Updated SBA's ARC Loan Program Procedural Guide
Effective August 31, 2009
SBA's America's Recovery Capital (ARC) Loan Program was introduced in June 2009. SBA's ARC Loan Program Procedural Guide was issued June 8, 2009, as well as a new set of loan application forms and an authorization specific to SBA's ARC loans. Once the Guide and forms were published, SBA launched extensive training sessions with over 3,000 participants representing over 1,300 lending institutions across the country and has actively sought questions, clarifications and feedback on this program. SBA also published a detailed set of frequently asked questions (FAQs) to address many of the common questions that were raised after the initial roll-out.
In this continued commitment to being responsive to our lending partners, the SBA has now updated SBA's ARC Loan Program Procedural Guide to reflect some of these clarifications and provide even more specific guidance to help our lending partners in making this product accessible to small businesses.
On our website, we have published both a tracked-changes version and "clean" version (with all changes accepted) of this revised program guide to assist lenders in quickly identifying the areas that have been modified. The updated guide is located on SBA's website at www.sba.gov/aboutsba/sbaprograms/elending/RECOVERY_INFO_LENDERS.html The more important changes included in the procedural guide are summarized below:
Qualifying Small Business Loans (QSBLs). Provides additional guidance and information on what loans are QSBLs including notes payable to pay accounts payable and other business obligations that are more than 30 days delinquent; what constitutes a loan; what constitutes an "existing" loan; how to treat SBA loans pre and post February 17, 2009; and how to treat new non-SBA loans.
Credit Cards. For credit cards issued in the name of the business, the Guide replaces the requirement that the borrower submit to the lender supporting documentation for each credit card charge, with a borrower certification that all charges on the business credit card to be paid with the proceeds from an SBA ARC Loan were exclusively for business purposes. For credit cards issued in the name of an individual, the Guide maintains the documentation requirements except that for credit card purchases of $100.00 or less, the documentation requirement is eliminated. The Guide also specifically allows for monthly payments on credit cards in amounts in excess of the minimum monthly payment.
Eligible Passive Companies (EPC)/Operating Companies(OC). Many real estate transactions are structured with an EPC that owns the real estate and is obligated on the associated mortgage. The OC is the operating small business that is located in the real estate and provides the income necessary to amortize the mortgage by paying rent to the EPC. Generally, the two entities are affiliated. Normally, the EPC is the borrower and the OC is the guarantor of the mortgage loan. Under SBA's ARC Loan Program, the proceeds from an SBA ARC loan are not eligible for paying rent or other operational expenses. And, the EPC, by itself, is an ineligible passive business restricted by the regulations governing the program from receiving an SBA ARC Loan for the purpose of paying the mortgage on the property. The guide provides guidance on how to treat the EPC/OC structure for 504 Third Party Loans, 504 loans and 7(a) loans that permits the use of SBA ARC Loan proceeds to make the mortgage payments on those types of SBA loans. EPCs that have a non-SBA loan are still not able to obtain an SBA ARC Loan to make payments on the non-SBA mortgage held by the EPC unless the EPC and OC are co-borrowers on the non-SBA mortgage note (the OC may obtain an SBA ARC Loan to pay other business loan obligations it may have).
Collateral. The Guide is amended to clarify SBA's policy with regard to collateral requirements for SBA's ARC Loans. The Guide originally required lenders to follow the collateral policies they apply to their conventional commercial loans of a similar size. Many lenders require a first lien position for their conventional loans which typically cannot be obtained for an SBA ARC Loan. The Guide is amended to retain the requirement for a lender to follow its existing collateral policies as to whether the loan is secured or not but allows the lender to obtain the best available lien position.
Credit Criteria. The Guide corrects the financial statement requirement to allow for either financial statements or tax returns and reduces the requirement from 3 years of historical financial information to 2 years. The requirement for historical cash flow statements is eliminated. Also guidance on how to prepare the 2-year cash flow projection has been added.
Environmental Reviews. Eliminates any requirement for environmental reviews on collateral taken for SBA's ARC Loans.
Life Insurance. Eliminates any requirement for life insurance related to SBA's ARC Loans.
Interest Payable and 1502 Reporting. Incorporates additional information on the administration of interest payable by SBA to the lender and 1502 Reporting on SBA's ARC Loans that was not available at the time the Guide was initially issued.
Questions on SBA's ARC Loan Program may be directed to the Minnesota District Office at (612) 370-2324 or minneapolis.mn@sba.gov or e-mail SBA headquarters at ARCLoanEQ@SBA.gov.
8/31/2009
Monday, August 31, 2009
Friday, August 28, 2009
What has the SBA done for you lately?
The SBA received $730 million in the American Recovery and Reinvestment Act (Recovery Act) to help unlock the small business lending market and get capital flowing again to America’s small businesses.
SBA Recovery Efforts Impact to Date:
Loan Volume Has Increased More than 50 Percent: As of August 21, SBA has supported over $9 billion in small business lending1 with the approval of $6.6 billion2 in loans since Feb. 17. Since the signing of ARRA, weekly loan dollar volume has risen more than 50 percent in the 7(a) and 504 programs, compared to the weekly average before passage3.
More Lenders Making Loans: From Feb. 17 to August 21, more than 970 lenders that had not made a loan since Oct. 2008 made 7(a) or ARC loans. Of those, over half had not made a loan since at least 2007.
Broad Support to Small Businesses: A significant share of loans supported by Recovery Act funding has gone to rural (26 percent), minority-owned (20 percent), women-owned (19 percent), and veteran-owned (9 percent) businesses4.
