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Michigan Celebrates Small Business

admin — Wed, 14 Apr 2010 18:09:50 +0000

As you may know, koH Resources Inc provides financing for Michigan businesses and we are happy to be of service to help them succeed. The Michigan Celebrates Small Business (MCSB) event is an annual awards program created to recognize the importance of successful small businesses across the state of Michigan. On Thursday, April 29th beginning with hors d’oeuvres at 5PM, business owners, entrepreneurs, and supporters of small business from across the state will celebrate with the reward

SBA Re-Activating Recovery Loan

braudis — Mon, 22 Feb 2010 15:52:47 +0000

WASHINGTON – SBA issued the following statement February 19th from Administrator Karen Mills regarding efforts to ensure continued funding for two key provisions in the American Reinvestment and Recovery Act (ARRA) of 2009:

“SBA’s most popular ARRA provisions – the increased guarantee and reduced fees in the two largest lending programs – have helped engineer a significant turnaround in SBA lending. Continuing those ARRA provisions is SBA’s top priority. Through the original $375 million and the additional $125 million appropriations for these two provisions, SBA has supported more than $20 billion in lending to small businesses across the country and seen its average weekly loan volume increase by nearly 90 percent since February 2009. Through ARRA we brought nearly 1,100 lending institutions back to the SBA’s programs that had not made an SBA loan since at least 2007. All told, these steps have benefitted tens of thousands of small businesses and supported hundreds of thousands of jobs during these tough economic times. However, we know there is still more work to be done. As the President has requested, we will continue to work with Congress to extend these programs through September 2010.

“The additional $125 million appropriation approved in December to extend SBA’s 7(a) loan guarantee to 90 percent and reduce or eliminate borrower fees on both the 7(a) and 504 loans will be used faster than expected. Loan volume has surged since earlier this week when an Information Notice was released to lenders. SBA communicated with its lending partners today that it will re-activate the Recovery Loan Queue no later than Monday, Feb. 22. The Queue is an efficient and transparent process that will ensure that every remaining dollar possible is made available to help small businesses drive economic recovery across the country.

“The SBA advocates for small businesses across the federal government and will continue its efforts to keep America’s small businesses on a path to recovery and long-term success. Small businesses are a central piece of President Obama’s Jobs Plan because they have been and will continue to be a key engine for job creation across the country. With that in mind, President Obama laid out an aggressive agenda for providing small businesses with the support they need to create jobs and drive economic recovery. That agenda includes proposals in three key areas: expanding access to capital; providing tax incentives to encourage job creation; and maximizing the potential of innovative, high-growth companies.”

SBA’s ARRA Programs: SBA received $730 million in ARRA to support economic recovery programs for small businesses. Included in the appropriation was $375 million to support raising the government guarantee to 90 percent on SBA’s 7(a) loans and reducing some lender and borrower fees on its 7(a) and 504 loans, the agency’s two largest lending programs. The funds for these popular provisions ran out in November 2009. SBA received an additional $125 million appropriation in December 2009 along with authority to continue both of the programs through February.

SBA’s 7(a) and 504 ARRA Transition Plan: SBA is in the process of finalizing the plan for transitioning its 7(a) and 504 programs back to their pre-ARRA terms and communicating those plans with its lending partners. This plan, when implemented, will include re-activating the Recovery Loan Queues no later than Monday, Feb. 22, 2010. The Queues will operate in the same manner as when originally implemented in November 2009. Sometimes previously approved loans are later cancelled or never disbursed for a variety of reasons.

The Queues take this into account and beginning on the transition date will allow eligible small businesses, in consultation with their lenders, to choose to be placed in the queue for possible approval for an ARRA loan if funding becomes available. Small business owners and lenders will have transparent access to the queue via www.sba.gov/recoveryq and will be able to remove themselves from the queue at any time to be considered for a non-ARRA SBA loan with all applicable fees and, for 7(a) loans, standard guaranty levels.

