Author: Gerard Dehner

SBA offers financing through a lot of different programs; each with its own peculiarities and specificities. While all financing products are equally important and crucial, 7(a) and 504 are two of the most popular programs as they offer flexibility, lower down payments, and favorable prepayment terms. Even though most business owners are savvy and understand the nuances of financing terms, getting a fixed or a floating interest rate on their loan still causes unwarranted complexities.  SBA approved lenders who sell their loans earn higher premiums on variable (floating rate) loans. This higher profitability in variable rates is countered when lenders typically ask for higher servicing fees for fixed-rate loans. The type of interest rates that banks offer mostly depend on factors...

Entering into the year, the economy was on the rise. Borrowers were expecting significant liquidity from institutionalized lenders. Private money lenders were anticipated to be most active and the LTC percentages were going to rise, indicating an overall increase in risk appetite. After the worldwide spread of COVID-19 in February and the enforced self-quarantine as a measure; the financial structures were hit abruptly and harshly. This caused a partial to total shutdown of business operations for a lot of companies. Small businesses were among those first affected especially after realizing the key statistic that according to the National Bureau of Economic Research; about three-quarters of the small businesses have the cash to cover just two months of operations at most. https://www.fiercetelecom.com/telecom/centurylink-opens-small-business-focused-150-employee-call-center-louisiana To counter...