I am mentioned several times in the September 2011 issue of Restaurant Finance Monitor John Hamburger. My input is directly loan based and I provide quick figures as to what you can expect by using our loan program for you next restaurant commercial financing project.
Small business loan options for native american owned businessesMerchant Advisors
Native American business are facing unique financial challenges. We can help minority businesses to grow with a range of small business loan options. https://www.onlinecheck.com/blog/business-loans/small-business-loan-options-for-native-american-businesses/
Peer to peer lending will work the whys and howsdhirencash
The presentation gives 3 strong justifications for peer to peer lending to succeed in India. It states that this concept will really help in the growth of the economy while providing an alternate source of credit
Wharton FinTech Club hosted a seminar on P2P (peer-to-peer) lending in October '14. Take a look at our key insights and analyses on this fast-growing industry!
Small business loan options for native american owned businessesMerchant Advisors
Native American business are facing unique financial challenges. We can help minority businesses to grow with a range of small business loan options. https://www.onlinecheck.com/blog/business-loans/small-business-loan-options-for-native-american-businesses/
Peer to peer lending will work the whys and howsdhirencash
The presentation gives 3 strong justifications for peer to peer lending to succeed in India. It states that this concept will really help in the growth of the economy while providing an alternate source of credit
Wharton FinTech Club hosted a seminar on P2P (peer-to-peer) lending in October '14. Take a look at our key insights and analyses on this fast-growing industry!
Marketplace Lending in the U.S. - An industry overview March 2015Rajesh Kamath
This is a study of the marketplace lending business in the U.S.
Marketplace lending (used to be called peer-to-peer or P2P lending earlier) is growing at a scorching pace in some lending segments, which traditional lenders might have all but abandoned. It represents technology-led disruption in the personal and small business lending space. What started life as 'borrowing from friends, family and peers' has turned into a broader 'marketplace' model, and might be on the cusp of becoming a mainstream lending channel in the next few years.
It is getting increasing attention (and investments) from established institutional financial players.
This study intends to provide an overview of what the marketplace lending business is all about. It takes a deep dive into the structurals - products, customers, regulations, platform models and who is investing in this space. It also lists the key success factors in this business, and tries to gaze into the future of what might be in store for this business in the coming few years.
Brian Zwerner's Kensington Blake Capital entity begins investing with ProsperBrian Zwerner
Brian Zwerner, Managing Principal of Kensington Blake Capital, announces that the firm has begun an investment program on the Peer-to-Peer lending site of Prosper. Prosper offers consumer loans primarily used to refinance and consolidate credit card debt. Investors such as Brian Zwerner are able to view 20+ individual loan characteristics when selecting the loans to invest in.
P2P Lending for Institutional Investors and Wealth Managers: An OverviewPMIFunds
P2P lending (or peer-to-peer lending) is a fast growing space in which any individual or organization can lend money directly to another individual through an online p2p lending platform such as Prosper or Lending Club. The transparency, ease-of-use, and ability to quickly make a loan request or fund a loan at competitive interest rates make P2P lending attractive for both borrowers and lenders
Are you baffled by jargon when it comes to investing? At Huddle we want to educate everyone about peer to peer lending, and help you get to grips with the concepts behind crowdfunding so that you can make more informed choices about money matters. Follow our blog at www.huddlecapital.com for more educational content.
MultiFunding Lending Snapshot - Q1 May 2011elisabethie
This report is a summary of key findings from MultiFunding’s First Quarter National Lending Snapshot. The objective of the study is to determine amongst small business owners looking for loans in today’s market – what loan types they qualify for and what interest rates they can expect to pay for their loans.
Small Business Lending Index August 2015Biz2Credit
Big banks decreased 22.3% of small business loan requests in August 2015, down from 22.4% in July, marking the tenth consecutive month, small banks have denied more than half of their loan requests.
P2P Investment Returns on Fully Managed AccountsSummer Tucker
P2P lending enables individual investors to access the new asset class of consumer credit by facilitating loans to borrowers through online marketplaces like Lending Club and Prosper. Here is the historical performance.
Bryan Zhang / Insights from the latest Peer-to-Peer Lending ResearchJames by CrowdProcess
Bryan Zhang: Insights from the Latest P2P Lending Research
Keynote address by Bryan Zhang, of University of Cambridge, at LendIt Europe 2014. The title of this presentation is Insights from the Latest P2P Lending Research.
Marketplace Lending in the U.S. - An industry overview March 2015Rajesh Kamath
This is a study of the marketplace lending business in the U.S.
