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.

New Maximum Rates for SBA 7(a) Loans

Here is a sheet listing the maximum interest rates that may be charged for SBA 7(a) loans depending on the amount and the maturity of the loan. Click here for the information.

Using Retirement Funds to fund a business start-up??

With the current difficulty in obtaining start-up funding to launch a new business venture, some budding entrepreneurs are looking at every option and alternative they can find. One potential option may be to use retirement funds you have built up over time to fund the venture. I stress this is absolutely NOT a recommendation to follow this course of action, only one of many potentials to consider and decide based on your own analysis and evaluation of the risks involved.

I found a good list of points to consider when you are considering this option from a financial services group. (Again, NOT a recommendation for or against this firm, only a useful list they have on their website). Please click here to review this list.

There is also a firm that claims it was the first one to use this tactic and has a track record in this process. You can review additional information on the process and this firm by clicking here. (Again, NOT a recommendation for or against this firm, only a useful listing of how the process works on their website)

Finally, the MnSBDC stands ready to help serious entrepreneurs to start and grow their businesses and any of our 9 regional offices can serve small business clients in the state of Minnesota. Find the location of the center nearest you by clicking here. If you are outside the state of Minnesota, please seek out your local SBDC network for assistance.

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.

House Small Business Committee weighs in on SBA 2011 Budget

Rep. Nydia M. Velázquez (D-NY), the Chairwoman of the House Committee on Small Business, comments on the 2011 budget for the US Small Business Administration (SBA). This is the government entity most directly involved with helping small businesses to succeed, and small businesses are often touted as being the economic driver of the economy and the major job creator.

Here's what she noted about the budget for the SBDC;

“Entrepreneurial Development programs have a track record of solid returns. In fact, every $1 spent on these efforts puts another $2.87 back into the Treasury. Most of these programs--such as Small Business Development Centers-- are catalysts for job creation. Unfortunately, the FY2011 budget would flat fund virtually all of them. It instead invests in unproven efforts like the Emerging Leaders program, which does essentially the same thing as SBDC’s, only at twice the cost. The end result is spending $6,000 on each job created when we could be spending $3,000."

Here in Minnesota, the Minnesota Small Business Development Centers program has beat the national average listed above with a program cost per job of only $382, generating a ROI (Return on Investment) in the program of $13.14.

The full statement by Rep. Nydia M. Velázquez can be found by clicking here.

To view the 2008 Annual Report for the MnSBDC (in PDF format), please click here. (The 2009 report will be available shortly)

As always, the MnSBDC program stands ready to assist small businesses in the state of Mn to succeed, and nationwide, there is an SBDC program in each state, ready to spring to action to help small businesses succeed.

BBB calling for nominations for its 11th annual Integrity Awards

The Better Business Bureau of Minnesota and North Dakota (BBB) is calling for nominations for its eleventh annual Integrity Awards. The BBB Integrity Award recognizes companies that display outstanding ethics in dealings with customers, employees, vendors and the community. All for-profit businesses of any size, owned or operated in Minnesota or North Dakota, are eligible. Nominees must have a satisfactory rating with the BBB; however membership is not a requirement to compete for the award. The nomination deadline is April 30th, 2010.

Companies can be nominated by visiting www.thefirstbbb.org, or by sending the company name, contact name, address and phone number, along with the nominator’s name and phone number to BBB, Attn: Integrity Awards, 2706 Gannon Rd., St. Paul, MN 55116; or faxing the information to 651-699-7665.

Entrants are judged on four areas of their business:

1. management practices;
2. customer/vendor/supplier/shareholder relations;
3. marketing/advertising/communications/sales practices;
4. and reputation within their industry/community.

Once nominated, the nominee will receive an official entry form from the BBB. An independent panel of judges will decide the award finalists and recipients. Winners will be announced live at the BBB's 2010 Integrity Awards in October (details to follow). Winners will also be recognized in Integrity Awards publicity and will be eligible to compete for the National BBB Torch Award for Marketplace Ethics.

For more information on the Better Business Bureau, visit the Bureau’s Web site at www.thefirstbbb.org or call 651-699-1111, toll-free 800-646-6222.

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.