The authorization for the 90 percent guarantee on 7(a) loans ends Feb. 28, 2010, though funds may be exhausted sooner. Furthermore, applications in the Queues after Feb. 28, 2010 will only be eligible for decreased or eliminated borrower fees when funds become available. To learn more about SBA’s ARRA programs and other resources for small businesses, please visit www.sba.gov.

2010 For New York Entrepreneurs!

braudis — Sun, 10 Jan 2010 18:24:45 +0000

Starting or growing your business in 2010, a day inspiring entrepreneurship. Actual or potential small business owners looking for a way to launch or grow their business, have an opportunity to learn about small business success in a half-day event entitled “Straight Talk 2010”, on January 23. For the past 14 years, Straight Talk has provided one-on-one business counseling, business information booths, important contacts, networking opportunities, education, training and more.

Participants will be able to participate in seminars such as “Business Basics”, “Show Me the Money”, “Make Yourself Credit Worthy”, “Advantages & Benefits of Being Certified”, “Taxes, Permits, Licenses, Oh My!” and “Home Based Business Issues”, and new for 2010, “Business Assistance for Veterans”. In addition to the seminars participants will be able to meet with SBA and SCORE and several other private and community organizations that deliver helpful financial and information tools to assist entrepreneurs to succeed.

Straight Talk comes once a year so register early and SAVE $5.00—– This year’s seminar will be held on Saturday, January 23, 2010 at 8:00 a.m. – 1:00 p.m in Buffalo Niagara Convention Center, Buffalo, New York.

For registration contact Pamela Andolina, SBA at 716-551-4301 ext. 301 or Buffalo_DO@sba.gov

Cost: $15.00, Pre-paid registration
Day of Event: $20.00
Student: $10.00
Veterans: FREE (I.D. required)

SBA and Dell

braudis — Tue, 15 Dec 2009 00:27:56 +0000

The U.S. Small Business Administration and Dell launched an online video series today, offering tools and strategies to help small business owners rebound from the economic recession and put themselves in a position to expand and create jobs.

It’s called Strategies for Growth: Advice for Expanding Your Business. It includes real-world insight, solutions and advice from small business owners who’ve succeeded, in good and bad economic times. Additionally, the series draws on the expertise of counselors, policy makers and others for accessing resources and tools available to small business owners.

The Strategies for Growth partnership with Dell was announced today at a National Press Club luncheon where Administrator Mills discussed the outlook for small business and the economy in the coming year, including the Administration’s efforts to boost the small business sector and to drive economic recovery through public-private partnerships. Joining Administrator Mills for the announcement was Dell’s Vice President of Government Affairs Becca Gould.

The Strategies for Growth video series highlights key topics that engage small business owners in issues critical to small business growth. These areas include Planning for Growth, Government Contracting, Team Building, Marketing, Technology, Exporting Opportunities, and Disaster Recovery. Also featured is a Profiles of Success segment that spotlights two successful entrepreneurs.

The Strategies for Growth video series features a range of growing small businesses from across the country, including a design firm, a vegetarian restaurant and bakery, and a green construction company.

The SBA provides free small business counseling and training through a variety of programs, services and resource partners, located throughout country. Each of the business owners featured in Strategies for Growth benefited from a variety of training and resource tools offered by the SBA.

Strategies for Growth is available on the SBA’s Web site at www.sba.gov/strategiesforgrowth and at the SBA’s YouTube channel at www.YouTube.com/sba. Each topic is indexed by subject and includes additional resources for entrepreneurs.

Federal Reserve Abolished And Currency Issued Only By The Government

braudis — Mon, 16 Nov 2009 04:41:32 +0000

The Federal Reserve abolished and currency issued [slider title="More..."]only by the government… How would you like to soon see that as fact? Some of us are still ignorant of the fact that the national debt is owed to the Federal Bank, a private corporation that prints the money and lends it
to the government of the United States of America with interest. This interest is paid to the Fed. It is not used for what Americans need, like better schools, highways, etc.; it’s used for what the bank needs. Magic, huh?

Zeitgeist The Movie 9 of 13 – Behind Curtain

In my opinion, our government should run the currency and eliminate the current banking system that has burdened our country with incredible debt. Then we will be a free country. Otherwise, this body of ranting and raving that we do everyday, wrapped in the cloth of politics and finance, is pointless. What’s your opinion?

