Payment loan – Satori 34 http://satori34.com/ Mon, 20 Sep 2021 02:44:57 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://satori34.com/wp-content/uploads/2021/07/icon-10-150x150.png Payment loan – Satori 34 http://satori34.com/ 32 32 Center Wedges Andhra Government Over Non-Use Of 960 Crore Loan From Foreign Agencies https://satori34.com/center-wedges-andhra-government-over-non-use-of-960-crore-loan-from-foreign-agencies/ https://satori34.com/center-wedges-andhra-government-over-non-use-of-960-crore-loan-from-foreign-agencies/#respond Sun, 19 Sep 2021 15:55:00 +0000 https://satori34.com/center-wedges-andhra-government-over-non-use-of-960-crore-loan-from-foreign-agencies/

The Center requested a report from the government of Andhra Pradesh on obtaining loans worth 960 crore from foreign agencies for various foreign aid projects (EAPs) that remain unused.

Departments that are supposed to get these funds to run projects have blanked out, while contractors have yet to be paid hundreds of crores for work done so far. The EAPs now remain at an impasse because the State can no longer borrow loans from external agencies due to the poor progress of the works and the non-clearance of payments (contributions).

Taking note of the same, the Department of Economic Affairs (DEA) under the Union Ministry of Finance wrote a letter requesting an explanation from the Andhra Department of Finance.

“The overall situation of the use of advances granted by various authorities is not so encouraging because a very large amount of advances is in the accounts of the government of Andhra Pradesh. As of September 7, the amount released as The advance amounts to US $ 124.65 million, roughly equivalent to 960 crore, ”the DEA noted in its letter to the Principal Secretary of Finance.

The DEA also noted that the use of the loan amount was “not that high”, indicating that the cost of interest was increasing but the execution of the project was at a slow pace. DEA officials also called senior officials from various state departments and “gave them ears” of the grim situation.

“We are bombarded with questions about the state of the work and the use of funds (put forward by foreign agencies), but our bulletin is only filled with blanks. They gave us money but we cannot tell them we don’t have it, ”one bureaucrat observed.

“On the one hand, the state government is struggling to get loans but, on the other hand, secured loans are not being spent for their intended purpose,” he told PTI.

DEA warns Andhra government

Currently, there are 14 EAPs active in Andhra Pradesh, with loans from foreign lenders like World Bank, Asian Infrastructure Investment Bank, International Fund for Agricultural Development (IFAD), Asian Development Bank ( AfDB), the International Bank for Reconstruction and Development (IBRD), Japan International Cooperation Agency, New Development Bank and KfW of Germany.

The DEA in particular referred to six such projects for which the AfDB, AIIB, IBRD and IFAD have already released $ 124.65 million in advance.

According to the DEA letter, $ 43.35 million (approximately 316 crore) is expected to be available to the state as the remaining advance out of the total disbursement of $ 71.13 million. The DEA has warned the state to ensure that EAPs are “completed at a faster rate” by liquidating advances since the closing date for four projects is approaching.

(With contributions from the agency)

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Standard Chartered launches smart business loan https://satori34.com/standard-chartered-launches-smart-business-loan/ https://satori34.com/standard-chartered-launches-smart-business-loan/#respond Sat, 18 Sep 2021 17:45:05 +0000 https://satori34.com/standard-chartered-launches-smart-business-loan/

By Dipo Olowookere

The Central Bank of Nigeria (CBN) has threatened to suspend the foreign exchange (FX) license of any bank involved in forex embezzlement.

The central bank issued this threat in a circular dated Friday, September 10, 2021 and signed by its director of the Department of Trade and Foreign Exchange, Dr OS Nnaji.

The notice said that the foreign exchange license of banks discovered for participating in the foreign exchange fraud would be suspended for at least a year, advising depository banks (DMBs) to strictly adhere to the rules and regulations governing currency sales.

The shortage of foreign exchange in the system has forced the umbrella bank to tighten its policies regarding foreign currency transactions in the country.

In late July, the bank, after its two-day Monetary Policy Committee (MPC) meeting in Abuja, announced the stopping the sale of foreign currency to exchange office operators (BDC) on what he described as FX manipulations.

He also announced the suspension of the registration of new BDCs and these actions put the Naira under undue pressure on the black market.

The exchange rate of the Nigerian currency against the greenback was N545 / $ 1 Friday at the close of business and the central bank is not satisfied with the situation, which is why it is taking action to fix the problem.

