A Guide to Choosing the Right Small Business Loan

Logo_BusinessNews_DailySeen in BusinessNews Daily:

“Small businesses today have a variety of options when it comes to finding a lender. There are government-backed loans and loans from banks, merchant service providers and alternative lenders, which include an assortment of online lending services that don’t come with those same guarantees as those backed by the government.”

Read the article here:

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The Big Deal About Small Business, Part 1

New Yorker_Resurgence-of-Small-BusinessThink big? Think again…

A January 24, 2015 article in the New Yorker exposes the advantage that small businesses have over their larger rivals, namely “true differentiation”.

“Most profoundly, the trend creates an industrial upheaval important to the long-term strength of the economy. It suggests an economy that is alive and reinventing itself, that is mutating from within, that is engaged in the never-ending process of creative destruction.”

BusinessUS supports the growth of small businesses by providing timely and affordable small business loans. If your small business has a true differentiation it wants to promote, contact Norris Lozano for information about new capital to get it done.

Fed says: One-Third of all small business loans are SBA-guaranteed

colemanreportbannerlogo082013-2Today, Bob Coleman reports on the “2014 Joint Small Business Credit Survey“, a study compiled by the Federal Reserve Banks of New York, Atlanta, Cleveland and Philadelphia, that reveals that one in three small businesses that received credit in the first half of 2014 came in the form of a SBA loan.

One-in-three.

Wow.

Read more news about SBA lending at the Coleman Report.

~ To find out whether your small business qualifies for an SBA loan, please contact BusinessUS using our contact page, or send an email to Norris Lozano, our CEO,

Small Business Loans: hot… or not?

arrowsThe media is hungry for clues about the direction of the American economy. And as we know, small business is a key engine of this economy, providing 55% of all jobs and 66% of all net new jobs since the 1970’s, as well as 54% of all US sales.

Here are a few positive snippets from recent news:

U.S. small business optimism jumped in December to its highest level in more than eight years, the latest sign of strength in the economy even as dark clouds settle over global growth….The outlook was further bolstered by other data on Tuesday showing job openings approached a 14-year high in November.

But perhaps these headlines grabbed you:

So 2014, on the whole, seems to have been a good year for small businesses seeking capital from banks to grow…..But if you look at the numbers another way, you’d see that this increase is only telling part of the story. It’s a story of success mainly for small businesses seeking big money from big banks.

U.S. small-business lending never quite regained the ground lost during the Great Recession, ceding significant market share to larger firms that have benefited from a gradual but lengthy economic recovery, research from the Federal Reserve Bank of Cleveland finds.

Seems to be a mixed bag… so here’s some clarity. Big banks are stepping up to the plate for small business after almost 6 years of kicking them to the curb. But only in larger amounts. No surprise here: big banks make big loans to make big profits.

Where small business lending is growing is sub $150,000 loans, which many new online lenders are happy to provide – at massively high rates.

What’s still missing in the picture is the traditional meat-and-potatoes of the small business lending picture: community banks lending to small businesses in their communities.

Says Carly Fiorina in Inc. Magazine: “Unlocking capital is very important, and of course since the financial crisis, the surviving big banks have gotten bigger, but the community banking system is really struggling, and that means small businesses are struggling. It is community banks that provide most of the capital to small business, and [we need to] start unlocking small business loans again. We have got to get capital to them so they can form and thrive.”

If you want to learn more about small business loans, contact BusinessUS

SBA Extends Fee Waivers for Veterans and Small Loans

Logo_SBAThe U.S. Small Business Administration announced that it would extend 2 important fee waivers until Sept. 30, 2015. SBA will continue to waive the 2% Borrower Fee (also called upfront guaranty fees) for loans under $150,000 and for Veterans Advantage loans from $150,000 to $350,000.

SBA is also halving the rate of the upfront guaranty fee for non-SBA Express loans of $150,000 to $5 million.

The fee waivers were originally scheduled to end Sept. 30, 2014.

Certain restrictions apply to SBA loans. If you have questions, please contact Stephanie Bitters at BusinessUS.

16 Hot Startups that Launched in 2014

Logo_Business_InsiderBusiness Insider has issued its Best Startups of 2014 List, and it’s worth the read.

As should be expected from a media source whose CEO is Henry Blodgett, there’s a whole lotta technology on the list, analyzed by factors like

  • funding
  • revenue
  • growth, and
  • investor interest.

Here’s the article:

Here’s the list:

  1. glamsquad-brings-hair-salon-quality-blowouts-to-your-apartmentGLAMSQUAD brings hair salon-quality blowouts to your apartment.
  2. Spring is the Instagram for shopping.
  3. DWNLD makes apps easy to make, customize and get published in the App Store
  4. Ello is the ad-free, anti-Facebook social network.

  5. Curbside lets you order stuff on your phone and pick it up at the store without leaving your car.

  6. Reserve takes all the pain out of making restaurant reservations.

  7. Shyp sends your packages for you, so you never have to step foot in the post office
  8. Jet.com is Marc Lore’s mysterious “Amazon-killer” e-commerce website.
  9. More …

~ For more information about using an SBA Loan as part of your startup capital, please contact Norris Lozano at BusinessUS

Washington DC may assist more small businesses in the New Year

image_from_bitly_13U3V75“Small businesses are looking for government to function and get a lot more done,” said John Arensmeyer, chief executive officer of the advocacy group Small Business Majority.

