Over 200 people attended Gilmore Bank’s first business networking event May 20, 2010. Thanks to Andrew Adams for orchestrating this highly successful event, which hosted Gilmore Bank clients, friends and prospective customers.
Loan officers Cyrus Greene, Aida Baboudjian, Jim Roby and Andrew Adams attended, along with Doug Spencer, Ron Koelling, Marta Linares and Cecil Adams. J.P. Turner advisors David Park and Bryan Schwartz, along with A.F. Gilmore Company staff were also on hand to meet and greet guests.
Watch for an announcement regarding Gilmore Bank's
NEXT networking event later this fall! Did You Miss These Networking Opportunities?
- LA Mixer at the Shrine Auditorium Expo Center, July 22
- Los Angeles Consulting Group (LACG) launch event, June 24
- Networking and Netpartying at The Grove, May 20
- Happy Hour #15 at The Lounge at L'Ermitage, April 15
- March Madness at SOUTH, March 19
- Happy Hour #14 at Haute Lounge and Nightclub, March 18
- No Strikes Networking at Cafe Roma Ristorante, March 4
- Happy Hour #13 at the W Hollywood Hotel, Februrary 25
- The Quarterly LA Networking Event at The Sofitel Hotel, Feb.18
JOIN US NEXT TIME!
SBA NEWS
An increase of the SBA loan limit from $2 million to $5 million continues to gain support and may soon be available for small businesses that require additional financing for acquisitions, real estate purchases, debt refinancing or working capital. Gilmore Bank's SBA department had its strongest year in 2009, and we have projected a 20% increase in funding for 2010. Contact me if you have questions or would like to discuss a particular lending need.
SBA Issues Warnings On Private Lenders
By Carol Lawrence © 2010 NorthJersey.com
The Small Business Administration and its investigatory arm, the Office of the Inspector General, are warning small business owners about companies claiming to help obtain SBA funding. According to the SBA, complaints say companies are charging high fees, guaranteeing SBA funding for a fee, claiming funding will be denied if they are not hired and asking for bank information and then charging for services not requested. The SBA said "it does not endorse or give preference to specific private companies or their clients" and posted these tips:
Small business owners should:
- Never provide Social Security numbers, bank account information or credit card numbers
- Get free assistance in person, by calling one of the SBA's 68 district offices or from the SBA's Web site: www.sba.gov.
- Get free help from Small Business Development Centers, Women's Business Centers, Veterans Business Outreach Centers and SCORE chapters, either free or for a reasonable fee. Information is on the SBA's Web site.
- Report misrepresentations to the SBA's Office of the Inspector General hot line, toll-free at 800-767-0385 or submit an online report at the SBA OIG Web page www.sba.gov/ig and click the link for "Report Fraud, Waste or Abuse."
If looking for third-party help in SBA funding:
- Ask for references and confer with those you trust and institutions such as the Better Business Bureau.
- Clearly establish and document what you are being charged, when you will be charged, what you must do and what services you will receive.
WASHINGTON, D.C. (Jan. 28, 2010) - Congressman Joe Donnelly sent a letter to House of Representatives Speaker Nancy Pelosi and committee on supporting an increase in the loan limits for the Small Business Administration (SBA) 7(a) loan guarantee program from $2 million to $5 million. Donnelly sent the letter in response to feedback from small business owners in north central Indiana who depend on these loans to expand their businesses and create jobs.
In his quote to Speaker Pelosi, the congressman stated, "In these tough economic times, access to credit is one of the most important resources for a small business," said Congressman Donnelly. "The SBA 7(a) loan program has been an effective tool for many businesses, but I know we can do more. I will continue to advocate on behalf of Indiana businesses to Congressional leaders and to the SBA, because a strong small business sector is critical to getting our economy back on track."
Click here to read Congressman Donnelly's letter to Speaker Pelosi and Chairwoman Velasquez.
