Browse Tag: Small Business Administration

The SBA Loan Market: Financing In Greater Demand Than Ever

Nationally speaking, the finance of owner-occupied commercial real estate seems to never get significantly easier. Our current national economic conditions of recovery have not yet heated up the average enthusiasm of bankers for financing sub-$2M expansions in most real estate sectors, which ensures a more or less permanent lending gap affecting small business that Congress has recognized and addressed with the creation of the Small Business Administration.

Dating back to the Herbert Hoover administration, what eventually became the SBA was established by Congress to help businesses hurt by the Great Depression of 1929-39.  Shepherded along by Franklin Roosevelt, the program evolved during World War II to assist smaller suppliers with loans in competing against huge corporations for manufacture of war materiel.  The SBA we know today was created in 1952 by Congress and signed into law the next year by Dwight Eisenhower, spinning it off from the US Department of Commerce into the standalone agency “under the general direction and supervision of the President”.

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SEC Talks Federal Crowdfunding Regs At Two Events

Stephanie Speer, NAR’s Commercial Regulatory Policy Representative would like to let you know that Uncle Sam is grappling with all the implications of the 2012 passage of the Jumpstart Our Business Startups (JOBS) Act. But this isn’t another case of “the government bureaucracy expanding to meet the needs of the expanding government bureaucracy”.  This is about legally raising capital using crowdfunding techniques on the internet, a topic near to the heart of every dealmaker faced with stiff credit availability in a banking environment dominated by, well, banks.  Enjoy Stephainie’s guest post on a pair of SEC events on crowdfunding.  – WG

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The CREED Act: Toward Refi Options For Commercial Mortgages

Capitol Hill, Washington DC

Owner-occupied refinance options could get a lot more forgiving, if the votes go the right way on the Hill. In a letter from NAR President Gary Thomas to Senators Mary Landrieu (D-LA) and James Risch (R-ID), NAR support for a key commercial real estate bill is spelled out. The issue addressed by the bill, S.289 “Commercial Real Estate and Economic Development Act of 2013”, is the impending maturity of $1.3 trillion in balloon mortgages.  Between 2013 and 2016, a wave of maturities is headed to holders of these instruments and market options for refinance being what they are,  there’s a real risk of higher loan defaults, delinquencies and business failures. The bill doesn’t create a new program for such mortgageholders.  Instead, it temporarily allows commercial real estate projects to be eligible for the already-existing SBA refinance program called 504/CDC. NAR President Gary Thomas continues:

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SBA Financing For Small Business Office Purchases

 

Loan
Loan (Photo credit: Philip Taylor PT)

Today’s wariness of banks and private lenders to finance commercial real estate transactions is widely reported as this industry’s leading challenge as it comes out of the recession.  There are many reasons given why bank lending volume isn’t where it should be, but at the core, credit availability depends on lenders being good at assessing risk. It’s not as if the country’s largest banks have earned the most sterling reputations when it comes to evaluating, securitizing and financing real estate risk — the recession itself speaks here.

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Flood Insurance, Small Business Credit Help And More: NAR Commercial 2011 Legislative Wrap Up

Washington dc

NAR 2012 Treasurer Bill Armstrong’s podcast wrapping up the year in legislative issues for REALTORS® touched on a series of important issues affecting commercial real estate. Podcasts are great (I like to listen in the car), but when the issues include far-reaching legislation, it’s important to break out and take a closer look at the content in text – to make it visible to readers and in the search engines.  So let’s break it out:

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