Secondary Markets Uptick with 7(a) Loans: After months of reduced activity and lower premiums, the SBA 7(a) secondary market is picking up and premiums are beginning to recover. Over the past three months, the average monthly loan volume settled from lenders to broker-dealers in the 7(a) secondary market has been $335 million, providing lenders with additional liquidity to increase lending.
ARC Loans Reaching Small Businesses: As of August 21, SBA has approved nearly 1,600 ARC loans totaling over $50 million.
SBA Recovery Programs:
To date, SBA has implemented programs for nearly all of the $730 million in SBA Recovery Act funding, including:
Eliminating and reducing fees for borrowers on 7(a) loans and for borrowers and lenders on 504 loans.5
Raising to 90 percent the guarantee on 7(a) loans from 75 percent and 85 percent depending on the size of loan.5
Doubling the surety bond guarantee from $2 million to $5 million, providing small businesses with another tool to help them compete for federal construction and service contracts.5
Assisting struggling small businesses with the new ARC loan program, which provides no-interest, deferred repayment loans of up to $35,000 to viable businesses to help them make debt payments.5
Providing refinancing opportunities for certain eligible loans into SBA-backed 504 loans for expansion and job creation.
Expanding access to investment capital for small businesses by increasing funding levels for SBA-licensed Small Business Investment Companies.
The SBA has also implemented two new programs that complement the Recovery Act measures and increase access to capital for small businesses by:
Expanding 7(a) loan eligibility to more than 70,000 small businesses through a temporary alternate size standard.
Offering inventory financing for eligible auto, RV, boat and other dealerships under the new Dealer Floor Plan Financing pilot program.
1 Gross loan approval value. Typically, due to cancellations and loan amount reductions, 15–20% of gross approvals are not disbursed.
2 Includes estimate of 504 third-party first mortgages (calculated as 125% of SBA 504 debenture portion due to the typical "50/40" split between the third-party and SBA portions of a 504 loan)
3 Comparison of average weekly gross approvals in the 7 weeks before ARRA signing to average weekly gross approvals since then, normalized for market holidays and the system disruption caused by a Washington, DC water outage (August 7, 2009)
4 Demographic data is self-reported on loan applications; categories are not mutually exclusive.
5 Temporary authorization under the Recovery Act.
What can a client expect from the MnSBDC?
Your business is being pressed by the economy. . . Your banker explains his hands are tied in the current situation. . . You think back over the years it took you to get this far. . .
I sat in the meeting and heard two of our Professional Business Consultants discuss client situations they were currently working on - maintaining confidentiality by NOT mentioning the business name or product/service, only the situation. They bounced ideas and approaches off the Business Development Officer from the SBA who was also in the meeting, and the Regional Director of the MnSBDC center.
While I have consulted with hundreds of client as an SBDC Consultant and in my own consulting business, I was in awe. These two professionals were bringing everything they had to the table to help these businesses suceed despite the tremdous issues they faced.
The Professional Business Consultants that bring their skills to the MnSBDC program, work with small business clients every day to help them succeed. Their clients trust and rely on them for results. Year after year we have tracked our successes by working "with" clients. We achieve our best success with clients who are determined and willing to work in partnership with our Professional Business Consultants in trusting relationships.
Can we help you to succeed?
Your business is being pressed by the economy. . . Your banker explains his hands are tied in the current situation. . . You think back over the years it took you to get this far. . .
I sat in the meeting and heard two of our Professional Business Consultants discuss client situations they were currently working on - maintaining confidentiality by NOT mentioning the business name or product/service, only the situation. They bounced ideas and approaches off the Business Development Officer from the SBA who was also in the meeting, and the Regional Director of the MnSBDC center.
While I have consulted with hundreds of client as an SBDC Consultant and in my own consulting business, I was in awe. These two professionals were bringing everything they had to the table to help these businesses suceed despite the tremdous issues they faced.
The Professional Business Consultants that bring their skills to the MnSBDC program, work with small business clients every day to help them succeed. Their clients trust and rely on them for results. Year after year we have tracked our successes by working "with" clients. We achieve our best success with clients who are determined and willing to work in partnership with our Professional Business Consultants in trusting relationships.
Can we help you to succeed?
Tuesday, August 25, 2009
What does the MnSBDC do????
Quite simply - we help small business owners turn dreams into reality.
We do that by consulting, training and through the specialized services we offer.
Even the greatest athlete uses a coach to help them move to higher levels. We are the "business coach" for small business, and our best results are achieved by determined, focused small business owners who are willing to roll-up-their-sleeves and get to work.
Need more information?
Click here for our Service Brochure that lists the nine Regional Centers that blanket the state and describes our services in detail. (PDF file format)
Quite simply - we help small business owners turn dreams into reality.
We do that by consulting, training and through the specialized services we offer.
Even the greatest athlete uses a coach to help them move to higher levels. We are the "business coach" for small business, and our best results are achieved by determined, focused small business owners who are willing to roll-up-their-sleeves and get to work.
Need more information?
Click here for our Service Brochure that lists the nine Regional Centers that blanket the state and describes our services in detail. (PDF file format)
Thursday, August 20, 2009
Wednesday, August 19, 2009
"Shine a Light" campaign focuses on local businesses
Here's a great opportunity for local businesses, sponsored by two corporate titans. The winning business will receive $100,000 in grant and marketing support, and the winner will be chosen by a vote of the public with results to be announced on Oct. 19.
The overarching message: The efforts of local entrepreneurs represent a path out of the recession.
Here's a news story - share with your favorite local small businesss.
Here's a great opportunity for local businesses, sponsored by two corporate titans. The winning business will receive $100,000 in grant and marketing support, and the winner will be chosen by a vote of the public with results to be announced on Oct. 19.
The overarching message: The efforts of local entrepreneurs represent a path out of the recession.
