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Coleman In The News
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Bob Coleman Featured in Numerous Publications
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End of SBA 504 constricts lending further September 27, 2012
With some lenders tightening the screws on lending, SBA has proven to be a popular financing alternative for hotels. In the two years the temporary refinancing option was in effect, 504 loan volume increased, according to Bob Coleman, editor of the Coleman Report, which tracks SBA lending. In fiscal 2010, 6,549 loans were made totaling $3.7 billion. Those figures grew to 6,941 loans representing loan volume of $4.1 billion in fiscal 2011. And lending during fiscal 2012 through 24 August has grown again to 8,117 loans representing $5.6 billion. SBA 504 refinancing drove the increases, Coleman said in an email. . . . keep reading
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Mini Loans Feed Bigger Ambitions - WSJ September 12, 2012
Generally, many large banks in the U.S. are turning away from small-business loans, preferring instead to issue business credit cards to small-business owners, according to Bob Coleman of Coleman Publishing, a website and weekly newsletter about small-business finance. Little data exist on the lending practices of nonprofit and for-profit U.S. microlenders, but bankers say the business is expanding. The U.S. microlending marketplace generally is slightly different from that in other countries, where peer lending is more common and where loans can be very tiny, sometimes just hundreds of dollars or less. . . . keep reading
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The Tools You Need to Underwrite Franchise Loans
SCORE counselor and small business journalist Jerry Chautin writes today about how franchising can be less risky for lenders, only when they utilize all the financial analysis tools available to them. It's a Franchise Lending 101 article, but there's a quick checklist to make sure you are touching all the bases; . . . keep reading
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The key to financing is in your own backyard - May 10, 2012
But the benefits of community involvement are not limited to the attorneys among you. As Bob Coleman tried to explain during a brief financing overview at last week's Asian American Hotel Investment Conference, it's also crucial for hoteliers (or would-be hoteliers) seeking financing. Don't scoff. Coleman knows what he's talking about. As editor of the Coleman Report, an author, a former banker and as a guest on both Fox Business News and CNN (as well as a HotelNewsNow.com columnist), he's considered an expert in the realm of hotel financing. . . . keep reading
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No Sweat: Event Highlights Power of Small Business
Responding to calls to downsize the SBA to trim the nation's budget deficit, financial pundits Bob Coleman, editor of the Coleman Report, and Chris Hurn, co-founder and CEO of Mercantile Capital, wrote in HotelNewsNow.com: "Efforts to end programs like these lack any foundation of sensibility. It's the equivalent of trying to lose weight by cutting your hair." Caldeira talked about the benefits of franchising with CEO Plank. Nodding his head, Plank said, "We're still working on getting the model right." . . . keep reading
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The key to financing is in your own backyard
But the benefits of community involvement are not limited to the attorneys among you. As Bob Coleman tried to explain during a brief financing overview at last week's Asian American Hotel Investment Conference, it's also crucial for hoteliers (or would-be hoteliers) seeking financing. Don't scoff. Coleman knows what he's talking about. As editor of the Coleman Report, an author, a former banker and as a guest on both Fox Business News and CNN (as well as a HotelNewsNow.com columnist), he's considered an expert in the realm of hotel financing. So during his presentation, when he could have discussed government policy and interest rates and underwriting, attendee interest was piqued when he instead focused on the importance of getting involved. "Who is lending today are the community banks," he said. "… Community bankers are not tied to the financial matrix that the large banks are. Their mission is to support the community and revive the community." . . . keep reading
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Recession a Hurdle for Small-business Owners Seeking Credit to Operate
A lending index by Paynet, which tracks commercial loans, shows small-business lending nationwide has not picked up since the financial crisis began in late 2008. The Chicago area firm's index peaked in fourth-quarter 2008 at 115 as the financial crisis hit and then dropped to 75 by first-quarter 2010. Since then, it has fluctuated between 70 and 75. "Lending is beginning to loosen up a bit, but people have to remember how bad it was in 2009," said Bob Coleman, editor of the Coleman Report, a La Canada, Calif.-based publication that tracks SBA loans. "Lenders say they don't have enough good-quality applicants, and Main Street says there aren't enough lenders providing small-business loans," he said. "Is that a supply problem or a demand problem?" . . . keep reading
