SBA 504 Lending and Small Business News: June 21, 2016

With the help of the SBA, a Staten Island, NY-based business has survived adversity time and again. Maryann Piazza, CEO of Majestic Vending & Services, was profiled for an article in Forbes about the challenges she faced as an entrepreneur while running her business. Most recently, Piazza had to keep her business alive after Superstorm Sandy hit the area devastating her company’s hometown. She managed to keep her doors open and “her staff dug deep to help their neighbors, donating supplies and helping members of the community apply for grants,” according to the story. Her effort attracted the attention of the SBA. This spring the agency bestowed Piazza and her husband–a co-founder of the company–with the 2016 Phoenix Award. “We’re not the biggest business, and we don’t have the most employees. So for them to see our resilience? It’s humbling. But we do what we do because that’s who we are; that’s what it’s about,” Piazza said.

Access to capital has improved for small business over the last four years. According to the second quarter results from the Private Capital Access (PCA) Index by Dun & Bradstreet and Pepperdine University Graziadio School of Business and Management, there has been a 13% increase in access to capital for small businesses (revenues less than $5M) since Q2 2012. While that is good news, lots of small businesses are still relying on personal credit to fund their businesses including savings, credit cards, and cash from sale of assets. Crowdfunding is also an alternative option for small business owners. “When we began the study four years ago, small businesses were reeling from the effects of the Great Recession,” said Jeff Stibel, vice chairman of Dun & Bradstreet in a recent story. “Since then, we have seen steady progress for small businesses being able to acquire the capital they need…”

For the economy, slow is the new normal. Fed Chair Janet Yellen said as much at the last Fed meeting when the agency decided against raising rates, surprising no one. Bloomberg reported that “growth has slowed, productivity has slumped and inflation is taking longer than expected to accelerate.” The sluggish economy is causing some to look askew at the Fed as it tries to downshift on the fly. St. Louis Fed President James Bullard said, “This mismatch between what we’re saying and what we’re doing is arguably causing distortions in global market financial pricing, causing unnecessary confusion for future Fed policy and eroding credibility.”

8+1 (That’s 9) Things You Need To Know

  1. SBA Regional Administrator talks inclusive entrepreneurship
  2. Art becomes big factor in hotel and CRE
  3. Retail experts puzzle out shrinking store footprints and excess space
  4. 5 ways to establish credit for your business
  5. San Fran company set to grow, create 25 new jobs with 504 loan
  6. SBA moving its IT into the 21st century
  7. Five quick small business stats from the SBA
  8. New in small business tech this week
  9. Why the I.R.S. fails to crack the small-business tax nut