ARC Loans in MN over 350!!
The latest count for ARC loans in MN is over 350. See link below for the latest information;
http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_recovery_arc_lenders.pdf
Wednesday, September 30, 2009
7(a) Fees and 504 Fees Effective On
October 1, 2009
Each year SBA reviews the fees payable to SBA by 7(a) participating lenders (Lenders), certified development companies (CDCs), and borrowers to determine if they are sufficient to cover the estimated costs of the 7(a) and 504 loan programs. The purpose of this notice is to announce the fees effective October 1, 2009, for both programs for loans approved during FY 2010.
7(a) Loan Program
For 7(a) loans approved on or after October 1, 2009, the “Yearly Fee” due from Lenders to SBA will be 0.55 percent (55 basis points) of the guaranteed portion of the outstanding balance on the 7(a) loan. This fee remains the same as for FY 2009. The 7(a) Yearly Fee is imposed under Section 7(a)(23) of the Small Business Act and is referred to as the “ongoing service fee” in the 7(a) Authorization Wizard.
All other fees in the 7(a) loan program will be the same as for FY 2009. A description of these fees may be found in SOP 50 10 5.
504 Loan Program
For 504 loans approved on or after October 1, 2009, the “Annual Fee” paid by borrowers on an ongoing basis to SBA will be increased from zero percent to 0.389 percent (38.9 basis points) of the outstanding balance of the 504 loan. The 504 Annual Fee is imposed under Section 503(b)(7) of the Small Business Investment Act.
All other fees in the 504 loan program will be the same as for FY 2009, including the one-time guaranty fee that SBA is authorized to charge under Section 503(d)(1) of the Small Business Investment Act (which remains at zero). A description of these fees may be found in SOP 50 10 5.
Recovery Act Loans
Fees for 7(a) and 504 loans made under the American Recovery and Reinvestment Act will continue to follow the policies in the Federal Register Notices of June 8, 2009 (Business Loan Program Temporary Eliminations/Reductions in Fees, 74 FR 27196)(Business Loan Program Temporary Increased Guaranty Percentage, 74 FR 27199).
Notification and Questions
These fee changes are effective for Fiscal Year 2010, unless superseded by another Information Notice. SBA field offices must notify Lenders and CDCs of these changes.
October 1, 2009
Each year SBA reviews the fees payable to SBA by 7(a) participating lenders (Lenders), certified development companies (CDCs), and borrowers to determine if they are sufficient to cover the estimated costs of the 7(a) and 504 loan programs. The purpose of this notice is to announce the fees effective October 1, 2009, for both programs for loans approved during FY 2010.
7(a) Loan Program
For 7(a) loans approved on or after October 1, 2009, the “Yearly Fee” due from Lenders to SBA will be 0.55 percent (55 basis points) of the guaranteed portion of the outstanding balance on the 7(a) loan. This fee remains the same as for FY 2009. The 7(a) Yearly Fee is imposed under Section 7(a)(23) of the Small Business Act and is referred to as the “ongoing service fee” in the 7(a) Authorization Wizard.
All other fees in the 7(a) loan program will be the same as for FY 2009. A description of these fees may be found in SOP 50 10 5.
504 Loan Program
For 504 loans approved on or after October 1, 2009, the “Annual Fee” paid by borrowers on an ongoing basis to SBA will be increased from zero percent to 0.389 percent (38.9 basis points) of the outstanding balance of the 504 loan. The 504 Annual Fee is imposed under Section 503(b)(7) of the Small Business Investment Act.
All other fees in the 504 loan program will be the same as for FY 2009, including the one-time guaranty fee that SBA is authorized to charge under Section 503(d)(1) of the Small Business Investment Act (which remains at zero). A description of these fees may be found in SOP 50 10 5.
Recovery Act Loans
Fees for 7(a) and 504 loans made under the American Recovery and Reinvestment Act will continue to follow the policies in the Federal Register Notices of June 8, 2009 (Business Loan Program Temporary Eliminations/Reductions in Fees, 74 FR 27196)(Business Loan Program Temporary Increased Guaranty Percentage, 74 FR 27199).