Here's a news story - share with your favorite local small businesss.
Obama Administration Announces Efforts to Increase Access to Contracting Opportunities for Minority-Owned, Small Businesses
Release Date: August 18, 2009 - - Contact: Tiffani Clements (202) 401-0035
Release Number: 09-58 - - Internet Address: http://www.sba.gov/news
Secretary Locke, Administrator Mills will lead government-wide initiative; federal officials to participate in more than 200 procurement events across the country
WASHINGTON – The Obama Administration today reaffirmed its commitment to ensuring that minority-owned and small businesses, including women- and veteran-owned businesses, have greater access to federal government contracting opportunities.
Commerce Secretary Gary Locke and Small Business Administrator Karen Mills announced a government-wide plan that includes federal agency procurement officials holding or participating in more than 200 events over the next 90 days to share information on government contracting opportunities, including those available under the American Recovery and Reinvestment Act.
“Small and minority-owned businesses must play a significant role in our efforts to restore economic growth. Small businesses employ half of the nation’s private sector workforce; create a large share of the Nation’s new jobs; and introduce many groundbreaking ideas into the marketplace,” President Barack Obama said. “It is essential that we provide our Nation’s small businesses with maximum practicable opportunity to participate in Federal Government contracting.
“In order for the Federal Government to better meet or exceed the goal of 23 percent of prime contracts for small businesses, Vice President Biden and I have tasked Small Business Administrator Karen Mills and Commerce Secretary Gary Locke with leading a federal government-wide initiative to increase outreach,” Obama continued. “Over the course of the next ninety days agency officials will take an important step forward by holding or participating in more than two-hundred events focused on sharing information on government contracting opportunities.”
“In these tough economic times, the Recovery Act is providing billions of dollars in opportunity and incentives to help businesses grow – and the President and I are committed to ensuring that small and minority-owned businesses are part of our economic recovery every step of the way,” said Vice President Joe Biden. “By taking advantage of the expertise of an array of companies, we are going to be able to build a stronger, more secure foundation for long-term economic growth.”
“It has been a priority from day one of this administration to ensure that small and minority-owned businesses are aware of and have access to federal contracts and funding opportunities,” Locke said. “Over the past 40 years, minority-owned businesses have grown from 300,000 to nearly 4 million today. Their success and the success of small American businesses are vital to our economic recovery.”
“Government contracts can play a key role in helping small businesses turn the corner in terms of expansion and job creation,” Mills said. “But make no mistake, the benefits the government receives are equally as impressive – working with small businesses allows the federal government to work with some of the most innovative companies in America – with direct line to CEO”
As part of the Commerce-SBA initiative, over the next 90 days:
· Federal agency procurement officials will hold or participate in more than 200 events to share information on government contracting opportunities, including those available under the American Recovery and Reinvestment Act.
· SBA and Commerce will expand their outreach to fellow contracting officials across the federal government, passing along best practices for outreach and education to every agency to ensure they have the tools they need to meet their annual contracting goals.
· Locke and Mills will promote small business contracting opportunities in remarks, events and discussions with small business groups across the country, including minority, women and veteran groups.
Beyond the next 90 days, Commerce and SBA will support, monitor and track the impact of these efforts going forward to help ensure the Administration is maximizing opportunities for small businesses.
Small business owners can find out about federal contracting opportunities by visiting www.fedbizopps.gov. Local Commerce and SBA officials are also available in local offices across the country to assist small businesses interested in contracting opportunities. Contact information for local offices can be found www.commerce.gov and www.sba.gov.
# # #
Release Date: August 18, 2009 - - Contact: Tiffani Clements (202) 401-0035
Release Number: 09-58 - - Internet Address: http://www.sba.gov/news
Secretary Locke, Administrator Mills will lead government-wide initiative; federal officials to participate in more than 200 procurement events across the country
WASHINGTON – The Obama Administration today reaffirmed its commitment to ensuring that minority-owned and small businesses, including women- and veteran-owned businesses, have greater access to federal government contracting opportunities.
Commerce Secretary Gary Locke and Small Business Administrator Karen Mills announced a government-wide plan that includes federal agency procurement officials holding or participating in more than 200 events over the next 90 days to share information on government contracting opportunities, including those available under the American Recovery and Reinvestment Act.
“Small and minority-owned businesses must play a significant role in our efforts to restore economic growth. Small businesses employ half of the nation’s private sector workforce; create a large share of the Nation’s new jobs; and introduce many groundbreaking ideas into the marketplace,” President Barack Obama said. “It is essential that we provide our Nation’s small businesses with maximum practicable opportunity to participate in Federal Government contracting.
“In order for the Federal Government to better meet or exceed the goal of 23 percent of prime contracts for small businesses, Vice President Biden and I have tasked Small Business Administrator Karen Mills and Commerce Secretary Gary Locke with leading a federal government-wide initiative to increase outreach,” Obama continued. “Over the course of the next ninety days agency officials will take an important step forward by holding or participating in more than two-hundred events focused on sharing information on government contracting opportunities.”
“In these tough economic times, the Recovery Act is providing billions of dollars in opportunity and incentives to help businesses grow – and the President and I are committed to ensuring that small and minority-owned businesses are part of our economic recovery every step of the way,” said Vice President Joe Biden. “By taking advantage of the expertise of an array of companies, we are going to be able to build a stronger, more secure foundation for long-term economic growth.”
“It has been a priority from day one of this administration to ensure that small and minority-owned businesses are aware of and have access to federal contracts and funding opportunities,” Locke said. “Over the past 40 years, minority-owned businesses have grown from 300,000 to nearly 4 million today. Their success and the success of small American businesses are vital to our economic recovery.”