Because of its power to sanction banks as the national banking sector regulator, the CBN, which hijacked weekly sales of foreign exchange to BDCs financial institutions, pledged to deal with lenders sabotaging the bank. economy in its ongoing investigations.

“We wish to reiterate that the foreign exchange operating license of any bank or banks found guilty of pending investigations could be suspended for at least a year,” the statement said. disclosure declared.

The central bank revealed that it was conducting “surveillance of our financial markets in general and the foreign exchange market in particular”, reminding “banks to refrain from all forms of currency embezzlement”.

He stressed that it was “their responsibility not only to know their customers (KYC requirements), but also to know their customers’ activities (KYCB requirements)”.

Apex Bank said it is issuing the warning “in view of recent developments in the market” and to remind them of their “responsibilities” as authorized forex traders.

When on July 27, 2021, the CBN banned foreign exchange sales to BDCs, it ordered commercial banks to set up a bureau de change in their branches with the aim of honoring genuine requests from retail clients with the proper documentation.

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South Korea extends SME loan support for six months https://satori34.com/south-korea-extends-sme-loan-support-for-six-months/ https://satori34.com/south-korea-extends-sme-loan-support-for-six-months/#respond Sat, 18 Sep 2021 08:49:15 +0000 https://satori34.com/south-korea-extends-sme-loan-support-for-six-months/

To help support small businesses, state-run financial institutions will provide liquidity worth around 4 trillion won.

South Korea’s Financial Services Commission (FSC) has agreed with financial sector self-regulators to extend support for small business loans for six months.

Since March of last year, lenders have extended the maturity date for loans to SMEs by six months to help them ease their financial burden caused by the Covid-19 pandemic.

As part of the extension agreement, lenders will grant loan maturity extensions and deferrals of principal and interest payments to SMEs and self-employed workers until the end of March 2022. Support the loan was due to expire this month.

To help support small businesses, state-run financial institutions will provide liquidity worth approximately KRW 4 trillion (USD 3.4 billion).

Stakeholders in the financial sector also agreed to work towards an orderly standardization process, amid concerns about the potential risks resulting from the accumulation of debtor payment burdens.

To ensure orderly standardization, lenders will offer debtors repayment capacity plans tailored to their specific needs, including non-payment periods of up to one year and installment payments of up to five years.

For vulnerable debtors, assistance programs will be offered through debt adjustment, and pre-training programs will be made available to business owners and SMEs.

According to Fitch reviews, the extension will further delay recognition of bad debts from Korean banks, especially service sectors affected by the extended social distancing measures.

However, the deterioration in loan quality is expected to be modest due to moderate and broadly guaranteed exposures of banks to directly affected sectors as well as the ongoing economic recovery, supported by an increasing pace of vaccination.

The majority of Korean bank exposures to the service sectors are secured by collateral or guarantees from government agencies.




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Exclusive: China Evergrande lenders assess loan losses and renew credit https://satori34.com/exclusive-china-evergrande-lenders-assess-loan-losses-and-renew-credit/ https://satori34.com/exclusive-china-evergrande-lenders-assess-loan-losses-and-renew-credit/#respond Fri, 17 Sep 2021 12:57:39 +0000 https://satori34.com/exclusive-china-evergrande-lenders-assess-loan-losses-and-renew-credit/

BEIJING / HONG KONG (Reuters) – One of the major lenders to the China Evergrande group has set aside provisions for losses on part of its loans to the ailing property developer, while some creditors plan to give it more time to repay, four bank executives told Reuters. .

The measures by Chinese banks, reported for the first time, show how financial institutions in the world’s second-largest economy are preparing for a possible collapse of Evergrande.

The developer epitomized China’s free-wheeling borrowing and building era, with nearly $ 305 billion in liabilities in the form of loans, bonds, so-called trust products, and money owed to entrepreneurs. and suppliers, among others.

The Agricultural Bank of China (AgBank), the country’s third-largest lender by assets, has set aside loan loss provisions for part of its Evergrande exposure, one of the executives said, without giving details. .

Meanwhile, China Minsheng Banking Corp and China CITIC Bank Corp Ltd, two other major lenders in Evergrande, are poised to roll over some of their short-term debt obligations, said two separate sources with knowledge of each situation.

AgBank, Minsheng, CITIC and Evergrande did not immediately respond to email requests for comment.

In general, Chinese banks’ exposure to Evergrande has declined over the past year, and most of their outstanding loans are collateralized or secured by deposits, according to the four sources.