Notification and Questions
These fee changes are effective for Fiscal Year 2010, unless superseded by another Information Notice. SBA field offices must notify Lenders and CDCs of these changes.
Tuesday, September 29, 2009
New IRS Rule Allows Commercial Loan Modifications Before Default
18-September-2009
David L. Kuosman and Peter J. Withoff
Earlier this week, the IRS issued several highly anticipated guidelines that will allow certain borrowers who are current on their commercial mortgage loan obligations to negotiate and modify their loans without triggering an adverse tax consequence to the holder of the loan. The guidance allows loan servicers to modify these loans regardless of when they mature and whether they are performing if the servicer believes there is a significant risk of future default under the loans.
Click HERE to go to the article.
18-September-2009
David L. Kuosman and Peter J. Withoff
Earlier this week, the IRS issued several highly anticipated guidelines that will allow certain borrowers who are current on their commercial mortgage loan obligations to negotiate and modify their loans without triggering an adverse tax consequence to the holder of the loan. The guidance allows loan servicers to modify these loans regardless of when they mature and whether they are performing if the servicer believes there is a significant risk of future default under the loans.
Click HERE to go to the article.
SBA Administrator and Local Officials Spotlight Economic Relief to Minnesota Small Business
Over $10 Million Dollars in ARC Loans Already Disbursed to Nearly 700 Businesses in the Twin Cities Through the U.S. Small Business Administration
SBA Administrator Karen Mills joined Venture Bank at a news conference on Wednesday, September 23 at Crystal Kitchen Center (3620 Winnetka Ave N, Crystal, MN) to recognize the positive impact the American Recovery and Reinvestment Act (ARRA) is having on local small businesses’ ability to secure financing.
JoLynn Johnson of Crystal, Minnesota took advantage of SBA’s loan products by accessing an American Recovery Capital (ARC) loan which helped her meet day to day operating costs. The ARC loan provides no interest, deferred repayment loans of up to $35,000 used to pay down existing debt---providing a “bridge” for viable small businesses facing economic challenges.
“The ARC loans are another tool in the SBA toolkit which can provide critical support to small business owners like JoLynn Johnson to fulfill the American dream and keep their doors open,” said Administrator Karen G. Mills.
SBA’s instant capital infusion allowed JoLynn to get back on track. "Cutting costs, managing expenses and doing everything right doesn’t help when the customers aren’t buying due to uncertainty in the economy," says JoLynn Johnson, President of Crystal Kitchen Center, Inc. "The ARC loan is helping my business survive through these tough economic times."
Since 1975, Crystal Kitchen Center has earned a reputation in the upper Midwest for providing quality and leadership in kitchen and bath design. They work with new construction as well as renovations, providing services from design to complete "turn-key" remodeling. With their 8800 square foot showroom customers can find inspiration for their style. Crystal Kitchen Center prides themselves on designing and supplying cabinetry and counter tops for unique kitchens, bathrooms, entertainment centers, laundry rooms, home offices, lower levels, and outdoor kitchens. Their award-winning Certified Kitchen Designers are also versed in aging-in-place and green design, helping make their customer’s dreams come true.
"Now is the time for SBA loans. With 90% guarantees, temporary fee eliminations and the ARC loan program, Venture Bank is able to meet our goal of helping our customers grow their business and be successful. We are very strong supporters of the SBA loan programs," says Michael T. Zenk, President of Venture Bank. Venture Bank was founded in 2001. They currently maintain three locations in Bloomington, Golden Valley and Eagan. Venture Bank is one of Minnesota’s most active SBA lenders.
Since the signing of ARRA, SBA’s loan products have made a significant impact throughout the State with weekly increases in loan dollar volume. To date, SBA has supported $337.4 million dollars in small business lending to over 1,000 Minnesota small businesses.
Tuesday, September 8, 2009
DEED honors Cass County EDC
The Bemidji Pioneer notes that the Cass County Economic Development Corporation has been recognized by the Minnesota Department of Employment and Economic Development in its 2008 Annual Report for the Cass County EDC’s work on the Chase on the Lake redevelopment project.Excellent recognition of the work of Ms. Gail Leverson, MnSBDC Professional Business Consultant and Executive Director of the Cass County EDC working with Chase on the Lake redevelopment project.
http://www.bemidjipioneer.com/event/article/id/100011419/
“Partnerships with county and regional economic development organizations like the Cass County Economic Development Corporation are key to the success of the Small Business Development Centers,” said Greg Bergman, regional director of the SBDC at Central Lakes College. “Having someone experienced and knowledgeable within the county adds a lot of value to the services we provide on a regional basis.”