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Hotel Financing Picture Reveals Optimism - March 13, 2012
There is a tremendous amount of optimism in the hotel industry in 2012, a far cry from the scary numbers and grim predictions at the beginning of 2011. It is a very cyclical business; in March 2010, we saw the first increase over the year before in terms of occupancy, average daily rates, and revenue per available room. Since then, there have been 20 consecutive months where there has been RevPAR growth over the same month the previous year. That is a great indicator that occupancy has stabilized, demand is coming back, and the threat of overbuilding the new supply coming into the industry is slight. . . . keep reading
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SBA Seeks More Money in 2013 for Fewer Loans - Entrepreneur - February 15, 2012
Small-business lending expert Bob Coleman, founder of Coleman Publishing, says that the lower loan caps are due, in part, to expiration of stimulus measures that temporarily increased the amount of a loan that the government would guarantee and decreased the fees, making SBA loans attractive to both lenders and borrowers. "They are going back to pre-stimulus numbers," said Coleman. The newly stated levels "should be sufficient to meet the demand for the industry." Also, while the SBA was given permission by Congress to support $17.5 billion in 7(a) loans and $7.5 billion worth of 504 loans last year, it was only given enough money to back $16.5 billion in 7(a) loans and $6.5 billion in 504 loans. The SBA feels that it will still have plenty of room to meet the demand for loans with its shrunken authority levels. . . . keep reading
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Commercial Mortgage Bankers Are Doing Deals As the Real Estate Market Breathes New Signs of Life - February 1, 2012
"Values have probably bottomed out, or very close, on the commercial (properties) side," says Bob Coleman, a former banker and financial publisher of the Coleman Report. He also publishes underwriting data for the banking industry. Coleman says that the bottoming out of values are "giving entrepreneurs with access to cash tremendous buying opportunities." He recently authored, Money, Money Everywhere But Not a Drop For Main Street. "Deals are being done," he says "but with increased equity injections." In other words, to do a deal in today's environment investors and developers have to bring lots of cash to the table. That is why the MBA convention includes a session called, "Commercial Real Estate Equity Markets - Who's in the game?" . . . keep reading
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SBA Lending in 2012 Gets a Haircut
October 7, 2011
Not only are the enticements of yesteryear long gone, the SBA's budget for 2012 is offering to support fewer of its most popular 7(a) loans. The agency plans to offer $130 million to subsidize the support of $16.5 billion in 7(a) loans. Last year, it devoted $165.4 million to support $17.5 billion in 7(a) lending. "If more money was available, it would allow more businesses to borrow through the SBA program," says Bob Coleman, editor of the Coleman Report, a trade newsletter for the small-business banking industry. By contrast, less money to go around may mean that fewer businesses will be able to land a loan, he says. What's more, less money to support SBA loans may have a chilling effect among banks. Two weeks ago, Vice President Joe Biden and SBA Administrator Karen Mills announced small-business loan commitments from 13 of the nation's biggest lenders that tallied at $20 billion over the next three years. But Coleman points out that without a guarantee -- that is, if the SBA ran out of funding for its loan programs -- banks won't be as motivated to make small-business loans. . . . keep reading
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Small-Business Lending Jumps, But Credit Struggles Linger
October 5, 2011
Last October, the SBA expanded the pool of eligible small businesses by raising the loan amounts it would back to a maximum of $5 million from $2 million. But that larger pool made smaller loans less attractive to banks. As larger and stronger businesses applied for the higher loan amounts, some smaller businesses were left behind. It takes as much work for a bank to underwrite small loan as a large loan, says Bob Coleman, an SBA-loan analyst in La Canada, Calif., and owner of Coleman Publishing, a trade publisher for SBA lenders. "The amount of man hours they need to put into the analysis and documentation -- they are losing money on that process," he says. "Banks are chartered to make money and if I can only do four deals a month, I'd rather work on deals that can make a larger profit." . . . keep reading
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Lender "Screws Up," Others Can Learn From Its Mistakes
August 17, 2011
Motivated by the Banco Popular brouhaha, Charles Green presented a lenders' webinar called, "How to analyze borrower projections to ensure the validity of your SBA Guaranty." Coleman Publishing, a financial media company sponsored the August 3 webinar. . . . keep reading
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Small Businesses go to the Pawn Shop for Short-Term Loans
August 2, 2011
Check out this great CNNMoney article on small business owners being the largest customers for pawn shops.