All sources declined to be named because they are not authorized to discuss individual clients.

Minsheng, for example, reduced its exposure to loans to Evergrande to 30 billion yuan from 40 billion yuan in the past 12 months, one of the sources said, adding that it had also stopped offering new ones. loans to Evergrande in recent months.

Last year, Evergrande reported total bank and other loans of 693.4 billion yuan ($ 107.4 billion) – including loans from trust companies rather than banks, which, according to analysts, accounted for the largest part – up from 782.3 billion yuan in 2019.

Despite the cuts, a collapse of Evergrande, even managed, would still impact the Chinese economy given a liability equal to 2% of the country’s GDP.

The company’s banking exposure is wide, and a leaked 2020 document, written off as a fabrication by Evergrande but taken seriously by analysts, showed liabilities stretching to more than 128 banks and more than 121 non-bank institutions.

After this leaked document, the People’s Bank of China (PBOC), the central bank, asked all major lenders in Evergrande to review their loan exposure and assess relevant financial risks on a monthly basis, said a source from a public bank.

The PBOC and the industry regulator, the China Banking and Insurance Regulatory Commission (CBIRC), did not immediately respond to Reuters requests for comment.

COLLAPSE IN ORDER

Evergrande is due $ 83.5 million in interest on September 23 for its March 2022 offshore bond. It has another $ 47.5 million interest payment due on September 29 for the March 2024 notes.

The bonds would default if Evergrande did not pay the interest within 30 days.

Regulators have given no indication to Chinese lenders of a possible Evergrande bailout, a source at one of the major fiat creditors said.

On Friday, the editor of the Chinese Communist Party-backed tabloid Global Times warned Evergrande he should not bet on a government bailout on the assumption that it is “too big to fail.”

Chinese regulators have in the past curbed unbridled lending by domestic banks to real estate companies, reiterated the need to curb real estate speculation and underlined the importance of deleveraging in the real estate sector.

The government may step in to deal with an orderly collapse of Evergrande, two banking sources familiar with the matter said.

“And regulators did a related risk assessment among financial institutions before letting that happen,” one said.

($ 1 = 6.4550 yuan Chinese renminbi)

(Reporting by Cheng Leng in Beijing, Julie Zhu and Clare Jim in Hong Kong; editing by Sumeet Chatterjee and Mark Potter)

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Student loan debt delays home buying schedule https://satori34.com/student-loan-debt-delays-home-buying-schedule/ https://satori34.com/student-loan-debt-delays-home-buying-schedule/#respond Thu, 16 Sep 2021 18:35:49 +0000 https://satori34.com/student-loan-debt-delays-home-buying-schedule/

More than half of non-owners millennia (60%) say student loan debt delays them in buying a home, making them the population most affected by student debt, according to the 2021 National Association of Realtors Student Debt Report .

In comparison, just 53% of Gen Xers, 37% of Baby Boomers and 39% of Gen Z felt this way, according to the study.

The report was produced by Morning Consult, a data intelligence firm, on behalf of the NAR and is based on an online survey of nearly 2,000 student loan holders.

Overall, the report found that 51% of non-homeowner student loan holders surveyed said their debt delayed them in buying a home. When broken down by race, white student debt holders (52%) are more likely than black student debt holders (43%) to say their debt prevents them from buying a home. There are also geographic discrepancies with 61% of non-homeowners in the Northeast stating that their debt prevents them from buying a home, compared to 45% of Midwestern residents.

“Housing affordability is getting worse, leaving future home buyers with student debt at a great disadvantage,” NAR Chairman Charlie Oppler said in a statement.

It should be noted, however, that 46% of all student debt holders surveyed were owners, but black homebuyers were more than twice as likely to have student debt as white homebuyers. Of these homeowners, 50% said their student loan debt had not delayed them in buying a home, but 21% felt their debt delayed their purchase by at least five years.

The situation is very different for student loan holders who do not currently own a home. Almost three-quarters (72%) believe their debt will delay their home purchase, and 19% say it will delay their plans by eight years or more.

When asked why they thought their home purchase was delayed, 47% of non-homeowner student debt holders responded that it was due to their inability to save for a down payment and 45% responded that it was because they didn’t think they could qualify for a mortgage because of their debt-to-income ratio.

Looking ahead, 31% of millennial student debt holders and 28% of black student debt holders said if they didn’t have to pay off their debt anymore, they would use the extra funds to buy a house. . These percentages, however, are much higher than the 13% of student debt holders surveyed who had paid off their debt in the past two years and bought a home.