“Government contracts can play a key role in helping small businesses turn the corner in terms of expansion and job creation,” Mills said. “But make no mistake, the benefits the government receives are equally as impressive – working with small businesses allows the federal government to work with some of the most innovative companies in America – with direct line to CEO”
As part of the Commerce-SBA initiative, over the next 90 days:
· Federal agency procurement officials will hold or participate in more than 200 events to share information on government contracting opportunities, including those available under the American Recovery and Reinvestment Act.
· SBA and Commerce will expand their outreach to fellow contracting officials across the federal government, passing along best practices for outreach and education to every agency to ensure they have the tools they need to meet their annual contracting goals.
· Locke and Mills will promote small business contracting opportunities in remarks, events and discussions with small business groups across the country, including minority, women and veteran groups.
Beyond the next 90 days, Commerce and SBA will support, monitor and track the impact of these efforts going forward to help ensure the Administration is maximizing opportunities for small businesses.
Small business owners can find out about federal contracting opportunities by visiting www.fedbizopps.gov. Local Commerce and SBA officials are also available in local offices across the country to assist small businesses interested in contracting opportunities. Contact information for local offices can be found www.commerce.gov and www.sba.gov.
# # #
Monday, August 17, 2009
ATTENTION INVENTORS!
For Immediate Release - - Contact: Inventor’s Network - - 651-602-3175
THE BEST ADVICE FROM IDEA TO PAYOFF
Everybody—from students to bankers to stay-at-home parents—has a great idea with the potential to change the way we live, work or play. The problem is that most people never follow through on making their idea a marketable reality. And in today’s economic climate many may feel too intimidated to invest their time and resources into creating something new.
Louis Foreman, the executive producer of the Emmy award–winning PBS show Everyday Edisons and the co-author of The Independent Inventor’s Handbook (Workman; $14.95; July 2009) aims to dispel those fears. According to Mr. Foreman, there has never been a better time in recent history for innovation: “It has been innovation that has led this country out of recessions in the past, and it will be innovation that creates new opportunities in the future.”
The Independent Inventor’s Handbook is the guide for those young (and not-so-young) innovators. Every step of the invention process is clearly explained, from prototype to finished product. Louis has met thousands of “ordinary people who have extraordinary ideas” through the casting calls of his television show, so he’s got plenty of real-life stories to share and is available to comment on the areas that are ripest for innovation today.
Mr. Foreman will be speaking at this month’s Inventors’ Network meeting. The above mentioned book will be available for sale at this event. Please join us to purchase your book and meet Louis Foreman.
Inventor’s Network
Date: September 15th, 2009
Time: 7:00PM, - 9:00 PM
Doors open for registration: 6:30PM
Fee: Non-members $15.00
Place: Dunwoody College of Technology
Holden Center Meeting Room
818 Dunwoody Blvd
Minneapolis, MN 55403
For Immediate Release - - Contact: Inventor’s Network - - 651-602-3175
THE BEST ADVICE FROM IDEA TO PAYOFF
Everybody—from students to bankers to stay-at-home parents—has a great idea with the potential to change the way we live, work or play. The problem is that most people never follow through on making their idea a marketable reality. And in today’s economic climate many may feel too intimidated to invest their time and resources into creating something new.
Louis Foreman, the executive producer of the Emmy award–winning PBS show Everyday Edisons and the co-author of The Independent Inventor’s Handbook (Workman; $14.95; July 2009) aims to dispel those fears. According to Mr. Foreman, there has never been a better time in recent history for innovation: “It has been innovation that has led this country out of recessions in the past, and it will be innovation that creates new opportunities in the future.”
The Independent Inventor’s Handbook is the guide for those young (and not-so-young) innovators. Every step of the invention process is clearly explained, from prototype to finished product. Louis has met thousands of “ordinary people who have extraordinary ideas” through the casting calls of his television show, so he’s got plenty of real-life stories to share and is available to comment on the areas that are ripest for innovation today.
Mr. Foreman will be speaking at this month’s Inventors’ Network meeting. The above mentioned book will be available for sale at this event. Please join us to purchase your book and meet Louis Foreman.
Inventor’s Network
Date: September 15th, 2009
Time: 7:00PM, - 9:00 PM
Doors open for registration: 6:30PM
Fee: Non-members $15.00
Place: Dunwoody College of Technology
Holden Center Meeting Room
818 Dunwoody Blvd
Minneapolis, MN 55403
Friday, August 14, 2009
MnSBDC - 2008 Annual Report
This link will take you to the Minnesota SBDC Annual Report for 2008. (PDF file size is approximately 2.75Mb)
http://mnsbdc.com/PDFs/SBDC_AnnualReport2008.pdf
QUICK SNAPSHOT OF CLIENT RESULTS:
Obtained Financing 71.3%
Started a Business 70.0%
Improved Productivity 68.6%
Increased Sales 66.2%
Increased Cash Flow 65.0%
Added Employees 54.5%
Return on Investment (ROI) = = = = = > $13.14
This link will take you to the Minnesota SBDC Annual Report for 2008. (PDF file size is approximately 2.75Mb)
http://mnsbdc.com/PDFs/SBDC_AnnualReport2008.pdf
QUICK SNAPSHOT OF CLIENT RESULTS:
Obtained Financing 71.3%
Started a Business 70.0%
Improved Productivity 68.6%
Increased Sales 66.2%
Increased Cash Flow 65.0%
Added Employees 54.5%
Return on Investment (ROI) = = = = = > $13.14
The "3/50 Project" to save local, independent small businesses - originating from Minneapolis!
Did you ever consider your personal impact on the community you live in by how you spend your consumer dollars?