No other options: Some business owners turn to pawning their valuables because they have no other option. "We have lost a trillion in credit card lines. We have lost a trillion in home equity lines. And those are -- or were -- the two primary sources of financing," said Bob Coleman, editor of the small business lending industry publication, "Coleman Report." "There are different things that are filling that void until banks ramp up." . . . keep reading
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Do Your Homework Before Applying for SBA Loans
July 25, 2011
Even though the recession has been officially over for some time, getting a small-business loan hasn't gotten any easier. In fact, fewer loans backed by the federal Small Business Administration were made during the first half of this year than during the same period in 2010. . . . keep reading
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Is Your Character Good Enough to Lend to?
July 25, 2011
Earlier this year, I wrote several columns explaining the five Cs of credit. Lenders use them to approve or reject business-loan applications. Character is the first C and, according to Bob Coleman, it has become more important than the other four in today's financial environment. Coleman is a financial publisher, former business lender and recently released his new book "Money, Money, Everywhere But Not a Drop for Main Street." . . . keep reading
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Less Risky Franchises Attract Lenders
July 12, 2011
We remain skeptical of the notion that franchise businesses are any safer than non-franchised businesses, but some recent evidence does suggest that banks, at least, think franchises are less risky. And, when the loans do get made, they're more likely to get repaid. At least if the business is a restaurant. . . . keep reading
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Supervisory Insights - Advancing the Practice of Bank Supervision
June 23, 2011
In the wake of financial crisis, community banks are looking for ways to stabilize and increase revenue and expand lending opportunities to small business to help reinvigorate local economies. As a result, interest in Small Business Administration (SBA) lending programs is growing. Created in 1953, the SBA provides support to small businesses through entrepreneurial development, government contracting, advocacy, and access to capital. . . . keep reading
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For Borrowers, Vermont Stacks Up - WSJ
June 22, 2011
Need a small-business loan? Your chances of securing one may be better if you live in a state where fellow borrowers pay their bills on time. That's according to Bob Coleman, an analyst in La Canada, Calif., who regularly compiles data on Small Business Administration loans. He recently examined the default rates of SBA loans in all 50 states, speculating that would-be borrowers might have an easier time if banks in that state aren't grappling with delinquent payers. His conclusion: Vermont may be the best place to find a small-business loan, while Florida may be the worst. . . . keep reading
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Lending World has Changed for Small Businesses
March 20, 2011
Bob Coleman says the national recession coupled with stricter enforcement of banking regulations has produced a much tighter loan market for small businesses. "I want people to understand how the world has changed for small-business bankers, and what small-business owners can do to help their loan application process," said Coleman, 56, editor and writer of the California-based Coleman Report, a newsletter for small-business lenders. He was a small-business banker in California for years before starting his newsletter in 1993.
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How to Approach Lenders Now
March 10, 2011
CIT, an arm of commercial finance company CIT Group Inc. and once the No. 1 small-business lender by volume, is itself a survivor. CIT Group sought and emerged from Chapter 11 bankruptcy protection in 2009. Known for its asset-based lending, loans to franchisees and factoring services for manufacturers, it still provides those services, but at a much lower volume. CIT wrote $82.5 million in SBA 7(a) loans in 2010, down from $771 million in 2008, according to the Coleman Report, a newsletter for SBA lenders.
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CIT's Chris Reilly to Entrepreneurs: "Tell Your Survival Story"
March 8, 2011
Tell your survival story. That's the advice to entrepreneurs seeking loans from the head of a leader in small-business lending. "I like to say that if there were four dry cleaners in your town, and now there are two, those are the two that never ruined people's shirts," says Chris Reilly, president of CIT Small Business Lending, a Small Business Administration-approved lender based in Livingston, N.J. "There's a natural selection process that's happened over the past two years. The survivors are the companies that had a better business and better owners." Chris Reilly, president of CIT Small Business Lending. . . . keep reading
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Summit to bring lenders together
March 6, 2011
Bob Coleman, small-business expert and founder-publisher of Coleman Report, a trade newsletter on small-business lending, will be the keynote luncheon speaker. As an expert in small business and lending, Coleman has been featured in USA Today, WSJ.com, the New York Times and Fox Business television shows, and many other media outlets. In a recent national television interview, he reported that "the economic recovery will come from small business and that's where the jobs will be created." . . . keep reading
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Jobs Act Loan Subsidy Runs Out, SBA Queue Forms
January 4, 2011
Bob Coleman, editor at Coleman Publishing, says that whether a small business enters the queue or applies for other, non-Jobs Act loans depends on the opportunity cost to that business. The 90 percent government guarantee "is a great mitigator for the banks," Coleman said. The return to the SBA's standard fees and guarantees now means banks are responsible for a quarter of the amount borrowed, reducing the incentive for lenders to make the loans and consequently reducing the supply of money available to small businesses, Coleman said.