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Innovation Is In Again: DOE Loan Programs Office Back at the Helm | Holland & Knight LLP https://satori34.com/innovation-is-in-again-doe-loan-programs-office-back-at-the-helm-holland-knight-llp/ https://satori34.com/innovation-is-in-again-doe-loan-programs-office-back-at-the-helm-holland-knight-llp/#respond Wed, 15 Sep 2021 21:59:12 +0000 https://satori34.com/?p=351

U.S. Department of Energy (DOE) Loan Programs Office (LPO) is one of the nation’s premier energy infrastructure programs. Authorized in 2005 to lend nearly $70 billion to innovative clean energy projects, the LPO still has more than 60 percent of its lending authority remaining. Congress could also unlock additional funding later this year as political will for clean technology investments has strengthened.

The LPO was an active investor in early-stage clean tech during the Obama Administration, paving the way for the growth of greenhouse gas (GHG) reducing technologies that are in use today. The program slowed investment activity in recent years as congressional and White House support waned. However, the winds have shifted, creating a resurgence in LPO activity.

As noted in previous alerts, the Biden Administration appointed Executive Director Jigar Shah to lead the office. (See Holland & Knight’s previous alert, “DOE Loan Programs Update: New Leadership and Potential Legislative Expansions,” March 30, 2021.) The LPO’s renewed mission is to act as Congress originally intended – by filling gaps in private sector investments and creating a bridge to finance-ability for the clean tech market. Leveraging the LPO to the greatest extent possible will prove pivotal to achieve the Biden Administration’s clean tech objectives, as the commercial deployment of the innovative energy technologies and advanced manufacturing is necessary for the U.S. to achieve net-zero carbon emissions by 2050.

Accordingly, the LPO again represents an impossible-to-ignore opportunity for innovative technologies, as well as emerging and existing American manufacturers, to cross the barrier from development to deployment of new improved technologies – known as the innovation “valley of death.” The chart below outlines each of the three LPO programs – all of which are likely to expend remaining resources over the course of the Biden Administration – and each program’s lending authority.

DOE LPO: $42.3 Billion in Loan Capacity Available

Improvements Unlocking LPO

In addition to the Biden Administration’s aggressive position with regard to the LPO, there have been a handful of legislative improvements to formally unlock barriers that have developed over the past decade. Below are some of the pivotal changes affecting the LPO for both the Title XVII and ATVM programs. These enacted and proposed modifications to DOE’s existing loan programs offer an effective and immediate path for the investment of federal resources to deploy clean energy technologies.

First, as noted in our previous alerts, the Energy Act of 2020 featured improvements to the LPO, most specifically with regard to timing for payments of fees that had proven prohibitive for applicants. However, the Energy Act of 2020 did not include reforms to ATVM despite nearly a decade of program stagnation, which intensified congressional initiatives to expand the program. Those, and other initiatives have come to fruition via the Senate-passed Infrastructure Investment and Jobs Act, which was the result of bipartisan negotiations.

Building on the success of the reforms brought by the Energy Act of 2020, the Senate-passed Infrastructure Investment and Jobs Act provides for improved energy infrastructure investment through federally backed debt capital, which is further detailed below. Thus, if enacted, this legislation is poised to invigorate and expand the LPO to serve as a viable option for even more emerging clean technology companies.

Additional opportunities are presented with the upcoming, but trickier and more partisan budget reconciliation measure, which allows for the passage of legislation in the Senate with 51 votes rather than 60. The U.S. Senate Committee on Energy and Natural Resources has been given a $198 billion allocation for the reconciliation measure, and a portion is expected to go to financing for domestic manufacturing of clean energy and auto supply chain technologies.

The House will take the lead on drafting the reconciliation measure, and the U.S. House Committee on Energy and Commerce – with broad jurisdiction – has been allocated $486.5 billion. The U.S. House Committee on the Budget has issued statements that the reconciliation measure will invest in clean energy, efficiency, electrification and climate justice by incentivizing private sector development and investment. It remains to be seen exactly how much of the reconciliation measure will be allocated towards further unleashing the LPO’s investment power.

Title XVII Innovative Energy Loan Guarantee Program

Legislative Expansions

Authorized by the Energy Policy Act of 2005, the Title XVII Innovative Energy Loan Guarantee Program enables the DOE to issue loan guarantees for first-of-a-kind commercial-scale deployments of advanced fossil, advanced nuclear, renewable energy, energy efficiency and distributed energy projects in the United States. Technologies that could fall within the current solicitations include carbon capture, direct air capture, small modular nuclear reactors, uprates and upgrades for existing nuclear plants, energy storage, efficient end-use technologies and retrofits of existing renewable facilities.

