Craig G. Francis

Good News for Small Business Owners! Obama Extends The SBA Loan Enhancements

Yes, we do have some good news these days.  Last Friday President Obama signed
  legislation to extend the SBA Loan enhancements through April 30.  This will allow the SBA to continue providing the higher guarantee on certain loans and reduced fees.  These two moves alone have helped thousands of businesses to access over $23 billion in SBA financing, according to SBA Administrator Karen Mills.  She also credits the enhancements with bringing over 1100 lenders back into the SBA program, helping to increase weekly loan approvals by 86% over the pre-Recovery Act averages.

President Obama signed legislation to extend the SBA Loan enhancements through April 30.

We applaud this move by the federal government, but more still needs to be done to support small businesses.  The proposals to increase loan limits and to expand the uses of 504 loans could provide the boost that some small businesses need to get through these difficult economic times.  Decreasing the number of unnecessary regulations these companies need to deal with would be another step towards returning control of the economy to the people who are best able to improve it - the small business owners.

If you have been considering applying for an SBA Loan, this is an excellent time to get more information.  SBALoanStore.com is an excellent resource for anyone considering an SBA Loan.  In addition, you can fill out the form on this page to receive 2 Free Reports that will help you navigate the seas of business financing.  If you want even more information, you can call me at 888-666-9722.

Craig G. Francis is the owner of Francis Financial and The SBA Loan Store. He has been a top producer of SBA Loans since 1981, and has worked with Dun & Bradstreet and Bank of Commerce. Craig Francis has the expertise to steer clients through the often confusing rules and regulations associated with SBA Loans, having helped over 2,000 businesses acquire over a billion dollars in loans. He can be contacted through CraigGFrancis.com, SBALoanStore.com or at 888-666-9722.

Playing the Blame Game in Michigan

In a recent report from Talk News Radio Service, Senator Daniel Levin (D-Mich) blames the lack of lending by banks for the high unemployment rates in Michigan.  In an appearance before the Senate Banking Subcommittee on Economic Policy, Senator Levin equated the 74% drop in lending in his state to the 15% overall unemployment rate.  But are the "big bad banks" really the only ones at fault here?  Well, it's an interesting blame game Senator Levin plays.

Let's look at the situation.  Michigan - home of the crash and burn automotive industry, where everything revolves around autos.  High union wages destroy small and large businesses with their state-mandated labor overhead.  High taxes and excessive wages ruin businesses faster than a lack of lending.  As a point of fact, the recent CIT/Forbes survey of small businesses placed difficulty in finding financing at number 10 of the top 10 revenue challenges, behind such issues as taxes and higher health care costs (and we haven't even been hit with Obama-care yet).  The number one issue businesses mentioned was lower revenues due to the overall financial crunch, with higher business expenses coming in third.

Here is the problem in Michigan: A huge governmental infrastructure that grew up around the cronyism of union, politicians, taxes, and generous wage and pension deals, which sucks the life out of small businesses.  Pension costs are out of control in a state that is most certainly not business friendly.  Look at the advertisement with Jeff Daniels talking about the Michigan Development Corp.  It cost well over $1,000,000 to produce the ad, and nothing has come of this promotion despite the tax incentives that would, hopefully, draw businesses to Michigan.  But the dilemma still exists that Michigan, and particularly Detroit, has been devestated by decades of cronyism, high taxes, et. al. (see above), plus a corruption in politics and unions that has not abated to any degree (see the Teamsters, Jimmy Hoffa, etc.).  This is not a good place to do business by my research and reconning, but it is much easier to blame the banks than to deal with the real problems.

Why should bankers loan to a whole state full of falling pianos and ripple-effect businesses that are hurting big time?  Being a bank is not a suicide pact for lending priorities.  Unemployment rates at 15% or more, with minority unemployment in the 35-50% range, are a clear indicator of the reality of the economics of the state.  When a person can buy a home for $8,000 that once cost $200,000 in a nice neighborhood, there is a serious problem.  And that problem will not be solved by bad-mouthing lenders or imposing additional regulations and taxes on businesses.
 

I feel very sorry for the people of Michigan.  I am sure they are wonderful people, but the corporate overlords, unions, and politicians have screwed up a good thing with their corruptocracy.  See California for a similar situation.  These situations do not bode well for Michigan no matter who the politicians blame for the problems. Bankers are just a convenient scapegoat.

 

Even though financing was not a top concern for some small companies, if you are looking into an SBA loan to expand your business it is always a smart move to talk to an expert who can guide you through the steps and give you an edge in the process.  I have that experience you need to make your way through the often confusing rules and regulations.  Feel free to contact me through the links or phone number below.

Craig G. Francis is the owner of Francis Financial and The SBA Loan Store. He has been a top producer of SBA Loans since 1981, and has worked with Dun & Bradstreet and Bank of Commerce. Craig Francis has the expertise to steer clients through the often confusing rules and regulations associated with SBA Loans, having helped over 2,000 businesses acquire over a billion dollars in loans. He can be contacted through CraigGFrancis.com, SBALoanStore.com or at 888-666-9722.