The Senate voted 88-10 in favor of a $636 billion Defense appropriations bill early Saturday morning -- the bill includes $125 million to extend the SBA Recovery Act provisions through February 2010.
The final step will occur when President Obama signs the bill into law -- which will happen by Wednesday, December 23. This is very good news for the nation's small businesses and the 7(a) lending industry. We can expect loan volume to again grow.
Of the total $479 million appropriation requested by Senator Landrieu and 12 other senators, $125 million is included in this DoD appropriations bill, but the remaining $354 million is included in the House jobs-creation package, which is expected to be considered by the Senate early next year. The 'jobs bill' also includes an authorization extension for the reduction or waiver of the borrower fee and for the increased guarantee of up to 90 percent on 7(a) loans through FY2010. More >
Monday, December 21, 2009
Friday, December 11, 2009
Support the Bill before the US Senate RE:SBA
Please contact your US Senators to ask them to co-sponsor and support a bill introduced today by Senators Landrieu (D-LA) and Snowe (R-ME) -- S. 2869, Small Business Job Creation & Access to Capital Act of 2009.
This bipartisan bill allows the SBA to support larger loans and provide more financing options to a larger segment of small businesses, Provisions include:
Increase 7(a) loan limit from $2 million to $5 million*;
Increase 504 loans from $1.5 million to $5.5 million;
Allow the 504 loan program to refinance short-term commercial real estate debt into, long-term, fixed rate loans;
Extend the authorization to provide 90 percent guarantees on 7(a) loans and fee elimination for borrowers on 7(a) and 504 loans through December 31, 2010;
Increase the loan limit on microloans from $35,000 to $50,000.
This bipartisan bill allows the SBA to support larger loans and provide more financing options to a larger segment of small businesses, Provisions include:
Increase 7(a) loan limit from $2 million to $5 million*;
Increase 504 loans from $1.5 million to $5.5 million;
Allow the 504 loan program to refinance short-term commercial real estate debt into, long-term, fixed rate loans;
Extend the authorization to provide 90 percent guarantees on 7(a) loans and fee elimination for borrowers on 7(a) and 504 loans through December 31, 2010;
Increase the loan limit on microloans from $35,000 to $50,000.
Wednesday, November 18, 2009
My SBA Proposal to the US Senate
At the bottom of my page is the SBA Loan Proposal that I have sent to our leaders in the US Senate to get monies flowing back to the small business owners. This proposal has gone directly to Senators Wyden, Snow and Landrieu. As a small business advocate, I, like others, are committed to suggesting REAL changes that make sense for our JOB Creators across this country.
. Please forward my blog link to anyone that can assist me with this proposal!
Wednesday, September 9, 2009
SBA Waived Fees soon to expire
It is anticipated, that the waived fees on SBA's 7a and 504 loans will soon expire.
The stimulus funds alloted to the SBA program were expected to last until the end of 2009, however sources are stating that the funds may run out by October, unless Congress extends the savings beyond the existing pool of funds.
If you were considering buying a building, now is the time. Treasury rates are at a record low, most fee's are currently waived and buying opportunities are plentiful.
The stimulus funds alloted to the SBA program were expected to last until the end of 2009, however sources are stating that the funds may run out by October, unless Congress extends the savings beyond the existing pool of funds.
If you were considering buying a building, now is the time. Treasury rates are at a record low, most fee's are currently waived and buying opportunities are plentiful.
Monday, August 17, 2009
Sizziling summer commercial real estate loans
Bend Oregon has so many buying opportunities with commercial real estate! This summer, I have been pleasantly surprized with the number of qualified buyers who ARE taking advantage of low interest rates and low commercial real estate prices. These buyers ARE getting funding! Nice to start the work week with a positive note! Enjoy ...
Saturday, July 11, 2009
TARP Funds for Small Business Owners
Could TARP funds actually go directly to the small business owner? The Administration is now working with the SBA to come up with a plan that gets TARP funds directly to the small business owner.
Not sure how far my SBA Loan Proposal has gone up the chain in the Senate, but this is precicely what my proposal outlined!
