The brokers will lend securities to short seller :
- either from their inventory
- or using client's shares if those clients allowed their shares to be borrowed.
The fees rate provided is the one applied to the short seller. so about 20% interest per year for anyone borrowing DBMM shares.
Note that each broker could have different interest rate and other fees and specific margin requirements.
If I use Interactive brokers as an example for DBMM (it's one of my broker), they indicate about 4.1M shares available for short selling and a 20.0661% interest rate charged to the borrower.
In case, these shares available at IBKR are owned by a client (client allowing that IBRK borrows them from him to lend to the short sellers), IBKR will repay 50% of the interest to the client.
As an example, I allow IBKR to borrow my shares. And for one of my position, they have been borrowing my shares : they are charging about 54% per year to the short seller and give me back 50% (half so about 27% of the value of the shares they borrowed from me). The amount is calculated daily.
For reference : ticker ALSEN (French small biotech)
For anyone being a IBKR client, you can check availability and interest rates here:
https://www.interactivebrokers.com/en/trading/short-securities-availability.php
copy-paste DBMM info:
Name DIGITAL BRAND MEDIA & MARKET
Number of Lenders with Inventory 2
Symbol @ Exchange DBMM@OTCLNKATS
ISIN Code XXXXXXXH203
Country United States
Quantity Available 4'300'000
Current Fee Rate** 20.0661
**Fee Convention (Others) - reflects the rate charged to the borrower irrespective of the collateral interest rate.
and regarding my example:
Name SENSORION SA
Number of Lenders with Inventory 2
Symbol @ Exchange ALSEN@SBF
ISIN Code FR0012596468
Country France
Quantity Available 45'000
Current Fee Rate** 54.1717