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Small Companies Finally Get Some Credit from Banks
November 29, 2010
"It's nice to see SBA lending up. It is the one bright spot in the problems that small business has had in getting access to capital," said industry analyst Bob Coleman, who runs Coleman Report, an independent publication examining small-business lending. . . . keep reading
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The Road Taken - An inside look at a SIPA member, the choices he or she has made on the road to success, and the challenges ahead.
September 27, 2010
SIPA: What was your first job out of college and how did you get into this business?
COLEMAN: Management trainee position with a West Coast bank. After a few twists and turns, I became a small business lender. It was in Hollywood that I became aware of the newsletter industry. People come together for a project, then disband. There are a number of vehicles and opportunities that allow people to network and to stay in tune with various industry niches. My "ah ha" moment came when I needed some information and asked around for the small business lending "industry" newsletter. It didn't exist. Thinking it would be easy and romantic to write for a living, I quit my job and started working from the kitchen table. . . . keep reading
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Small Business Conference Set In Maine
August 30, 2010 The conference has a guest list of about 350. Gov. John Baldacci and other government officials, Tom's of Maine founder Tom Chappell and Bob Coleman, founder and publisher of Coleman Publishing, are also among those attending.
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Small businesses hold off spending while waiting for aid
August 30, 2010
Many other businesses have paused expansion as they wait for the outcome of the bill, says Bob Coleman, publisher of the Coleman Report, which provides information on small-business lending.
Some businesses can save thousands of dollars on the waived loan-fee provision alone, and they are thinking, " 'I might as well hold off and save the money,' " he says. . . . keep reading
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Bill to help small businesses could put banks at risk
July 28, 2010
People in favor of the bill says those kinds of fears are overblown. Bob Coleman is editor of a trade newsletter that reports on small business loans. He says banks are in the business of figuring out who they should and shouldn't lend to. BOB COLEMAN: They understand there's a risk, but they're in the job of mitigating risk. The bill, which is part of a bigger package of aid for small businesses, could get voted on this week. . . . keep reading
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As Lending To Small Businesses Plummets, Bernanke Implores Banks To Do More
July 14, 2010
Coleman blames the economy for the lack of available loans, pointing to near-double-digit unemployment and the lack of demand for goods that's causing businesses and banks to hold back. Coleman also said uncertainty over new regulations -- like those businesses will face as part of the recently-enacted health care law -- has made some think twice about borrowing.
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S.B.A. Lending Plunged in June
July 12, 2010
According to industry consultant Coleman Publishing, in the first half of the S.B.A.'s 2010 fiscal year (which began in October 2009), First Intercontinental made nearly $28 million in loans, making it the 45th largest S.B.A. lender by dollar volume.
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More Lending to Small Businesses
July 12, 2010
Bob Coleman publishes a trade newsletter on small-business lending. He says it's really the slightly bigger than mom-and-pop shops that are having the most trouble borrowing.
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JPMorgan Cuts Rates to Small Businesses that Hire
June 29, 2010
JPMorgan's average rate on a small-business loan is about 6 percent, a spokesman said. The average rate on a small-business loan across U.S. banks is about 5.5 percent, estimated Bob Coleman, author of the Coleman Report on loans backed by the Small Business Association.
New York
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Obama wants $30B to boost small biz
February 2, 2010
Bob Coleman, who publishes a newsletter on small-business borrowing, says the president's plan will surely help.
BOB COLEMAN: $30 billion with a "b" is certainly a positive development for the entrepreneur on Main Street. That entrepreneur needs the local community bank to meet payroll, to fund their working capital to pay their vendors.
But Coleman says, even with $30 billion in new government capital and financial incentives for banks, it may still be hard for a cash-starved small business to land a loan. After a lousy year, many of them don't look credit-worthy on paper.
COLEMAN: That small business person walks into the bank, and first of all, revenues have decreased, and most likely profitability, if there is any at all. Bankers are risk-averse.