Small Business Lending Begins To Rebound
By Catherine Clifford
CNN Money staff reporter, January 4, 2010: 4:22 PM ET
NEW YORK -- Small businesses are still struggling to find financing, but for those seeking government-backed loans, the worst may be over. The Small Business Administration's flagship lending program backed 37% more loans in its latest quarter than it did a year ago, at the height of the financial crisis.
In the three months ended Dec. 31, the SBA's 7(a) lending program processed 12,393 loans totaling $3.8 billion, according to preliminary data released Monday by the agency. That's a sharp increase from the 9,070 loans, totaling $1.9 billion, processed in the year-earlier quarter.
The SBA credits the improvement to a slew of stimulus measures.
"The big takeaway that we have when we look at this is that we were successful in turning around the SBA lending," SBA spokesman Jonathan Swain said.
Still, lending remains far behind pre-recession benchmarks. Two years ago, in the last calendar quarter of 2007, the SBA backed more than 20,000 small business loans.
"While there are some indicators that the economy is moving in the right direction, no one would say we are out of the woods yet," Swain said.
A lagged recovery: SBA loans represent a tiny portion of the overall small business lending landscape, but they're an important barometer of banks' willingness to extend credit to startups and growing companies. The SBA program guarantees a portion of the money banks lend to qualifying businesses. If the borrower defaults, the government pays the bank back.
Credit conditions for large businesses have largely returned to normal after the dire credit crunch that followed Lehman Brothers' collapse in late 2008. But small businesses have not enjoyed the same recovery. Sales are down at most companies, and the value of assets typically used as collateral -- like real estate and goods in inventory -- has fallen. That leaves many banks reluctant to lend to borrowers they view as risky bets.
From April to October, the nation's largest banks shrunk their collective small business lending balance by 4.3%, cutting $11 billion in credit, according to the most recent Treasury Department data.
Stimulus help: In response to last year's credit crisis, the government lined up a slew of stimulus measures aimed at increasing lending through the SBA's programs.
February's Recovery Act set aside a $375 million funding pool to temporarily eliminate fees for a SBA loans and increase the portion of each loan that the government guarantees, up to 90%.
That move proved so popular that the money allocated for it ran out just before Thanksgiving. Banks and small businesses still clamoring for the stimulus incentives got in line in a Recovery Act Queue.
The queue had more than 1,000 loans pending approval when Congress appropriated another $125 million for the program just before Christmas. The SBA started approving loans off the queue late last month, and currently, the queue is wiped clean.
Another stimulus loan program, America's Recovery Capital, is still inching along, despite lender and borrower complaints that a burdensome application renders the program nearly useless. Last quarter, the SBA backed 2,206 ARC loans totaling $70.9 million.
The SBA plans to push for more funding to continue the stimulus measures. The House of Representatives passed a jobs bill late last year that includes another $354 million to fund an extension of waived fees and increased guarantees. The Senate will take up the bill when it returns from its winter recess.
Funds Requested To Extend SBA Recovery Act
WASHINGTON – United States Senate Committee on Small Business and Entrepreneurship chair, Mary L. Landrieu, D-La., along with 12 other senators, today sent a letter to the Committee on Appropriations requesting funds to extend Small Business Administration (SBA) Recovery Act lending programs.
“Experience has shown that SBA Recovery Act funding is successful: it actually does go out to the small businesses it is intended to help. During the time that Recovery Act funding was available, SBA lending increased by 79 percent, supporting $16.5 billion in SBA backed lending,” Senator Landrieu said in the letter. “That is why it is critically important to extend the Recovery Act funding for SBA loans. The original $375 million in funding helped support $16.5 billion in loans to small businesses, but now that funding has been exhausted the SBA has been forced to create a waiting list of more than 700 businesses waiting on more than $315 million in loans. If Congress acts on this request, we can clear the waiting and support up to $18.5 billion in SBA backed loans.”
The funds requested are for:
- $140 million for increased 7(a) loan guarantees;
- $283 million for the elimination of borrower fees on 7(a) loans; and
- $56 million for the elimination of borrower and lender fees on 504 loans.