Retail consultant Cinda Baxter has, and she came up with a simple way to have an immediate, personal economic impact on your community;
http://www.the350project.net/home.html
The idea is to commit $50 each month to locally owned businesses. Since the MnSBDC works primarily with locally owned businesses, this program is a great way to support the same businesses that are clients of the MnSBDC.
Did you ever consider your personal impact on the community you live in by how you spend your consumer dollars?
Retail consultant Cinda Baxter has, and she came up with a simple way to have an immediate, personal economic impact on your community;
http://www.the350project.net/home.html
The idea is to commit $50 each month to locally owned businesses. Since the MnSBDC works primarily with locally owned businesses, this program is a great way to support the same businesses that are clients of the MnSBDC.
MN leads the nation with ARC loans = 181
Here's the latest listing of MN banks that generated an ARC loan;
http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_recovery_arc_lenders.pdf
Here's the latest listing of MN banks that generated an ARC loan;
http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_recovery_arc_lenders.pdf
SBA Funding for Loan Guarantees may run out by year end.
A great status report by the SBA (including the graphic above) can be found here;
http://sba.gov/idc/groups/public/documents/sba_homepage/recov_perform_reports_07_2009.pdf
From the report; "Approximately 45.1% of total FY2009 and FY2010 funds available for loan approvals in the 7(a) Loan Program, the 504 Loan Program, and the ARC Loan Program have been approved as of July 31, 2009."
A year end re-examination process most likely will result in additional funds allocated to the program based on need and the success of the SBA Loan Guarantee program.
Tuesday, August 11, 2009
SBA Announces Appointment of Marianne O’Brien Markowitz
As Regional Administrator for Region V
Release Number: 09-53 - - Internet Address: http://www.sba.gov/news
WASHINGTON – Today, the U.S. Small Business Administration announced the appointment of Marianne O’Brien Markowitz, as the regional administrator in Region V, to oversee the SBA’s programs and services in Minnesota, Ohio, Indiana, Illinois, Michigan and Wisconsin.
“Both the SBA and small businesses of Region V will benefit greatly from Marianne’s financial background,” said SBA Administrator Karen G. Mills in welcoming Markowitz. “With her business experiences, as well as her commitment to serving the community, Marianne will be a tremendous asset and advocate for small businesses and entrepreneurs across the region, especially at this critical time when so many are facing tough challenges as a result of the recession.”
“I am honored to serve the Obama Administration as Regional Administrator of Region V,” said Markowitz. “I am deeply committed to helping Midwestern small businesses compete and succeed by helping them access the expansive services and programs offered by the U.S. Small Business Administration. The economic health of the country relies on small business' ability to create jobs in our communities and I feel very privileged to serve and support the small business community.”
The Region V office, headquartered in Chicago, oversees the SBA’s district offices in Minneapolis, MN; Chicago and Springfield, IL; Indianapolis, IN; Cleveland, Columbus and a satellite office in Cincinnati, OH; Detroit, MI; and Madison and Milwaukee, WI.
Markowitz recently served as the Chief Financial Officer for Obama for America and was previously a financial operations consultant for the campaign. She was an international treasury/financial operations consultant for Syngenta, Inc. from 2000 – 2002 and prior to that served as a treasury and risk manager for Express Scripts, Inc. for two years. Markowitz has an extensive history as a treasury and risk analyst for Midwestern based companies.
Markowitz received her B.S. in business administration from the University of Missouri and her MBA from DePaul University. She and her husband Jeffrey are the proud parents Maura, 7.
# # #
Thursday, August 6, 2009
What happens when an SBA guarantee loan goes into default?
When I was a Professional Business Consultant with the Missouri SBDC program, I worked hard with a client to obtain an SBA guaranteed loan that eventually went into default. I was very disappointed, as was the bank President. During our conversation, he explained to me the process of working with the SBA to make good on the guarantee. It was the first time I had a glimpse into that part of the process from the banker's perspective.
To better understand that process, here is a 'flowchart' of the process from Ethan Smith, Partner at Starfield & Smith, P.C. and provided by the Coleman SBA Daily Lender website.
http://www.colemanpublishing.com/public/GuarantyPurchaseProcessFlow.jpg
When I was the Regional Director of the UC Merced CA-SBDC, I arranged for a tour of the Commercial Loan Service Center in Fresno graciously provided by Mr. Joel Stiner the Director of the center. He runs a great operation there and explained the metrics and the incredible volume of loans that goes through there with a dedicated, relatively small number of staff. He also showed me the hugh file area where all of the inevitable paperwork trails each and every loan made. It was a very impressive operation, and Mr. Stiner's cheerful enthusiam for the center and the people that support it was contagious.
When I was a Professional Business Consultant with the Missouri SBDC program, I worked hard with a client to obtain an SBA guaranteed loan that eventually went into default. I was very disappointed, as was the bank President. During our conversation, he explained to me the process of working with the SBA to make good on the guarantee. It was the first time I had a glimpse into that part of the process from the banker's perspective.
To better understand that process, here is a 'flowchart' of the process from Ethan Smith, Partner at Starfield & Smith, P.C. and provided by the Coleman SBA Daily Lender website.
http://www.colemanpublishing.com/public/GuarantyPurchaseProcessFlow.jpg
When I was the Regional Director of the UC Merced CA-SBDC, I arranged for a tour of the Commercial Loan Service Center in Fresno graciously provided by Mr. Joel Stiner the Director of the center. He runs a great operation there and explained the metrics and the incredible volume of loans that goes through there with a dedicated, relatively small number of staff. He also showed me the hugh file area where all of the inevitable paperwork trails each and every loan made. It was a very impressive operation, and Mr. Stiner's cheerful enthusiam for the center and the people that support it was contagious.
