Small Business and SBA News | Liberty SBA 504 Rates

The hospitality business is booming and that success is spilling over into SBA and conventional hotel lenders, according to an article in Coleman Report. SBA finacing in this space is very competitive, the website said. During a recent webinar Anthony Falor of said there are many “good” buyers of hotels who are looking to buy and they are bringing more cash to the table to do so.

Only 32% of business owners on Main Street regularly borrows money according to the NFIB. A small percentage (5%) said that all their credit needs were not being met. That is up 2 points but, according to Coleman Report, it is still historically low. Also, 35% said that all of their credit needs were being met, with 48% who did not want a loan. The most recent NFIB Small Business Optimism Index fell 2.8 points to 95.2.

It seems that the SBA 504 loan program is a victim of its own success. NADCO’s CEO Barbara A. Vohryzek recently sent a message to members regarding increased turnaround times for SBA 504 loan processing and environmental reviews. She wrote that the situation is likely to get worse as the year goes on. The reason? “This lengthening is simply the result of increased 504 loan volume and a fixed number of SLPC personnel,” said Vohryzek. She said that by summer, loan approvals would be about 10-12 business day. “NADCO is having ongoing discussions with SBA regarding their short and long term resource challenges with our program.” NADCO
“will continue to work with SBA towards innovative solutions that can work with the current restraints, while looking towards the long term solutions to resource scarcity.” You can read the full message here along with some suggestions by Vohryzek on how CDCs and lenders can manage the situation.

SBA chief Maria Contreras-Sweet went to New Hampshire recently with U.S. Sen. Jeanne Shaheen, visiting with small business owners to share their success stories, according to a story in the New Hampshire Union Leader. Dean Millard, owner of New Hampshire School of Mechanical Trades, which offers training in electrical, plumbing, heating and other trades. Millard used the SBA 504 loan program to open his business in Manchester, NH, with the help of the Small Business Development Center at UNH-Manchester, a cooperative venture of the Small Business Administration, the state and the University of New Hampshire. “It’s the kind of partnership Contreras-Sweet came to the state to celebrate, the story said.

Meet up with Liberty SBF to learn all about our SBA 504 Loan and pick up a copy of our white paper to see why this is the best program for small businesses. We will be at the following upcoming SBA-focused conferences:

SBA Lending Technical Conference, May 5-7, San Antonio, TX

NADCO Spring Summit, May 10-13, 2015, Washington DC

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Click here for current SBA 504 rates

SBA & Small Business Market News You Need To Know [News]

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The SBA 504 program is performing at historical low delinquency and charge-off rates, according to an article on Coleman Report. Delinquency rates for SBA 504 declined from 5% in February 2010 to 1% recorded in July 2014. The charge-off rate for the SBA 504 program rose from late FY 2008 to early FY 2013, peaking at 4.4. It declined after that to 1.5% in July 2014.

Good news for fiscal hawks watching the SBA. The SBA 504 Loan Program will by a a self-sustaining program in FY 2016, meaning it will require no appropriation to keep it running. According to a statement released by NADCO, starting on October 1, 2015, program will be entirely self-funded with zero cost to taxpayers, as it had been for 16 years prior to the Great Recession. “The SBA 504 loan program has been helping entrepreneurs fulfill the American dream for over 30 years,” said Barbara A. Vohryzek, CEO and President of NADCO. “It was an integral economic development tool in reinvigorating the economy during the Great Recession, when banks were incapable of lending to small businesses. As a program that that can fill the credit market gap during an economic downturn, the SBA 504 is vital to small businesses that need capital during difficult economic times.”

Paww, the owner of two businesses that makes travel gear and products for dog owners, recently closed on a $5 million SBA 504 loan from TMC Financing CDC to purchase a 6,725-square-foot iconic creative space in the Upper Haight area of San Francisco. “San Francisco is an active market,” Chris Miksovsky, owner and chief executive human at both companies, said in a statement. “If you’re going to be here for a long time, which we plan to, there’s some argument for making the investment and owning the place you work.” Products made by both companies are sold by major retailers.