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Consumer Reporter Clark Howard- TV Coverage of the Coleman Report with Video Clip (2:30)
June 14, 2010
It's been a tough decade for small business owners. Since 2001, 17 percent of franchise owners have closed their doors. If you are considering a franchise, how do you pick a winner? Gary Pipcorn was laid off about 10 months ago, and he was looking for a new opportunity. "I've done several start-ups before," Gary said, "But they've always been for somebody else, and this time I'd like to do a start-up on my own." But how do you tell if your franchise will be a success? One way banks decide whether to give you a loan: The Coleman Report. . .
Atlanta, Georgia
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You Can Take Advantage of Your "Expert" Status in Many Ways
June 6, 2010
"The thing about being a specialized publisher is that you're on the front line. You're someone who has been in the field for a long time. It's an outlook no one else can have. Whereas an industry newsletter can see the trend, a specialized publisher will see trends even better." Bob Coleman, a specialized publisher, does a Small Business Lender Internet Radio Show on his Website with sponsors.
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Financing Programs Aim to Help Franchisees
April 29, 2010
Before the recession, too-lenient franchisers sometimes funneled weak candidates through the start-up process, says Bob Coleman, who collects data on loans backed by the Small Business Administration. According to a preliminary report compiled on loans from the government's last fiscal year, some franchises had loss rates as high as 27%. As a result, "banks today look at the performance of the franchiser," he says.
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Credit Freeze Will Thaw in 2010
February 6, 2010
Look for lending to smalls to rise about 10% this year, says Bob Coleman, a small business lending expert. The free flow won't start until late in the year, when banks and companies are more confident of growth. That, in turn, will help spur the economy.
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SBA-Backed Loans Are Bright Spot in Gloomy Climate
February 4, 2010
SBA-backed loans in the past have made up only a small portion of overall small-business loans--around 7% to 8% according to the SBA's estimations, and as little as 1% by other counts.
But thanks to stimulus-related measures, SBA loans this year could be "pushing 10% to 15%," according to industry expert Bob Coleman, who keeps a pulse on SBA lending through his independent publication, the Coleman Report.
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For many, SBA loans never looked so good
January 24, 2010
Bob Coleman, editor of a newsletter on small business lending, said the SBA has historically funded all or most of its guarantee obligations through its fees.
The fee waiver funded by stimulus dollars means taxpayers will take a hit, but Coleman said that may be worth the cost.
"The dollars are minuscule compared with the benefit to taxpayers in (preserved) jobs and tax revenues," said Coleman, editor of Coleman Publishing in La Canada, Calif.
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A Jump Start for Stalled Small Business Lenders
January 8, 2010
Nationwide, 257 lenders that made 504 loans in the 12 months before Sept. 30, 2008, dropped out of the program the following year, a decline of 13%, according to the SBA. Loan volume dropped 28%, from $5.4 billion to $3.9 billion, in the same period. "If the bank wants to make these loans, they have to hold them on the books," says Bob Coleman, publisher of the Coleman Report newsletter on SBA lending.
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Start-Ups Will Keep Struggling in 2010
January 5, 2010
As for Small Business Administration-guaranteed loans or conventional bank loans, the best thing about 2010 is that it won't be 2009, says Bob Coleman, publisher of "The Coleman Report," a La Canada, Calif., trade publication for SBA lenders. "We're better off than where we were 12 months ago, but we are nowhere near where we were two years ago," he says.
The SBA approved less than 45,000 loans for the 12 months ended Sept. 30, down 36% from a year earlier. Total volume for its flagship 7(a) loan was $9.3 billion, off year-ago levels by $3.4 billion.
Stimulus-related measures, however, contributed to an uptick in SBA lending in recent months. Mr. Coleman expects that trend to continue for 2010.
But SBA loans make up only about 1% of overall small-business lending, Mr. Coleman estimates. That figure may grow to 5% to 10% in 2010 as the government provides more incentives for financial institutions, especially community banks, to provide financing to small businesses, he says.
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Out of the Bunker for 2010
January 2010
The news isn't as good on the loans front. According to Bob Coleman, who analyzes SBA lending, 2010 should be better for government-backed loans, but lending will not return to pre-recession levels for several years. To put it in perspective: There were 43 percent more SBA loans going into default in 2008 than the year before, according to the Coleman Report, including 13 percent of all franchise loans. In 2009, SBA lending was off by at least 35 percent.