Marketplace lending (used to be called peer-to-peer or P2P lending earlier) is growing at a scorching pace in some lending segments, which traditional lenders might have all but abandoned. It represents technology-led disruption in the personal and small business lending space. What started life as 'borrowing from friends, family and peers' has turned into a broader 'marketplace' model, and might be on the cusp of becoming a mainstream lending channel in the next few years.
It is getting increasing attention (and investments) from established institutional financial players.
This study intends to provide an overview of what the marketplace lending business is all about. It takes a deep dive into the structurals - products, customers, regulations, platform models and who is investing in this space. It also lists the key success factors in this business, and tries to gaze into the future of what might be in store for this business in the coming few years.
Brian Zwerner's Kensington Blake Capital entity begins investing with ProsperBrian Zwerner
Brian Zwerner, Managing Principal of Kensington Blake Capital, announces that the firm has begun an investment program on the Peer-to-Peer lending site of Prosper. Prosper offers consumer loans primarily used to refinance and consolidate credit card debt. Investors such as Brian Zwerner are able to view 20+ individual loan characteristics when selecting the loans to invest in.
P2P Lending for Institutional Investors and Wealth Managers: An OverviewPMIFunds
P2P lending (or peer-to-peer lending) is a fast growing space in which any individual or organization can lend money directly to another individual through an online p2p lending platform such as Prosper or Lending Club. The transparency, ease-of-use, and ability to quickly make a loan request or fund a loan at competitive interest rates make P2P lending attractive for both borrowers and lenders
Are you baffled by jargon when it comes to investing? At Huddle we want to educate everyone about peer to peer lending, and help you get to grips with the concepts behind crowdfunding so that you can make more informed choices about money matters. Follow our blog at www.huddlecapital.com for more educational content.
MultiFunding Lending Snapshot - Q1 May 2011elisabethie
This report is a summary of key findings from MultiFunding’s First Quarter National Lending Snapshot. The objective of the study is to determine amongst small business owners looking for loans in today’s market – what loan types they qualify for and what interest rates they can expect to pay for their loans.
Small Business Lending Index August 2015Biz2Credit
Big banks decreased 22.3% of small business loan requests in August 2015, down from 22.4% in July, marking the tenth consecutive month, small banks have denied more than half of their loan requests.
P2P Investment Returns on Fully Managed AccountsSummer Tucker
P2P lending enables individual investors to access the new asset class of consumer credit by facilitating loans to borrowers through online marketplaces like Lending Club and Prosper. Here is the historical performance.
Bryan Zhang / Insights from the latest Peer-to-Peer Lending ResearchJames by CrowdProcess
Bryan Zhang: Insights from the Latest P2P Lending Research
Keynote address by Bryan Zhang, of University of Cambridge, at LendIt Europe 2014. The title of this presentation is Insights from the Latest P2P Lending Research.
SBA Eases Commercial Real Estate Refinancing RulesChristopher Hurn
Kent Hoover's article for the Orlando Business Journal goes into detail about the 504 loan program. After Hoover explains the basics of the 504 loan program, he quotes me about the upcoming 504 refinancings under the new regulations.
La montée des sites de médias sociaux comme Facebook et Twitter au cours des 5 dernières années a changé la donne dans bien des domaines. Y a-t-il un angle "géo" à exploiter? Découvrez comment des entrepreneurs montréalais ont utilisé Twitter pour développer un
service géo-social peu banal.
Small businesses need business loans to survive the covid 19Merchant Advisors
Here is everything you need to know about the SBA Coronavirus Disaster Loan Program, how to apply, important details, and expediting the approval process. https://www.onlinecheck.com/blog/business-loans/coronavirus-business-loans/
In the February 3rd, 2009 edition of Blue Maumau, a franchise news sharing resource, I am given the opportunity to reflect my thoughts on the SBA loan program. At one point I am quoted saying, "SBA loans normally take off in a recession, but this time around SBA lending has not taken off, mainly because of other issues relating to banks which are outside the SBA's realm." I continue to state that franchising should be taking off in an economic downturn like this and continue to explain some of the possible causes with difficult franchising in these times.
This article I wrote for the Scotsman Guide inlcudes everything on the 504 loans, from the basics of what they are to who can qualify. I even go to the extent of describing the higher ceilings on the net worth of businesses that can qualify for the loan, the advantages, and the upcoming proposed changes to the loans in this November 2008 issue of the Scotsman Guide.