Lorena Chavez, senior business development officer at New Mexico-based Capital CDC wrote an article on the SBA 504 loan program for the Albuquerque Journal outlining some of the benefits of the program and its usefulness for small business owners. Chavez also took the opportunity to point out a great recent use of the program for a local business, Sorrel Sky Gallery. According to the article, the art gallery expanded its business from Colorado, opening its second location in Santa Fe and bringing jobs to the community. For the past 13 years, business owner, Shanan Campbell Wells build the gallery into a leader in the Four Corners art community.

Meet up with Liberty SBF to learn all about our SBA 504 Loan and pick up a copy of our white paper to see why this is the best program for small businesses. We will be at the following upcoming SBA-focused conferences:

SBA Lending Technical Conference, May 5-7, San Antonio, TX

NADCO Spring Summit, May 10-13, 2015, Washington DC

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Click here for Liberty SBA 504 rates

Small Business Lending Up at Community Banks [News] | SBA 504 Rates and News From Liberty SBF

CRE loans at all sized banks in the U.S. were up by 9% last quarter from the year before but small banks have been the stars lending at double-digit rates over the past year, according to an article on Seeking Alpha. As a matter of fact the writer says that most business in CRE lending has been through smaller U.S. banks throughout the recovery and he thinks it will probably continue. Overall Commercial and Industrial lensing at smaller banks also outpaced larger banks. Over the past quarter smaller banks increased lending by about 13% while the 25 largest U.S. banks increased lending in this area by 10%.

Smaller banks fuel growth at small businesses because unlike corporations that have other options when raising capital (stock sales, bond issuances), small businesses turn to local banks for help. But a Federal Reserve report shows that source of cash is drying up as the number of community banks decreased 41% between 2007 and 2013, according to an article in Entrepreneur magazine. New bank formation has also stalled and the blame is place on the higher regulation and costs associated with the Dodd-Frank Act. Scott Shane, a professor at Case Western Reserve University argues in the article that community banks should be exempt from theses regulations. With their knowledge of local marketplaces, community banks are better prepared to evaluate factors that do not show up just looking at credit and cash flow when making decisions to lend to a local business.

Cash flow is the number one concern of small business owners, according to an article in Coleman Report. Commenting on another article that outlined what kept business owners up at night Bob Coleman wrote that the list was filled with annoyances more than concerns. His list included three items: Cash Flow, The Economy and Access to Capital.

TMC Financing, a West-coast based CDC, helped an artist purchase his own studio recently. Master potter, Adam Silverman financed the purchase of a 4,350-square-foot studio and showroom in Glendale, CA with an SBA 504 loan. The total project cost of just under $965,000 includes the purchase and subsequent improvements. Silverman is known for his textured pots, some of which take months to make. He had worked under another studio for the last five years and wanted to re-establish himself in his own studio.

TMC Financing was also named among the Best Places to Work in 2015 in the Bay Area by the San Francisco Business Times and the Silicon Valley Business Journal according to a statement. The rankings recognize outstanding companies whose employees rate them as having the best workplace cultures in the Bay Area. TMC Financing was founded in 1981 and is the largest provider of SBA 504 real estate loans funding projects worth more than $8 billion across California and Nevada for more than 4,700 businesses creating an estimated 35,000 jobs.

Dakota Business Finance, a South Dakota CDC, is co-sponsoring a market for locally made items on May 1 called Sioux Falls Made. The Sioux Falls Made Market will run from 11 a.m. to 7:30 p.m. in a repurposed garage at Argus Leader Media, located at 10th Street and Minnesota Avenue. The event is touted as a one-of-a-kind market for locally handmade and homegrown items featuring the work of 40 Sioux Falls-area vendors. Find out more here.

Meet up with Liberty SBF to learn all about our SBA 504 Loan and pick up a copy of our white paper to see why this is the best program for small businesses. We will be at the following upcoming conferences:

Trigild Spring Conference, April 22-23, Dallas, TX

SBA Lending Technical Conference, May 5-7, San Antonio, TX

NADCO Spring Summit, May 10-13, 2015, Washington DC

8 Plus 1 Things You Need To Know Right Now (That’s 9):

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• 8 small business tax preparation mistakes to avoid

• Small business: Backbone of the economy

• Coleman Report interviews Kent Hoover of The Business Journals

• What small businesses should ask about their tax preparation software

• 10 quick tips for small business growth

• SBA names Huntington Bank top Michigan lender for 6th year

• Media training tips for small businesses

• At the crossroads of health care and innovation

Click here or current SBA 504 rates.