Title XVII was recently reformed by the Energy Act of 2020. Though seemingly minor, these reforms are significant for potential applicants exploring program opportunities. Specifically, the act allowed for annual appropriations to be used to cover application fees, credit subsidy and other costs to applicants. The act also adjusted the fee schedule so that the upfront costs of program participation are less burdensome for project developers. Finally, the reforms broadened eligibility categories and formalized some of the ongoing internal functions of the program.

The Senate-passed Infrastructure Investment and Jobs Act features two key reforms to LPO. The first reform is a clarification of the reasonable prospect of repayment criteria for Title XVII. Currently, the enacting statute for Title XVII only states that a project must have a reasonable prospect of repayment for a loan guaranteed by the LPO without defining the phrase. What constitutes a reasonable prospect of repayment is now clarified, giving applicants to the program an understanding of the showing that must be made to the program in order to qualify for a guarantee.

The second reform is an expansion of eligibility for Title XVII to include projects that increase the domestic supply of critical minerals through production, processing, manufacturing, recycling or fabrication of mineral alternatives. However, while now eligible, Congress will still need to provide new appropriations for these newly eligible projects. The proposed reconciliation measure may be an opportunity for Congress to fund newly eligible projects, expand overall program authority and address credit subsidy costs.

Administrative Changes: Revised Title XVII Application Process

The program has also taken steps using its administrative authority to make the LPO more accessible. In June 2021, the LPO unveiled a streamlined application process for Title XVII to implement the reforms noted above in the Energy Act of 2020. This change has opened access to smaller, earlier-stage companies that possess innovative clean tech but may have found the upfront costs and requirements for competitive application process to be prohibitive.

No Upfront Application Fees: Effective Jan. 1, 2021, applicants who reach the financial close of a Title XVII loan guarantee will be charged an origination fee that will be sufficient to cover applicable administrative expenses (i.e., review, due diligence). Previously, all applicants were required to submit nonrefundable fees upon submission of Part I and II applications, as well as pay additional costs at different phases of the due diligence process.

The origination fee charged to the applicant will cover the following costs:

  • Application fee to cover costs associated with financial and technical review of applications; the fee is $150,000 for projects that request a loan amount that less than $150 million, or $400,000 for projects that are greater than $150 million
  • Facility fee to cover the underwriting process following the Part I and II application and is calculated as a percentage of the requested loan amount
  • Third-party consultants fee to reimburse out-of-pockets of third-party consultants at DOE during the due-diligence phase

Streamlined Part I Process: In addition to statutory reforms, the LPO streamlined the application process for Title XVII solicitations. The program is now focused on reviewing a project’s potential to avoid, reduce or sequester GHG emissions and asks for the financial justification for the project later in the process. For Part I applications, the LPO review will focus on evaluating if the project:

  1. qualifies as an eligible technology under the solicitation
  2. avoids, reduces or sequesters anthropogenic emissions of GHGs or air pollutants
  3. employs “new or significantly improved technology” as compared to “commercial technology” in service in the United States (i.e., an “innovative technology”)
  4. is located in the United States

For the Part I application, the LPO also made optional two items previously required in the solicitations in to reduce potential barriers to application submission: Section G regarding Business and Financial Plans, and the Application Validation Statement concerning reasonable prospect of repayment in Section H. A complete and up-to-date Section G and Section H will be required for the Part II application.

Administrative Changes: LPO Guidance on Paying Title XVII Credit Subsidy Cost

In July 2021, the LPO issued guidance on paying credit subsidy cost, or the estimated cost to the government of extending or guaranteeing credit, for Title XVII borrowers. The credit subsidy cost equals net present value of estimated cash flows from the government minus estimated cash flows to the government over the life of the loan and excludes administrative costs. This is a customary charge in most federal lending programs. When a project closes financing with the DOE, borrowers are responsible for paying the credit subsidy cost, which can be the largest expense associated with the loan guarantee process.

Per the program’s governing statute, the LPO has authority to include a risk-based charge that, together with the principal and interest on the guaranteed loan or at such other times as the DOE may determine, is payable on specified dates during the term of a Guaranteed Obligation. The risk-based charge is intended to make DOE’s charges and costs consistent with the commercial markets and other federal credit programs. The risk-based charge, while distinct from the credit subsidy cost, may affect that fee by increasing expected inflows to the government that are considered in calculating the amount of the credit subsidy cost.

