Tampa Bay SBA 7(a) Loans plummets by 73%

Who is still doing SBA 7(a) loans?

In June, the number of business loans in the Tampa Bay area guaranteed by the Small Business Administration in its 7(a) loan program fell by 73% dropping to 12 loans from the 44 loans in May. Many lenders attribute the decline due to the failure of Congress to extend the stimulus package which increased SBA’s guaranty to 90 percent from 75 percent.

SBA Loans Fall in June

Number of SBA 7(a) Loans Fall by 49% Nationwide

Small Business Stimulus Package Not Yet Renewed by Congress

In June, the number of business loans guaranteed by the Small Business Administration in its 7(a) loan program fell by 49% dropping to 2,758 loans from the 5,388 loans in May. Many bankers attribute the decline due to the failure of Congress to extend the stimulus package which increased SBA’s guaranty to 90 percent from 75 percent.

Stimulus Package Leading to More Small Business Loans

90% Increase in SBA Loans since passage of the Recovery Act

As part of the American Recovery and Reinvestment Act (ARRA), the SBA received $730 million to help small businesses obtain the capital necessary to survive the recession.  As of June 25, the SBA has supported more than $29.2 billion in small business lending with the approval of $21.9 billion in Recovery loans.

Get a Loan

SBDC Consultant Jim Parrish published in the June edition of the Maddux Report

Getting a business loan may be critical to the success of your business. But no bank loan is automatic. Your banker’s goal is to generate bank profits while providing a financial boost to your business. If you understand what the banker needs to know, you can improve your prospects for financing.

Deepwater Horizon Oil Spill Small Business Emergency Bridge Loan Program

The Florida Small Business Development Center Network is the primary technical assistance provider in support of the application process of small businesses in need of the Florida Emergency Bridge Loan Program.  We are a major resource on the SBA’s Disaster Loan program as well.  Business owners should refer to the following website set up specifically for the loan programs at www.floridaoilhelp.com. There you will find the latest information about the programs, requirements, related forms, and links to various resources and frequently asked questions. 

90 Percent Guarantee on SBA 7a Loans End

The authorization for the 90 percent guarantee on 7(a) loans ended on May 31, but the authorization for fee waivers is in place through September 2010. Unless Congress authorizes additional funds the SBA guarantees on 7(a) loans will be 85% on 7(a) loans $150,000 or less and 75% on 7(a) loans over $150,000.

Big Banks Loan Less to Small Businesses

According to a May 2010 Congressional Oversight Panel report, in spite of the big banks having increased their share of small business lending over the last decade by 4.1%, between 2008 and 2009 their small business loan portfolios fell by 9.0%.

So many borrowers began to look to local banks to pick up the slack, but smaller banks are constrained by their exposure in their existing loan portfolio, closer oversight by bank regulators, and their uncertainty regarding the economy. Therefore, many small businesses have struggled to find adequate financing.

Numbers Must Tell the Story of Success

Your ability to make the lender believe in you is critical to obtaining the loans necessary for your business to succeed. However, the financial statements of your business provide an objective source of information as to past and future financial success.

SBA Economic Injury Disaster Loans Available for Tampa Bay Businesses Impacted by BP Oil Spill

On 5/13/2010, the SBA declared the Tampa Bay area businesses eligible for SBA Economic Injury Disaster Loans if the business has been negatively impacted by the deepwater BP oil spill. The following counties in the Tampa Bay area are eligible: DeSoto, Hardee, Hernando, Hillsborough, Manatee, Pasco, Pinellas, Polk, and Sarasota.

The Outlook for Business Credit Cards

Business Credit Cards are a substantial source of capital for small businesses. So how have current economic conditions impacted the ability of small businesses to access this important source of capital?

Small Business Networking Seminar – St. Petersburg

Feed Your Entrepreneurial Mind – A great way to start your day!

Join us for our series of free monthly networking seminars for small businesses within the local community.  These seminars will be held on the third Wednesday of every month, and are a great opportunity for networking between business owners and executives.  Each month, a different speaker will share valuable insights and information on how to become a successful entrepreneur.

When: Wednesday, April 21st, 2010

Where: USF St. Petersburg College of Business

140 7th Ave So, Science & Technology Building, Room 110

Time: 8:00 AM – 9:15 AM

Theme: “Small Business Grants”

GOT MONEY?

So… the bank declined your loan request for your business space? Are you frustrated yet? Wonder what to do Snow? Two words: Don’t surrender! Just one in nine new businesses get bank loans for their facilities, anyway. Here are some other, probably even better, ideas.

Click Here to Read the Full Article

How to Find Private Investors

This is not about finding venture capitalists. This is about finding private investors [also known as angels] to finance your business. Venture capitalists have become professional investors of other people’s money. They are very conservative! Less than 1% of businesses seeking money from venture capitalists receive it. Private investors fund approximately 20% of the proposals presented to them. Private investors fund 300 businesses for every one business funded by traditional venture capitalist. Private investors do not usually make a living from investing in other people’s businesses. These “angels” are the largest source of risk capital in the country. Approximately one million private investors provide capital for businesses each year. Although this figure includes relatives, friends, and associate, one third of these angels were strangers to the entrepreneurs. Most of these investors made their fortunes by starting businesses and they use their discretionary money to invest in private business opportunities.

Grants for Small Business – Myths versus Reality

So, you are looking for a grant to start or grow your business. You know that there is an abundance of money out there just waiting for you. You know this because your friends tell you so, the media tells you so, books tell you that all you need to do is just ask for your check, and infomercials bombard you with the message that anyone can get a business grant. Maybe, you attended a seminar where you were told that this is true and in order to find these grants all you have to do is buy their books, tapes, and/or consulting services. How probable is it that you can find a grant for your business? Is what you know the whole truth, the partial truth, or a myth?

The answer to these questions is that there is a kernel of truth in what you have been told; enough of it is true so that the source does not risk serious legal liability. However, read and listen closely to their words. Although they give the impression that these business grants are available in great abundance and are yours for the asking, the whole truth is that they have many restrictions. In the last six years, I have assisted 2,115 clients in finding money for their businesses. Only 22 (1%) of those clients received a business grant and almost all of them received their grants from a state of Florida program that is available only to the disabled and Native Americans. In my nine years of business counseling, I am not aware of anyone who ever received a business grant from any source they directly identified upon buying a book, watching an infomercial, or paying a grant consultant. So, what are the common myths and realities? Are there any grants available for your business?

88 Ways to get Money Without Going to the Bank

So, the bank declined your request for a business loan. Did they ask, “Do you have any marketable collateral?” When you indicated that you only had business assets, did they respond, “I am sorry, but we do not finance businesses unless they have been a success for at least two years?” Are you frustrated and wonder what to do next? Do not surrender! There are many different ways to get money for your business using creativity, innovation, and finesse. These 88 techniques are simple, realistic, and logical. Some require no capital! They will help you learn how to creatively think about solving any financing problem. The main point is not to try all 88 approaches but to open your eyes to the many opportunities available to you to engage in different ways of thinking about money. These ways do not require you to go to the bank. It is not necessary to prove you do not need the money or you have lots of marketable collateral. Only 14% of new businesses obtain the capital to start their business from a bank. Yet, most people focus all their efforts on this unlikely source. Use these 88 ways to either start a business, buy a business, or expand a business. After you achieve success, you will find that obtaining bank financing is a whole lot easier than it is today. This list is not all inclusive. Get together with friends, professional advisors, and other business people to brainstorm creative ways to raise money. Motivated people can work out creative and innovative solutions to the problems in the world of finance. If you try one approach and it fails, try another. A solution to your capital problems exists. You must go find it!