SBA Today

In this episode of SBA Today, hosts Paul Long and Tonya Mazarek dive into critical developments surrounding the SBA's 7A loan program. They unravel the complexities of a significant financial setback that threatens to alter the landscape of small business lending. Through insightful commentary and detailed analysis, Paul and Tonya explore how recent decisions have impacted the program's financial health, discuss the consequences of loan fee reductions, and consider potential solutions that could stabilize the program and support entrepreneurship moving forward. The Small Business Administration's flagship 7A loan program is currently facing financial turmoil, marked by a loss of hundreds of millions of dollars in 2024. Paul and Tonya analyze the SBA's recent fee reductions and rising loan defaults as primary contributors to a negative cash flow, emphasizing the need for a balanced approach to supporting small businesses. As SBA struggles with decreased incoming funds from fees, stress on loan purchases by the agency is escalating, reminiscent of the financial pressures during the COVID-19 pandemic. The hosts provide strategic advice, stressing the importance of maintaining rigorous lending standards to mitigate future defaults. Beyond the immediate lending challenges, the episode highlights new leadership within the SBA. The appointment of Thomas Kimsey as the Associate Administrator of the Office of Capital Access represents a significant step toward improving the SBA's strategic direction. Paul and Tanya express optimism about having a seasoned banker in this crucial role, hopeful that his expertise could drive the SBA towards more sustainable practices. Through this engaging dialogue, they guide listeners through the intricacies of managing risk while prioritizing small business growth and access to capital.

Key Takeaways:

☀️The SBA's 7A loan program faces a serious financial shortfall due to reduced loan fees and increased defaults, resulting in a negative cash flow of $274 million.

☀️Fee structure changes intended to ease the entry of borrowers might have unintentionally increased loan defaults, mirroring similar issues from the COVID-19 era.

☀️A significant backlog of loan purchases continues to strain the SBA, indicating a need for tighter management and strategic oversight.

☀️The newly appointed Associate Administrator, Thomas Kimsey, brings banking expertise that could favorably influence the SBA's approach to financial challenges.

☀️Ensuring rigorous lending standards is crucial to balance small business support with sustainable fiscal policies.

Are you a business owner or prospective business owner? Let's see how we can help you.

If your business or perspective business is in:

Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected]

Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]

Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer.

his week's episode of SBA Today, hosted by Paul Long and Tonya Mazurek, delves into the intersection of politics and small business lending, focusing on recent developments concerning SBA systems and potential policy reforms. The discussion covers a letter from Democrats urging SBA to address unauthorized access concerns, particularly highlighting involvements surrounding Elon Musk's alleged access to SBA systems. Alongside this, updates on several legislative acts affecting the SBA and small businesses are explored, including the Small Business Childcare Investment Act and the Disaster Loan Accountability and Reform Act.

Listeners are provided with an engaging analysis of current events impacting SBA lending and small business operations. Paul and Tanya dissect claims about security threats to SBA systems, the emphasis on Musk's billionaire status, and what these implications mean for small businesses across the nation. They also break down legislative proposals affecting SBA operations, including changes to personal guarantee requirements and relocating SBA personnel. This episode is packed with insights into the complex dynamics of SBA operations, ensuring listeners are well-informed about potential changes to SBA policies and how these might influence their lending practices.

Key Takeaways:

• A letter from the Small Business Committee led by Democrats raises concerns about Elon Musk's access to SBA systems, potentially threatening critical services and data security.

• Discussion about the Small Business Childcare Investment Act aims to expand loan eligibility to nonprofit childcare providers under SBA's 7A and 504 loan programs.

• The Disaster Loan Accountability and Reform Act focuses on enhancing the transparency and accountability of SBA disaster loan programs.

• Proposed legislation suggests only requiring personal guarantees for loans over $500,000 for nonprofit childcare entities, sparking debates on the impact on loan defaults.

• SBA's Returning to Main Street bill suggests relocating 30% of Washington-based SBA employees and office resources to areas outside the metropolitan area.

We've got:

🧊 What's the deal with the recent SBA lending freeze? 🏛️ Kelly Loeffler's nomination as SBA Administrator—what it means for lenders. 📊 Small Business Committee shake-up & what it means for fraud prevention.

Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer.

Are you a business owner or prospective business owner? Let's see how we can help you. If your business or perspective business is in: Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected] Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]

In this episode of SBA Today, hosts Paul Long and Tonya Mazurek delve into the whirlwind of executive orders and their impact on the Small Business Administration.

With humor and insight, they tackle the suspension of federal financial aid programs, a discussion on potential changes to size standards, and address widespread uncertainty faced by SBA lenders. Tanya even lightens the mood with a catchy ditty summarizing the current state of affairs in Washington.

Paul and Tanya also spotlight the firing of a dozen Inspectors General, including Hannibal Mike Ware, who shares his experience of sudden termination in an exclusive interview. The departure of DEI officials and a federal hiring freeze further fuel the conversation as they speculate on potential consequences for SBA operations. The episode also touches on the looming confirmation hearing for Kelly Loeffler and the intriguing list of recommendations by Joni Ernst aimed at streamlining SBA activities and reducing mismanagement.

