US SBA Awards 2 MN Lenders during Small Business Week
The U.S. Small Business Administration in Washington, D.C. gave awards to nine lenders and two investment companies on May 24, 2010 for their commitment to delivering vital financial assistance to American small businesses, as part of National Small Business Week.
Two firms from Minnesota were recognized;
A new award was created this year to honor a Community/Rural Lender that has made a positive impact on its community. The winner of the Community/Rural Lender of the Year was American Bank of the North, of Nashwauk, Minnesota.
In keeping with the heightened importance exports are receiving in the nation’s economic recovery, SBA this year again recognized two banks for their role in lending to small business exporters, and one of those banks was Wells Fargo Bank, N.A., of Minneapolis, Minnesota who won the award for making the largest number of domestic loans to exporters.
FROM:
Release Date: May 24, 2010 Contact: David J. Hall (202) 205-6697
Release Number: 10-27 Internet Address: http://www.sba.gov/news
Showing posts with label Lenders. Show all posts
Showing posts with label Lenders. Show all posts
Monday, May 24, 2010
Thursday, March 11, 2010
Minnesota Lender SBA Activity as of 2/28/2010
The latest report of lenders who originate SBA Backed loans is available by clicking here. Wells Fargo leads with the total dollar amount and with the total number of loans (i.e. volume).
The Minnesota SBA District Office ranks first in the nation in the number of loan guarantees and seventh in the nation in dollars of loan guarantees out of 68 district offices nationwide.
The latest report of lenders who originate SBA Backed loans is available by clicking here. Wells Fargo leads with the total dollar amount and with the total number of loans (i.e. volume).
The Minnesota SBA District Office ranks first in the nation in the number of loan guarantees and seventh in the nation in dollars of loan guarantees out of 68 district offices nationwide.
Monday, March 8, 2010
Extension of SBA Recovery Lending Programs Will Support $1.8 Billion in Small Business Lending
As noted earlier on this blog, the SBA Recovery Lending Programs were extended. For full details you can click here for the full Press Release (in PDF format) issued by the SBA on this item.
As noted earlier on this blog, the SBA Recovery Lending Programs were extended. For full details you can click here for the full Press Release (in PDF format) issued by the SBA on this item.
Thursday, March 4, 2010
SBA Stimulus Loans Reauthorized
The President signed a bill on 3/2/2010 that reauthorizes the expired 90-percent guarantee on the S.B.A.’s general business loans through March 28th. The $60 million appropriation funds this higher guarantee and eliminates borrower fees for both the 7(a) and the 504 loan program.
The President signed a bill on 3/2/2010 that reauthorizes the expired 90-percent guarantee on the S.B.A.’s general business loans through March 28th. The $60 million appropriation funds this higher guarantee and eliminates borrower fees for both the 7(a) and the 504 loan program.
Thursday, February 25, 2010
Get in Line! (for the SBA Backed Small Business Loans)
The funding for the enhanced SBA guaranteed small business loans ran out Friday, February 19, 2010 and its time to get in line and hope they will restart with additional funding from Congress.
Similar to what happened in November 2009 when the SBA Recovery Loan program ran out of its original allotment of $375 million, there is an additional appropriation awaiting congressional approval - it passed the House and is stalled in the Senate.
The last time this happened the extra $175 million lasted until last Friday, February 19. The SBA has seen a dramatic increase in the average weekly loan volume, increasing by nearly 90% since February 2009, so the lending is helping the small business market to get back on their feet.
The advantage of getting in line for the enhanced loans is the higher guarantee amount (attractive to the lending institution), and in some cases waived fees.
After you get in line, you can watch the loan que here on the SBA website.
The funding for the enhanced SBA guaranteed small business loans ran out Friday, February 19, 2010 and its time to get in line and hope they will restart with additional funding from Congress.
Similar to what happened in November 2009 when the SBA Recovery Loan program ran out of its original allotment of $375 million, there is an additional appropriation awaiting congressional approval - it passed the House and is stalled in the Senate.
The last time this happened the extra $175 million lasted until last Friday, February 19. The SBA has seen a dramatic increase in the average weekly loan volume, increasing by nearly 90% since February 2009, so the lending is helping the small business market to get back on their feet.
The advantage of getting in line for the enhanced loans is the higher guarantee amount (attractive to the lending institution), and in some cases waived fees.