Naturally, entrepreneurs also need to be aware that the recession has completely remapped franchise financing. "In the past, there were 10 or 12 big national lenders that would finance franchises anywhere in the country," Coleman says. "Now you have to go through a community or regional bank. The national lenders aren't out there."
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Small firms still facing hurdles in borrowing
December 16, 2009
Bob Coleman, publisher of Small Business Lending News in La Cañada, adds that for small to midsized lenders, another problem is that many SBA loans are secured by commercial property. Now that commercial property prices are plummeting, the value of the collateral has dropped, drawing the scrutiny of the regulators.
"If a bank extends a $750,000 loan based on the value of the property being used as collateral and then the value of the property drops to $650,000, the regulators are going to tell the banks they need more capital to cover that loan," Coleman said.
But Coleman added that those problems are generally associated with regional or community lenders, not the big banks that have been generating profits with the help of federal stimulus dollars.
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Superior Financial Group Emerges as Nation's Top SBA Lender
December 2, 2009
Superior Financial Group, a small, independent operation located in Suburban Walnut Creek, CA, produced 2,690 SBA (7a) loans totaling $27.1 million to entrepreneurs during SBA's fiscal year running October 1, 2008 to September 30, 2009. "This independent lender was able to outperform the larger, more established Banks by providing financial products to meet the needs of Main Street businesses providing capital and training to expand their business and hire new employees. In doing so, SFG has become the top SBA lender in the country," stated Bob Coleman, Founder of Coleman publishing. "This really is a story of David and Goliath," he added.
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BBVA Compass ranked third for SBA lending
November 23, 2009
The Birmingham-based bank received third place for doling out a hefty amount of loans backed by the Small Business Administration, according to the recently released Coleman Report 500, which provides information for SBA lenders.
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Can Treasury, SBA help small business?
November 18, 2009
The stimulus package passed by Congress made it easier for banks to make SBA loans and waived fees to borrowers. And that helped a lot, says Bob Coleman, who puts out a report on small-business lending.
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As others lie low, Cincinnati's Quadrant boosts loans by 38 percent
October 30, 2009
Quadrant Financial Inc. boosted its lending volume by a whopping 38 percent in the first nine months of the fiscal year ended in September. Its affiliated banking company finished the fiscal year as the nation's 28th-largest SBA lender by dollar volume, with $47 million in SBA loans, according to Bob Coleman of trade publication The Coleman Report.
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Small Businesses Could Face New Credit Squeeze
October 30, 2009
"We're entering into an era of uncertainty," says Bob Coleman, founder of Coleman Publishing, a firm in La Canada, Calif. that tracks and reports government-guaranteed lending activity. Previous government programs, including last summer's emergency-loan ARC program, have taken time to ramp up, as banks must evaluate the rules and -- if they decide to participate -- prepare their internal systems to support it. Even if Mr. Obama's plan successfully launches by year's end, there could be a dip in SBA lending for weeks or months until risk-averse banks engage, Mr. Coleman says."
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Focus on small business: Ridgestone tosses a lifeline of loans
October 19, 2009
The stimulus programs lowered the risk for lenders, said Bob Coleman, editor of Coleman SBA Lender Daily, a La Canada, Calif.-based newsletter for small-business lenders. "For the lender to say 'yes,' now they are only taking a 10 percent risk as opposed to a 25 percent risk."
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Status Report: Small-Business Lending
September 19, 2009
Firms holding their expansion plans in check may have a good reason, says Bob Coleman, a small business banking analyst in La Canada, Calif. "We're still in a recession," he says. "We're not talking Armageddon here, but it will [likely] remain tough for businesses to get loans," says Coleman.
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S.B.A. Lending Is Rising, But What Happens When the Stimulus Runs Out?
September 14, 2009
Industry analysts and players give much of the credit to the American Recovery and Reinvestment Act of 2009. Sure it gave us the ARC loan program, but it also contained two important provisions that stimulated government guaranteed lending. Crucially, it bolstered the guaranty in the agency's flagship 7(a) loan to 90 percent, from, depending on the size of the loan, 75 or 85 percent. On a million-dollar loan, for example, the higher guaranty reduces the bank's exposure by $150,000, says Bob Coleman, an industry analyst.
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A market that healed itself
August 28, 2009
"The current investor community is different than few years ago, when foreign investors represented a large portion of the buyers of SBA pools," said Chris Laporte, chairman of Coastal Financial Holdings, at a conference on TALF held last week by trade publisher Coleman Publishing."