I have a real solution that reduces the lenders risk, utilizes the TARP funds to "direct fund" a portion of the loan request from SBA and targets job creation. My proposal utilizes existing infastructure and is designed for quick Senate approval.
If anyone out there knows of a better way to get my proposal in front of the US Senate Committee on Small Businesses, PLEASE let me know.
I have gone through Senator Wyden's office in DC. I have directly emailed Senator Snowe, as she is the primary contact on this committee. I would imagine that the email will go through the normal channels, thus taking 3 months. We need this engine to fire-up and get moving now!
Not sure how far my SBA Loan Proposal has gone up the chain in the Senate, but this is precicely what my proposal outlined!
I have a real solution that reduces the lenders risk, utilizes the TARP funds to "direct fund" a portion of the loan request from SBA and targets job creation. My proposal utilizes existing infastructure and is designed for quick Senate approval.
If anyone out there knows of a better way to get my proposal in front of the US Senate Committee on Small Businesses, PLEASE let me know.
I have gone through Senator Wyden's office in DC. I have directly emailed Senator Snowe, as she is the primary contact on this committee. I would imagine that the email will go through the normal channels, thus taking 3 months. We need this engine to fire-up and get moving now!
Monday, July 6, 2009
Hit or Miss with new SBA policy changes
It seems that we are still off track with this administrations policy changes regarding the SBA loan programs. In my opinion, only 1 of the 4 major changes have been a "hit". The others are a "miss".
ARC $35,000 loan program: MISS: Only a handfull of lenders nationally are even participating in this program. Does not make sense for banks to participate and the eligibility criteria is difficult for the small business owner.
Waiving majority of loan fees: HIT: Saves the small business owner thousands of dollars in fee's.
Dealer Floor Financing: MISS: Still new, but like the ARC program, it may be very difficult to find lenders to participate, and the eligibility rules will also be very tight.
504 Debt Refinance changes : MISS: Good idea, but the eligibility rules MUST be expanded to allow more business owners to utilize the program.
Our administration and Senate Committee leaders MUST begin to listen to the experts in the field, regarding CHANGES that WILL HELP business owners! I also have hit a brick wall with my PROPOSAL to help unlock the SBA Loan issues with Senator Wyden's office. Perhaps it's time I try putting it in front of the Senate Committee directly.
ARC $35,000 loan program: MISS: Only a handfull of lenders nationally are even participating in this program. Does not make sense for banks to participate and the eligibility criteria is difficult for the small business owner.
Waiving majority of loan fees: HIT: Saves the small business owner thousands of dollars in fee's.
Dealer Floor Financing: MISS: Still new, but like the ARC program, it may be very difficult to find lenders to participate, and the eligibility rules will also be very tight.
504 Debt Refinance changes : MISS: Good idea, but the eligibility rules MUST be expanded to allow more business owners to utilize the program.
Our administration and Senate Committee leaders MUST begin to listen to the experts in the field, regarding CHANGES that WILL HELP business owners! I also have hit a brick wall with my PROPOSAL to help unlock the SBA Loan issues with Senator Wyden's office. Perhaps it's time I try putting it in front of the Senate Committee directly.
Monday, March 30, 2009
From Bend, Oregon to Washington DC
In 2003, I was fortunate enough to participate in a Congressional Luncheon that honored Small Business Advocates, as well as a luncheon that saluted Women in Business. The guest speaker was the Vice President of the United States and spoke of the champion efforts that are made to promote the success of small business's across America. A few months later, we actually garnered the attention of the Small Business Administration, when Bend, Oregon was selected as one of 10 cities nationally to kick off the SBA's 50th year celebration tour.
Fast forward to 03/16/09, where President Obama announced the enhancements to the SBA loan program, which would temporarily eliminate SBA fees, increase the guarantee to the lender and a few other items.
While these changes are a good step in the right direction, there are still greater underlying issues that need to be solved, in order to actually get SBA loan funds directly into the hands of the small business owner.
I recently have contacted Senator Wyden's office in Washington DC, and have an opportunity to unveil my common sense proposal to cut to the real problems and provide a solution.
My ultimate goal, is to present my solution to the US Senate Committee on Small Business & Entrepreneurship and continue my efforts to advocate on behalf of the small business owners.