A few of the options on the table in this upcoming Congress are:

  1. Reduction in corporate tax rate from the current 35%
  2. Small Business tax deductions
  3. Bonus depreciation
  4. Reduction in paperwork for SBA loans.

“It’s expected to encourage more banks, particularly smaller ones, to make SBA-backed loans, said SBA Administrator Maria Contreras-Sweet.”

Read the full article here.

~ Learn more about small business loans by contacting Norris Lozano at www.Bizbank.US

Small Business Hiring is on a Tear

Logo Icon2dThe Washington Post reports that US Small Businesses amplified their hiring trend, by adding “… 102,000 jobs in October, up from an upwardly revised 93,000 the month before, according to the latest employment report released by payroll processing firm ADP.”

The strongest month in 2014 for new jobs was June, with 133,000 new hires. Still, the October figures represent a second consecutive month of increase, and, considering that 230,000 people were hired by all sized businesses in October, an increasingly strong recovery picture overall.

See the full story here.

“8,000 small business loans are declined every day by banks”

Time well spent: Have a look and listen to this impactful talk2014_10_28_Screen_Cap_video_Connie_Evans with Connie Evans, President & CEO, Association for Enterprise Opportunity in Washington DC, hosted by Bob Coleman of the Coleman Report.

Ms. Evans gives an impressive array of facts about the benefits of micro-lending (loans of up to $50,000) and micro-capital (up to $250,000) to small businesses of up to 5 employees.

Among others, she says that such businesses are declined for loans by banks at a rate of 8,000 declines per day.

8,000. Declines. Per. Day.

The opportunity to serve these underserved small business borrowers is profound.

~ Norris Lozano, CEO, BusinessUS, a California-based small business lender

What’s new in small business? Optimism(!)

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And now, a headline that wants to brighten your day, “Here’s a Round-Up of Small Business Surveys That’ll Cheer You Up

Lots of good topical research here into the mood of small business owners around the country. For example:

  • “…80 percent of the small businesses they polled grew their revenue in the past year and 90 percent forecast a revenue growth in 2015” (says the Accounting service Xero)
  • “…optimism is at a two-year high and 58 percent of those firms planned workforce increases” (says Vistage)
  • “…77 percent of small business owners feel they are “successful” and a majority of them believe that they have access to capital if they need

Are you a California small business needing a loan? Try BusinessUS

 

What makes a small business “small”?

Logo_SBAWe are asked all the time “What defines a small business?” and “Why does it matter?”

Many would answer that small businesses are anchors of a community, creating jobs and opportunity in cities and towns across America.

According to the SBA, “The two most widely used standards to qualify a business as small are 500 employees for most manufacturing and mining industries and $7.5 million in average annual receipts for many non-manufacturing industries.”

And to the second question, only a qualifying small business is able to provide certain services to the SBA, and qualifies for certain financing programs from the SBA. These include SBA 7(a) loans, the most common and popular small business loans which are provided by traditional bank, community bank and non-bank lenders, and up to 85% of which are guaranteed by the SBA.

Learn more about SBA loan programs here.

~Norris Lozano, CEO of BusinessUS

For small business, a lot of lending is moving online

Logo_Harvard_Business_ReviewWe’ve read multiple stories recently (here are just a few one, two, three, four…) about small business lenders accomplishing astonishing numbers with online lending platforms. In our research we’re finding that this new money appears easy to get (the online applications and due diligence are relatively simple), but the price is steep (annualized interest rates of up to 70%).

Problem is, small businesses have fewer financing options now then in the last decade. Indeed, small businesses have suffered 3 ways when it comes to acquiring capital they need to grow. According to the Harvard Business Review:

  1. “A decades-long trend toward consolidation of banking assets into fewer institutions is eliminating a key source of capital for small firms….”
  2. “…collateral owned by small businesses lost value during the financial crisis, potentially making small business borrowers less creditworthy today…”
  3. “In the recent recession, small-business sales were hit hard and may still be soft, undermining their demand for loan capital…”
  4. “…. tightening on loan terms, including the Federal Reserve Senior Loan Officer Survey, for small businesses increased at double-digit rates during the recession and recovery, and have eased at just single-digit rates over the past several quarters. Loosening has been much slower and more tentative for small firms than for large firms…” (italics added)

Despite the low barriers to lending, these expensive online lenders are not a sustainable solution to small business borrowing needs. What’s often overlooked in this discussion of small business loans are SBA loans. SBA loans are available from banks and non-bank lenders to American small businesses that “can not get credit elsewhere” (small businesses that are underserved by traditional lenders) at competitive rates (about 6%) with an SBA guarantee.

~ Norris Lozano

CEO of BusinessUS

Know the True Costs of Short-Term Online Loans, says Wall Street Journal

WSJ-logo“The pitch is simple and alluring: “We will lend you $50,000 and you only have to pay back $60,000 — and you can have the money in a day or two.” But watch out for the true cost of these short term loans – the interest can get you in trouble.

Read the Wall Street Journal article here:

~Norris Lozano, BusinessUS

Norris Lozano and Stephanie Bitters at NAGGL Technical Conference this week

NL-SB-tandem-shotBusinessUS (www.bizbank.us) is well represented at the annual SBA Lending Technical Conference hosted by the National Association of Government Guaranteed Lenders (NAGGL), as the firm’s CEO Norris Lozano, and 27-year SBA veteran Stephanie Bitters, its Managing Director of SBA Lending & Chief Credit Officer, have arrived in Bonita Springs, Florida.

The BusinessUS executives arrive from a week of meetings on Washington and New York.

Read the FULL RELEASE