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.
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.
NY State Ranks Near Bottom in Small Business Survival Index
New York state ranked 44th amonth the 50 states in terms of policy environment in the 2005 Small Business Survival Index released by the Small Business & Entrepreneurship Council. Raymond Keating, chief economist for the council, and the survey’s author told the “Westchester County Business Journal” that “politically, New York has a big-government philosophy, which leads to high income and property taxes. The costs of the state’s policies are real and obvious, but it appears the policymakers talk themselves into ignoring the consequences of the economic choices they make.” South Dakota, Nevada and Wyoming ranked at the top of the 2005 index, with the most small business friendly policy environment.
Tags: Raymond Keating, Small Business Survival Index