SBA Lending News The State of American Small Business - Brookings Testifying before the House Committee on Small Business, Martin Baily discusses the outlook for the U.S. economy and its impact on small businesses. Baily examines small business and entrepreneur policies, as well as the possible effects of the Affordable Care Act, credit extensions for small businesses, the Startup Act of 2012, and employee skill development programs. "The conclusion on small business seems clear. The state of small business, captured mostly clearly by the optimism index, has been deteriorating for nearly seven years. It took a particularly sharp dive in 2008 and is now gradually recovering." . . . keep reading Preparing the 10-Tab Guaranty Package A 2012 Update SBA's Guaranty Purchase Package. Seems simple enough to put together...but if you don't do it right, you don't get the money and it can make for lots of problems up the chain of command at your institution. Chief Credit Officers who want to make sure their staff is dotting all the "i's" and crossing all the "t's" in their submissions to Herndon MUST take advantage of our upcoming webinar. It's the most inexpensive peace of mind you can purchase. This webinar will include detailed instructions on: the importance of checking your SBA Loan Authorization to assure that all necessary documents have been included in the package, verifying that said documents have been completed and executed per the SBA loan authorization, cautions about paying attention to the Note, detailed information about submitting your package electronically, and top reasons for denial. . . . keep reading Administrator Mills on Obama's Small Business Proposals - Washington Post President Obama's newest cabinet member, Small Business Administration head Karen Mills talks about the President's new proposals to help small businesses. . . . keep reading Real Estate Market Breathes New Signs of Life Rental apartments are back in demand, financing for hotels and motels is loosening up a bit and investors are stepping off the sidelines with wads of cash to do deals. The hospitality industry, in particular, is a good indicator of economic health in commercial real estate. It is among the first sector to tank when conditions are poor and it leads the market as the economy improves. Because Coleman sponsored a hotel financing Webinar a week ago, I asked him how much activity he is seeing with regard to hotels and motels, and which lenders are willing to finance them. "Anthony had a great chart showing how hotel room night demand mirrors GDP growth," he replied, referring to Anthony Falor, a presenter at the Webinar. Falor's charts showed that as the gross domestic product improves, revenue per available room, known as "RevPAR," increases in direct proportion. . . . keep reading Determining a Borrower's Eligibility for SBA Financing The number one reason SBA denies its guaranty payment to a lender is the lender did not correctly determine the borrower's eligibility for the federal government guaranty. Join John Dunn, our professional SBA issues instructor, as he clearly and concisely guides you through the murky maze of SBA's rules concerning eligibility. The problem with eligibility determination is sometimes it is more of an art than science. It is a moving target. Learn how SBA defines it eligibility rules today, not when you receive a guaranty denial tomorrow . . . keep reading Administrator Mills Participates in First Cabinet Meeting These days, Cabinet meetings are mostly for show, and generally designed to promote the idea that all departments are behind some aspect of the president's agenda. Today's meeting was a case in point. President Obama welcomed Karen Mills, administrator of the Small Business Administration, to the Cabinet, and emphasized that other agencies would be pitching in to help people who want to start their own businesses -- even some you might not expect. . . . keep reading Small Biz Loan Demand up, Federal Reserve Says A growing portion of the nation's banks saw a spike in demand for loans to smaller firms late last year, according to the latest Federal Reserve figures. Despite the uptick, nearly all banks surveyed kept their credit standards or loan terms the same. The survey, which used responses from senior loan officers at 56 U.S. banks, contained information about firms with annual revenues of $50 million or less. Although that range covers many mid-sized businesses, it also included small businesses. . . . keep reading PARTNER ENGINEERING & SCIENCE announces Real Estate Due Diligence 101 Partner Engineering and Science, Inc. announces a free introductory course on the various physical due diligence reports that may be required for commercial real estate -- a "crash course" on risk management and property valuation tools. "We created it to help educate new underwriters, loan officers, brokers and other risk management personnel," said Joe Derhake, President of Partner. "Our goal is to provide the crucial information they need to make sound business decisions." . . . keep reading TMC Financing Ends First Quarter as #1 SBA Lender Nationwide TMC Financing (www.tmcfinancing.com) a leading Certified Development Company (CDC) providing SBA 504 commercial real estate financing in California and Nevada, is ranked by the SBA as the #1 SBA lender nationwide by volume with $77.7 million in SBA 504 loans approved in the first quarter of fiscal year 2012 (October through December). TMC's borrowers from the first quarter were able to retain 2,664 jobs, and are expected to create 660 new jobs in California and Nevada. . . . keep reading BoeFly Polls Reveal Trends and 2012 Plans for Franchise Finance A recent webinar hosted by BoeFly, the premier online marketplace connecting small business borrowers with lenders, featuring a panel of leading lenders and franchise industry leaders discussing trends and best practices in franchise finance, found that the lenders and franchisors who joined the webinar hold similar expectations for growth in 2012. Most of the lenders who participated plan to originate more franchise loans in 2012, and most of the franchisors said franchisee access to financing is "very important" for their growth plans. The vast majority of the franchisors also expect to see more growth in 2012 than they did in 2011. . . . keep reading FED: Small Business Loan Demand Highest Since 2005 Demand for business loans increased in the fourth quarter as economic growth accelerated, according to a Federal Reserve survey of senior loan officers at banks. Seventeen of 56 banks reported stronger demand among companies with $50 million in annual sales or more, according to the survey, while six reported weaker demand. Loan demand among small businesses increased