Stay tuned, and of course.... call me with any loan needs in Oregon!
Cathie Hendrix
Fast forward to 03/16/09, where President Obama announced the enhancements to the SBA loan program, which would temporarily eliminate SBA fees, increase the guarantee to the lender and a few other items.
While these changes are a good step in the right direction, there are still greater underlying issues that need to be solved, in order to actually get SBA loan funds directly into the hands of the small business owner.
I recently have contacted Senator Wyden's office in Washington DC, and have an opportunity to unveil my common sense proposal to cut to the real problems and provide a solution.
My ultimate goal, is to present my solution to the US Senate Committee on Small Business & Entrepreneurship and continue my efforts to advocate on behalf of the small business owners.
Stay tuned, and of course.... call me with any loan needs in Oregon!
Cathie Hendrix
Monday, March 16, 2009
It's Official~ SBA Fee's will be waived~
SBA has implemented the changes to the SBA 7(a) and SBA 504 loan programs!
Effective immediately, the following changes are available to Small Business Owners:
SBA 7(a) Loan:
The SBA Guarantee Fee will be WAIVED until the allocated $8.7 Billion funds are exhausted, or December 31, 2009; which ever occurs first.
The SBA will guarantee up to 90%.
SBA 504 Loan:
Two MAJOR loan fees have been waived until the allocated $8.7 Billion funds are exhausted, or December 31, 2009; which ever occurs first.
The only remaining SBA fee is nominal and can be estimated at 0.65%.
Due to the time and dollar limitations of the program changes, it is IMPORTANT that Small Business Owners call to take advantage of these fee waivers.
Additionally, it is very important that you work with an EXPERT in SBA Lending, to ensure that your approved loan is completed quickly and includes all current changes!
Effective immediately, the following changes are available to Small Business Owners:
SBA 7(a) Loan:
The SBA Guarantee Fee will be WAIVED until the allocated $8.7 Billion funds are exhausted, or December 31, 2009; which ever occurs first.
The SBA will guarantee up to 90%.
SBA 504 Loan:
Two MAJOR loan fees have been waived until the allocated $8.7 Billion funds are exhausted, or December 31, 2009; which ever occurs first.
The only remaining SBA fee is nominal and can be estimated at 0.65%.
Due to the time and dollar limitations of the program changes, it is IMPORTANT that Small Business Owners call to take advantage of these fee waivers.
Additionally, it is very important that you work with an EXPERT in SBA Lending, to ensure that your approved loan is completed quickly and includes all current changes!
Friday, March 6, 2009
The solution is simple
Often times, we try to fix a problem, but only create a larger mess.
As an advocate and expert in small business lending, I have the simple solution to ACTUALLY FIX the limited credit options to small business owners.
My solution utilizes the current infrastructure regarding small business lending between banks and the US Small Business Administration; and provides a win-win loan structure.
My solution is financially better, than the current proposal by the administration regarding the flagship SBA 7(a) loan.
My solution is better for the small business owner.
My solution would also be appealing to existing SBA Preferred Lenders,who are experts in making SBA loans.
Please help get me in front of the political leaders who are not afraid of a simple solution, and I will advocate on behalf of the small business owner and provide my solution!
Email your contacts to: chendrix@bendbroadband.com
Thank you!
Cathie Hendrix
As an advocate and expert in small business lending, I have the simple solution to ACTUALLY FIX the limited credit options to small business owners.
My solution utilizes the current infrastructure regarding small business lending between banks and the US Small Business Administration; and provides a win-win loan structure.
My solution is financially better, than the current proposal by the administration regarding the flagship SBA 7(a) loan.
My solution is better for the small business owner.
My solution would also be appealing to existing SBA Preferred Lenders,who are experts in making SBA loans.
Please help get me in front of the political leaders who are not afraid of a simple solution, and I will advocate on behalf of the small business owner and provide my solution!
Email your contacts to: chendrix@bendbroadband.com
Thank you!