After you get in line, you can watch the loan que here on the SBA website.
Monday, February 8, 2010
Latest in a Series of New Small Business Proposals by President Obama
1. Expand SBA’s existing 504 program to temporarily support refinancing for owner-occupied commercial real estate loans:
The Administration is proposing legislation to temporarily allow for the refinancing of owner-occupied commercial real estate (CRE) loans under the SBA’s 504 program, which provides guarantees on loans for the development of real estate and other fixed assets. Currently, 504 loans cannot be used for the refinancing of maturing debt. This change would respond to the difficulties many current, solvent borrowers face in refinancing existing commercial real estate loans.
Businesses with a loan maturing in the next year who are current on all loan payments will be eligible. Lenders that are refinancing mortgages for existing customers will make a loan for up to 70 percent of the current property value; and SBA will help finance the remaining 20 percent. For new lenders taking on a refinancing project, SBA will take on a greater share of financing, up to 40 percent.
2. Temporarily increase the cap on SBA Express loans from $350,000 to $1 million:
The President is proposing to temporarily increase the maximum SBA Express loan size to $1 million, which would expand the program’s ability to help a broad range of small businesses through a streamlined approval process. Unlike traditional 7(a) loans, lenders can use their own paperwork for SBA Express loans, which can be structured as revolving lines of credit. Currently, these Express loans are capped at $350,000 and carry a 50 percent guarantee. Fees would cover virtually all of the added costs of this proposal.
These proposals complement the President’s broader small business agenda - a key part of his overall jobs plan. The other elements of the small business agenda include:
• Extending small business expensing and bonus depreciation for 2010. Eliminating capital gains taxes for small businesses in 2010.
• A Small Business Jobs and Wages Tax Credit that would cut taxes for more than 1 million small businesses by paying up to $5,000 for every net new job and covers payroll taxes on overall wage increases in excess of inflation.
• A proposal to transfer, through legislation, $30 billion to a new Small Business Lending Fund that will support lending by community and smaller banks.
• Additional SBA lending proposals, including an extension of the Recovery Act programs that eliminate fees and raise guarantees on SBA’s two largest loan programs and permanent increases in the maximum loan sizes for major SBA programs.
1. Expand SBA’s existing 504 program to temporarily support refinancing for owner-occupied commercial real estate loans:
The Administration is proposing legislation to temporarily allow for the refinancing of owner-occupied commercial real estate (CRE) loans under the SBA’s 504 program, which provides guarantees on loans for the development of real estate and other fixed assets. Currently, 504 loans cannot be used for the refinancing of maturing debt. This change would respond to the difficulties many current, solvent borrowers face in refinancing existing commercial real estate loans.
Businesses with a loan maturing in the next year who are current on all loan payments will be eligible. Lenders that are refinancing mortgages for existing customers will make a loan for up to 70 percent of the current property value; and SBA will help finance the remaining 20 percent. For new lenders taking on a refinancing project, SBA will take on a greater share of financing, up to 40 percent.
2. Temporarily increase the cap on SBA Express loans from $350,000 to $1 million:
The President is proposing to temporarily increase the maximum SBA Express loan size to $1 million, which would expand the program’s ability to help a broad range of small businesses through a streamlined approval process. Unlike traditional 7(a) loans, lenders can use their own paperwork for SBA Express loans, which can be structured as revolving lines of credit. Currently, these Express loans are capped at $350,000 and carry a 50 percent guarantee. Fees would cover virtually all of the added costs of this proposal.
These proposals complement the President’s broader small business agenda - a key part of his overall jobs plan. The other elements of the small business agenda include:
• Extending small business expensing and bonus depreciation for 2010. Eliminating capital gains taxes for small businesses in 2010.
• A Small Business Jobs and Wages Tax Credit that would cut taxes for more than 1 million small businesses by paying up to $5,000 for every net new job and covers payroll taxes on overall wage increases in excess of inflation.
• A proposal to transfer, through legislation, $30 billion to a new Small Business Lending Fund that will support lending by community and smaller banks.
• Additional SBA lending proposals, including an extension of the Recovery Act programs that eliminate fees and raise guarantees on SBA’s two largest loan programs and permanent increases in the maximum loan sizes for major SBA programs.