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The Federal Bank Is As Federal As Federal Express—Part 3

braudis — Wed, 30 Sep 2009 16:33:23 +0000

I have received tremendous feedback in the form of emails from acquaintances, colleagues and friends who found the video disturbing and unsettling, and since I had not totally researched all its premises, I have decided to remove it. However, I am providing the link in this post and the re-edited previous post.

We are still left with a shroud of questions about this seemingly monolithic, autonomous octopus; this Federal Reserve Bank which I intend to continue to address since it undoubtedly affects the mortgage business and our society in general from plethora to paucity.

The Federal Bank Is As Federal As Federal Express——-Part 1

braudis — Fri, 25 Sep 2009 15:03:53 +0000

The European Central Bank And The US Federal Reserve.The following are excerpts of the publication The Federal Reserve System, Purposes and Functions, 8th edition, December 1994, by the Federal Reserve Board of Governors:

The Federal Reserve System is considered to be an independent central bank. It is, but only in the sense that its decisions do not have to be ratified by the President or anyone else in the executive branch of government. However the entire system is subject to the oversight of Congress because the Constitution gives to Congress the power to coin money and set its value.

In 1913 Congress delegated that power to the Fed, and could reclaim it at any time. The Fed must act within the framework of the overall objectives of economic and financial policy established by Congress. Thus the description of the System as “independent within the government” is more accurate.

So if it’s independent within our government, yet Congress is the body that established policy, does the problem of our current financial predicament rest in the hands of Congress or The Fed? Or both?

This is a short movie about the European Central Bank and the US Fed – the world’s two most important central banks. There are important similarities and differences between the ECB and the Fed, and the historical experience of Europe and the US in the early part of the 20th century is also worth remembering.

The European Central Bank and the US Federal Reserve from Euro Challenge on Vimeo.

This “training video” is a prelude to more in-depth discussions which have presented enigmatic issues seemingly challenged across party lines. Part 2 will require observation with a “strong stomach” and a desire to question everything.

What’s The Real Deal?

braudis — Thu, 06 Aug 2009 22:55:46 +0000

I’ve given you straight and cold facts for a while. Some things you already know? Maybe. Maybe not. But what is the reality of it all? You’ve heard the phrase “personal reality” when it comes to individual thought. But what about collective reality? What are the “personal” realities of banks and lenders? What’s the real deal?

We know banks are failing. We know this! Big banks! Huge banks! But why? Really, why? It’s not the money! Yes, that’s what I said: it’s not the money. Money is a constant. It exists and will always have some value, period. We created it, so it exists. Anything we create, we can manipulate. So what’s the problem?

The problem is not money, it’s management. Management is the variable. This is the element that changes money. What do I mean? Just look around. For those of you who live and work in or near Cucumonga, CA., you know for sure that last month Vineyard Bank NA in Rancho Cucamonga, Calif., which had approximately $1.9 billion of assets and $1.6 billion of deposits at the end of March, CLOSED.

San Diego-based California Bank & Trust agreed to assume all deposits (except $134 million of brokered accounts) and purchase about $1.8 billion of assets. Temecula Valley Bank, Temecula, Calif.,was closed by the California Department of Financial Institutions, and its assets were assumed by Raleigh, N.C. based First-Citizens Bank and Trust Co. As of May 31, Temecula Valley Bank had total assets of $1.5 billion and total deposits of approximately $1.3 billion. In addition to assuming all of the deposits of the failed bank, First-Citizens Bank and Trust agreed to purchase essentially all of the assets. The FDIC and First-Citizens Bank & Trust entered into a loss-share transaction on approximately $1.3 billion of Temecula Valley Bank’s assets.

BankFirst, Sioux Falls, S.D., and First Piedmont Bank, Winder, Ga., closed as well. The FDIC brokered transactions in which Grand Forks, N.D. based Alerus Financial NA took over BankFirst, and Athens, Ga. based First American Bank & Trust Co. took over First Piedmont.

