Tuesday, July 13, 2010
Wednesday, June 30, 2010
Congress doesn't do it AGAIN!
Once again, small business has been cast aside....While 66 senators voted to move forward with debate on the access to credit bill the other day, it appears the Senate will move to passage today/tomorrow on an extension of unemployment benefits and the homebuyer tax credit and punt the small business “jobs” bill to after the July 4 recess. There is an extremely remote possibility that an agreement can be reached on the SBA/tax relief bill this week, it is doubtful.
Sen. Byrd’s funeral is Friday and his casket will lie the in the Senate Chamber for most of Thursday, which drastically shortens the ability to get things done.
Sen. Byrd’s funeral is Friday and his casket will lie the in the Senate Chamber for most of Thursday, which drastically shortens the ability to get things done.
Tuesday, June 29, 2010
NEWS FROM NAGGL -More Bumps in the Road for SBA Lending
Last week the Senate attempted to pass HR 4213, commonly known as the Tax Extenders Bill. The bill included $505 million for the extension of the SBA loan programs stimulus provisions through the balance of the calendar year. Three cloture motions (efforts to limit debate and bring the bill up for an up or down vote) were attempted and all failed. The Democratic leadership then pulled HR 4213 from further consideration at this time. HR 4213 could still be brought back up at a later date.
That is the bad news. The good news is that the Senate plans to move soon to the consideration of HR 5297, commonly known as the small business jobs bill. The House has passed their version which includes the $30 billion lending fund and several small business tax items. The Senate Democrats have been busy putting together their version of the bill. It is expected that this version will be available for review sometime this week. We believe that the Senate version will include provisions that have been advocated by the Administration and both Senators Landrieu and Snowe. This would include larger loan sizes ($5 million for 7(a) and $5.5 million for 504, the alternative size standard made permanent in 7(a), etc.) We have not yet heard if the extension of the stimulus provisions will be included in this bill.
However, the timing for consideration and passage of this bill is NOT good. The Congress is scheduled to be out of session all of next week for the 4th of July recess. So, if HR 5297 is not considered in the Senate this week, and it is highly unlikely that it will be, it would be delayed until the week of July 12th...at the earliest. When passed, the Senate version would then have to be reconciled with the House version via a conference so final passage could be several weeks away.
There is one more bit of additional good news and that is that there is bipartisan support to extend the stimulus provisions for the SBA loan programs. The question remains how and when it will get done. As it is our top priority, NAGGL will continue to push at every opportunity for extension of the stimulus provisions. Since the stimulus provisions have expired, loan volume has plummeted. Congress is aware of the situation with SBA loans. When do they choose to remedy the situation remains the question.
The timeliness of Senate action on HR 5297 may offer some clues to the answer to that question.
That is the bad news. The good news is that the Senate plans to move soon to the consideration of HR 5297, commonly known as the small business jobs bill. The House has passed their version which includes the $30 billion lending fund and several small business tax items. The Senate Democrats have been busy putting together their version of the bill. It is expected that this version will be available for review sometime this week. We believe that the Senate version will include provisions that have been advocated by the Administration and both Senators Landrieu and Snowe. This would include larger loan sizes ($5 million for 7(a) and $5.5 million for 504, the alternative size standard made permanent in 7(a), etc.) We have not yet heard if the extension of the stimulus provisions will be included in this bill.
However, the timing for consideration and passage of this bill is NOT good. The Congress is scheduled to be out of session all of next week for the 4th of July recess. So, if HR 5297 is not considered in the Senate this week, and it is highly unlikely that it will be, it would be delayed until the week of July 12th...at the earliest. When passed, the Senate version would then have to be reconciled with the House version via a conference so final passage could be several weeks away.
There is one more bit of additional good news and that is that there is bipartisan support to extend the stimulus provisions for the SBA loan programs. The question remains how and when it will get done. As it is our top priority, NAGGL will continue to push at every opportunity for extension of the stimulus provisions. Since the stimulus provisions have expired, loan volume has plummeted. Congress is aware of the situation with SBA loans. When do they choose to remedy the situation remains the question.
