SBA Rates and Small Business Commentary for Feb. 12, 2014

February 12, 2014

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According to the National Federation of Independent Business index released on Tuesday, optimism is up slightly at small businesses. The small business optimism index rose to 94.1 in January from 93.9 the previous month. Click here for the full report.

The jobs report last week showed that the economy added 113,000 jobs last month, a disappointing number according to many economists who expected around 178,000 new jobs. The unemployment rate was at 6.6% in January. CNN reported that the disappointingly low December numbers were now revised upward by as much as many expected, adding up to only 75,000 new jobs.

Coleman Report wrote about a recent survey by a government banking regulator on small business lending at community banks. Many reported that their underwriting standards have remained the same while a handful are underwriting at 2006 levels. Of the banks surveyed, only a little over half even offer small business lending that reaches two percent of their outstanding lending portfolios.

On the SBA front, Coleman also broke down the agency’s lending statistics saying that the 7(a) program is “finally shows signs of getting some legs in FY 2014.” Total volume YTD is $5.18 billion. a “marked improvement over the 12/31/13 trajectory.” Average 7(a) loan size is $367,177.

Lending for 504/CDC is not as good, showing a 23 percent decrease from YTD FY 2013 at $1,343 million YTD through 1/31.

“The total number of 504/CDC loans decreased to 1,876 YTD through 1/31 after totaling 2,627 at this point in FY 2013,” Coleman reported.

Lastly. healthcare costs are on the minds of most small business owners according to a recent survey by the National Small Business AssociationNot only the impact of the ACA but rising costs in general and what kinds of benefits they will offer employees.

Small Business Administration (SBA) Weekly Rate Sheet 2/12/2014
Liberty SBF directly funds Owner-Occupied Commercial Real Estate Loans up to $13M.

Current Rates
3.25% I WSJ PRIME FLOATING RATE
4.07% I 5-YEAR LIBOR SWAP FIXED RATE

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