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SBA's "Rescue" Loans Have Big Problems
July 27, 2009
In a Twitter communiqu online, Bob Coleman, publisher of the Coleman Report, wrote, "ARC is a bust. SBA has only approved 139 loans for $4.6 million in the first 2 weeks. Go another way." His follow-up tweet says, "Good CNN article about SBA ARC Loans http://tr.im/qlw3."
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Some Small Business Still Struggle to Get Financing
July 22, 2009
SBA 7(a) lending for the fiscal third quarter ended in June dropped 38% by volume and 50% by number of loans compared with the same quarter last year, according to the Coleman Report, which provides information on small-business lending.
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CIT Group Strikes Deal with Creditors to Avoid Bankruptcy
July 21, 2009
The Coleman Report, an industry publication, said last week that CIT's originations of government-guaranteed small-business loans in the past nine months fell 88 percent from the corresponding period a year earlier. The total volume, $66 million, dropped the company from its position as the nation's largest small-business lender for the first time in nine years.
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CIT $3-B Rescue May Not Provide Cure
July 21, 2009
In the quarter ended on June, CIT's loans to small businesses plunged 88 percent to $65.7 million and the company fell to 15th in the category from first a year earlier, according to the La Canada, California-based Coleman Report.
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Wells Fargo Wins Small-Business Customers From CIT (Update 1)
July 20, 2009
Wells Fargo & Co., the biggest bank on the U.S. West Coast, gained small-business customers in the quarter that ended in June as CIT Group Inc. ran short on cash, according to the Coleman Report. Wells Fargo's lending to small businesses increased 27 percent from a year earlier to $586.9 million, while CIT's plunged 88 percent to $65.7 million, Coleman said in a report dated July 13 that was e-mailed today... "CIT will not be a player in the industry until it solves its liquidity problems -- one way or another," Coleman said. The Coleman Report... provides weekly data on small business lending in the U.S. The third-quarter report, issued according to the government's fiscal calendar, said lending fell 38 percent in the period from a year earlier to $2.5 billion. Wells Fargo's market-share gains were helped by acquisition in January of Wachovia Corp., which was the fourth-biggest small-business lender last year, Coleman said.
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Alternatives to CIT Are Scarce, for Now
July 17, 2009
Though 7(a) lending was up in the last quarter, that's mainly due to the more generous (and temporary) 90 percent guarantee authorized by the February stimulus law, according to Bob Coleman, the S.B.A. industry analyst who publishes the Coleman Report. Nonetheless, Mr. Coleman sees a handful of banks gearing up for additional 7(a) lending once the economy improves, most notably Wells Fargo, now the largest lender by volume. Others to watch are Live Oak Banking Corp. of Wilmington, N.C. (the fifth-largest lender by volume), and Excel National Bank, of Beverly Hills, Calif. (the 14th-largest).
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CIT Group's Borrowers May Find No Shortage of Credit
July 15, 2009
Defaults on loans from participants in the Small Business Administration jumped to 3 percent of those provided in 2008 from 2.4 percent in 2007 and 1.5 percent in 2006, according to March data from the Coleman Report in La Canada, California. CIT's small-business unit was the fifth-biggest SBA lender in the first quarter, issuing $44.9 million in loans, the Coleman Report said. Last year, CIT was the top small-business lender at $771.4 million, according to the report, which projects CIT's volume for this year will drop by $591.8 million.
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CIT's Troubles Are Small Business's Troubles
July 13, 2009
CIT had an unusual method for financing 25-year loans, according to Bob Coleman, an industry analyst who publishes the Coleman Report. It would sell the S.B.A.-guaranteed portion, or 75 percent of the loan, on the secondary market, and the proceeds would finance much of the company's new loans. To finance the other 25 percent, CIT would borrow short-term money and refinance it every three months. "They had a very good credit rating, so they could borrow at low rates in the commercial 90-day paper market." But when credit markets, including both for short-term notes and pools of S.B.A.-guaranteed loans, froze last fall, CIT couldn't make new loans. Mr. Coleman does not believe these problems figure greatly in CIT's bigger liquidity problems. In S.B.A. lending circles, CIT is regarded as having a strong portfolio of loans. "You cannot be the No. 1 lender for 10 years in a row and have a sloppy portfolio," he says. "They weren't doing some of the crazy things that other lenders would do."