The timeliness of Senate action on HR 5297 may offer some clues to the answer to that question.
Friday, February 26, 2010
All of this talk about small business being important!
They all love sound bytes in Washington..... Then, when we need them look at their inaction; Below is a posting from an email generated by NAGGL, the National Association of Government Guaranteed Lenders alerting the membership that congress -
LET THE 90% GUARANTEE AND FEE WAIVER EXPIRE! KUDOS TO OUR LEGISLATORS WHO STAB SMALL BUSINESS IN THE BACK WHILE TOUTING IT'S ACCOLADES!
Senate Effort to Pass 30-Day Extension of Expiring SBA Provisions Fails
Single Senator Stymies Success
Late last night, we received word that Senate Majority Leader Reid had been rebuffed in his attempts to secure quick passage of a bill that would have provided an immediate 30-day extension of the Recovery Act provisions related to SBA loan programs. Unfortunately, based on Senator Bunning's (R-KY) objection to the proposed payment method for the extension of various expiring program provisions (including unemployment insurance, COBRA, etc.), the effort failed. There will be no votes in the Senate today (Friday) or Monday. It will be next Tuesday at the earliest--and more than likely later--before any extension can be passed.
That means that the authority for the 90 percent guaranty now definitely expires on February 28.
If you have any loans in the Recovery Act Loan Queue for which receiving the 90% guarantee is a critical condition, we urge you to remove them from the queue ASAP. It is extremely unfortunate that this will hurt many small businesses relying on access to this credit, as well as our members who work diligently to responsibly provide assistance to the job-creating small businesses we are all convinced are leading the way out of a troubled economy.
REMINDER:
Unless and until Congress enacts legislation to extend the increase guarantee authority, after February 28 any loan funded with recycled Recovery Act funds will be eligible only for the fee relief, not for the higher guarantee. If a lender wants to wait to see whether Congress will reauthorize the 90 percent guarantee, it must withdraw its pending loan request from the Recovery Act queue before March 1. The lender may then hold the loan for resubmission to SBA when (if) the Congress reauthorizes the higher guarantee.
However, if the lender is satisfied with getting the standard lower guarantee, and wants to assure that its borrower gets fee relief if recycled funds become available, it should leave the loan in the queue. If a lender does not withdraw a pending application, and that loan gets funded with recycled Recovery Act funds after expiration of the 90 percent guarantee authority; the lender will be prohibited from later withdrawing and resubmitting the application in order to get the increased guarantee IF that authority is reinstated. SBA's website provides instructions for lenders wishing to withdraw and resubmit Recovery Act loan applications
Write your congressperson, better yet, call them on the phone and tell them that small business is what they should be fixing right now, if they want job creation!
LET THE 90% GUARANTEE AND FEE WAIVER EXPIRE! KUDOS TO OUR LEGISLATORS WHO STAB SMALL BUSINESS IN THE BACK WHILE TOUTING IT'S ACCOLADES!
Senate Effort to Pass 30-Day Extension of Expiring SBA Provisions Fails
Single Senator Stymies Success
Late last night, we received word that Senate Majority Leader Reid had been rebuffed in his attempts to secure quick passage of a bill that would have provided an immediate 30-day extension of the Recovery Act provisions related to SBA loan programs. Unfortunately, based on Senator Bunning's (R-KY) objection to the proposed payment method for the extension of various expiring program provisions (including unemployment insurance, COBRA, etc.), the effort failed. There will be no votes in the Senate today (Friday) or Monday. It will be next Tuesday at the earliest--and more than likely later--before any extension can be passed.
That means that the authority for the 90 percent guaranty now definitely expires on February 28.
If you have any loans in the Recovery Act Loan Queue for which receiving the 90% guarantee is a critical condition, we urge you to remove them from the queue ASAP. It is extremely unfortunate that this will hurt many small businesses relying on access to this credit, as well as our members who work diligently to responsibly provide assistance to the job-creating small businesses we are all convinced are leading the way out of a troubled economy.
