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Banks reject 60% of small business loans

The federal government doled out $30 billion dollars to small community banks to help small business get the credit they need. Instead of loaning the money to mainstreet, the banks repaid their TARP obligations. Only 4 billion or 13% of the money went to small business and I think it is crumb. The cake went to the banks to clear their books. This whole program was very disingenuous. It has become harder and harder for small businesses to get the credit they need.  

A recent study conducted by Pepperdine University found that 60% of small business loan applications were rejected ...


Cash Back inflates Merchants' Revenue

Merchants might get upset that the IRS's computer program to track merchant revenue does not take into account cash back. So merchants that provide this service for their customers could be on the hook for a bigger tax bill. Let's say a merchant gives $5,000 a month in cash back to his customers. His processor must report the merchant's monthly processing volume. The IRS program does not account for cash back. It treats that as regular earned income that the merchant must pay taxes on. Imagine paying taxes on an additional $60,000 that was basically ...


Durbin Amendment Goes into Effect Today: Lower Debit Fees

The Durbin amendment goes into into effect today, which will dramatically lower your card processing fees.

That's the good news. But there is a catch. If you are on a 3 tier or surcharge (billback) plan, you won't realize the savings. However, your processor will.   

The government is lowering the interchange rate or wholesale rate not the retail rate that you pay.  Think of it this way. You pay the retail rate at Starbucks when you buy a cup of coffee. Now if the government lowered the price of coffee beans, but not the price of a cup ...


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