GetFastCapital.com: Latest News

The S.E.C. Accuses Goldman Sachs of Fraud

Fri, 16 Apr 2010 15:53:54 +0000

The S.E.C. Accuses Goldman Sachs of Fraud

Goldman Sachs, one of the premier financial companies of the world, has been accused of fraud over the housing market deal today, as Goldman stocks fell sharply by 13%, and took along with them the whole stock market for a decline following the news announcement.

This legal action is largely seen as a punitive action against Goldman Sachs on a deal that the latter engineered to enable its investors to make a profit on the downfall of the housing market.

The S.E.C. alleges that the bank marketed a complex sub-prime mortgage package but did not reveal that a major hedge fund had bet against the securities.

Goldman's shares fell more than 10% on the news of the accusations against the firm and one of its vice presidents.

The bank escaped relatively unscathed from the financial crisis.

'Regulation risk'

The SEC said that investors had lost about $1 billion in the rogue product - known as Abacus.

This is the first time regulators have acted against a Wall Street deal that allegedly helped investors take advantage of the US housing market collapse.

To read more about this, please click here.

GetFastCapital Launches New Program To Help Business Owners Affected by CIT Group's Bankruptcy

Tue, 08 Dec 2009 01:08:30 +0000

Taking into account the desperate state of affairs in the business lending industry after CIT Group's bankruptcy, GetFastCapital is introducing a new business loan alternative program aimed specifically at busines

Dec 08, 2009 – Hamilton, New Jersey – GetFastCapital (GFC) launches a new program meant to aid those small business owners directly affected by CIT Group’s failure.

Customers that once received lending from CIT will receive access to low rate loan alternatives through GFC’s cash advance program. The program works by advancing a business a lump sum of money and the firm then receiving repayment via a set percentage of the client’s credit card sales. Such a program can provide much needed cash flow to a business while cutting through the complications and some of the risks of working with a bank.

American super-lender CIT Group Inc. failed and entirely changed the business lending landscape in America. A member of the fortune 500, CIT Group was among the nations leaders in factoring, transportation financing and small business loans.

Banks across the country, and also around the world, are now slowing lending to a crawl in response to the recession and massive economic uncertainty. This credit crunch has left small business owners desperate for funding for business expansion or just for financial survival.

However, hope does still exist for small businesses looking for business loans and business loan alternatives. Founded in 2008, GetFastCapital works with businesses across the country and has been noted for its professionalism and friendly customer service department, but most importantly, its quick turn-around-time.

Businesses are approved for funding usually within 24 hours of them submitting the required paperwork, and funds are released in as little as 5 days. Any small business owner that has worked with CIT needs only mention his involvement with the now failed bank to one of GFC’s funding experts to start the process towards obtaining a cash advance with an excellent rate.

Edward Hinson, the VP of Sales at GFC, says that GetFastCapital is committed to providing financing to deserving businesses in a both time and cost efficient manner, and with this new program, aims to help business owners affected by CIT Group’s departure from the financial industry.

In today’s economy financing of any kind is hard to come by and not everyone has a credit score strong enough to attract a bank. Even former CIT customers with bad credit or those who do not know their credit score may still receive funding from GetFastCapital.

- linked from: PrLog

America's Recovery Capital - A Program That Can't Cut it

Tue, 01 Dec 2009 05:18:08 +0000

In May the Small Business Administration unveiled a lending program called America's Recovery Capital as part of the federal government's economic stimulus package. Many small business owners approved of the "bridge loans" as they provided a means of making it through the economic recession without laying off as many workers. Washington officials, as well as many lenders, predicted that the banking industry would subscribe quickly, making the necessary capital available for small businesses.

The banking industry, however, appears hesitant at becoming involved with the program. Many banks, including some of the largest in the country, see little incentive in the program due to the nature of the loans. Though the government has provided $255 million and the program is set to give out 10,000 loans of up to $35,000, lenders seem to see little profit motive in a $35,000 loan over six years. In fact, the SBA announced that as of Monday only 1,127 loans had been extended, totaling a mere $36.8 million.

Some experts have suggested the rigorous underwriting standards cause these relatively small loans to require as much work as much larger and more profitable loans. Banks may simply see no reason to deal with the government and the tight restrictions when more profitable ventures are available.

The program should still have small business loans available through September 2010 if it remains on its current pace. Karen G. Mills, the head of the Smalll Business Administration, has attempted to reassure small business owners that the program will reach its goal of 10,000 loans, but many owners are still unhappy. The small business loans, meant to aid in bridging a recession, may be coming too late to help the businesses, and jobs, they were meant to save.

Goldman Sachs's Main Street Solution May Potentially Hold the Key to the Economic Recovery

Tue, 01 Dec 2009 05:04:24 +0000

Goldman Sachs announced Tuesday that it will be launching a $500 Million project aimed at boosting the economy by aiding those that have suffered the most through the recession. The initiative, known as "10,000 Small Businesses", will attempt to spur the growth of small businesses across the country and thereby create jobs to halt the rise of the already record-high unemployment rate.

The board heading this project will consist of an impressive list of experts, many of whom have had real world success. The panel will include Harvard professor Michael Porter, Goldman's largest current shareholder Warren Buffet, and Goldman Sachs CEO Lloyd Blankfein among others.

A project headed by such a list of true experts is good news for small business owners who have consistently been disappointed by the Government's efforts to aid "Main Street". For Goldman Sachs, the project seems to be motivated both by a feeling of guilt over its perceived part in causing the recession and a simple incentive to make more money in a healthier economy. The bank did, however, make nearly $3.2 billion last quarter.

Out of the total $500 million included in the plan, around $200 million will be put towards scholarships to community colleges and traditional universities across the country, while $300 million dollars is set aside for CDFIs that work primarily with lower income populations. CDFIs, or Community Development Financial Institutions, include banks, investment funds and credit unions that have been certified by the United States Treasury Department. Such institutions have also suffered due to the recession and often provide the only sources of business and personal loans in
small communities.

The plan itself will consist not only of cheap loans, but also of purely philanthropic donations. Such a plan, if well targeted, could have a much more substantial effect per dollar than any government plan initiated so far. Money from a private industry, in this case a single, massive financial institution, targeted by real experts at the small businesses that form the backbone of the economy, does in theory look like an economically sound plan. As simple as this assumption may sound however, it begs the question - is relying on the philanthropic activities of Wall Street a real solution to small businesses, and more importantly, to America's economic woes?