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 auction.com 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