December 2012
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SBA Increases Small-Business Loans For 2012
For two years in a row the U.S. Small Business Administration has helped to put more than $30 billion into the hands of small-business owners across the country. And in fiscal 2012, SBA loan programs posted the second largest dollar volume ever, surpassed only by the dollar volume in FY 2011, which was heavily boosted by the loan incentives under the Small Business Jobs Act of 2010. Over the past year, the SBA began streamlining and simplifying many of the loan programs to provide more access and opportunity for lenders and small businesses. The SBA encouraged lenders to use more of their own paperwork and the agency's updated processing systems, so that more than 80 percent of its loan applications can be processed online. These efforts, among other loan enhancements,
have resulted in nearly 1,300 lenders returning to SBA lending, and have opened up more points of capital access for small businesses wherever they do business. By improving the loan making process and reducing paperwork, the SBA saw a record year for the Certified Development Company (504) loan program, which helped 9,471 entrepreneurs, supporting $15.09 billion in small-business lending. A revamped CAPLines program, which provides working lines of credit to small businesses such as manufacturers and government contractors, jumped 400 percent from 108 loans and $118 million in FY 2011 to 532 loans and $410 million in FY 2012. Lenders are making more low-dollar loans using the Advantage loan programs —
Special to the Times Record News Published Monday, December 10, 2012
Community Advantage and Small Loan Advantage. The number of Community Advantage loans increased more than 11-fold from FY 2011 to FY 2012. The Small Loan Advantage ended the fiscal year with 820 loans for $150.6 million. Nearly 80 percent of the year's SLA loans came after SBA simplified the processes on June 1. The Small Business Investment Company debenture program provided a record $2.95 billion to small businesses in FY 2012, a 14 percent increase over the previous year and the highest single-year volume in the 54-year history of the program. For more information about the SBA, go online to www.sba.gov
Federal Reserve Statement
4. 520% 3.
Current Rates: 009%
December 2012
20 Years Fixed
•••
10 Years Fixed
Just For
LAUGHS!
Dec. 12, 2012 Information received since the Federal Open Market Committee met in October suggests that economic activity and employment have continued to expand at a moderate pace in recent months, apart from weatherrelated disruptions. Although the unemployment rate has declined somewhat since the summer, it remains elevated. Household spending has continued to advance, and the housing sector has shown further signs of improvement, but growth in business fixed investment has slowed. Inflation has been running somewhat below the Committee's longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices. Longer-term inflation expectations have remained stable. Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee remains concerned that, without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions. Furthermore, strains in global financial markets continue to pose significant downside risks to the economic outlook. The Committee also anticipates that inflation over the medium term likely will run at or below its 2 percent objective. To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee will continue purchasing additional agency mortgagebacked securities at a pace of $40 billion per month. The Committee also will purchase longer-term Treasury securities after its program to extend the average maturity of its holdings of Treasury securities is completed at the end of the year, initially at a pace of $45 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgagebacked securities in agency mortgage-backed securities and, in January, will resume rolling over maturing Treasury securities at auction. Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative. The Committee will closely monitor incoming information on economic and financial developments in coming months. If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of Treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate, until such improvement is achieved in a context of price stability. In determining the size, pace, and composition of its asset purchases, the Committee will, as always, take appropriate account of the likely efficacy and costs of such purchases. To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. In particular, the Co
mittee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored. The Committee views these thresholds as consistent with its earlier date-based guidance. In determining how long to maintain a highly accommodative stance of monetary policy, the Committee will also consider other information, including additional measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments. When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent. Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Jerome H. Powell; Sarah Bloom Raskin; Jeremy C. Stein; Daniel K. Tarullo; John C. Williams; and Janet L. Yellen. Voting against the action was Jeffrey M. Lacker, who opposed the asset purchase program and the characterization of the conditions under which an exceptionally low range for the federal funds rate will be appropriate. Information received since the Federal Open Market Committee met in October suggests that economic activity and employment have continued to expand at a moderate pace in recent months, apart from weatherrelated disruptions. Although the unemployment rate has declined somewhat since the summer, it remains elevated. Household spending has continued to advance, and the housing sector has shown further signs of improvement, but growth in business fixed investment has slowed. Inflation has been running somewhat below the Committee's longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices. Longer-term inflation expectations have remained stable. Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee remains concerned that, without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions. Furthermore, strains in global financial markets continue to pose significant downside risks to the economic outlook. The Committee also anticipates that inflation over the medium term likely will run at or below its 2 percent objective. To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee will continue purchasing additional agency mortgagebacked securities at a pace of $40 billion per month. The Committee also will purchase longer-term
CCIM Adopts New Position on SBA's 504 Loan Program
Treasury securities after its program to extend the average maturity of its holdings of Treasury securities is completed at the end of the year, initially at a pace of $45 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and, in January, will resume rolling over maturing Treasury securities at auction. Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative. The Committee will closely monitor incoming information on economic and financial developments in coming months. If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of Treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate, until such improvement is achieved in a context of price stability. In determining the size, pace, and composition of its asset purchases, the Committee will, as always, take appropriate account of the likely efficacy and costs of such purchases. To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends and the economic recovery strengthens. In particular, the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored. The Committee views these thresholds as consistent with its earlier date-based guidance. In determining how long to maintain a highly accommodative stance of monetary policy, the Committee will also consider other information, including additional measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments. When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent. Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Jerome H. Powell; Sarah Bloom Raskin; Jeremy C. Stein; Daniel K. Tarullo; John C. Williams; and Janet L. Yellen. Voting against the action was Jeffrey M. Lacker, who opposed the asset purchase program and the characterization of the conditions under which an exceptionally low range for the federal funds rate will be appropriate.
