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
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