SBA Rates and Commentary From Liberty SBF – Not All SBA Loans Are Created Equal


All Small Business Administration Loans are not created equal. If one lender turns down your SBA loan, don’t despair because you can always take it to another lender. We often look at loans that have been turned down by others.

Although SBA loans are guaranteed by the Federal Government program, each lender goes through its own underwriting standards based and what the administration sets in its guidelines. Ami Kassar explains the ins and outs of this in his article on the Wall Street Journal website.

The FOMC statement marked a bit of a change in how the Feds measure when to start increasing interest rates. “The committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the committee views as normal in the longer run,” according to the Fed.

President Obama has hit a sore spot with his overtime pay proposal. The Wall Street Journal is reporting that the move will hurt small businesses that have relied on overtime instead of hiring new workers to defray costs while the economy continues to recover.

Small businesses have been bitten by Jack Frost. The National Federation of Independent Business reported its small business optimism index dropped to 91.4 in February, from 94.1 in January, its lowest reading in almost a year, reported the Wall Street Journal.

But retail sales have reportedly risen 0.3% in February from -0.6% in January (revised from -0.4%). December’s numbers were also revised from -0.1% to -0.3%. Auto sales were up 0.3%, furniture sales gained 0.4% and building materials rose 0.3%. The surge in sales might have something to do with the winter thaw as we saw somewhat less snow. If the weather improves, and sales go up, can confidence be far behind?

At least some pome people are happy. The number of millionaires is at an all time high, according to reports.

Finally, if you think about how science fiction might become real life fact, then National Journal’s article asking if robots are taking over our jobs might be a good read today. Economists offered their opinions on the subject but it might not be as silly an idea as one might think.

Small Business Administration (SBA) Weekly Rate Sheet:

Liberty SBF directly funds Owner-Occupied Commercial Real Estate Loans up to $13M.
Current Par Rates on “A” Paper – Top 20 MSAs Only on Multi-Use Real Estate, Office and Industrial Properties.

10-25 year term
20-25 year amortization

Loan Parameters
• Focus on professional office and industrial properties. (Other property types considered on a case-by-case basis)
• Up to 90% LTV on owner-occupied commercial real estate transactions.
• Up to 65% LTV on conventional commercial real estate acquisitions and refinances.
• Personal credit score of 675 or better.
• DSCR > 1.20x

SBA Rates And Market Commentary From Liberty SBF For Feb. 21, 2014

banner-loan-programsAmi Kassar posed this question in his blog on the Wall Street Journal website: Has small-business lending really improved?

Kassar said many businesses have been able to climb out of the Great Recession in a better position than they started, making themselves more bankable.

“The credit-worthy group has gotten bigger and it seems the approval process has gotten easier, but the fact remains that there is still only a small percentage of businesses that are bankable,” he wrote.

For those who aren’t in that top tier the choices have expanded.

“On the flip-side, nonbankable small-business-owner options have increased exponentially and these business owners are more likely to get a loan today than they were a few years ago,” Kassar said.

In its small business blog, The New York Times reported that social media is king to Millennials. “Millennials put more stock in social media than they do in government, business or religious institutions,” wrote blogger Gene Marks.

The Times also reported that small businesses have been learning from the big guys when it comes to cutting costs.

“Thanks to the rise of online job marketplaces, small businesses are increasingly using foreign contract workers to lower their costs,” the paper reported.

Coleman Report reviewed SBA lending out of Credit Unions vs. banks over the past few years. They found that the interest from Credit Unions in originating SBA loans has been on the decline since 2009 from a standpoint of number of loans but average loan size has nearly doubled.

“The Coleman 500 for FY 2013 (published November, 2013) showed that four banks single-handedly made more loans and seven banks achieved a higher loan volume than all credit unions combined,” Coleman reported.