4M&I has developed a Business Lending Model that provides an alternative source of financing for companies. We are a lending solution for businesses and have developed a revolutionary secure lending program that we believe all types of businesses have long been waiting for.
**NOTICE: This summary does not constitute an offer to sell Securities of the Company. An offer may be made only by an authorized representative of the Company and the recipient must receive a complete copy of the Company’s Offering Memorandum, including all Exhibits. “For Accredited Investors only pursuant to Rule 506(c) of the Securities Act of 1933, as amended."**
Did you know that 45,000 businesses in the United States fail each month? And that 44 percent of small businesses used credit cards as a source of financing in 2008, compared to 16 percent in 1993, according to the Small Business Administration? Learn how to take a proactive approach to managing your debt and creating cash flow with out borrowing money. Join the National Restaurant Association, Nation's Restaurant News and SettleSource, Inc. for this free one-hour event. Learn more at http://bit.ly/dqfzkI .
US Retail Banks have enjoyed several years of strong profitability and positive revenue growth. However, we see numerous headwinds to growth due to demographic, competitive, and consumer trends. While many of these trends will persist well into the future, 2019 will be a pivotal year. The attached white paper provides insights into the growth challenge and creative solutions for banks can act to accelerate their growth.
Rawls Finance Students Competed in National CSBS Case Study CompetitionStephanie Bohn
Four senior finance students – Chris Hresko, Jesse Kizewski, Eric Lamm and Sam Moore – represented the Rawls College and the Texas Tech School of Banking in the 2016 Community Bank Case Study Competition, hosted by the Conference of State Bank Supervisors (CSBS).
Check out their video:
https://www.youtube.com/watch?v=_Rj9s5Q-V10&index=4&list=PLKauCQgzK_ZRsnrokoXVTxuLT_Mv9Wccu
As a member of the INC 5000 I was interviewed on the federal government's policy for SBA loans, my own firm and how it has been affected by the market freeze. Furthermore, I am asked what President Obama should add to aid small business owners in this economic downturn all in the December 2008 edition of Inc.com
MCC mentioned in the Wall Street Journal regarding and I am quoted to explain our policy of checking personal-credit scores rather than business-credit scores. Business owners have the ability to submit their information to credit bureaus. This enables a potential client's own personal-credit score to be more reflective of their personal intent to pay back and why we at Mercantile value it more.
Will 2012 be the year of SBA lending? 7(a) and 504 loans were created to "level the playing field for small- and midsized-business owners. I talk about the boost this type of loan can give your company, a new life for the 504 refinancing, and how the clock is ticking for these types of loans all in the December 2011 publication in the Scotsman Guide.
n the hyper competitive commercial real estate market place, successful brokers and agents can utilize a relatively littleknown yet highly effective financing source to help clients secure the ideal property for their needs. e small business administration 504 loan programs represents one of the best possible options for small-business owners to acquire and enhance their own facilities. For many commercial real estate professionals, it is one of their top strategies for help
In the April 2009 edition of Franchise Times I am featured for some of my unordinary marketing techniques. The most diffficult thing is to get the attention of a new customer and I go through some of the interesting ways I have acquired new clients.
Chris Hurn, CEO and Co-Founder of Mercantile Capital Corporation, dicusses with the House Small Business Subcomittee his business and the experience it has given him to improve the industry. In this written testimony Hurn explains the SBA 504 and FMLP backround, its timeframe, and success to date. The request of the written testimony is to extend the FMLP program by 12 months with an additional SBA fee of 0.125% and additionally extend the SBA 504 Debt Refinance program for one year. This written testimony has been requested to be "co-signers" from 92 other businesses nationwide.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
1. Volume 22, Number 9 • Restaurant Finance Monitor, 2808 Anthony Lane South, Minneapolis, MN 55418 • ISSN #1061-382X
September 20, 2011
Shifting Credit Risk To The Government
Access to capital is still bandied about as the primary cause According to the SBA’s statistics, 7(a) and 504 loans ap-
of economic malaise and high unemployment in the Unit- proved in 2010 increased nearly 19 percent over the same
ed States. The International Franchise and National Res- period in FY 2009, and dollar volume climbed 39 percent.
taurant Associations have taken up the cause on behalf of So far in 2011, the dollar volume of approved loans is up
their members, especially as it relates to start-up individuals 51% for the 7(a) program and 13% for the 504 program.
who generally have the most trouble getting loans.
