SBA says: Small Businesses Create 2 Million Jobs

urlFrom an early January post from SBA Administrator Maria Contreras-Sweet: “Last week’s jobs report offered more evidence that our economy is gathering a head of steam as we ring in the New Year. Last month, American businesses added back 252,000 jobs and our unemployment rate fell to its lowest level since June 2008. We’re in the midst of 58 month of consecutive job growth – the longest streak on record since the mid-1990s.

Read the article here.

~ Norris Lozano, CEO of 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

Lozano congratulates Spirit of Small Business Award winners

spirit-sample-graphic_cropThe 2014 Spirit of Small Business Award winners for the Los Angeles District Office were announced today. The event is co-sponsored by the SBA.

Along with the team at BusinessUS, I would like to congratulate the winners for their success and their positive impacts on their communities. This year’s winners are:

East Ventura County – Agnew Multilingual

West Ventura County – Staples Construction Co.

South Santa Barbara County – The French Press

North Santa Barbara County – Old Town Market

San Luis Obispo County – The Wallace Group

Minority-Owned Business – Alliance Wealth Strategies

Women-Owned Business – Ohana Pet Hospital

Exporter of the Year – Zesto Audio

Green Business – AB Design Studio

Well done!

~ Norris Lozano, CEO of BusinessUS

SBA Veterans Business Outreach Center of the Year

VBOC_logoBusinessUS would like to congratulate Veterans Business Outreach Center at Gulf Coast State College, Panama City, FL for it selection as the SBA Veterans Business Outreach Center of the Year.

Read a little bit about this outstanding organization’s commitment to our Veterans:

Taken from the Small Business Week program:

To get a sense of Brent Peacock’s commitment to helping veteran small business owners, take a look at the numbers. In 2013 Brent and his team at the Gulf Coast State College Veterans Business Outreach Center (VBOC) provided small business counseling, training, finance and contracting assistance to 2,026 veterans. Of those, 174 were women 317 were service disabled veterans, and 112 were National Guard and reservists. Under Brent’s leadership since 2010, the VBOC has established an outstanding reputation for giving veterans the tools to capitalize on their already sharp skills, enabling them to build a foundation for successful entrepreneurship. Serving veterans in the Southern states, the Gulf Coast State College VBOC staff has assisted in securing nearly $6 million in capital investments for their veteran clients. Brent and the team have been instrumental in helping veteran small business owners acquire 31 prime contracts and 14 subcontracts totaling $274 million. Brent also took the lead in implementing the SBA/Syracuse University partnered “Boots to Business” entrepreneurship training program at various military installations for veterans transitioning back to civilian life and small business ownership. He also did numerous training workshops for V-WISE (Veteran Women Igniting the Spirit of Entrepreneurship), a program aimed at helping women veterans start and grow their businesses. Before becoming a business counselor, Brent taught broadcast journalism at Gulf Coast Community College and worked as a news anchor for NPR’s Morning Edition.”

 

Coingratulations, VBOC!

~ Norris Lozano, CEO of BusinessUS, a national non-bank lender specializing in lending to underserved small businesses such as those owned by US Military Veterans.

It’s National Small Business Week!

“This country’s 28 million small businesses create nearly two out of three jobs in our economy, so we can’t have a conversation about creating jobs and economic growth in America without talking about ways to support our entrepreneurs.”

~ SBA Administrator Maria Contreras-Sweet

READ: National Small Business Week Starts Today

~Norris Lozano, BusinessUS CEO

The imperative to serve the underserved

url“…minority-owned firms were three times more likely to get turned down for a bank loan.  For high-sales firms, loan denial rates were twice as high for minority-owned businesses.”

SBA Administrator Maria Contreras-Sweet

BusinessUS strives to close at least 60% of its annual loan originations with borrowers who are members of those underserved groups, in inner cities and rural areas, who cannot get credit, capital and other resources elsewhere. Underserved markets include but are not limited to veterans, women, minorities and tribal groups as well as entire communities in which traditional lenders have lower lending activities.”

~ BusinessUS Mission Statement

“This country was founded by risk-takers, resourceful pioneers who built this prosperous nation. Entrepreneurialism is in our heritage.”

mscMaria Contreas-Sweet was sworn in as SBA Administrator on Monday. Here are some quotes from her acceptance speech (hat-tip to Bob Coleman):

  • “The American Dream has always been about the opportunity to earn a good education and the keys to own your home. But the expanding American Dream is also about the opportunity to start your own business. I’ve lived that dream. And as the SBA Administrator, I’m determined to help others realize theirs as well.
  • SBA is a driving force that helps propel this economic activity. SBA provides access to capital, contracting opportunities, and consultation through a national network of partners, and of course, disaster relief loans.
  • Two out of three new jobs in America are created by small businesses. Millions of middle-class families are working for folks who depend on the SBA’s ability to facilitate access to capital, counseling and contracting opportunities. We must draw on technology to streamline the process of working with the SBA to make it easier for borrowers to access capital and easier for lenders to lend. The SBA must be nimble, agile to keep pace with our digital age.

Read more here:

~Norris Lozano, CEO of BusinessUS

 

Coleman weighs in on the downturn in lending to black business owners

colemanreportbannerlogo082013-2Nice clean summary of the Wall Street Journal article here.