So four Federal Deposit Insurance Corporation (FDIC) insured institutions were closed and the collective damage on the FDIC’s Deposit Insurance Fund was estimated at $1.09 billion. Here on the one hand you have Vineyard Bank, Temecula valley Bank, BankFirst and First Piedmont, LOSERS; and on the other you have First-Citizens Bank & Trust, Alerus Financial NA, and First American Bank & Trust, WINNERS. Why? Aren’t all those banks on the same planet?

Better yet, in the same month, the Boston office of Holliday Fenoglio Fowler secured $25 million in financing for a 10-story, 159,000-square-foot Class A office building in Boston. Completed in 1990, 101 Merrimac is currently 95% leased. Yes, 95% leased. How is that possible? Aren’t many offices going vacant all over the place? I’ll save that for another post. But what’s your opinion? What’s really our reality? What’s really their reality? Is it mind over money or money over mind? What do you think?

Rural Development: Implementing the American Recovery and Reinvestment Act of 2009 (Recovery Act)

braudis — Thu, 11 Jun 2009 14:29:23 +0000

Rural Development‘s B&I Guaranteed Loan Program has received approximately $3 billion under Division I, Title A, of the Recovery Act to provide additional funds to lenders in connection with our program’s purpose to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities. This will be achieved by bolstering the existing private credit structure through the guarantee of quality loans which will provide lasting community benefits. We have funds available under this authority through September 30, 2010. Read further.

How To Purchase Commercial Real Estate—–Part 3——-Summary

Tue, 12 May 2009 20:20:00 +0000

Small business owners thinking about purchasing or renovating commercial real estate and/or major pieces of equipment to grow or expand their businesses should consider the U.S. Small Business Administration’s Certified Development Company/504 Loan Program. With a 504 loan, small businesses can access the same type of long-term, fixed- rate financing that large firms obtain through the bond market.

The 504 Program provides growing businesses with long-term, fixed-rate financing for real estate and/or equipment purchases through SBA-licensed certified development companies (CDCs). Proceeds from 504 loans must be used for purchasing fixed assets such as: land and improvements, including existing buildings, grading, street improvements, utilities, parking lots and landscaping; construction of new facilities, or modernizing, renovating or converting existing facilities; or purchasing long-term machinery and equipment with a useful life of at least 10 years.

Soft costs like architectural and legal fees, environmental studies, appraisals, and interest and fees on the construction and/or interim bank loan can also be rolled into the note. The 504 Program cannot be used for working capital or inventory, consolidating or repaying debt, or refinancing existing debt.

Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a fixed rate loan secured with a junior lien from the CDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped. Because of the lower down payment required and the ability to finance the soft costs, the small business will realize upfront cash savings of approximately $100,000 on a $1 million project.

Maturities of 10 and 20 years are available. Interest rates on 504 loans are pegged to an increment above the current market rate for five-year and 10-year U.S. Treasury issues. The rate on the 504 loan is fixed for the life of the loan and is set when the CDC sells the bond to fund the loan. 504 bonds are amortized securities. Fees total approximately three (3) percent of the debenture and may be financed with the loan.
All SBA loan programs are reserved for small businesses. SBA defines a business as being small for a 504 loan if its net worth is under $7 million and net profits after taxes are under $2.5 million. Any type of legitimate business is eligible for 504 financing, including manufacturing, wholesale, service, professional service or retail.

SBA 504 loans are a good deal for small businesses. The usual structure for SBA’s 504 program is: 50% bank financing, 40% SBA financing at a fixed rate with the owner required to inject just 10% in most cases.Consider the following advantages of the SBA 504 program versus conventional mortgage financing:

Low down payment. In most cases, the company is required to inject just 10 percent, which allows the business to preserve cash for working capital. Most banks will lend only 60-70 percent of the appraised value of the real estate leaving the company to sink in 30-40 percent plus the cost of renovations and soft costs. Most conventional commercial mortgages require equity positions of 30% or more.
Fixed rate on the SBA 504 portion. Small businesses don’t have to worry about the prime lending rate going up and can calculate the exact amount of their mortgage payments for 20 years.
Long term. 504 loans are for 10 or 20 years. Because the CDC is in second lien position, the bank or other lender doing the 50 percent first lien loan, are willing to lend at a longer term. Longer terms reduce monthly payments.
Low interest rate. Even with all the fees and closing costs included in the rate, the 504 program offers a low rate for a subordinate mortgage loan, particularly for small business. The blended rate between the bank portion and the SBA’s 504 portion makes the project very affordable.