Cathie Hendrix
Saturday, February 28, 2009
Business Acquisition Rule Change by SBA
During our time of economic challenges, it seems that SBA has chosen the wrong time to tighten up the rules regarding Business Acquisition financing! Effective March 01, 2009, SBA has implemented the following changes regarding the financing of GoodWill related to a business acquisition:
"In no event may the amount of goodwill financed by an SBA guaranteed loan exceed 50% of the loan up to a maximum of $250,000".
This means, that the seller will need to step up to the financing plate and take a subordinate lien position to the bank and SBA on 50% of Goodwill that is part of the sales price of the business.
For loan applications where the request for 7(a) financing of goodwill exceeds the limits identified above, and the seller is not able to finance the GoodWill,SBA will require the lender to complete an extensive host of additional analysis to determine if it is feasible. One requirement (on all business acquisitions), is the business appraisal. This must be ordered by the bank from an independent, approved appraiser. Once value has been determined to be acceptable, the lender MUST submit the loan request to SBA's Standard 7(a) Loan Guaranty Processing Center.
What does this really mean if the seller cannot finance a minimum of 50% of Goodwill?
A much longer process, than what a preferred lender would normally take, based on our expertise and delegated authority from SBA. It means that SBA is taking away our ability to make prudent lending decisions, which is why they (SBA) created the Preferred Lender Program (PLP) in the first place!
This change in "process" will be in place through August 31st, 2009, so SBA can obtain further data regarding goodwill.
Seems to me that SBA has lost IT'S Goodwill, at a time when we need it most.
"In no event may the amount of goodwill financed by an SBA guaranteed loan exceed 50% of the loan up to a maximum of $250,000".
This means, that the seller will need to step up to the financing plate and take a subordinate lien position to the bank and SBA on 50% of Goodwill that is part of the sales price of the business.
For loan applications where the request for 7(a) financing of goodwill exceeds the limits identified above, and the seller is not able to finance the GoodWill,SBA will require the lender to complete an extensive host of additional analysis to determine if it is feasible. One requirement (on all business acquisitions), is the business appraisal. This must be ordered by the bank from an independent, approved appraiser. Once value has been determined to be acceptable, the lender MUST submit the loan request to SBA's Standard 7(a) Loan Guaranty Processing Center.
What does this really mean if the seller cannot finance a minimum of 50% of Goodwill?
A much longer process, than what a preferred lender would normally take, based on our expertise and delegated authority from SBA. It means that SBA is taking away our ability to make prudent lending decisions, which is why they (SBA) created the Preferred Lender Program (PLP) in the first place!
This change in "process" will be in place through August 31st, 2009, so SBA can obtain further data regarding goodwill.
Seems to me that SBA has lost IT'S Goodwill, at a time when we need it most.
Monday, February 23, 2009
Important Scam Alert from SBA
News Release
PRESS OFFICE
Release Date: February 18, 2009
Contact: Mike Stamler (202) 205-6919
Release Number: 09-11
Internet Address: http://www.sba.gov/news
SBA Warns of Fraudulent Attempts to Obtain Bank Account Information from Small Businesses
WASHINGTON – The U.S. Small Business Administration issued a scam alert today to small businesses, warning them not to respond to letters falsely claiming to have been sent by the SBA asking for bank account information in order to qualify them for federal tax rebates.
The fraudulent letters were sent out with what appears to be an SBA letterhead to small businesses across the country, advising recipients that they may be eligible for a tax rebate under the Economic Stimulus Act, and that SBA is assessing their eligibility for such a rebate. The letter asks the small business to provide the name of its bank and account number.
These letters have not been sent by or authorized by the SBA, and all small businesses are strongly advised not to respond to them.
The scheme is similar in many ways to e-mail scams often referred to as “phishing” that seek personal data and financial account information that enables another party to access and individual’s bank accounts or to engage in identity theft.
The SBA is working with the SBA Office of Inspector General to investigate this matter. The Office of Inspector General asks that anyone who receives such a letter report it to the OIG Fraud Line at 1 (800) 767-0385, or e-mail at OIGHotline@sba.gov.
