"Increased regulation of bank lending still needs to allow for measured risks that permit sound small businesses to receive funding needed to thrive."
Read the full article at Inc.com., In The Trenches, written by Vanessa Merit Nornberg. Vanessa recounts her experiences with financing for her small business start up, Metal Mafia. Interesting and insightful take on the current climate for credit availability for small business.
Click here to read the article.
Showing posts with label business loans. Show all posts
Showing posts with label business loans. Show all posts
Wednesday, June 27, 2012
Friday, June 22, 2012
Check out: The Three Biggest Myths About the S.B.A.
Check out this great article by Ami Kassar of The New York Times about the S.B.A. ... very informative...
The New York Times, June 19, 2012
The Three Biggest Myths About the S.B.A.
By: Ami Kassar
I want to share with you what I consider to be the three biggest myth about the Small Business Administration. But let me be clear: I am a big supporter of the S.B.A. My company, MultiFunding, brokers loans, and we put about 25 percent of our clients into S.B.A. loans. I think it's a good program with a lot of eceonomic benefits. It's also terribly misunderstood by many of the small-business owners we talk to.
So let's debunk some myths.
The New York Times, June 19, 2012
The Three Biggest Myths About the S.B.A.
By: Ami Kassar
I want to share with you what I consider to be the three biggest myth about the Small Business Administration. But let me be clear: I am a big supporter of the S.B.A. My company, MultiFunding, brokers loans, and we put about 25 percent of our clients into S.B.A. loans. I think it's a good program with a lot of eceonomic benefits. It's also terribly misunderstood by many of the small-business owners we talk to.
So let's debunk some myths.
- The S.B.A. Lends Money.
- When the S.B.A. Guarantees a Loan, There is No Need for Collateral.
- S.B.A. Loans Are as Easy to Get as Other Commercial Loans.
Friday, July 30, 2010
check out... Getting an SBA Loan: 5 Things You Need to Know
Getting an SBA Loan: 5 Things You Need to Know
Getting a business loan is tough -- especially these days. But the Small Business Administration can still be a great lending partner. How to cut through the red tape and secure an SBA loan.
Chasing a Small Business Administration loan these days is a little like going to a carnival and expecting to win one of those giant stuffed animals. It might happen, but the odds are probably against you. As Christine Reilly, the president of small business lending for CIT, points out, about a year ago, the federal government tinkered with the formula for getting an SBA loan, and for a brief shining time, even during the Great Recession, SBA loans were semi-easy to come by.
Of course, it's still possible to get an SBA loan -- Reilly is the first to admit it -- and it can be a great way to infuse your company with cash. But how can you navigate the red tape and make sure all the effort pays off? Here are five things you need to know.
- Know the lingo.
- Document everything.
- Got collateral?
- Do your homework. Seriously.
- You are not a risk taker
to read the full article … click here.
Saturday, July 17, 2010
Check out Loans to Small Businesses Plummet...
Business Sherpa: "Not so good news on the small business loan front."
Loans to Small Businesses Plummet
Loans backed by the Small Business Administration dropped significantly after stimulus incentives dried up.
By Rachel Leven
AOL Small Business online, 7/14/10
After a noticeable increase thanks to stimulus perks, loans backed by the Small Business Administration tumbled in June after funding for the incentives dried up. The total value of SBA loans made dropped almost two-thirds, from $1.9 billion in May to $647 million in June.
The drop in small-business loans comes amid the ongoing financial reform debate in Congress.
The economic stimulus upped the guarantee on the SBA's flagship 7(a) loans 90 percent instead of 75 percent and reduced or waived fees on the 7(a) and 504 loans. These incentives were added to bolster lending practices after the recession began in 2008.
The Senate is currently considering a small-business reform bill, which would extend support for SBA lending by decreasing fees and increasing guarantees. If it passes the Senate vote, which could occur next week, the bill will then move to the House.
Loans to Small Businesses Plummet
Loans backed by the Small Business Administration dropped significantly after stimulus incentives dried up.
By Rachel Leven
AOL Small Business online, 7/14/10
After a noticeable increase thanks to stimulus perks, loans backed by the Small Business Administration tumbled in June after funding for the incentives dried up. The total value of SBA loans made dropped almost two-thirds, from $1.9 billion in May to $647 million in June.
The drop in small-business loans comes amid the ongoing financial reform debate in Congress.
The economic stimulus upped the guarantee on the SBA's flagship 7(a) loans 90 percent instead of 75 percent and reduced or waived fees on the 7(a) and 504 loans. These incentives were added to bolster lending practices after the recession began in 2008.