If these funds are approved, they will support $18.5 billion in small business lending, including $14.5 billion in 7(a) loans and $4 billion in 504 loans. According to the SBA, its Recovery Act funding has generated $16.5 billion in loans to more than 40,000 small businesses.
As of November 23, funds included in the Recovery Act for small business lending had run out. To date, there are more than 700 businesses currently on the waiting list for loans from the SBA totaling more than $315 million. According to the SBA, loan volumes have decreased significantly since the November 23rd cutoff date, with 7(a) loans falling more than 70 percent from their high following the Recovery Act. For the first two full weeks after the SBA was forced to create their waiting list, 7(a) loan volume is below pre-Recovery Act levels.
Signing onto the letter were Senators Joseph Lieberman, Jeanne Shaheen, Barbara Boxer, Sheldon Whitehouse, Roland Burris, Carl Levin, Maria Cantwell, Kay Hagan, Sherrod Brown, Tom Udall, Jeff Merkley and Kirsten Gillibrand.
Senator Landrieu will hold a markup tomorrow of S. 2869, “The Small Business Job Creation and Access to Capital Act of 2009.” This bill would authorize the extension of the elimination of fees and increased guarantees for SBA loans, both Recovery Act provisions. It would also authorize an increase in the loan caps for these SBA loans.
Obama Pushes Small Business Aid for Job Recovery
By: John Tozzi (12/08/09)
The president pledged to extend loan aid and tax breaks to small businesses and to create a new tax credit for hiring new workers in a speech at the Brookings Institution today. He also suggested the Treasury will use some of the TARP money originally intended to bail out banks to aid small businesses.
Following the White House jobs summit last week, a tour of businesses in Allentown, Pa., and a forum last month to address small business access to capital, Obama’s speech today is the latest recognition that a Main Street recovery must parallel Wall Street’s rally to ease unemployment.
Aside from the new hires tax credit, a lot of the small business aid extends existing tax and lending relief into next year. The details available are here:
- He wants to create a short-term tax credit for new hiring in 2010 (a proposal Obama floated over a year ago in the campaign).
- He wants to eliminate capital gains taxes on new equity investments in small businesses for one year (these are 75% excluded for now).
- He wants to extend the stimulus provision that lets businesses immediately deduct up to $250,000 in capital investments to 2010.
- He wants to keep the increased guarantees and reduced fees on SBA loans going into 2010.
SBA Updates
On October 21, 2009, President Obama announced steps that the administration is taking to expand access to capital for small businesses. Senate Bill 1832 was introduced by Senator Mary Landrieu to implement the administration's initiatives.
Highlights of the Proposed Legislation Include:
- Increasing maximum 7(a) loan size to $5 million
- Increasing maximum 504 sizes to $5 million (non-mfg) and $5.5 million (mfg)
- Increasing maximum guarantee
dollars to one applicant/affiliates to $4.5 million
- Extending 90% maximum 7(a) guarantee percentage through 10/1/2010
- Extending ARC Loan relief to existing SBA loans
- Increasing the maximum microloan loan size from $35,000 to $50,000
If enacted, the proposed legislation aims to
stimulate SBA lending by:
- Extending the popular 90% guarantee for lenders
- Increasing the # of projects that can be financed with higher loan amounts
- Making extra guaranty funds available to those who have maxed-out their SBA guarantee allocations.
In addition, the SBA is also proposing an increase to the existing SBA size standards that will coordinate with the increased loan amounts pending in Congress.
This is the first comprehensive review of the SBA's size standards in more than 25 years. The SBA press release regarding the new size standards can be found on the government's Small Business Administration website www.SBA.gov.
New SBA Guidelines Released
(September 1, 2009) -- The following were new topics recently discussed at the NAGGL (National Association of Government Guaranteed Lenders) conference in Texas:
- An increase to the 7(a) maximum loan size to $5 million
- A permanent 90% guarantee
- An extension of fee waivers
The goodwill issue also looks promising as well as the future of the SBA.
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Housing Lender