New York SBDC Research Network

WASHINGTON— U.S. small businesses will gain improved access to two major government-guaranteed loan programs once a final rule to that effect issued by the U.S. Small Business Administration becomes effective April 21, 2014. The SBA recently published a Final Rule on the Federal Register that eliminates or revises several requirements for its two main loan programs, 7(a) and 504. The rule expands eligibility, makes it easier for small businesses to secure SBA-backed financing, and encourages job creation. “These 504 and 7(a) program enhancements will expand program eligibility and improve access to capital for small businesses. Improvements in CDC corporate governance oversight enhance program integrity and encourages more local involvement,” said Ann Marie Mehlum, SBA Associate Administrator for the Office of Capital Access. The changes include, but are not limited to: • Elimination of the personal resource test which benefits borrowers by adding flexibility in the management of...

Think in an uncertain economy there's some safety in buying a franchise of an already-established brand? A new report suggests that's true only if you choose very, very carefully. Seeing a Pattern The report found that 11 franchises—more than half ice cream or fast food—had the highest rates of failure of their federally guaranteed loans used to buy them in the first place, according to analysis of U.S. Small Business Administration figures done by BlueMauMau.com, a franchising news website. This is the same list that the agency provides loan officers of its most trusted lenders and banks throughout the country, the site says. See the list on Open Forum

Lending commitment will support estimated 2,000 Veteran-Owned Small Businesses, Add $475 Million in Capital WASHINGTON – The U.S. Small Business Administration (SBA) has announced the SBA Veteran Pledge Initiative, a commitment by its top national, regional and community lenders to collectively increase their lending activity to veterans by five percent per year for the next five years. Oftentimes, veterans face challenges in raising capital or have trouble receiving a conventional loan. With the support of SBA’s top 20 national lending partners, and approximately 100 additional regional and community lending partners across the United States, SBA expects to assist an additional 2,000 veterans obtain loans to start or expand small businesses by increasing lending by $475 million over the next five years. This equals a five percent increase above historic veteran lending activity by the SBA. The initiative also complements SBA’s existing partnership with the National Association o...

WASHINGTON – In the aftermath of flooding, wildfires, earthquakes and man-made calamities, how does the U.S. Small Business Administration determine which businesses are eligible to apply for disaster loans? How are loan amounts decided? What role does insurance play in the outcome of disaster recovery? Get answers to those and other questions during a free webinar on SBA disaster assistance funding hosted by the SBA and Agility Recovery Solutions on Tuesday, March 15 at 2 p.m. EDT. Representatives from SBA’s Office of Disaster Assistance will explain how the disaster loan program works, how an SBA declaration is made, details on the application process, and tips on managing a swift recovery. A question and answer session will follow. SBA has partnered with Agility Recovery Solutions to offer business continuity strategies for entrepreneurs via their “PrepareMyBusiness” website. Visit www.preparemybusiness.org to access previous webinars and for more preparedness tips. Since 1953, ...

WASHINGTON – A very popular initiative that in just three-and-a-half years has provided more than $560 million in loan guarantees to nearly 7,000 veterans to start or expand their small businesses is being renewed for three more years, according to the U.S. Small Business Administration. Patriot Express, a streamlined pilot loan product based on the agency’s SBA Express program, offers an enhanced guaranty and interest rate on loans to small businesses owned by veterans, reservists and their spouses. Over the past two years, due in part to the American Recovery and Reinvestment Act, loan volume increased dramatically. “America’s veterans have the leadership skills and experience to become successful entrepreneurs and small business owners,” said SBA Administrator Karen Mills. “The impact of this program over the last three-and-a-half years has meant thousands of veterans and their families have had the resources to pursue their dreams as entrepreneurs, and at the same time create j...

The Library of Congress Business Reference Services has Frequently Asked Business Questions dealing with these topics: 1. Can you tell me if my old stock certificate has any value? 2. What is the cost of living today compared with X years ago? 3. How can I get a sample business plan? 4. How can I get information on foreign exchange rates? 5. Where can I find the history of a company? 6. Where can I find standard industry ratios so I can compare the performance of company X to others in the industry? 7. What are NAICS and SIC codes? 8. Where can I find information on starting a small business? I'm particularly interested in government loans and grants. 9. I am planning to start a new company and want to be sure the name I choose will be unique and protected nationwide.

Tom Morley (from the Westchester SBDC) recently forwarded me an email that began like this: "Whole Foods Market, a national grocery chain with seven stores in New York, recently started a new program to provide low-interest, long-term loans to small producers around the country. We would very much like to let small producers of food products in New York know about the program." Part of this company's mission is that their produce be as fresh as possible, and make these loans available to farmers of "locally grown" produce (for reasons best explained here ). Of Whole Foods Market's seven locations in New York State , none are farther north than White Plains. However, they define "locally grown" as "produce that has traveled less than a day (7 or fewer hours) from the farm to our facility." Eligible products include agricultural crops, value-added food products, and other all-natural grocery items. This definition, then, makes most of the...