REMINDER:
Unless and until Congress enacts legislation to extend the increase guarantee authority, after February 28 any loan funded with recycled Recovery Act funds will be eligible only for the fee relief, not for the higher guarantee. If a lender wants to wait to see whether Congress will reauthorize the 90 percent guarantee, it must withdraw its pending loan request from the Recovery Act queue before March 1. The lender may then hold the loan for resubmission to SBA when (if) the Congress reauthorizes the higher guarantee.
However, if the lender is satisfied with getting the standard lower guarantee, and wants to assure that its borrower gets fee relief if recycled funds become available, it should leave the loan in the queue. If a lender does not withdraw a pending application, and that loan gets funded with recycled Recovery Act funds after expiration of the 90 percent guarantee authority; the lender will be prohibited from later withdrawing and resubmitting the application in order to get the increased guarantee IF that authority is reinstated. SBA's website provides instructions for lenders wishing to withdraw and resubmit Recovery Act loan applications
Write your congressperson, better yet, call them on the phone and tell them that small business is what they should be fixing right now, if they want job creation!
Wednesday, February 17, 2010
Coalition of Small Business asks Congress for action!
The letter below was sent today asking for action on SBA lending. Please send it to your local legislators!
http://www.scribd.com/doc/27017540/Access-to-Credit-Coalition-Letter-FINAL-021710
http://www.scribd.com/doc/27017540/Access-to-Credit-Coalition-Letter-FINAL-021710
Wednesday, December 2, 2009
CALL TO ACTION!!
To all of our franchising and small business friends...
Senate 1832 is a bill to extend the 90% guarantee and increase SBA limits to $5 Million. It is caught up in the fodder of healthcare reform discussion. We NEED to get this bill moving to keep lending alive. Banks will NOT make loans at 75%, when there is pending legislation to increase future loans to 90%. They will sit on their hands, AS THEY SHOULD. What would you do if it was your money?
Below is a paste of an email that I sent to my legislators this morning. Please use it, or a facsimilie of it and send it to your local legislators. You can go on the IFA Website, http://franchise.org/capitalaccess.aspx and click on the link to email your legislators.
Grass roots efforts and being the "squeaky wheel are what will make things happen!
Thanks for your support!!
Ron
We met at the International Franchise Association fly in last September. I am writing to encourage you and Senator Specter to please get S1832 moving. The stimulus funds for SBA lenders have run out, and the guarantee is now moving backward to 75%! This is being done due to the “Healthcare Bill” monopoly on the congress.
Please let me know what else I can do, other than reaching out to my other legislators? Please respond and let me know your thoughts.
Thanks
Ron
S.1832
Title: A bill to increase loan limits for small business concerns, provide for low interest refinancing for small business concerns, and for other purposes.
Sponsor: Sen Landrieu, Mary L. [LA] (introduced 10/21/2009) Cosponsors (10)
Sen Bayh, Evan [IN] - 10/27/2009
Sen Boxer, Barbara [CA] - 10/22/2009
Sen Cardin, Benjamin L. [MD] - 10/21/2009
Sen Casey, Robert P., Jr. [PA] - 10/21/2009
Sen Dorgan, Byron L. [ND] - 10/29/2009
Sen Harkin, Tom [IA] - 10/21/2009
Sen Kerry, John F. [MA] - 10/21/2009
Sen Levin, Carl [MI] - 10/26/2009
Sen Pryor, Mark L. [AR] - 10/22/2009
Sen Shaheen, Jeanne [NH] - 10/21/2009
Latest Major Action: 10/21/2009 Referred to Senate committee. Status: Read twice and referred to the Committee on Small Business and Entrepreneurship.
Senate 1832 is a bill to extend the 90% guarantee and increase SBA limits to $5 Million. It is caught up in the fodder of healthcare reform discussion. We NEED to get this bill moving to keep lending alive. Banks will NOT make loans at 75%, when there is pending legislation to increase future loans to 90%. They will sit on their hands, AS THEY SHOULD. What would you do if it was your money?