If you recall, we wrote about this trend 6 months ago here.

At that time, I stated the following: “Where there are concerns across the industry about particular markets that are underserved by banks, we see a real opportunity. One of our primary goals is to help provide new capital resources to small businesses owned by minorities, women tribal groups and those located in underserved geographical locations.”

BusinessUS is missioned to provide 60% of our loan volume to underserved markets.

~ Norris Lozano, CEO of BusinessUS

Big News @ SBA: Obama nominee Maria Contreras-Sweet is confirmed as SBA Administrator

maria-contreras-sweet-sba-600xx899-599-1-0The Coleman Report beat just about everyone to the punch with this breaking story:

“SENATE CONFIRMS MARIA CONTRERAS-SWEET AS SBA ADMINISTRATOR”

And here’s another good link to the story.

We’re very excited about the opportunity to work with the new Administrator.

~ Norris Lozano, CEO of BusinessUS

How big is the Small Business Lending Market? $1 Trillion, says SBA

Logo_SBAThe SBA Office of Advocacy says the US Small Business Lending market is $1 Trillion, including “$585 in business loans outstanding, $422 billion in credit from finance companies, and the rest from a mix of sources”

See the SBA Report here

~ Norris Lozano, CEO of BusinessUS

Surprising New Data on SBA Loans

LOGO_Small_Business_TrendsA surprising summary of SBA Lending data was released by Scott Shane on Small Business Trends, and industry publication. By averaging data reported by the Fed for the last four issuances of the “Survey of Terms of Business Lending,” (a quarterly questionnaire administered by Federal Reserve Board of Governors to 398 domestic and foreign banks operating in the United States), Shane compiled results that Norris Lozano, CEO of BusinessUS believes are instructive for small business owners.

Here’s what the numbers show:

  • The average SBA-guaranteed loan amount was $276,000.
  • The “weighted-average maturity/ repricing interval” was 172 days.
  • The average annual interest rate on the loans was 3.91 percent.
  • 42.6 percent of the loans were prime-based.
  • 43.5 percent of the loans were subject to pre-payment penalties.
  • 68.2 percent of the loans were secured by collateral.
  • The average loan was slightly more than “moderate risk,” averaging 3.22 on a scale where “3” means “moderate risk” and “4” means “acceptable risk.”

This Small Biz Note was posted by Norris Lozano, CEO of BusinessUS, a California-based small business lender.

Los Angeles Latina Maria Contreras-Sweet to Get Nod to Head SBA

Obama_SBA Chief Maria Contreras-SweetIn a widely reported breakthrough, President Obama will soon be announcing the selection of a new SBA chief: Maria Contreras-Sweet.

Ms. Contreras-Sweet brings a stunning resume to the cabinet-level position, as reported in BusinessWeek:

“Contreras-Sweet immigrated to the U.S. at the age of 5 and went on to achieve a number of firsts, including being the first Latin American woman to serve on the board of Blue Cross California, and first to hold a cabinet secretary position in California state government. (She was California’s secretary of Business, Transportation, and Housing from 1999 to 2003.)”

And according to the Washington Post, she is very focused on underserved borrowers: “In addition, he said, she has “focused extensively on access to capital for a segment of the small business community that has more trouble getting capital than most, so she understands the pressing need for credit and capital of many small business owners.”

“The selection of Maria Contreras-Sweet to the lead the SBA is significant in many ways,” said Norris Lozano, CEO of California-based BusinessUS. “We are looking forward to strong guidance and shared mission to provide new capital resources to underserved small businesses.”

Lozano hails the “energy and creativity” of fellow entrepreneurs during National Entrepreneur Month

Word-EntrepreneurAbout half a million small businesses will be started this year, according to SBA data, or about 42,000 in the month of November, which was proclaimed by President Obama and National Entrepreneur Month.

“What a great testament it is, to the energy and creativity of the American people, that so many endeavor to start their own businesses”,  observed Norris Lozano, CEO of BusinessUS, a non-bank provider of SBA 7(a) loans. “Under any circumstances, it’s phenomenally complex and difficult to start a company. And these days, even more so. This month we have celebrated our fellow entrepreneurs, and look forward to continuing to help them achieve their goals.”

BusinessUS is working to identify and assist entrepreneurs, franchisees, and other small business owners nationwide with their lending needs by providing SBA 7(a) loans.

SBA Kicks Off “Veterans Small Business Week”

2887_SBA_VeteransCampaign_514x200Veterans Small Business Week is an SBA initiative to reach out to veteran entrepreneurs and small business owners. “The SBA is acutely focused on making sure our nation’s veterans have the tools and capital they need to start or grow a business,” says Norris Lozano, CEO of BusinessUS, “We fully support these efforts to assist in the transition from military to civilian life, including small business lending.”

According to the U.S. Census, nearly one in 10 small businesses is veteran-owned. And, these 2.4 million veteran-owned small businesses employ almost 6,000,000 people and generate more than $1,000,000,000,000 ($1 Trillion) in receipts!

Veterans Small Business Week will be held from November 4 to 11.

If you’d like to learn about BusinessUS Veterans Programs, please visit our website, www.bizbank.us, and this page.