Why are the SBA programs so popular now, when in years
The number of small business loans made by community past, the SBA was the lending program of last resort?
banks has declined since the recession, but it is difficult to
say for certain whether capital access is the primary issue There are a couple of reasons for its popularity. First of all,
and borrowers are being turned down in greater numbers, the SBA 7(a) program increased the total amount a small
or whether the economy is so stagnant that fewer small business could borrow with a government guaranty from
businesses find the need and business demand to borrow. $2 million to $5 million. This has resulted in an increase in
the average loan size from approximately $242,000 in 2010,
According to the Monitor’s review of recent FDIC statistics versus an average loan size of $364,000 in 2011.
on community bank commercial lending activity, the dol-
lar value of small business loans secured by real estate on And, more businesses qualify for SBA funding these days.
the books of 6,413 community banks insured by the FDIC In 2010, the SBA redefined what it meant to be a small
on June 30, 2011, declined from $307.3 billion in loans a business in order to attract more borrowers to its program
year ago to $292.3 billion this year, a decline of 4.9%. in light of the recession and calls by Congress for increased
credit. Many businesses now qualify for SBA financing
Commercial and industrial loans made to small businesses that previously had no chance of accessing the program
also declined from $277.0 billion last year to $250.1 billion because of their size. The SBA made it possible for borrow-
this year, a decrease of 9.7%. The actual number of real ers who previously didn’t qualify for net worth and income
estate and commercial industrial loans on the banks’ books reasons to qualify provided they had less than a $15 million
decreased by 7.1% and 4.4%, respectively over the past year. net worth and $5 million of average net income over the
Overall loan balances, according to the FDIC, have de- past two years.
clined in 10 of the past 11 quarters for all types of loans.
While the total dollar volume of 7(a) and 504 loans in-
Yet the story is different for loans guaranteed by the Small creased by $6.7 billion over last year, the actual number of
Business Administration. The SBA guarantees loans for loans was flat. Chris Hurn, CEO of Mercantile Capital, an
small businesses up to 75% and have been doing their best SBA 504 lender and regular blogger, claims the increase in
to free up capital, and in turn make themselves a more rel- loan size in the 7(a) program is because of the willingness
evant agency. The 7(a) program, a typical loan vehicle for of banks to include real estate in the 7(a) loan package and
small businesses, including restaurants and franchises, is bypass the 504 program, where the lender provides only
generally used to obtain financing when a company does 50% of the project. As for processing loans, most lenders
not qualify for conventional credit. The 504 program fi- we spoke to acknowledge that it’s just as much work to do
nances real estate, although real estate can also be financed a $1.0 million loan as a $100,000 loan in SBA, so they opt
in the 7(a) program, too. for the larger deals with the 7(a) program, including real
estate, if possible.
[1]
2. It’s also very profitable for lenders to make SBA loans. The
current secondary market for selling the government guar-
anteed portion of SBA loans is pricing loans at a “range of
8.5% on a two-year maturity and as high as 14.7% on a
25-year maturity,” says Mike Rozman, chief strategy officer
of Boefly, an online lending platform. The nice premium
makes a government-guaranteed loan profitable upon issu-
ance and the bank can earn a fee for servicing the loan if
it sells it. If the bank decides not to sell the loan, the loan
guaranty makes it more valuable in the eyes of the bank
regulators during audit time.
It’s no surprise that some banks are shifting their conven-
tional small business loans to the Small Business Adminis-
tration’s guaranteed lending program, which doesn’t neces-
sarily result in more credit overall, but offloads more risk to
the government. Loans that might be made anyway on a
conventional basis are finding themselves in the SBA pool.
“Banks are using SBA as a risk mitigation tactic in provid-
ing credit for existing business clients,” says Ron Feldman,
CEO of Franchise America Finance.
Stephen Olear, Senior Franchise Counsel for the Los An-
geles office of the SBA has heard stories of lenders shifting
potential conventional loans to SBA, but doesn’t think it
is very pervasive. “The interest rate and terms on an SBA
guaranteed loan (prime + 2.75 and 25-year amortization)
are much better for the borrowers right now,” says Olear.
Would banks take on a marginal credit if they could get
the 75% guaranty offered by SBA? Laura Witmer, nation-
al franchise sales manager for Wells Fargo SBA Lending
doesn’t believe a bank would take that risk, even with the
guaranty. “No banker wants to get into a bad deal with all
the work that comes with a default,” says Witmer.
So on one hand you have bank regulators acting tough
with banks over capital requirements and impacting their
ability to lend, and on the other hand, you have a govern-
ment agency guaranteeing loans and making it easier for
banks to put the loans on their books. In both cases, the
government, not the market, is calling the shots.
—John Hamburger
[2]