The credit subsidy cost is calculated prior to loan closing by the LPO using a model provided by the U.S. Office of Management and Budget (OMB). In the past, Congress has provided additional funds for the payment of credit subsidy cost to the LPO. Should Congress decide to authorize and appropriate additional credit subsidy, LPO financing could become even more attractive to innovative clean tech companies.

ATVM Direct Loan Program

Legislative Expansions

The DOE supports the commercial development of advanced technology vehicles and associated components through its ATVM direct loan program, which, like Title XVII, is administered by the LPO. ATVM was established under Section 136 of the Energy Independence and Security Act of 2007 (EISA). Under ATVM, automobile manufacturers and advanced vehicle automobile component or material manufacturers are eligible to obtain direct loans from the DOE for projects that re-equip, expand or establish manufacturing facilities in the U.S. that produce “ultra-efficient vehicles,” light-duty passenger vehicles, light-duty trucks or associated components that meet certain fuel economy standards.

Enactment of the Infrastructure Investment and Jobs Act of 2021 would expand the ATVM program’s scope by expanding eligibility to include medium- and heavy-duty vehicles, trains, aircraft, marine transportation and hyperloop technology. However, much like the expanded authority in Title XVII for critical minerals projects, Congress will need to appropriate funds for newly eligible vehicles. As the Biden Administration seeks to electrify the vehicle market 50 percent by 2030, it will be imperative to fund these newly eligible classes of vehicles.

Like Title XVII, the ATVM program is also altered in the bipartisan infrastructure bill to clarify what constitutes a reasonable prospect of repayment. The ATVM program does not currently have the same reasonable prospect of repayment mandate as Title XVII, but the evaluation of reasonable prospect of repayment on an ATVM loan has long been practice for the program. If passed, the bipartisan bill would statutorily require this evaluation.

The reconciliation bill also offers an opportunity to expand funding for the ATVM program. The ATVM enacting statute places an arbitrary $25 billion cumulative loan volume cap on the program. Removing this cap would allow the ATVM program to flourish and accelerate domestic manufacturing for electric vehicles and their components.

Holland & Knight Insights

As outlined above, the LPO is at a critical crossroads of market enthusiasm, political will and urgent demand for investment in clean technology. Already enacted legislation has created a favorable environment for innovative clean tech companies to engage with the federal government. More notably, given the bipartisan program support in both the 2020 Energy Act and the Senate-passed Infrastructure Investment and Jobs Act, this enthusiasm and forward momentum in utilizing the program to its full capacity is not likely to subside anytime soon.

While the LPO remains much more complex than government grant programs, companies interested in the LPO should not hesitate to conduct a comprehensive evaluation to determine if a proposed project is eligible and likely to proceed through the pipeline to funding. The LPO continues to encourage prospective applicants to apply, and numerous companies have done so already. This has made the competitive application process even more competitive for the more than $40 billion in remaining funds.

Holland & Knight will continue to monitor developments and keep clients apprised of legal, regulatory and policy changes for the LPO. If you have any questions, please contact the authors or another member of Holland & Knight’s Clean Technology Team.


Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.


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Education Ministry sends ominous warning to student loan borrowers https://satori34.com/education-ministry-sends-ominous-warning-to-student-loan-borrowers/ https://satori34.com/education-ministry-sends-ominous-warning-to-student-loan-borrowers/#respond Thu, 02 Sep 2021 15:31:49 +0000 https://satori34.com/education-ministry-sends-ominous-warning-to-student-loan-borrowers/

The Education Department is sending out mass notices to borrowers regarding the suspension of student loans, warning them that they will soon have to resume repayment.

“The collections stopped and the period of interest at 0% have been extended one last time,” said the press release sent by email in bold type. “This is the last deadline. Payments will resume after January 31, 2022. ”

Last month, the Biden administration extended the break in student loan payments, the interest freeze and the suspension of collections until January 31, 2022. The relief was originally scheduled to expire on September 30. In its initial announcement, the administration qualified this decision as a “definitive” extension of student loan relief, which has been in effect since March 2020.