So if you are a business and have been considering purchasing instead of leasing commercial real estate, think SBA 504; and remember: financing is available to purchase commercial real estate AND capital equipment.

7 Myths & Facts About The SBA

braudis — Mon, 16 Feb 2009 20:25:23 +0000

There are many myths regarding the SBA. Below are seven. Feel free to contribute others.

Myth:

It takes four to six months to get a SBA Loan processed.
Fact: Completed loan applications from banks average 10 working days.

Myth:

Small loans are not available through SBA.
Fact: SBA provides an incentive to banks to make loans under $50,000 by reducing their guarantee fee by half.

Myth: SBA has no specialized programs to assist minority business persons.
Fact: SBA’s 8(a) and 7(j) programs provide specialized management and technical assistance to minorities.

Myth:

There are few SBA loan programs.
Fact: SBA finance programs provide a wide spectrum of opportunities including Guaranteed Loan Handicapped Assistance, Contract Loan, Veterans Loan, Exported Revolving, LOC and Small Business ($50,000 and less).

Myth:

SBA has no programs to assist veterans.
Fact: SBA gives veterans’ applications priority and/or when they need business counseling to start a small business.

Myth:

SBA has grants to start or expand a small business.
Fact: SBA has NO grant program to start or expand a small business.

Myth:

Contractors receive no assistance from SBA.
Fact: SBA’s Surety Bond Guarantee Program assists contractors with their Bid Bond Performance Bond and Payment Bond.

How Can You Increase Your Cash Flow?

braudis — Wed, 04 Feb 2009 16:11:42 +0000

By factoring your accounts receivable. We finance your business-to-business accounts receivable so you don’t have to wait 30, 60, or 90+ days for customers to pay you. When you sell your invoices, you get immediate cash to support your company’s growth. You submit a $50,000 invoice (for example), and we advance you $40,000 immediately. The invoice is collected from your customer, and when the entire balance collects, you are sent the remaining $10,000, less its fee, which is a small percentage of the invoice.

We focus first on the creditworthiness of your customers

from whom we collect. In contrast, bank loans depend on your creditworthiness rather than your customers’.lways tight. What can we do?

EASY APPLICATION PROCESS

IMMEDIATE FUNDING
NO HIDDEN FEES
FREE CREDIT CHECKS
HIGH ADVANCES – LOW RATES

We provide

UNLIMITED FUNDING PROGRAMS for small businesses, and as opposed to the hassles of traditional bank financing, we provide the following for both start-ups and established businesses without regard to financial losses:

SEASONAL
UNLIMITED FUNDING
ADVANCES UP TO 90%
FREE CREDIT CHECKS
A/R MANAGEMENT
NO FINANCIAL COVENANTS
No FINANCIAL STATEMENTS NEEDED
No PROVIDING 3 YEARS TAX RECORDS
No LENGTHY APPROVAL PROCESS
No DENIAL FOR IRS PROBLEMS
No DENIAL FOR TAX LIENS

Accounts receivable factoring is yet another way to increase your cash flow and is a quick and favorable alternative to traditional bank financing in this tight capital market. For more info: All Commercial Financing.

Welcome to The koH Resources Blog!

braudis — Wed, 06 Aug 2008 00:35:27 +0000

Welcome to The koH Resources Blog which provides all commercial finance information, commercial finance headline news and forum for brokers and borrowers.

This blog is about the life of commercial real estate and its financing, the life of business; yet it’s also about how we got to this market, about the business of life.

The koH Resources Blog, All Commercial Financing Information » Finance

Michigan Celebrates Small Business

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