Thursday, February 4, 2010
Minnesota District Office ranks first in the nation in number of loan guarantees and seventh in the nation in dollars of loan guarantees out of 68 district offices nationwide.
While small business lending by large banks is down, SBA backed small business loans continue to help the small business community to survive. This Wall Street Journal article notes that; "The top 22 largest lenders under the government's Troubled Asset Relief Program approved $6.9 billion in loans in November, down 7.4% from April."
The Minnesota District Office continues to turn in an impressive record, and note that in MN the two top spots on the list are held by large banks; Wells Fargo and US Bank. Here's the full details.
While small business lending by large banks is down, SBA backed small business loans continue to help the small business community to survive. This Wall Street Journal article notes that; "The top 22 largest lenders under the government's Troubled Asset Relief Program approved $6.9 billion in loans in November, down 7.4% from April."
The Minnesota District Office continues to turn in an impressive record, and note that in MN the two top spots on the list are held by large banks; Wells Fargo and US Bank. Here's the full details.
Wednesday, December 9, 2009
US SBA ARC Loan Update
Here's a quick snapshot of the impact of the US SBA ARC Loans, listed by US SBA Regions and also a 'Fact Sheet' on the impact of the ARC loans. The MnSBDC is located in Region 5.
Click here for Fact Sheet
Click here for a Snapshot Graphic
Here's a quick snapshot of the impact of the US SBA ARC Loans, listed by US SBA Regions and also a 'Fact Sheet' on the impact of the ARC loans. The MnSBDC is located in Region 5.
Click here for Fact Sheet
Click here for a Snapshot Graphic
Monday, November 30, 2009
US SBA sets up a Queue for 7(a) and 504 loans under the stimulus program.
The US SBA has set up a webpage with information on the likelihood of additional funds becoming available under the Recovery Act and the Queue established for this purpose. There is a useful gauge on the page listing the 'Funding Likelihood'.
Click here for more information.
The US SBA has set up a webpage with information on the likelihood of additional funds becoming available under the Recovery Act and the Queue established for this purpose. There is a useful gauge on the page listing the 'Funding Likelihood'.
Click here for more information.
Wednesday, November 18, 2009
$10 Billion reduction in Small Business Lending by Big Banks
MnSBDC clients have been experiencing the "credit crunch" first hand. While Mn leads the nation in ARC loans that have helped small business clients to continue to operate, these loans come primarily from regional and community banks rather than the large national banks. The latest data indicates that the large banks that have received TARP funds designed to help spur lending to small business clients have in fact pulled back from lending to small business.
The notable exception among big banks is US Bank (US Bancorp), headquartered in Minneapolis, which increased it's lending by almost 2%. Also, BB&T Bank (located in the Southeast) remained essentially at the same level for small business lending.
Click here for the full story.
MnSBDC clients have been experiencing the "credit crunch" first hand. While Mn leads the nation in ARC loans that have helped small business clients to continue to operate, these loans come primarily from regional and community banks rather than the large national banks. The latest data indicates that the large banks that have received TARP funds designed to help spur lending to small business clients have in fact pulled back from lending to small business.
The notable exception among big banks is US Bank (US Bancorp), headquartered in Minneapolis, which increased it's lending by almost 2%. Also, BB&T Bank (located in the Southeast) remained essentially at the same level for small business lending.
Click here for the full story.
Tuesday, November 10, 2009
US SBA Loan Servicing Matrix
On Oct 20, 2009 the US SBA published their latest 'Unilateral Action Matrix' for Servicing and Liquidation Actions for their popular 7a loan.
What is this and why is it important?
If you don't have a US SBA 7a loan it may not interest you, but if you do have this type of loan or are servicing this loan the information gives the 'rules of the road' for what you may and may not do in servicing and liquidating the 7a loan.
For our MnSBDC Professional Business Consultants who work with clients and lenders that use a 7a loan, this information is useful for understanding options, especially if the client is in a work out situation.
Here's the link to the PDF file matrix located on the US SBA Website.
On Oct 20, 2009 the US SBA published their latest 'Unilateral Action Matrix' for Servicing and Liquidation Actions for their popular 7a loan.
What is this and why is it important?
If you don't have a US SBA 7a loan it may not interest you, but if you do have this type of loan or are servicing this loan the information gives the 'rules of the road' for what you may and may not do in servicing and liquidating the 7a loan.