Education Ministry warning comes as federal moratorium on evictions ends following a Supreme Court decision, extended federal unemployment benefits are set at expire, and the latest pandemic wave caused by the Delta variant shows no signs of abating. Millions of Americans are also facing ongoing natural disasters, including wildfires in the west, hurricanes hitting the Gulf Coast, and now widespread flooding in the Southeast, Mid Atlantic and New England. The Biden administration’s strong language in its statement suggests that these external factors would not form a basis for a further extension of the student loan hiatus, unlike previous statements (before the most recent extension) that economic conditions and public health issues would be taken into account in decisions on whether to extend or expand student loan relief.

Meanwhile, the Education Department has yet to announce a formal plan to deal with the impending and potentially massive disruption caused by the upcoming departure of several student loan managers, including FedLoan Servicing, which manages the rebate program. public service loans. The Biden administration will need to transfer more than 10 million accounts from student loan borrowers to other loan departments in the coming months. These transfers have historically chaotic summer, resulting in widespread problems for borrowers, such as damage to credit and loss of records. The Biden administration suggested it would consider so-called bridging contracts with other student loan managers to take over the affected accounts. But no plan or timeline has been announced.

The Biden administration has also not announced any formal decision on its intention to pursue widespread student loan cancellation. Biden has administratively written off hundreds of millions of dollars in student loan debt for borrowers in recent months, but that’s only a small fraction of the $ 1.8 trillion in student loan debt that remains unpaid. Top Democrats in Congress and dozens of student loan borrower advocacy groups argued that President Biden has broad authority to enact widespread student loan forgiveness using executive action; in April, Biden ordered his administration to conduct a legal review of those statutory authorities, but no announcement has yet been made that the review has reached a conclusion.

In its message to borrowers, the Ministry urges borrowers to “update their contact details” and “start planning for repayment” to resume. The ministry is warning borrowers to “pay attention to updates” in the coming months.

In the coming months, student loan borrowers may also want to consider requesting a recalculation of their payments under income-based repayment plans if their financial situation has deteriorated. Borrowers on track to remitting public service loans may want to certify their employment and confirm eligible payments before repayment resumes and service transfers. And all borrowers should take the time to keep all important records like payment histories and key correspondence.

Further reading

Student Loan Cancellation Debate Continues Amid Service Disruption

Your student loan manager is changing: 7 steps to protect yourself now

Biden wants ‘targeted’ student loan cancellation – but what does that mean?

What do Biden’s three recent student loan actions mean for borrowers

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Seller asks PayPal to cancel bots refusing their loan https://satori34.com/seller-asks-paypal-to-cancel-bots-refusing-their-loan/ https://satori34.com/seller-asks-paypal-to-cancel-bots-refusing-their-loan/#respond Thu, 02 Sep 2021 15:29:54 +0000 https://satori34.com/seller-asks-paypal-to-cancel-bots-refusing-their-loan/

Dear Ina,

I applied for a 4th PayPal Working Capital loan and was very surprised to be turned down after successfully repaying 3 previous loans and having a clean record with PayPal for over 16 years, as many supervisors acknowledged PayPal.

I spent a day and a half on the phone with all kinds of PayPal employees to resolve my denial issue and that’s what I found out.

PayPal Zettle approached me over the phone at the beginning of July this year to use PayPal Zettle as a POS payment processor because they said they are phasing out PayPal Here, which I have been using for 7 years.

I agreed to try it but had not yet installed or used this Zettle product.

A Zettle employee said Zettle imposed a limit on all new Zettle accounts at the end of July. He told me that the limitation was meant as a harmless safeguard to prevent people from closing their PayPal accounts until all of Zettle’s money could be transferred and that couldn’t be a problem for me. obtain a PayPal Working Capital loan.

He put me on hold and came back and told me his supervisor said it was a known issue that Zettle’s limitation was causing a problem in working capital loan applications. The limitation was interpreted as a serious account limitation in the algorithm that determines eligibility for a working capital loan, and this issue caused loan applications to be denied.

Four different PayPal employees told me, after combing through my account for clues about my denial, that Zettle’s limitation was the only thing preventing me from getting a working capital loan. .

I waited two days hoping this issue was resolved and contacted PayPal Working Capital again. Their rep told me that they had no knowledge of this problem as a problem. This means that the folks at Zettle never communicated this problem to Working Capital.

I eventually asked a Paypal Business account supervisor to remove the Zettle limitation from my account and tried to apply for a working capital loan again, but was refused.

A working capital supervisor told me that it would probably take at least 30 days for the working capital algorithm to remove Zettle’s limitation. I asked myself, 30 days from what date?