Tuesday, August 4, 2009
USDA will loan up to $1.7 billion to fund projects that help spur business activity and economic growth in rural communities
WASHINGTON, July 29, 2009 – Agriculture Secretary Tom Vilsack today announced that USDA is now accepting applications for up to $1.7 billion to fund projects that help spur business activity and economic growth in rural communities. This infusion of money from the American Recovery and Reinvestment Act into rural business is designed to create and save jobs and help rural communities grow and prosper.
“The Recovery Act funds announced today will help businesses get access to the capital they need to launch and expand their businesses and help bring additional jobs to America’s small cities and towns,” said Vilsack. “President Obama and I are committed to building strong rural communities by helping businesses grow so we can put people back to work.”
The funding announced today will be made available through USDA Rural Development’s Business and Industry Guaranteed Loan program, which supports the development of private businesses. Eligible applicants include cooperative organizations, corporations, partnerships, nonprofit groups; federally recognized Indian tribes, public bodies and individuals. The funds will be targeted to creating and retaining quality jobs and serving difficult to reach populations, and areas hardest hit by the current economic downturn.
USDA will accept applications for this Business and Industry Guaranteed Loan program until Sept. 15, 2010, or until all funds are expended. Recovery Act funding will be available through Sept. 30, 2010. For information on eligibility criteria and for application assistance, please contact your state Rural Development office, or visit www.rurdev.usda.gov for a listing of all state offices.
Past examples of USDA Business and Industry Guaranteed Loans include:
A&C Sawdust in Crivitz, Wisc., received a $3.48 million guaranteed loan to refinance the costs to make real estate improvements and buy a wood grinder and wood dryer to expand business operations. A&C Sawdust was formed 40 years ago as a trucking business. The family-owned company also has a division, L&M Sawdust, that converts green sawdust into livestock bedding that is sold to local farmers. A third unit of the company, L&M Custom Drying, LLC, converts green sawdust into biomass pellets, a renewable fuel source. The funding provided by USDA Rural Development is expected to save or create 23 jobs in an area of the state that has lost jobs due to the closing of several paper mills.
Pennsylvania-based Keystone Potato Products, LLC, used a $4.9 million USDA Business and Industry Guaranteed Loan to develop an 86-acre site, construct a potato processing facility, purchase new machinery and equipment, and finance start-up costs. More than $2.8 million was private investment. This facility, which turns off-grade potatoes into flakes and other products, has reduced transport costs for potato suppliers and also created a new market for potato products. More than 40 jobs were created as a result of funding from this project.
More information about USDA’s Recovery Act efforts is available at www.usda.gov/recovery. More information about the Federal government’s efforts on the Recovery Act is available at www.recovery.gov.
USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in homeownership, finances business development, and supports the creation of critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA Rural Development’s web site at www.rurdev.usda.gov.
###
WASHINGTON, July 29, 2009 – Agriculture Secretary Tom Vilsack today announced that USDA is now accepting applications for up to $1.7 billion to fund projects that help spur business activity and economic growth in rural communities. This infusion of money from the American Recovery and Reinvestment Act into rural business is designed to create and save jobs and help rural communities grow and prosper.
“The Recovery Act funds announced today will help businesses get access to the capital they need to launch and expand their businesses and help bring additional jobs to America’s small cities and towns,” said Vilsack. “President Obama and I are committed to building strong rural communities by helping businesses grow so we can put people back to work.”
The funding announced today will be made available through USDA Rural Development’s Business and Industry Guaranteed Loan program, which supports the development of private businesses. Eligible applicants include cooperative organizations, corporations, partnerships, nonprofit groups; federally recognized Indian tribes, public bodies and individuals. The funds will be targeted to creating and retaining quality jobs and serving difficult to reach populations, and areas hardest hit by the current economic downturn.
USDA will accept applications for this Business and Industry Guaranteed Loan program until Sept. 15, 2010, or until all funds are expended. Recovery Act funding will be available through Sept. 30, 2010. For information on eligibility criteria and for application assistance, please contact your state Rural Development office, or visit www.rurdev.usda.gov for a listing of all state offices.
Past examples of USDA Business and Industry Guaranteed Loans include:
A&C Sawdust in Crivitz, Wisc., received a $3.48 million guaranteed loan to refinance the costs to make real estate improvements and buy a wood grinder and wood dryer to expand business operations. A&C Sawdust was formed 40 years ago as a trucking business. The family-owned company also has a division, L&M Sawdust, that converts green sawdust into livestock bedding that is sold to local farmers. A third unit of the company, L&M Custom Drying, LLC, converts green sawdust into biomass pellets, a renewable fuel source. The funding provided by USDA Rural Development is expected to save or create 23 jobs in an area of the state that has lost jobs due to the closing of several paper mills.
Pennsylvania-based Keystone Potato Products, LLC, used a $4.9 million USDA Business and Industry Guaranteed Loan to develop an 86-acre site, construct a potato processing facility, purchase new machinery and equipment, and finance start-up costs. More than $2.8 million was private investment. This facility, which turns off-grade potatoes into flakes and other products, has reduced transport costs for potato suppliers and also created a new market for potato products. More than 40 jobs were created as a result of funding from this project.
More information about USDA’s Recovery Act efforts is available at www.usda.gov/recovery. More information about the Federal government’s efforts on the Recovery Act is available at www.recovery.gov.
USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in homeownership, finances business development, and supports the creation of critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA Rural Development’s web site at www.rurdev.usda.gov.
###
Monday, August 3, 2009
Listing of MN Banks making SBA ARC Loans
Below is the URL to the listing of banks making ARC loans.