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CCIM Institute adopted a new Public Policy Statement on the Small Business Administration's 504 Refinancing Loan Program. Under the Small Business Jobs Act of 2010, wider refinancing options were temporarily offered through the SBA's 504 Loan Program. The refinancing program offered CCIMs and their clients more lending opportunities. A portion of the 504 Refinancing Program expired in 2012. Congress has introduced bills (H.R. 2950 and S 2364) that would extend the refinancing program through September 2013. Currently, there are several uncertainties in Congress, including the presidential election, expiring Bush-era tax cuts, party turnover in U.S. House and/or Senate, and the looming fiscal cliff. Advocacy to extend the SBA 504 Refinancing Loan Program and commercial mortgage liquidity options for small businesses are a top priority for the CCIM Institute. For more information review CCIM's statement. CCIM.com Newscenter, Posted Nov. 1, 2012
pRogr
EPORT ess
To Your Health Sprouted Flour Co.
ASBC assisted this business in obtaining a loan that not only refinanced eligible business debt but also provided financing for their expansion for the additional building and equipment needed.
Business Products Offered
flours for hearty breads and beautiful baking of finer cakes, pastries, and pastas,” says Peggy.
Certified And Regulated
Peggy Sutton, Owner
To Your Health Sprouted Flour Co. offers sprouted bread flours from organic We are certified organic by Oregon grains that have been sprouted, dried, and Tilth and certified kosher by milled in a rural Alabama farm setting. EarthKosher. We are a licensed facility They are family owned and operated with that meets all state, county, and FDA a passionate commitment to good regulated guidelines for a food processor. nutrition through the wonderful benefits of sprouted grains. Their flours are stone-ground using organic barley, kamut, rye, spelt, wheat, and non-gluten amaranth, brown rice, buckwheat, corn, millet, oats, quinoa, black beans and garbanzo beans. They purchase grains from organic farms in Northwest USA, and all of the sprouting and • Benefits milling process is • Recipes handled in their ATURE facilities. • Shop Online All flours are milled fresh per • Store Finder order. They do not sit VI on a shelf in a warehouse. DEO •Q&A “We offer whole grain
D
Peggy Sutton, 100% owner of To Your Health Sprouted Bread and Flour Co., Inc. d/b/a To Your Health Sprouted Flour Co. started her business baking in her own kitchen for a few friends. Word quickly spread and opportunities arose to bake for customers of several local and regional CSAs and co–ops. She outgrew her kitchen space and wanted to get her product into several additional markets, so she opened a commercial kitchen in in September of 2006. The business obtained state and federal licensing as a food processor, and in February of 2008 began to offer organic sprouted organic grains and flours for sale and discontinued baked goods. In October of 2009 the company was certified organic by Oregon Tilth and in August of 2010 they received kosher certification for all their sprouted grain products. In August of 2010 they moved the operations into a 7,200 square foot new building. Currently the second building is under construction, which the financing was provided in partnership
with an SBA 504 Loan. This facility will house their certified gluten-free facility. “Our steady growth has ensured the quality of our products and there are still just a few of us here doing the sprouting, drying, and milling fresh to order,” says Peggy.
FE
Business Background
e ASBC Team! Angie Sweatman Vice President Cell:(334) 318-8064 angie@asbc504.com
Brian Swann
AVP/Underwriter Cell:(334) 332-0976 brian@asbc504.com
O. David Chunn, Jr. VP/Bus. Dev. Officer Cell:(205) 306-1888 david@asbc504.com
Debbie Parnell
Closing/Funding Manager Cell:(334) 328-9520 debbie@asbc504.com
Alabama Small Business Capital Assisting Small Business Owners in Alabama, Georgia and Florida 3120 Frederick Road, Suite K, Opelika, Alabama 36801 Office:(334) 275-9700 • Fax:(334) 275-9704
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Important Links:
ASBC www.fbdc.net
U.S. SMALL BUSINESS ADMINISTRATION www.sba.gov
ALABAMA SBA RESOURCE GUIDE
SCORE www.score.org
U.S. SBA YOUTUBE CHANNEL www.youtube.com/user/sba
www.smallbusiness3.com/pdf/english/alabama.pdf
ALABAMA ASSOCIATION OF REGIONAL COUNCILS www.alarc.org GEORGIA SBA RESOURCE GUIDE
www.smallbusiness3.com/sites/default/files/guide-pdf/english/georgia.pdf
NORTH FLORIDA SBA RESOURCE GUIDE www.smallbusiness3.com/pdf/english/florida-north.pdf
SMALL BUSINESS DEVELOPMENT CENTERS www.asbdc-us.org
ALABAMA SECRETARY OF STATE www.sos.state.al.us GEORGIA SECRETARY OF STATE www.sos.ga.gov FLORIDA SECRETARY OF STATE www.sos.ga.gov