PRESS OFFICE
Release Date: February 18, 2009
Contact: Mike Stamler (202) 205-6919
Release Number: 09-11
Internet Address: http://www.sba.gov/news
SBA Warns of Fraudulent Attempts to Obtain Bank Account Information from Small Businesses
WASHINGTON – The U.S. Small Business Administration issued a scam alert today to small businesses, warning them not to respond to letters falsely claiming to have been sent by the SBA asking for bank account information in order to qualify them for federal tax rebates.
The fraudulent letters were sent out with what appears to be an SBA letterhead to small businesses across the country, advising recipients that they may be eligible for a tax rebate under the Economic Stimulus Act, and that SBA is assessing their eligibility for such a rebate. The letter asks the small business to provide the name of its bank and account number.
These letters have not been sent by or authorized by the SBA, and all small businesses are strongly advised not to respond to them.
The scheme is similar in many ways to e-mail scams often referred to as “phishing” that seek personal data and financial account information that enables another party to access and individual’s bank accounts or to engage in identity theft.
The SBA is working with the SBA Office of Inspector General to investigate this matter. The Office of Inspector General asks that anyone who receives such a letter report it to the OIG Fraud Line at 1 (800) 767-0385, or e-mail at OIGHotline@sba.gov.
Tuesday, February 17, 2009
Updated~ Economic Recovery Act for SBA Loans
Here is the latest on the SBA's portion of the bill. It has NOT been implemented yet, but is anticipated to take a short period for the SBA to issue new policy notices.
*504 loans may have the following changes. Eliminate the 1.5% Certified Development Company (CDC) fee for a 12 month period.
*Eliminate the 0.50% lender fee for a 12 month period.
*Reduce the Debenture fee from approximately 2.15% to 0.67% for a 12 month period.
*Guarantee the first mortgage until the $3 Billion is exhausted.
*Allow some refinancing, with very limited parameters up to 50% of the total project.
*7(a) loans may have the following changes.
*up to 90% guarantee (increased from 75%)
*reduce or eliminate the SBA guarantee fee for a 12 month period.
*improve the secondary market value of the 7(a) loan, which would make it more attractive for lenders to make SBA 7(a) loans.
Until these proposals are implemented by the SBA and notices are sent to lenders, we are still in a "grey" area and must operate under the current policy of SBA.
Next blog will outline the basics of what each applicant should have, in order to increase the likely hood of getting an approval.
*504 loans may have the following changes. Eliminate the 1.5% Certified Development Company (CDC) fee for a 12 month period.
*Eliminate the 0.50% lender fee for a 12 month period.
*Reduce the Debenture fee from approximately 2.15% to 0.67% for a 12 month period.
*Guarantee the first mortgage until the $3 Billion is exhausted.
*Allow some refinancing, with very limited parameters up to 50% of the total project.
*7(a) loans may have the following changes.
*up to 90% guarantee (increased from 75%)
*reduce or eliminate the SBA guarantee fee for a 12 month period.
*improve the secondary market value of the 7(a) loan, which would make it more attractive for lenders to make SBA 7(a) loans.
Until these proposals are implemented by the SBA and notices are sent to lenders, we are still in a "grey" area and must operate under the current policy of SBA.
Next blog will outline the basics of what each applicant should have, in order to increase the likely hood of getting an approval.
Friday, February 13, 2009
Closer to changes with the SBA Loan Program
Well, we are one step closer to seeing positive changes that will impact the small business loan applicant. The House has passed the newest version of the SBA Stimulus Package. The Senate still needs to approve and the President needs to sign.
Although many changes are cited, some of the most significant are the increased guarantee to lenders and the reduction or elimination of loan fees for both the 7(a) and 504 program to the applicant. Another significant change would be the refinance eligibility under the 504 loan program and the secondary market guarantee. Here is where we will most likely see the greatest activity on a go-forward basis.
Stay tuned for the up to date changes, as they occur.
Although many changes are cited, some of the most significant are the increased guarantee to lenders and the reduction or elimination of loan fees for both the 7(a) and 504 program to the applicant. Another significant change would be the refinance eligibility under the 504 loan program and the secondary market guarantee. Here is where we will most likely see the greatest activity on a go-forward basis.
Stay tuned for the up to date changes, as they occur.
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