For your Convenience, I have extracted and pasted all the MN Banks below in alpha order. Check the weblink, since it will be updated weekly.
http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_recovery_arc_lenders.pdf
Lender // States Where Loans Made// Website
Access Bank MN www.accessbank.com
Alliance Bank MN www.alb.kz
American Heritage National Bank MN www.logbank.com
BankCherokee MN www.bankcherokee.com
BankVista MN www.bankvista.com
BANKWEST MN www.bankwestmn.com
Central Bank MN, WI www.centralbankar.com
Citizens Bank & Trust Co MN www.cbhutch.com
Citizens State Bank IA, MN, WI #N/A
Citizens State Bank of Waverly (Incorporated) MN www.bankwaverly.com
Community Bank Mankato MN www.cbfg.net
Community Bank of the Red River Valley MN www.cbrrv.com
Community Bank, Austin MN #N/A
Falcon National Bank MN www.falconnational.com
Farmers and Merchants State Bank of Blooming Prairie MN www.fmbankmn.com
Farmers State Bank of Madelia, Inc. MN www.madelia.com
First Minnetonka City Bank MN #N/A
First National Bank of the Lakes MN www.fnblonline.com
First National Bank of the North MN www.fnbns.com
First State Bank of Grove City MN #N/A
First State Bank of St. Joseph MN www.fsbstjoseph.com
Flagship Bank Minnesota MN www.flagshipbanks.com
Frandsen Bank & Trust MN www.frandsenbank.com
Freeport State Bank MN #N/A
Kanabec State Bank MN www.kanabecstatebank.com
Lake Elmo Bank MN www.lakeelmobank.com
Mid-Minnesota FCU MN #N/A
Minnesota National Bank MN www.mn‐bank.com
North American Banking Company MN www.nabankco.com
Northern National Bank MN www.northernnationalbank.com
Peoples National Bank of Mora MN www.pnbmora.com
Premier Bank MN www.premier‐bk.com
Prior Lake State Bank MN www.priorlake.com
Republic Bank, Inc. MN www.bankrepublic.com
Security Bank and Trust Company MN www.security‐banks.com
Security Bank USA MN www.securitybankusa.com
Security State Bank of Fergus Falls MN www.ssbfergus.com
Security State Bank of Hibbing MN www.ssbhibbing.com
SouthPoint FCU MN #N/A
The Bank of Elk River MN www.thebankofelkriver.com
The First National Bank of Cokato MN #N/A
The First National Bank of Plainview MN www.fnbplainview.com
The First National Bank of River Falls MN, WI www.fnbrf.com
The Lake Bank MN www.thelakebank.com
The RiverBank MN, WI #N/A
United Community Bank MN www.ucbi.com
United Minnesota Bank MN www.unitedminnesotabank.com
United Prairie Bank MN www.unitedprairiebank.com
Voyager Bank MN www.voyagerbank.com
Western National Bank MN www.wbduluth.com
Western National Bank of Cass Lake MN www.wbcasslake.com
Woodland Bank MN www.woodlandbank.com
Woodlands National Bank MN #N/A
Below is the URL to the listing of banks making ARC loans.
For your Convenience, I have extracted and pasted all the MN Banks below in alpha order. Check the weblink, since it will be updated weekly.
http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_recovery_arc_lenders.pdf
Lender // States Where Loans Made// Website
Access Bank MN www.accessbank.com
Alliance Bank MN www.alb.kz
American Heritage National Bank MN www.logbank.com
BankCherokee MN www.bankcherokee.com
BankVista MN www.bankvista.com
BANKWEST MN www.bankwestmn.com
Central Bank MN, WI www.centralbankar.com
Citizens Bank & Trust Co MN www.cbhutch.com
Citizens State Bank IA, MN, WI #N/A
Citizens State Bank of Waverly (Incorporated) MN www.bankwaverly.com
Community Bank Mankato MN www.cbfg.net
Community Bank of the Red River Valley MN www.cbrrv.com
Community Bank, Austin MN #N/A
Falcon National Bank MN www.falconnational.com
Farmers and Merchants State Bank of Blooming Prairie MN www.fmbankmn.com
Farmers State Bank of Madelia, Inc. MN www.madelia.com
First Minnetonka City Bank MN #N/A
First National Bank of the Lakes MN www.fnblonline.com
First National Bank of the North MN www.fnbns.com
First State Bank of Grove City MN #N/A
First State Bank of St. Joseph MN www.fsbstjoseph.com
Flagship Bank Minnesota MN www.flagshipbanks.com
Frandsen Bank & Trust MN www.frandsenbank.com
Freeport State Bank MN #N/A
Kanabec State Bank MN www.kanabecstatebank.com
Lake Elmo Bank MN www.lakeelmobank.com
Mid-Minnesota FCU MN #N/A
Minnesota National Bank MN www.mn‐bank.com
North American Banking Company MN www.nabankco.com
Northern National Bank MN www.northernnationalbank.com
Peoples National Bank of Mora MN www.pnbmora.com
Premier Bank MN www.premier‐bk.com
Prior Lake State Bank MN www.priorlake.com
Republic Bank, Inc. MN www.bankrepublic.com
Security Bank and Trust Company MN www.security‐banks.com
Security Bank USA MN www.securitybankusa.com
Security State Bank of Fergus Falls MN www.ssbfergus.com
Security State Bank of Hibbing MN www.ssbhibbing.com
SouthPoint FCU MN #N/A
The Bank of Elk River MN www.thebankofelkriver.com
The First National Bank of Cokato MN #N/A
The First National Bank of Plainview MN www.fnbplainview.com
The First National Bank of River Falls MN, WI www.fnbrf.com
The Lake Bank MN www.thelakebank.com
The RiverBank MN, WI #N/A
United Community Bank MN www.ucbi.com
United Minnesota Bank MN www.unitedminnesotabank.com
United Prairie Bank MN www.unitedprairiebank.com
Voyager Bank MN www.voyagerbank.com
Western National Bank MN www.wbduluth.com
Western National Bank of Cass Lake MN www.wbcasslake.com
Woodland Bank MN www.woodlandbank.com
Woodlands National Bank MN #N/A
Everyone’s at Risk – Combating the Increasing Threat of Online Fraud and Identity Theft
A National Phone Forum presented by the IRS Stakeholder Liaison
Date: August 19, 2009
Cost: FREE
Location: The convenience of your home or office
This IRS phone forum is for:
• Tax professionals
• Attorneys
• Payroll professionals
• Industry partners
• Small business organizations
• Small business owners
• State and local governments
Learn about:
IRS identity protection efforts
Process for reporting tax-related identity theft
Victim assistance
IRS efforts to combat online fraud targeted at taxpayers
How to report phishing schemes targeted at taxpayers
Earn Continuing Professional Education credit
• Enrolled agents receive one CPE credit for a minimum 50-minute participation from the start of the forum.