by the most in any quarter since 2005. . . . keep reading ACCION USA Receives $50,000 from Wells Fargo to Provide Business Loans to Underserved Entrepreneurs in South Florida ACCION USA, a leader in U.S. microfinance, was awarded a $50,000 grant from Wells Fargo. The grant -- part of Wells Fargo's commitment to economic development in South Florida -- ensures access to financing for local entrepreneurs through ACCION USA's microloans. CNN Money recently named ACCION USA a top 10 microfinance company in the United States, based on its 20-year history in successfully serving over 20,000 clients with $120 millions in microloans. By funding small business dreams and empowering self-starters, ACCION USA stimulates the local economy with job creation. . . . keep reading Happy Birthday, Startup America! The Startup America Partnership got an early jump on its one-year anniversary celebration by ringing the bell at the New York Stock Exchange today. The organization was started a year ago Tuesday as the private-sector partner of President Barack Obama's effort to create more jobs in the U.S. by encouraging the growth of new companies with high potential. The SBA also held eight national roundtables with 1,000 entrepreneurs and investors as part of the Startup America initiative. These discussions had at least one tangible result: The White House endorsed legislation, suggested by participants in these roundtables, that would make it easier for businesses to raise capital through "crowd funding"--using the Internet to solicit small equity investments from large numbers of people. The bill passed the House by a 407-17 vote in November, but it is still awaiting action in the Senate. . . . keep reading Banker: Banks have to rebuild trust in wake of recession, industry gaffes Reagan K. Rick, 50, is Fifth Third Bank's regional president in Central Florida. "We've focused on developing a lot of relationships in the communities where our financial centers are located. That has helped us be very successful at adding many new customers in all lines of business. I feel that our bankers are really earning the trust of customers by bringing them good products and solutions. We just need to keep focusing on the basics -- fundamental "blocking and tackling" -- and serving the customers." . . . keep reading List of Banks and CDLFs that Increased Their Small Business Lending as of 9/30/11 Treasury sent a report to Congress that contains strong evidence that the Small Business Lending Fund (SBLF) is working. The report shows that institutions participating in the Small Business Lending Fund have significantly increased lending to small businesses, to the tune of $3.5 billion over their baseline (the average lending reported in the four quarters before the Small Business Jobs Act, which created the SBLF, was enacted). To date, 218 of the 281 participating community banks, or 78 percent, and 41 of the 51 participating community development loan funds (CDLFs), or 80 percent, have increased their small business lending. And a substantial majority of SBLF participants -- more than 60 percent-- have now increased their small business lending by 10 percent or more. . . . keep reading SBA Office of Advocacy Releases Small Business Profiles for All 50 States The Office of Advocacy released the annual Small Business Profiles for the States and Territories. This is the 16th year Advocacy has published a state-by-state profile of American small business for the United States, all 50 states, the District of Columbia, and U.S. territories. The profiles are an invaluable resource for small businesses, legislators, academics, government officials, and policymakers in each state. The profiles use the most recent data available to provide details about each state's small business employment; business starts and closings; bank lending; business ownership by minorities, women, and veterans; and firm and employment change by major industry and firm size. "Small businesses are the foundation of our nation's economic growth," said Dr. Winslow Sargeant, Chief Counsel for Advocacy. "By supporting policies that promote innovation and entrepreneurship, we help small businesses tackle these challenging economic times. These statistics are a resource for a path to economic growth." . . . keep reading Obama's Lack of Details Leaves Small Business Hanging Post-SOTU "The president's call to address the deficit was a welcome one," Todd McCracken, NSBA president and CEO, said in a statement. "However he failed to tell us how he would get there and he missed a critical opportunity to call for broad tax reform which could kick-start the economy--thereby reducing the deficit--while lessening the single biggest regulatory burden our economy faces: the tax code." . . . keep reading How Your Credit Underwriters Must Analyze Borrower Projections to Ensure the Validity of the SBA Guaranty Last year, SBA's Inspector General issued a scathing audit criticizing Banco Popular for its underwriting procedures for the franchise, Huntington Learning Centers. The IG wrote that the bank failed to properly analyze and underwrite applicant projections. This failure warrants the denial of the SBA guaranty for all of the bank's Huntington Learning Center franchise loans says the OIG. . . . keep reading How 'Small Business' and 'Entrepreneur' Fare in State of the Union Addresses "Small business" and "entrepreneur" weren't the most popular terms in President Barack Obama's State of the Union address last night. But that doesn't mean they haven't been a priority during his three -- going on four -- years in the White House. Though largely ceremonial, State of the Union addresses are meant to serve as a guidepost of the administration's agenda during the year ahead -- or the next four years, depending on when the address is delivered. So if certain issues get highlighted, there's a good chance that the President will push Congress to act on them.' . . . keep reading State of the State of Small Business Lending Coleman: Last time we talked, things were pretty dismal. But, now you are seeing deals getting done. Yesterday we did a webinar for the hotel industry, and what they are seeing is transactions being made. Mom and Pop's are buying these hotels, they're buying these franchises, and there is a lot of activity in that. It is very difficult for our small business bankers to lend money today, so the banks need to have some sort of inducement to reduce the risk. 90% of the deals beneath $5 million were done with an SBA guaranty. So, deals are being done, and that is great news. Tracy: That is great news. So, if I am a small business and I am looking for money, should I contact the SBA? . . . keep reading More

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