For our MnSBDC Professional Business Consultants who work with clients and lenders that use a 7a loan, this information is useful for understanding options, especially if the client is in a work out situation.
Here's the link to the PDF file matrix located on the US SBA Website.
Thursday, October 22, 2009
Statement by Administrator Karen Mills on President Obama’s Proposal to Raise SBA Loan Limits
Release Date: October 21, 2009 Release Number: 09-73
Contact: Hayley Matz (202) 205-6948 Internet Address: http://www.sba.gov/news
WASHINGTON – The U.S. Small Business Administration today issued the following statement by SBA Administrator Karen Mills on today’s proposal by President Barack Obama to raise the maximum loan size for SBA-backed loans to small business:
“America’s 29 million small businesses have been hard hit in this recession. Nine months ago, President Obama sent small businesses a life line: the American Recovery and Reinvestment Act. Since then, the SBA has supported more than 33,000 loans for a total of almost $13 billion in small business lending. This has helped save or create tens of thousands of jobs.
“But there is much more work to be done, which is why President Obama today pledged his support for legislation that would increase the maximum size of some SBA loans. Increasing maximum loan sizes will allow the SBA to ensure that more small business owners and entrepreneurs can get access to the credit they need to expand their operations and create jobs.
“The President also announced additional support from the Treasury Department for smaller community lenders that are committed to increasing their lending to small businesses. Secretary Geithner and I will host a conference on small business lending with Members of Congress, regulators, lenders and the small business community. The conference will discuss additional efforts that can be taken to provide small businesses with access to credit. These steps, coupled with SBA’s ongoing efforts, will help small businesses grow and create jobs throughout America.”
Specifically, President Obama called for:
• Increasing the size of SBA’s 7(a) loan from $2 million to $5 million.
• Increasing the size of SBA’s 504 loan from $2 million to $5 million for standard borrowers (supporting a total project of $12.5 million) and from $4 million to $5.5 million for manufacturers (supporting a total project of $13.75 million).
• Increasing the size of SBA’s Microloan from $35,000 to $50,000.
A copy of the President’s remarks and a fact sheet on the announcement can be found at:
http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_rcvry_obama_evnt_remrks09.pdf.
A fact sheet on the proposal can be found at: http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_rcvry_new_effort_credit_sb.pdf
# # #
Release Date: October 21, 2009 Release Number: 09-73
Contact: Hayley Matz (202) 205-6948 Internet Address: http://www.sba.gov/news
WASHINGTON – The U.S. Small Business Administration today issued the following statement by SBA Administrator Karen Mills on today’s proposal by President Barack Obama to raise the maximum loan size for SBA-backed loans to small business:
“America’s 29 million small businesses have been hard hit in this recession. Nine months ago, President Obama sent small businesses a life line: the American Recovery and Reinvestment Act. Since then, the SBA has supported more than 33,000 loans for a total of almost $13 billion in small business lending. This has helped save or create tens of thousands of jobs.
“But there is much more work to be done, which is why President Obama today pledged his support for legislation that would increase the maximum size of some SBA loans. Increasing maximum loan sizes will allow the SBA to ensure that more small business owners and entrepreneurs can get access to the credit they need to expand their operations and create jobs.
“The President also announced additional support from the Treasury Department for smaller community lenders that are committed to increasing their lending to small businesses. Secretary Geithner and I will host a conference on small business lending with Members of Congress, regulators, lenders and the small business community. The conference will discuss additional efforts that can be taken to provide small businesses with access to credit. These steps, coupled with SBA’s ongoing efforts, will help small businesses grow and create jobs throughout America.”
Specifically, President Obama called for:
• Increasing the size of SBA’s 7(a) loan from $2 million to $5 million.
• Increasing the size of SBA’s 504 loan from $2 million to $5 million for standard borrowers (supporting a total project of $12.5 million) and from $4 million to $5.5 million for manufacturers (supporting a total project of $13.75 million).
• Increasing the size of SBA’s Microloan from $35,000 to $50,000.
A copy of the President’s remarks and a fact sheet on the announcement can be found at:
http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_rcvry_obama_evnt_remrks09.pdf.
A fact sheet on the proposal can be found at: http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_rcvry_new_effort_credit_sb.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.
Thursday, August 20, 2009
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