• Other Tax professionals may receive credit if the phone forum meets your organization’s or state’s CPE requirements.
• To receive credit, register individually and use your PIN.
• Call in using your individual phone line so your attendance can be verified
• Look for your Certificate of Completion by e-mail approximately one week after the forum. If you have met all requirements, you will receive your certificate automatically; there’s no need to follow up.
• If you and others in your office do not require a CPE certificate, please have only one person register on the group’s behalf and use your speaker phone to dial in. This will maximize the number of lines available for other participants and help reduce costs.
Sign up now for the event of your choice
• Select the time that works best for you
Note: Time zones shown are Daylight Saving Time.
CONFERENCE ACCESS CODE
760853 - 10am Eastern, 9am Central, 8am Mountain, 7am Pacific
648527 - 1pm Eastern, NOON Central, 11am Mountain, 10am Pacific
353052 - 4pm Eastern, 3pm Central, 2pm Mountain, 1pm Pacific
• Register at www.attevent.com. Reservations are limited, so register early.
• You will receive a Personal Identification Number to join the conference.
• If you have never registered with AT&T for a prior phone forum, you will first need to click on create a profile.
• If you require special accommodations, (for example, Braille, large print or interpreter services) please contact Brian Finn at nationalphoneforum@irs.gov.
• You will receive presentation materials by e-mail on the day before the forum. If you do not receive this e-mail by noon the day before the event, please e-mail us at nationalphoneforum@irs.gov to request the materials.
Dial in on August 19, 2009
Toll free: 1-800-683-4564
Toll: 1-913-312-2904
Dial in at least five to ten minutes before the scheduled time. Those who are first to arrive will be assured participation. Once all available lines are taken, no additional participants will be able to join the session.
Enter your access code, then the pound (#) sign.
Enter your PIN, then the pound (#) sign.
Your line will be placed on hold until the conference begins.
A question and answer period will follow the presentation. However, due to the public nature of the call, we will not be able to address specific client issues.
Questions? E-mail nationalphoneforum@irs.gov
A National Phone Forum presented by the IRS Stakeholder Liaison
Date: August 19, 2009
Cost: FREE
Location: The convenience of your home or office
This IRS phone forum is for:
• Tax professionals
• Attorneys
• Payroll professionals
• Industry partners
• Small business organizations
• Small business owners
• State and local governments
Learn about:
IRS identity protection efforts
Process for reporting tax-related identity theft
Victim assistance
IRS efforts to combat online fraud targeted at taxpayers
How to report phishing schemes targeted at taxpayers
Earn Continuing Professional Education credit
• Enrolled agents receive one CPE credit for a minimum 50-minute participation from the start of the forum.
• Other Tax professionals may receive credit if the phone forum meets your organization’s or state’s CPE requirements.
• To receive credit, register individually and use your PIN.
• Call in using your individual phone line so your attendance can be verified
• Look for your Certificate of Completion by e-mail approximately one week after the forum. If you have met all requirements, you will receive your certificate automatically; there’s no need to follow up.
• If you and others in your office do not require a CPE certificate, please have only one person register on the group’s behalf and use your speaker phone to dial in. This will maximize the number of lines available for other participants and help reduce costs.
Sign up now for the event of your choice
• Select the time that works best for you
Note: Time zones shown are Daylight Saving Time.
CONFERENCE ACCESS CODE
760853 - 10am Eastern, 9am Central, 8am Mountain, 7am Pacific
648527 - 1pm Eastern, NOON Central, 11am Mountain, 10am Pacific
353052 - 4pm Eastern, 3pm Central, 2pm Mountain, 1pm Pacific
• Register at www.attevent.com. Reservations are limited, so register early.
• You will receive a Personal Identification Number to join the conference.
• If you have never registered with AT&T for a prior phone forum, you will first need to click on create a profile.
• If you require special accommodations, (for example, Braille, large print or interpreter services) please contact Brian Finn at nationalphoneforum@irs.gov.
• You will receive presentation materials by e-mail on the day before the forum. If you do not receive this e-mail by noon the day before the event, please e-mail us at nationalphoneforum@irs.gov to request the materials.
Dial in on August 19, 2009
Toll free: 1-800-683-4564
Toll: 1-913-312-2904
Dial in at least five to ten minutes before the scheduled time. Those who are first to arrive will be assured participation. Once all available lines are taken, no additional participants will be able to join the session.
Enter your access code, then the pound (#) sign.
Enter your PIN, then the pound (#) sign.
Your line will be placed on hold until the conference begins.
A question and answer period will follow the presentation. However, due to the public nature of the call, we will not be able to address specific client issues.
Questions? E-mail nationalphoneforum@irs.gov
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