So after successfully repaying 3 PayPal Working Capital loans, I fell victim to PayPal for agreeing to try a new PayPal product that I haven’t even touched yet. The Working Capital Loans Supervisor told me that nothing can be done to override the algorithm.

I am informing you about this problem, because I cannot be the only one who has had this problem. On this date, I am still refused.

Working Capital said to keep applying until the algorithm stops rejecting my application. As the Business Accounts Supervisor said, “You’re just trying to give us more business. Yes, that was the plan.

Hopefully this explanation may help other people who are having difficulty applying for a PayPal working capital loan.

Karen

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BB: Loan repayment deadline eased for NBFI borrowers https://satori34.com/bb-loan-repayment-deadline-eased-for-nbfi-borrowers-2/ https://satori34.com/bb-loan-repayment-deadline-eased-for-nbfi-borrowers-2/#respond Thu, 02 Sep 2021 14:10:57 +0000 https://satori34.com/bb-loan-repayment-deadline-eased-for-nbfi-borrowers-2/

Central bank made move as businesses slowed down due to Covid-19

According to the Bangladesh Bank (BB) opinion on Wednesday, borrowers from non-bank financial institutions (NBFIs) will not default until December 31 if they pay 50% of their loan maturities.

The central bank made the decision as businesses slowed down due to Covid-19.

Borrowers will now have to pay the rest of the installments within one year of the end of the loan repayment term.

NBFIs will not be allowed to transfer their interest or unrealized profits to their income segment during the particular period as mentioned by Bangladesh Bank.

This means that only the amount of interest, which is recovered from customers, can be added to the income segment, according to the notice.

Earlier on July 5 of this calendar year, the BB relaxed its policy to allow borrowers a chance to remain unclassified if they repay at least 50% of the loan or lease as of June 31. 2021, based on the NBFI-customer relationship following the resurgence of the Covid-19 epidemic.

On August 26, the central bank further relaxed its policy (Banking Sector) to allow borrowers a new chance to remain unclassified, if they repay a minimum of 25% of total outstanding loans, for any the calendar year to December 31.

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Missouri raises $ 197 million in ABS for student loans https://satori34.com/missouri-raises-197-million-in-abs-for-student-loans/ https://satori34.com/missouri-raises-197-million-in-abs-for-student-loans/#respond Thu, 02 Sep 2021 13:58:00 +0000 https://satori34.com/missouri-raises-197-million-in-abs-for-student-loans/

A portfolio of mostly consolidated and federally guaranteed student loans secures the Higher Education Loan Authority of the State of Missouri Series 2021-3, a trust that is expected to issue approximately $ 197.5 million in asset-backed securities (ABS).

Known as MOHELA 2021-3, the trust will issue a mix of fixed and floating rate notes from a three-tranche capital structure, or classes of notes. The Pennsylvania Higher Education Assistance Agency will act as a back-up service, according to the Kroll Bond rating agency.

Class A-1A Notes will pay on the Fixed Rate Notes, while Classes A-1B and B will pay a variable interest rate based on one-month LIBOR, plus a margin to be determined at the time of Fixing. price.

The trust will pay principal on a sequential and pro-rata basis, KBRA said, with classes A-1A, AB and B receiving payment in that order until the respective classes are fully paid. With respect to interest, payments will be subordinated to interest payments on Class A Notes. The Notes have a final maturity date of August 25, 2061.

In addition to the subordination provided to class A notes by class B notes, MOHELA 2021-3 has credit enhancement, including note subordination and excess overcollateralization (OC) margin. In addition, the agreement has a capitalized interest fund and a reserve fund.

As of June 30, 2021, the statistical deadline for the regrouping of the underlying loans in the guarantee pool, consolidated loans represented 53.7% of the pool, of which 35.6% unsubsidized and 18.1% subsidized. Stafford loans represent 43.3% of the pool and PLUS loans represent 3.1% of loans. Rehabilitated FFELP loans represent about 4.7% of the pool, KBRA said.

Students living in Missouri make up about 44.9% of borrowers, and the trust has an average balance per borrower of $ 13,097, so any economic situation that negatively affects the state could put the transaction at risk of default. or abstentions higher.

A large majority of borrowers, 73.9%, attended four-year schools, but other types of schools were well represented in the portfolio. Two-year schools and private schools accounted for 11.3% and 10.5% of school types, respectively.

KBRS plans to assign “AAA” ratings to Class A-1A and A-1B notes, each amounting to approximately $ 193 million. Class B tickets should be assigned a grade of “A”.

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