The Senate is currently considering a small-business reform bill, which would extend support for SBA lending by decreasing fees and increasing guarantees. If it passes the Senate vote, which could occur next week, the bill will then move to the House.
Monday, May 24, 2010
U.S. Banks Post Profits, but Woes Persist
Sherpa--This might be a clue as to why credit is so tight.
By MICHAEL R. CRITTENDEN
Wall Street Journal, WSJ.com
WASHINGTON—A total of 775 banks, or one-tenth of all U.S. banks, were on the Federal Deposit Insurance Corp.'s list of "problem" institutions in the first quarter, as bad loans in the commercial real-estate market weighed on bank balance sheets.
Poor loan performance in other sectors also continued to hurt banks, with the total number of loans at least three months past due climbing for the 16th consecutive quarter, FDIC officials said in a briefing on Thursday.
"The banking system still has many problems to work through, and we cannot ignore the possibility of more financial market volatility," FDIC Chairman Sheila Bair said.
There were 702 on the FDIC's "problem" bank list at the end of 2009 and 252 at the end of 2008.
FDIC officials said they expected the number of failed banks to peak this year after climbing steadily over the past three years. Regulators have shut 72 banks so far this year, more than double the number closed by this time last year. Ms. Bair said regulators were preparing for a steady pace of additional closures through the end of the year. A total of 237 banks have failed since the beginning of 2008.
The failures continue to strain the FDIC's fund to protect consumer deposits, although officials signaled they were confident they had enough cash on hand to deal with the expected spate of failures, without having to assess new fees on the banking industry. The agency's deposit insurance fund stood at negative-$20.7 billion at the end of the first quarter, a slight improvement from the end of 2009.
"We have the necessary industry-funded resources to complete the cleanup," Ms. Bair said, in a reference to the fees that the agency assesses on banks for insuring their deposits.
Banks, squeezed by problem loans and the continued recession, responded by reducing their lending. The industry's total loan balances grew by 3% during the quarter, but the increase was due to accounting changes that required banks to bring securitized assets back onto their balance sheets. Without taking into account these accounting changes, lending would have declined for the seventh straight quarter, as banks cut back across most major lending categories.
To read the full article …click here.
By MICHAEL R. CRITTENDEN
Wall Street Journal, WSJ.com
WASHINGTON—A total of 775 banks, or one-tenth of all U.S. banks, were on the Federal Deposit Insurance Corp.'s list of "problem" institutions in the first quarter, as bad loans in the commercial real-estate market weighed on bank balance sheets.
Poor loan performance in other sectors also continued to hurt banks, with the total number of loans at least three months past due climbing for the 16th consecutive quarter, FDIC officials said in a briefing on Thursday.
"The banking system still has many problems to work through, and we cannot ignore the possibility of more financial market volatility," FDIC Chairman Sheila Bair said.
There were 702 on the FDIC's "problem" bank list at the end of 2009 and 252 at the end of 2008.
FDIC officials said they expected the number of failed banks to peak this year after climbing steadily over the past three years. Regulators have shut 72 banks so far this year, more than double the number closed by this time last year. Ms. Bair said regulators were preparing for a steady pace of additional closures through the end of the year. A total of 237 banks have failed since the beginning of 2008.
The failures continue to strain the FDIC's fund to protect consumer deposits, although officials signaled they were confident they had enough cash on hand to deal with the expected spate of failures, without having to assess new fees on the banking industry. The agency's deposit insurance fund stood at negative-$20.7 billion at the end of the first quarter, a slight improvement from the end of 2009.
"We have the necessary industry-funded resources to complete the cleanup," Ms. Bair said, in a reference to the fees that the agency assesses on banks for insuring their deposits.
Banks, squeezed by problem loans and the continued recession, responded by reducing their lending. The industry's total loan balances grew by 3% during the quarter, but the increase was due to accounting changes that required banks to bring securitized assets back onto their balance sheets. Without taking into account these accounting changes, lending would have declined for the seventh straight quarter, as banks cut back across most major lending categories.
To read the full article …click here.
Saturday, May 1, 2010
End Of an Era... Paul Paquette
One of my favorite bankers is leaving the profession to follow a different career path. Paul Paquette at Wells Fargo has been one of the area's top SBA lenders. Paul has been known for his diligence, hard work and professionalism. I liked working with Paul as he was quick to give a "yes" or "no" on a deal, and if it was a "yes" he worked hard to close the loan. In addition he was always patient with my "lobbying" about the merits of a transaction. Good luck Paul in your new career!!!!
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