spendesk (the expense management platform recently valued at more than 1.5 billion euros), Morgan O’hana and Marc-Henri Gires, Defacto provides transparent and instant financing to small and medium-sized enterprises (SMEs).

The €15m Series A round, led by new investor Northzone (FinTech backer Klarna,) includes backers Headline and Global Founders Capital from Defacto, and angel notes from Thibaud Elzière (founder of ‘eFounders), Rodolphe Ardant (founder and CEO of Spendesk), Didier Valet (former deputy CEO of Société Générale) and Victoria van lennep (founder of Lendable).

Built with a “Capital by API, no paperwork” mindset

Defacto provides loans and credits to SMEs through its integrated financing platform. Its API-based product enables third parties such as marketplaces, e-commerce platforms and others to integrate its products directly into their own products, integrating seamlessly.

Its technology-driven approach focuses on providing access to working capital to SMEs, a segment underserved by traditional players, especially in today’s unfavorable macro-economic environment.

“Cash and access to cash is once again cause for concern due to inflation, government covid loan repayments and rising interest rates. A study by EY estimates that in France alone, more than 40,000 companies will go bankrupt. It was 28,000 in 2021,” adds co-founder Morgan O’hana. “We are building a product for builders, not bankers. Access to capital must be fair and instantaneous. Banks rely on data that is at least 18 months old and then take 4 months or more to process loan applications.

Since its launch in France, Defacto has forged partnerships with more than 15 major B2B marketplaces, FinTech companies and e-commerce companies. It has distributed more than €30 million in short-term loans to SMEs via partners such as the freelance platform Malt or fintechs such as Agicap or Pennylane.

Frederic Tan, Product Director at Malt: “We decided to work with Defacto for its flexibility, the quality of its API, and the integration experience. They have been a great ally in our challenge to offer an even more pleasant and transparent payment experience for our customers and freelancers. The team is always available and responsive: a pleasure to work with!”

Instant Access for SMBs

“Companies are increasingly interacting with digital platforms. These interactions generate a large amount of real-time data, which Defacto leverages to redefine how underwriting should be done. Banking institutions will never have adequate information systems to process this flow of alternative data, to offer real-time and tailor-made loan offers,” says Marc-Henri Gires, co-founder and CTO of Defacto.

“Jordane, Morgan and Marco are building an incredibly exciting proposition in the B2B space, a category where they are poised to become a leader. B2B commerce is significantly larger than B2C commerce and most solutions for buyers and The explosion of SME platforms will create significant opportunities over the next few years and we believe Defacto has the potential to be at the forefront of these market developments. Kilian Pender, a Northzone partner joining the Defacto board.

Thanks to a new loan capacity of €400 million, Defacto is now deploying its solution in Germany, the Netherlands, Belgium and Spain. “Finance must move towards real-time data and processes. Small and medium-sized enterprises represent 99% of all European businesses. Yet traditional banking is increasingly timid in supporting them. Defacto’s Capital by API provides entrepreneurs with forms of credit that not only adapt to their needs, but are also more fair and transparent. It is an engine of growth. Rarely have I encountered a team so customer-focused and achieving so much in a single year,” comments Jonathan Userovici, Partner at Headline and lead at Defacto.

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$221 million in SCFS II loans granted to 1,834 businesses https://pspbook.com/221-million-in-scfs-ii-loans-granted-to-1834-businesses/ Sun, 05 Jun 2022 14:30:38 +0000 https://pspbook.com/221-million-in-scfs-ii-loans-granted-to-1834-businesses/ The state-owned Small and Medium Enterprise Bank of Cambodia Plc (SME Bank). Photo provided More than 1,800 small and medium-sized enterprises (SMEs) have received $221 million in loans from the Small and Medium Enterprise Bank of Cambodia Plc (SME Bank) under the SME Co-financing Program Phase II (SCFS II) , depending on the state. -owned […]]]>

The state-owned Small and Medium Enterprise Bank of Cambodia Plc (SME Bank). Photo provided

More than 1,800 small and medium-sized enterprises (SMEs) have received $221 million in loans from the Small and Medium Enterprise Bank of Cambodia Plc (SME Bank) under the SME Co-financing Program Phase II (SCFS II) , depending on the state. -owned company.

Of the 1,834 SME loan recipients, priority sectors accounted for 43% and women entrepreneurs 30%, SME Bank said.

SCFS II funds are provided by the government and Participating Financial Institutions (PFIs) on a 50-50 matching basis.

Federation of Associations for Small and Medium Enterprises Cambodia (FASMEC) President Te Taingpor told The Post that SME Bank has partnered with more than 30 financial institutions to provide loans to help restore the Kingdom’s economic activities to pre-pandemic levels.

He added that the SME Bank provided loans to SMEs working in priority areas such as food processing and agriculture, in line with government policy, and urged SMEs who received SCFS II loans to use them. for these purposes.

According to Taingpor, some SMEs have not received SCFS II loans due to existing indebtedness with banks.

He said his federation has a “vital role” to play in training SMEs to understand how to successfully borrow money from the SME Bank and earn income to pay off their debts, adding that FASMEC provided training to members in the capital and almost all 24 provinces.

The SCFS II budget was increased to its current amount in February, when the Ministry of Economy and Finance, seeing the first positive results and the additional need for financial support for SMEs, allocated an additional $50 million to the SME Bank to continue the program – a sum that has been matched by PFIs, according to SME Bank CEO Lim Aun.

The government launched the first phase of the SCFS in 2020, initially supported by a $100 million fund also provided by the government and PFIs in equal parts. The Secretary of State in the Ministry of Finance, Phan Phalla, announced that the initial phase had benefited 753 SMEs, through 33 PFIs.

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