Key Takeaways:

• Over 300 executive orders have been issued, with significant implications for the SBA and federal financial aid programs, yet SBA is currently unaffected.
• Hannibal Mike Ware, former Inspector General of the SBA, speaks out about his unexpected firing by the White House.
• DEI office closures and a federal hiring freeze suggest substantial shifts in the government's approach to diversity and management.
• The SBA is under scrutiny for fraud during the COVID-19 pandemic's relief programs, highlighting the need for oversight and reform.
• Joni Ernst proposes changes to address inefficiencies within the SBA, focusing on improving loan program management.

Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer.

In this engaging episode of "SBA Today," hosts Paul Long and Tonya Mazurek navigate through the latest updates in small business administration. Titled "The New Era of SBA Administration and Banking Profits," the episode kicks off with discussions on Kelly Lor's appointment by the Trump administration, revealing anticipated directions such as a crackdown on PPP and EIDL fraud. The dialogue shifts as they explore changes in the Senate's Small Business Committee, highlighting Joni Ernst's influence, particularly her focus on veteran programs and extending COVID-19 loan recovery periods.

The hosts then pivot to the financial industry's impressive gains, with a particular emphasis on the striking profit surges across major banks. Chase, Goldman Sachs, and Wells Fargo, among others, have revealed substantial quarterly profits. Paul and Tanya dissect potential reasons behind these financial successes, considering market optimism, lowered inflation projections, and unexpectedly robust investment banking activity. Throughout the episode, the duo scrutinizes the implications of these fiscal trends for both the broader economy and individual institutions.

Key Takeaways:

• Kelly Lor, appointed as the new SBA administrator, is expected to focus on addressing fraud within the PPP and EIDL programs.
• Joni Ernst, as the new Senate Small Business chair, aims to reintroduce veteran programs and extend the jurisdiction over COVID loan recovery until 2030.
• Major banks, including Chase and Goldman Sachs, have reported significant profit increases, attributed to factors like economic optimism and active investment banking.
• Some skepticism remains regarding the true factors behind financial sector gains, questioning whether these are driven by fundamentals or short-term market sentiments.

Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer.

Are you a business owner or prospective business owner? Let's see how we can help you.

If your business or perspective business is in:

Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected]

Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]

Join hosts Paul Long and Tonya Mazurek on this insightful episode of "SBA Today" as they are joined by veteran SBA expert Lance Sexton.

Lance taps into his wealth of experience to discuss critical aspects of SBA lending, including nuanced intricacies of SOP requirements, the strategic use of loan appraisals, and the launch of Phoenix Lender Services. With a background in leading SBA departments and possessing an exceptional understanding of the industry, Lance offers precision-driven insights into the evolving landscape of SBA lending.

In this episode, the hosts and Lance dive deep into the complexities of SBA loan documentation requirements, addressing key questions about the use of SBA forms and appraisals in loan processing.

The episode also highlights the challenges faced by lenders in understanding and interpreting the SBA SOP, with Lance advocating for a balanced approach to underwriting. Additionally, the groundbreaking announcement of Phoenix Lender Services promises to transform service offerings to SBA lenders across the country, as Lance speaks on the formation of an experienced team dedicated to improving the SBA lending process.

Key Takeaways:

• Lance Sexton has announced the launch of Phoenix Lender Services, offering comprehensive SBA lender services.

• SBA lending requires careful interpretation of SOPs, which are often less clear and concise than desired.

• Using the SBA 1919 Form is recommended on small loans, despite the possibility of using other forms.

• Junior mortgages on residential real estate are usually beneficial for commitment rather than for recovery purposes.

• The new SBA administration may bring changes to current SOPs, especially sections labeled with "do what you do."

Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer.

Are you a business owner or prospective business owner? Let's see how we can help you.

If your business or perspective business is in:

Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected]

Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]

In this episode of "SBA Today," hosts Paul Long and Tonya Mazurek navigate through the latest developments in the world of the Small Business Administration for the week of January 6, 2025.

Reflecting on their holiday experiences, the hosts dive into how fluctuations in small business lending limits and new SBLC licenses are influencing the financial landscape. This episode serves up a rich dialogue on the delicate balance between economic progress and the inherent challenges businesses face.

Key Takeaways:

• The SBA has avoided a government shutdown, safeguarding resources and disaster funds for vulnerable communities.
• Lending limits for community advantage SBLCs have increased from $350,000 to $500,000, supporting broader access to financial resources.
• The FDIC reports a decline in small business loans, underscoring the influence of rising interest rates and tightened loan standards.
• SBA lending strategies involve balancing risk, especially regarding working capital loans.
• Looking ahead, both hosts emphasize the importance of opportunity and communication in personal and professional growth.

Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer. ______________________________________________________

Are you a business owner or prospective business owner? Let's see how we can help you.

If your business or perspective business is in:

Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected]

Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]

Welcome to this week's deep dive into the SBA landscape as we explore the latest updates from Capitol Hill, SBA loan trends, and the spirit of gratitude.