Below is a paste of an email that I sent to my legislators this morning. Please use it, or a facsimilie of it and send it to your local legislators. You can go on the IFA Website, http://franchise.org/capitalaccess.aspx and click on the link to email your legislators.
Grass roots efforts and being the "squeaky wheel are what will make things happen!
Thanks for your support!!
Ron
We met at the International Franchise Association fly in last September. I am writing to encourage you and Senator Specter to please get S1832 moving. The stimulus funds for SBA lenders have run out, and the guarantee is now moving backward to 75%! This is being done due to the “Healthcare Bill” monopoly on the congress.
Please let me know what else I can do, other than reaching out to my other legislators? Please respond and let me know your thoughts.
Thanks
Ron
S.1832
Title: A bill to increase loan limits for small business concerns, provide for low interest refinancing for small business concerns, and for other purposes.
Sponsor: Sen Landrieu, Mary L. [LA] (introduced 10/21/2009) Cosponsors (10)
Sen Bayh, Evan [IN] - 10/27/2009
Sen Boxer, Barbara [CA] - 10/22/2009
Sen Cardin, Benjamin L. [MD] - 10/21/2009
Sen Casey, Robert P., Jr. [PA] - 10/21/2009
Sen Dorgan, Byron L. [ND] - 10/29/2009
Sen Harkin, Tom [IA] - 10/21/2009
Sen Kerry, John F. [MA] - 10/21/2009
Sen Levin, Carl [MI] - 10/26/2009
Sen Pryor, Mark L. [AR] - 10/22/2009
Sen Shaheen, Jeanne [NH] - 10/21/2009
Latest Major Action: 10/21/2009 Referred to Senate committee. Status: Read twice and referred to the Committee on Small Business and Entrepreneurship.
Saturday, November 28, 2009
Thanksgiving Thoughts
Thanksgiving has come and gone, and so has some of our stimulus for small business. Right now, lenders are working their "transitions" from stimulus loans, those with a 90% guarantee and no borrower fees, to the old loans, with a 75% guarantee and borrowers fees.
Of course, there is pending legislation to extend these programs for another year, and it is widely anticipated that it will pass. However, without passage now, lending will most certainly slow down even more than it has. It seems that the congress cannot multi-task very well, and that the healthcare bill has paralyzed them.
It seems that everyone forgot President Obama's comment supporting the raise to the $5 Million cap, and that capital access is not an issue as long as healthcare can be debated.
Let me say this: Healthcare will be a bigger problem if we don't get the capital markets fixed for small business. The only job engine in this country cannot exist without access to lending, and banks are still NOT LENDING to small business. Business startups, franchise startups and business resales all create and maintain jobs. If we continue to lose these businesses, we will all have to pick up the healthcare tab for these folks. Let's get people back to work, and capital access is the vehicle for job growth, so let's make sure it is workign properly.
Happy Thanksgiving to all, we have much tobe thankful for this year. With all of the trials and tribulations in business this year, my wife and kids have been amazingly supportive, and I am very thankful. We have our health, happiness and freedom. The USA is still the best place in the world to live, and fulfill your dreams.
Of course, there is pending legislation to extend these programs for another year, and it is widely anticipated that it will pass. However, without passage now, lending will most certainly slow down even more than it has. It seems that the congress cannot multi-task very well, and that the healthcare bill has paralyzed them.
It seems that everyone forgot President Obama's comment supporting the raise to the $5 Million cap, and that capital access is not an issue as long as healthcare can be debated.
Let me say this: Healthcare will be a bigger problem if we don't get the capital markets fixed for small business. The only job engine in this country cannot exist without access to lending, and banks are still NOT LENDING to small business. Business startups, franchise startups and business resales all create and maintain jobs. If we continue to lose these businesses, we will all have to pick up the healthcare tab for these folks. Let's get people back to work, and capital access is the vehicle for job growth, so let's make sure it is workign properly.
Happy Thanksgiving to all, we have much tobe thankful for this year. With all of the trials and tribulations in business this year, my wife and kids have been amazingly supportive, and I am very thankful. We have our health, happiness and freedom. The USA is still the best place in the world to live, and fulfill your dreams.
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