Liberty’s SBA and Owner Occupied CRE Lending Report For 1/16/14

January 16, 2014

Bloomberg Small Business Report said that small business loan default rates are at record lows making them more attractive to banks, giving business owners room to dictate better terms.

Meanwhile, a less than stellar jobs report last week spurred talk that the economy might not be picking up as fast as everyone once thought. In December, 74,000 jobs were added according to the Labor Department.

Those numbers are contrasted by ADP’s that showed a healthier job market at the end of 2013. As reported by the Washington Post, small businesses led the way.

“Small business owners rebounded from a dismal showing in October to close out the year with their two highest hiring totals of 2013,” the paper reported in its On Small Business section.

It seems that a commitment to funding small businesses is one way to keep the job market flowing, helping to lift the economy overall.

According to the SBA, small businesses account for almost half of all private-sector employment. They also occupy 30-50% of all commercial space, estimated at 20-34 billion square feet.

Ami Kassar wrote in his Wall Street Journal column that small businesses are navigating an uncharted lending landscape, many of which are not aware of the availability of SBA loans.

“The issues surrounding small-business capital are more critical than ever as more and more Americans turn to entrepreneurship in the face of a dwindling job market,” he wrote.

To that end, the Small Business Lending Fund (SBLF), designed to encourage small business lending by providing capital to community banks and community development loan funds (CDLFs) reported that by September 2013 “participants have increased their small business lending by $11.2 billion over a $35.1 billion baseline, and by $819 million over the prior quarter.”

Small Business Administration (SBA) Weekly Rate Sheet 1/16/2014

Liberty SBF directly funds Owner-Occupied Commercial Real Estate Loans up to $13M.

Current Rates

3.25% I WSJ PRIME FLOATING RATE
4.18% I 5-YEAR LIBOR SWAP FIXED RATE