The EDC is a satellite center of the North Central Minnesota SBDC in Brainerd. Through this partnership, the EDC offers counseling to relocating, expanding or new businesses in Cass County. The EDC is a local nonprofit corporation created to assist with job creation and capital investment throughout Cass County.
Sell the Business??
The Association of SBDC has a useful e-zine sent to all members every few weeks. One article from Harvard Business online in the current edition caught my eye. It asks the question; Should Business Owners consider selling their business in the current economy?
Here's a link to the article cached on the ASBDC website;
Should Entrepreneurs Sell in Today's Economy?
The Association of SBDC has a useful e-zine sent to all members every few weeks. One article from Harvard Business online in the current edition caught my eye. It asks the question; Should Business Owners consider selling their business in the current economy?
Here's a link to the article cached on the ASBDC website;
Should Entrepreneurs Sell in Today's Economy?
Thursday, September 3, 2009
SBA "Standard Operating Procedures" (SOP) for Lenders and Certified Development Companies (CDC)
The SBA occassionally updates and modifies it's SOP for 7a and 504 loans. These are the rules and guidelines for how it operates, and this SOP gives critical information to lenders and CDCs on SBA loans. This SOP is effective from Oct 1, 2009.
Why is this important to MnSBDC Professional Business Consultants?
If you want to ensure your clients are 'eligible' for the loan, have the appropriate and acceptable 'collateral' for the loan, and understand the conditions of the loan - to ensure you are properly advising your client - this document is a good place to start.
SOP 50 10 5(B)
http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sops_50105b.pdf
The SBA occassionally updates and modifies it's SOP for 7a and 504 loans. These are the rules and guidelines for how it operates, and this SOP gives critical information to lenders and CDCs on SBA loans. This SOP is effective from Oct 1, 2009.
Why is this important to MnSBDC Professional Business Consultants?
If you want to ensure your clients are 'eligible' for the loan, have the appropriate and acceptable 'collateral' for the loan, and understand the conditions of the loan - to ensure you are properly advising your client - this document is a good place to start.
SOP 50 10 5(B)
http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sops_50105b.pdf
Tuesday, September 1, 2009
SBA Administrator Mills Encourages Americans to Plan for Disasters During National Preparedness Month
WASHINGTON –Citing current wildfires in Southern California and several storms impacting coastal regions, the U.S. Small Business Administration is encouraging Americans to be prepared. In a message posted today on YouTube, Administrator Karen G. Mills reminds the public about National Preparedness Month and the devastating effects of disaster, encouraging everyone to develop and implement disaster preparedness plans.
“There’s a tendency to think that a large-scale disaster is not going to happen ‘where I live,’” said SBA Administrator Karen G. Mills. “We should all realize that storms, floods, earthquakes, fires and man-made disasters can strike at any time and anywhere. Taking responsibility for your own post-disaster recovery is a good step toward protecting your family, your business and your community.”
The U.S. Small Business Administration is one of many state and local government and private sector coalition partners participating in this September’s National Preparedness Month.
The Administrator’s video can be found at www.youtube.com/sba.
To prepare for disasters, SBA offers the following tips:
Develop a solid emergency response plan. Find evacuation routes from the home or business and establish meeting places. Make sure everyone understands the plan beforehand. Keep emergency phone numbers handy. Business owners should designate a contact person to communicate with other employees, customers and vendors. Homeowners, renters and business owners should ask an out-of-state friend, colleague or family member to be a “post-disaster” point of contact, supporting the flow of information about short-term relocations, recovery, additional sources of assistance, etc.
Make sure you have adequate insurance coverage. Disaster preparedness begins with having adequate insurance coverage—at least enough to rebuild your home or business. Homeowners and business owners should review their policies to see what is or isn’t covered. Companies should consider business interruption insurance, which helps cover operating costs during the post-disaster shutdown period. Flood insurance is essential. To find out more about the National Flood Insurance Program, visit the Web site at http://www.floodsmart.gov/.
