Smart Borrower Blog

Archive for the ‘Business Borrowing’ Category

Small Business Funds Poised for Release

The $30 billion small business stimulus fund promised by President Obama in early 2010 is finally about to be unleashed for use by the nation’s smaller banks. According to a BusinessWeek.com article, banks have made an impressive showing in terms of applications for the new program. Small Business Lending Fund program director Jason Tepperman said he was “pleasantly surprised” at how many lenders have applied since last month when applications first became available. The program funds are available to the 7,000 banks across the country with assets of less than $10 billion, although those on the Treasury “troubled” list may... more »

Americans Are Getting Fiscally Fit, and It Shows

It may have taken the Great Recession to break Americans out of their ‘pay as you go’ mentality, but they are starting to act more financially responsibly now. At least so say the latest reports from the Big Banks, according to a recent BusinessWeek article. Specifically, more American consumers are paying their bills on time, and defaulting less on credit cards and mortgages. Says BusinessWeek, “the reports are a sign that Americans are feeling more comfortable about their finances. Personal spending powers about 70 percent of the U.S. economy, and most economists say a fiscally fit consumer is critical to... more »

Federal Small Business Funding Starts Being Used In Michigan and North Carolina

The states of North Carolina and Michigan are the first to start getting money to lend to small businesses. The funds are coming from a new federal program that is part of the Small Business Jobs Act. The Act was signed into law by President Obama last September. The federal program plans to dish out 1.5 billion to help small businesses across the country who are deemed credit worthy, receive loans. Loans have been difficult to come by for these businesses during a time when banks have been tightening underwriting loan standards. While the federal government is putting in just... more »

Glimmers of Hope All Over Small Business Market

It may not be time to celebrate yet, but there are some exciting signs of life coming out of the small business lending world this week. And as small businesses are the largest creator of U.S. jobs, this can only be good news for the economy as a whole. Small businesses borrowed more money in November, according to the Thomson Reuters/PayNet Small Business Lending Index, an indication that the earlier lending freeze is thawing out. The index rose to 88.3 in November, up from 79.8 in October, and up a dramatic 17 percent over the previous year’s figures when the... more »

More Help on the Way for Small Businesses

According to an article on CNNMoney.com today, the Small Business Administration has just announced two new loan programs designed to make cash available for small businesses quickly. “Many entrepreneurs and small business owners across the country have enormous potential to drive economic growth and create good-paying jobs in their local communities, but too often they face barriers in fulfilling that potential,” said Catherine Hughes, chairperson of the SBA’s new Advisory Council on Underserved Communities. The first program is call the Small Loan Advantage allows small business owners to apply for loans up to $250,000 with a much shorter application of... more »

SBA Loans Are Available

SBA loans are loans that are made through a traditional lender but are partially guaranteed by the SBA (Small Business Administration). While some people might think that the SBA makes its own loans, this is simply not true. The SBA guarantees these loans, up to 90% of the loan value so that the lender does not take full culpability. Currently, funding for SBA loans is readily available, that is if you can get approved by a lender. Lenders across the country have tightened standards for loan underwriting, making it harder to qualify for a business loan of any kind. The... more »

Chase Top SBA Loan Lender

Chase just announced that they have more than doubled their SBA or Small Business Lending and will take over as the top SBA lender for the fiscal year. They topped the next lender by helping an additional 250 businesses receive an SBA loan in 2010. SBA loans are loans that are available for small businesses that might not otherwise be able to get the funding they need. They are distributed through private lenders like Chase, but a certain percentage of each loan is guaranteed through the Small Business Association. This allows lenders to be a bit less stringent on application... more »

Small Business Lending Increasing

According to new data from ThompsonReuters/PayNet, small business lending is on the rise. During the month of September lending was up 16% from last year at the same time. Additionally, these new figures put lending at the highest level seen in the last two years. The big question is whether or not these loans will help give the economy a boost. PayNet’s president and founder William Phelean, believes it will. “This doesn’t point to anything but a robust recovery,” said Phelan in an interview. “These small businesses are people who see the demand in the economy every day, and they... more »

Half of Small Businesses Are Denied Loans

A recent survey by the Federal Reserve found that almost half of all small business loan requests are denied by banks these days, a very troubling statistic considering the following information: “Small firms employ nearly half of all Americans, account for about 60 percent of gross job creation, and historically have created more jobs than larger firms at the start of economic recoveries,” according to a report from the Federal Reserve Bank of New York released Monday as quoted on CNN Money.com. “Yet recent contractions in business borrowing may be limiting the capacity of small businesses to play this critical... more »

When Will True Small Business Lending Recover?

Since Congress passed the Small Business Jobs Act just a few weeks ago, the government has backed another $5 billion in loans to small business owners. These hard working folks had all been on a long waiting list, the Recovery Queue so-called since the time money ran out from the last small business stimulus infusion. And I’m glad they are getting their funding – they need it and the economy needs them to get it. But I’m wondering when the private sector is going to open the capital spigot and start lending on its own again. Since the Recovery Act... more »