Are you curious about what the SBA Program will look like after President-elect Obama takes office? Click on the link below to see what Jeremy Quittner from BusinessWeek has to say. Better funding, stronger leadership and product overhauls don’t sound half-bad!

http://www.businessweek.com/magazine/content/08_72/s0812018619554.htm

If you’re a lender, you already know why the switch to LIBOR-based pricing is so critical to the success of SBA 7a lending. If you are a borrower, you might be confused about why your loan proposal went from Prime-based rate to LIBOR. Are you interested in learning more about the Prime vs. LIBOR debate? Click on the link below for more details.

http://www.colemanpublishing.com/public/CPR%20Report,%2012-2008.pdf

TALF…No it doesn’t stand for Takes A Lot of Flack….but it just might help to unclog the secondary market for SBA 7a loans. Click on the link below to learn more:

http://www.colemanpublishing.com/public/CPR%20Report,%2012-2008.pdf

Whether you are a democrat, republican or independent we all can agree that credit is tight for small business lending. As explained in Senator Kerry’s letter to Treasury Secretary Paulson, liquidity could be opened back up with the use of TARP (Troubled Assets Relief Program) funds. Senator Kerry explains that SBA lenders make loans, and then sells those loans into the secondary market. This helps banks to get their cash back and re-lend those funds to new clients. Unfortunately, SBA loans aren’t selling, which means that bank capital isn’t’ being replenished.

It’s disappointing that Senator Kerry isn’t specific about his ask. He fails to quantify for Mr. Paulson how much TARP money is needed to bail out the SBA; Additionally he doesn’t say much about the safety and return on those investments (which is a great selling point).

I do like Senator Kerry’s sense of urgency. He also correctly identifies the source of our Small Business liquidity crunch: the Secondary Market. The liquidity crisis is not about overly-conservative banks being stodgy. It’s about SBA lenders having enough cash to lend out.

Please take a read of the attached article and feel free to post with your comments or questions. And don’t worry, USFC is still lending money and open for business!

Tarp Funds for SBA

There is a great article with Steven Terhaar and Kenny Leonard in the latest MiBiz.

Unlike other lenders, Terhaar said USFC doesn’t shy away from complex deals even though they do require more attention and time to complete. According to Leonard, USFC considers itself a "boutique lender, an investment banker for small business." The company is able to offer businesses some unique financing options traditional lenders can’t offer or won’t even approach because of the volatile market.

You can read the whole thing "East Meets West" at MiBiz.com

It has been about a month since I officially started with United Structured Finance and it has been a great start. I have now moved into my permanent office and have several deals under my belt . With each day that passes I am getting more and more comfortable with the unique niche in the market that we serve. Since I began we have turned around a bankruptcy acquisition in 15 business days; done a business acquisition bridge loan to allow traditional financing to get in place; we have made several proposals for interim construction financing where a lead bank will take us out once construction is complete; we have taken several commitments over for banks whose capital position or underwriting criteria didn't allow them to fund; and we have done several 7a and 504 loans. In fact, through the 3rd quarter of 2008 we are the 9th largest SBA lender in dollars in the state!

The depth of knowledge and resources at our disposal make us a unique, creative, and fast small business lender. I look forward to working with my existing customers and contacts and developing new ones as we continue to grow throughout the region.

Back in May I offered some advice to individuals looking for a source of cash to inject into their new business. I came across this New York Times article that I thought you'd find interesting. The New York Times article, written by David S. Joachim discusses the pros and cons of utilizing 401(k) savings to fund your startup. I hope you enjoy it as much as I did.

Check out the New York Times Piece and leave us a comment about what you think back here.

Western Michgian Business Review features United Structured Finance Company's opening of a new office on the Western side of the state.

USFC hopes to appeal to borrowers that may have been denied credit in today's environment and are willing to shop around, said Kenny Leonard, a commercial lender who'll run the office.
USFC decided to move into the Kalamazoo-area market after connecting with Leonard. USFC was a client of Leonard's when he previously ran the local office of SBA-lender Michigan Certified Development Corp.

Check out the whole article