Copy important records. It’s a good idea to back up vital records and information saved on computer hard drives, and store that information at a distant offsite location in fireproof safe deposit boxes. You should have copies/back ups of important documents ready to take with you if you have to evacuate
Create a “Disaster Survival Kit.” The kit should include a flashlight, a portable radio, extra batteries, first-aid supplies, non-perishable food, bottled water, a basic tool kit, plastic sheeting and garbage bags, cash, and a digital camera to take pictures of the property damage after the storm.
More preparedness tips for businesses, homeowners and renters are available on the SBA’s Web site at www.sba.gov/disasterassistance.
The Institute for Business and Home Safety (http://www.disastersafety.org/ ) also has information on protecting your home or business. To learn more about developing an emergency plan, visit the DHS’s Ready Campaign Web site at http://www.ready.gov/ or call 1-800-BE-READY to receive free materials.
Following a disaster, the SBA makes low-interest loans to homeowners, renters and non-farm businesses of all sizes. Homeowners may borrow up to $200,000 to repair or replace damaged real estate. Individuals may borrow up to $40,000 to cover losses to personal property.
Non-farm businesses and non-profit organizations of any size may apply for up to $2 million to repair or replace disaster damaged business assets and real property. Small businesses that suffered economic losses as a direct result of the declared disaster may apply for a working capital loan up to $2 million, even if the property was not physically damaged.
To learn more about the SBA’s disaster assistance program, visit the Web site at www.sba.gov/disasterassistance.
Release Date: September 1, 2009 - - - Contact: Carol Chastang (202) 205-6987
Release Number: 09-64 - - - Internet Address: http://www.sba.gov/news
# # #
WASHINGTON –Citing current wildfires in Southern California and several storms impacting coastal regions, the U.S. Small Business Administration is encouraging Americans to be prepared. In a message posted today on YouTube, Administrator Karen G. Mills reminds the public about National Preparedness Month and the devastating effects of disaster, encouraging everyone to develop and implement disaster preparedness plans.
“There’s a tendency to think that a large-scale disaster is not going to happen ‘where I live,’” said SBA Administrator Karen G. Mills. “We should all realize that storms, floods, earthquakes, fires and man-made disasters can strike at any time and anywhere. Taking responsibility for your own post-disaster recovery is a good step toward protecting your family, your business and your community.”
The U.S. Small Business Administration is one of many state and local government and private sector coalition partners participating in this September’s National Preparedness Month.
The Administrator’s video can be found at www.youtube.com/sba.
To prepare for disasters, SBA offers the following tips:
Develop a solid emergency response plan. Find evacuation routes from the home or business and establish meeting places. Make sure everyone understands the plan beforehand. Keep emergency phone numbers handy. Business owners should designate a contact person to communicate with other employees, customers and vendors. Homeowners, renters and business owners should ask an out-of-state friend, colleague or family member to be a “post-disaster” point of contact, supporting the flow of information about short-term relocations, recovery, additional sources of assistance, etc.
Make sure you have adequate insurance coverage. Disaster preparedness begins with having adequate insurance coverage—at least enough to rebuild your home or business. Homeowners and business owners should review their policies to see what is or isn’t covered. Companies should consider business interruption insurance, which helps cover operating costs during the post-disaster shutdown period. Flood insurance is essential. To find out more about the National Flood Insurance Program, visit the Web site at http://www.floodsmart.gov/.
Copy important records. It’s a good idea to back up vital records and information saved on computer hard drives, and store that information at a distant offsite location in fireproof safe deposit boxes. You should have copies/back ups of important documents ready to take with you if you have to evacuate
Create a “Disaster Survival Kit.” The kit should include a flashlight, a portable radio, extra batteries, first-aid supplies, non-perishable food, bottled water, a basic tool kit, plastic sheeting and garbage bags, cash, and a digital camera to take pictures of the property damage after the storm.
More preparedness tips for businesses, homeowners and renters are available on the SBA’s Web site at www.sba.gov/disasterassistance.