Join Paul Long and Tonya Mazurek on SBA Today as they dive into the significant small business trends and federal developments on Capitol Hill for the week of December 16th.

This episode covers intriguing updates about SBA loan distribution across the United States, insights into government fiscal actions, and heartwarming discussions on the value of gratitude as the year concludes. With an emphasis on regions like Washington, Colorado, Florida, and Utah, the duo unpacks the surprising metrics of SBA loans per capita.

In this episode, listeners will find a detailed analysis of legislative updates, including Chairman Williams' reappointment and his critiques on SBA's regulatory changes. Emphasizing the importance of meeting submission deadlines, they discuss the implications of potential government shutdowns and continuing resolutions in the fiscal landscape for 2024. As the conversation unfolds, there's a notable focus on the impact of SBA regulations and the potential staff restructuring within the SBA headquarters.

By addressing these core topics, Paul and Tonya aim to shed light on the small business ecosystem's future dynamics.

Key Takeaways:

➡️ Washington, Colorado, Florida, and Utah are leading in SBA loan dollars per capita, reflecting regional economic engagement. ➡️Discussions on government fiscal strategy reveal an ongoing debate over budget allocations and the role of continuing resolutions in avoiding shutdowns. ➡️Highlights from Capitol Hill include critiques on SBA's regulatory practices and Chairman Roger Williams' continued oversight. ➡️Senator Joni Ernst is advocating for SBA staff relocation and reduction efforts, aiming to enhance government efficiency. ➡️Emphasizing gratitude, the hosts reflect on the year's challenges and successes in the SBA lending sector and encourage kindness during the holiday season.

Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer.

Are you a business owner or prospective business owner? Let's see how we can help you.

If your business or perspective business is in:

Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected]

Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]

Join hosts Paul Long and Tonya Mazurek on SBA Today as they discuss the latest nominee for SBA administrator, Kelly Loeffler, and her potential impact on small businesses.

Delve into clarifying procedural notices, including changes to lien requirements on vehicles, tax transcript protocols, and do-it-yourself construction policies.

Understand the intricacies of C-PACE financing and maturity terms for ownership changes. Stay informed about the nuances of refinancing debt via merchant cash advances.

Whether you're involved in SBA lending or just curious about the changes, this episode offers valuable insights for industry professionals.

Key Takeaways:

• New SBA Leadership Speculation: Discussion about the potential new head of the SBA and the implications for small businesses.

• Procedural Notice Clarification: Detailed breakdown of SBA's 14-page procedural notice, highlighting changes in loan maturity evaluations and collateral requirements.

• Community Property and Collateral: Insight into SBA requirements in community property states and simplified collateral guidelines.

• Do-It-Yourself Construction Rules: New rules for DIY construction loans, addressing previous confusion and easing lender concerns.

• Merchant Cash Advance Clarifications: Simplified refinancing rules for merchant cash advances, making SBA loans more accessible.

Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer.

Are you a business owner or prospective business owner? Let's see how we can help you.

If your business or perspective business is in:

Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected]

Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]

In this lively episode of "SBA Today," Paul and Tonya explore the intricate landscape of mergers and acquisitions. They delve into the multifaceted aspects of buying and selling businesses. Their discussion provides insights from both borrower and lender perspectives, making the complex subject of mergers and acquisitions more approachable for their audience.

Focusing primarily on the lender's viewpoint, the episode kicks off with a critical observation: "You're buying people, not just a business." This episode's highlights include the importance of due diligence, the pitfalls of neglecting human resources during acquisitions, and the time factor in closing deals. They emphasize how essential it is for borrowers to dig beyond surface-level numbers when evaluating business opportunities. Paul humorously remarks, "Due diligence is everything. Or I like to say, duh, of course it is," underscoring the seriousness of this often overlooked step.

Paul and Tonya also shed light on the lender perspective, sharing anecdotes about the challenges faced when a client's initial demeanor deteriorates after closing a loan. Their candid discussion touches on common obstacles such as hidden seller notes and the critical nature of aligning buyer skills with the business being acquired. Tonya aptly notes, "Know what your specialty is," reinforcing the theme of proper business-buyer fit.

Key Takeaways:

• When acquiring a business, remember that you are "buying people, not just a business," emphasizing the importance of the existing team.

• Thorough due diligence is crucial for a successful acquisition—don't overlook potential pitfalls hidden beneath the surface.

• The way a client treats the lender at the beginning of the process is often the best behavior to expect.

• Time is a critical factor in closing deals; unnecessary delays can lead to lost opportunities.

• A buyer's skills should align with the business they intend to purchase to ensure a smoother transition and ongoing success.

Disclaimer: The views expressed on this show are our own and not necessarily the views of our employer.

Are you a business owner or prospective business owner? Let's see how we can help you.

If your business or perspective business is in:

Washington, Oregon, or Idaho contact: Paul Long at Gesa Credit Union [email protected]

Colorado, Texas, Missouri, Florida, Arizona, and Tennessee contact: Tonya Mazurek at Midwest Regional Bank [email protected]