SBA Borrowers Seeing Higher Fees

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An $80 million appropriation to cover the cost of issuing SBA guaranteed loans was removed from the congressional budget two years ago. While SBA 7a guaranteed loans continue to be made, the eliminated appropriation has mean loan caps, and higher fees place on lenders and borrowers, Keith Loria writes for the “Westchester County Business Journal.” Nonetheless, the number of 7a loans initiated in Connecticut has hit 1,500, bettering the previous annual high of 1,200, helped by the SBA Express program, which offers much smaller loans so they can get processed more quickly.

Small Business Loan Applications Getting Snagged by Poor Documentation

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According to an Amercian Bankers Association survey of its member banks, 67% of small-business loan applicants typically lack the documentation they need, the “Westchester County Business Journal” reported. According to James Ballentine, director of the ABA Center of Housing, Community and Economic Development, the survey also found that applicants have an incomplete business plan 43% of the time, lack collateral 27% of the time. Responding bankers had the chance to give tips to potential loan applicants, these fell into five categories: 1) Be prepared, 2) Know how much you need, 3) Have a backup plan, 4) Nurture management skills, 5) Establish relationships.

How to go about Obtaining Private Equity

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Writing for the New York Enterprise Report, Beth Polish enumerates these tips for those looking obtain private equity for their companies: 1) Wait until you’re really ready, 2) Prepare yourself and your company, 3) Identify the right target investors, 4) Conduct a two-way courtship, 5) Negotiate like a pro, and 6) Don’t wait to finance your company until you’re running on fumes.

Experts Disagree on Why Oil Prices Go Up

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Writing for the San Francisco Chronicle,, Kathleen Pender quoted two widely divergent viewpoints on oil prices. Some experts, including a team from Goldman Sachs, point to the increasing world demand, at a time when there is little excess production capacity, as a factor that will keep oil prices in the $50 to $105 per barrel range for years to come. But a separate group of experts says that if it were not for speculators, that oil would still be trading in a $30-40 per barrel range.