The Institute for Business and Home Safety (http://www.disastersafety.org/ ) also has information on protecting your home or business. To learn more about developing an emergency plan, visit the DHS’s Ready Campaign Web site at http://www.ready.gov/ or call 1-800-BE-READY to receive free materials.
Following a disaster, the SBA makes low-interest loans to homeowners, renters and non-farm businesses of all sizes. Homeowners may borrow up to $200,000 to repair or replace damaged real estate. Individuals may borrow up to $40,000 to cover losses to personal property.
Non-farm businesses and non-profit organizations of any size may apply for up to $2 million to repair or replace disaster damaged business assets and real property. Small businesses that suffered economic losses as a direct result of the declared disaster may apply for a working capital loan up to $2 million, even if the property was not physically damaged.
To learn more about the SBA’s disaster assistance program, visit the Web site at www.sba.gov/disasterassistance.
Release Date: September 1, 2009 - - - Contact: Carol Chastang (202) 205-6987
Release Number: 09-64 - - - Internet Address: http://www.sba.gov/news
# # #
SBA Launches New Online Training Course:
‘How to Win Federal Contracts’
Online Course Part of Federal Government-wide Initiative
WASHINGTON ─ The U.S. Small Business Administration today launched a new online training course to help strengthen access to contracting opportunities for small businesses, including those owned by women, minorities, disadvantaged individuals and veterans.
The training course, “Recovery Act Opportunities: How to Win Federal Contracts,” is part of a federal government-wide initiative announced last month by President Obama and being led by SBA and the Department of Commerce. As part of the outreach to small businesses, the comprehensive online course uses both audio and script to provide information about the federal marketplace, contract rules and, most importantly, how to sell to the government and where to find contract and Recovery Act opportunities. The new training portal is a free online training course designed to assist entrepreneurs during this period of economic recovery. This self-paced, instructional guide provides an overview of the federal procurement process.
The Recovery Act Opportunities course is available on SBA’s Web site at www.sba.gov or directly at www.sba.gov/fedcontractingtraining. The course is indexed by subject matter to allow ease of use, and it includes multiple direct links to additional contracting resources.
The Recovery Act Opportunities course includes direct links that highlight the best contracting resources and engages small business owners in the contracting process. The course also includes practical and fundamental steps to engage business owners in the federal contracting arena.
It is one of more than 24 online tutorials offered by the SBA, and is available 24/7. For more information please visit www.sba.gov.
Release Date: Sept. 1, 2009 - - - Contact: Cecelia Taylor (202) 401-3059
Release Number: 09-63 - - - Internet Address: http://www.sba.gov/news
# # #
‘How to Win Federal Contracts’
Online Course Part of Federal Government-wide Initiative
WASHINGTON ─ The U.S. Small Business Administration today launched a new online training course to help strengthen access to contracting opportunities for small businesses, including those owned by women, minorities, disadvantaged individuals and veterans.
The training course, “Recovery Act Opportunities: How to Win Federal Contracts,” is part of a federal government-wide initiative announced last month by President Obama and being led by SBA and the Department of Commerce. As part of the outreach to small businesses, the comprehensive online course uses both audio and script to provide information about the federal marketplace, contract rules and, most importantly, how to sell to the government and where to find contract and Recovery Act opportunities. The new training portal is a free online training course designed to assist entrepreneurs during this period of economic recovery. This self-paced, instructional guide provides an overview of the federal procurement process.
The Recovery Act Opportunities course is available on SBA’s Web site at www.sba.gov or directly at www.sba.gov/fedcontractingtraining. The course is indexed by subject matter to allow ease of use, and it includes multiple direct links to additional contracting resources.
The Recovery Act Opportunities course includes direct links that highlight the best contracting resources and engages small business owners in the contracting process. The course also includes practical and fundamental steps to engage business owners in the federal contracting arena.
It is one of more than 24 online tutorials offered by the SBA, and is available 24/7. For more information please visit www.sba.gov.
Release Date: Sept. 1, 2009 - - - Contact: Cecelia Taylor (202) 401-3059
Release Number: 09-63 - - - Internet Address: http://www.sba.gov/news
# # #
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