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Lender Fears Force SBA Program into Slow Lane
July 2, 2009
Coleman Publishing, which tracks SBA loan data and puts out a daily newspaper on the subject, said Wednesday that unless lending picked up, the funds allotted for the Arc program would only be half disbursed at the current lending rate by the time the program ends on Sept. 30, 2010.
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SBA Loans Start to Trickle
June 28, 2009
And on Friday, Coleman Publishing reported, "In just two year's time, the U.S. Small Business Administration's Patriot Express Pilot Loan Initiative has supported more than $315 million in loans to more than 3,750 veterans and their spouses who are using the SBA-guaranteed funds to establish and expand their small businesses. As a result of the American Recovery and Reinvestment Act, which raised loan guarantees to 90 percent, and eliminated fees temporarily, the number of Patriot Express loans increased to record levels in April and May of 2009."
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SBA Tweaks Rules of 504 Loan Program
June 26, 2009
"Most are struggling and working overtime to figure out how to be able to survive this economy," says Bob Coleman, publisher of the Coleman Report, a newsletter for SBA lenders.
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SBA Offers Aid to Cash-Strapped
June 20, 2009
"The general consensus is that the lenders aren't too excited about it," says Bob Coleman, publisher of "The Coleman Report," a La Canada, Calif.-based trade publication for SBA lenders. "It's a tremendous amount of paperwork."
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Surprising Funding Source for the Fitness Industry
June 10, 2009
This column includes some interesting figures, provided to me by Bob Coleman, the founder of the "Coleman Report," a newsletter covering the U.S. SBA loan programs. Coleman also is a national expert covering SBA lending programs and has worked for more than 25 years in the SBA industry.
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The Lowdown on ARC Loans
June 10, 2009
Bob Coleman who provides training and publishes reports for participating SBA banks conducted a survey of bankers in which some participants say they are scared to death to participate in such a program.
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Business Closure Picture Incomplete for Gainesville
April 18, 2009
Coleman, an expert on small businesses and publisher of the financial newsletter The Coleman Report, said that small business failure rates increased 154 percent from 2007 to 2008. Of all the businesses that have received Small Business Administration loans since 2001, nearly 12 percent have defaulted. The default rate "spiked tremendously" in the past two years, Coleman said...
"That is one of the reasons you have credit constriction at the bank level for small businesses and restricting capital for Main Street," Coleman said. "Small business performance, unfortunately, is indicative of the entire economic climate."... "All new employment is coming from small business right now," he said. "The buzz is that small business will be the leader in taking us out of the recession."...
"It's tragic what's happening in our local communities from that standpoint," he said. "The problem we have is while there will be a recovery, and the banks will survive and Detroit will survive, those people aren't coming back to Main Street. That's the real tragedy for our communities."
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Why Obama'Why Obama's Small Biz Rescue Plan is Collapsing
April 3, 2009
The most recent casualty is Community West Bank. In 2008, this little California-based bank wrote 62 SBA loans for $25 million, while expanding its reach to 20 states across the U.S. Earlier this week, industry analyst Coleman reported that Community West had changed its mind. By Wednesday, it had reduced its lending footprint to the Rockies and west, and halved its staff.
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SBA Numbers: Declining loans? Whose de-fault is it?
April, 2009
The default rate on SBA-backed loans given to franchisees has more than quadrupled since 2004, according to information prepared by the Coleman Report, a newsletter out of California that tracks the SBA lending market. In 2004, the default rate for franchisees was 3.1 percent. By 2008 it was 13.4 percent... And Bob Coleman, publisher of the Coleman Report, stressed that not too much should be read into the difference. He said that the majority of franchise loans are in the 7(a) program, which has a higher default rate than the 504 program, which is tied to property. The default rates include numbers for both programs.
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Top Lenders Pull Plug on Small Biz Loans
March 23, 2009
If current lending trends continue, only two of the top 30 lenders are projected to increase their loan volume this year, according to Bob Coleman, the head of Coleman Publishing... "Regulators are demanding that banks put more into their reserves right now. The SBA is being nitpicky with the defaulted loans, and lenders are finding it more difficult to get paid the government guarantee," he said..."Right now these loans aren't profitable," Coleman said. "The stimulus hasn't taken effect, and it's still months away from helping lenders. Some lenders don't think it'll be effective - they don't think it will be strong enough by itself, that the economy also needs to turn around." With a sigh, he added: "I guess that's where you get the chicken-and-the-egg thing."
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