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Though I’ve seen very little in lending for small business loosening. Obama has extended the SBA additional funding. Now is a great time to call PFC to discuss your options if you need any type of small business lending. Phone: 813-835-1253. Pamela Hewett
SBA NEWS RELEASE
Press Office

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SBA Recovery Lending Extended Through May

Administrator Mills presses for longer-term extension for successful programs

Release Date: April 16, 2010
Contact: Hayley Matz (202) 205-6948
Release Number: 10-15
Internet Address: http://www.sba.gov/news

WASHINGTON – President Barack Obama signed legislation yesterday providing
$80 million in additional funding to continue important enhancements in the
U.S. Small Business Administration’s two key small business loan programs.
The enhancements, first made available under the American Recovery and
Reinvestment Act, include a higher guarantee on some SBA-backed loans and
small business fee relief.

The SBA estimates the $80 million will support about $2.8 billion in small
business lending under the 7(a) and 504 programs.

“Small businesses across the country have been able to secure critical
financing as a result of the Recovery Act loan provisions and the continued
interim funding we’ve received for the program,” said SBA Administrator Karen
Mills. “The increased guarantees and reduced fees on SBA loans have
generated more than $25 billion in new loans to small business owners and
brought more than 1,200 lenders back to SBA loan programs. In fact, the first
two quarters of the current fiscal year have been our best two opening
quarters ever for the 7(a) program, with more than $7 billion in guaranteed
loans. These programs have been successful in helping jump-start our
economy, which is why we will continue to work with Congress on a longer
term extension of the increased guarantee and reduced fees.

“We also know that small businesses could greatly benefit from the additional
tools the President has proposed, including higher SBA loan limits and
refinancing for commercial property mortgages, which could help thousands of
small businesses avoid potential foreclosure. Small businesses need these
improvements to ensure their access to the capital they need to drive
economic growth and create jobs in communities all across the country.”

As part of the Recovery Act enacted on Feb. 17, 2009, SBA received $730
million to help small businesses, including $375 million to increase the SBA
guarantee on 7(a) loans to 90 percent and to reduce borrower fees on most 7
(a) and 504 loans. The funds for these programs were exhausted on Nov. 23,
2009, and an additional $125 million was provided in December. Those funds
were exhausted in late February, 2010, and an additional $60 million was
provided subsequently. SBA was authorized for an additional $40 million in late
March.

Under the new extension SBA may continue to reduce loan fees in its 7(a) and
504 programs and to provide higher guarantee levels on 7(a) loans through
May 2010, or until the funds provided under the bill are exhausted.

This extension has no effect on the continued availability of financing under
other SBA Recovery Act programs, including SBA’s America’s Recovery Capital
(ARC) loan program and the agency’s Microloan program. Recovery Act funding
still remains available for both of those programs.

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Medical industry surging in The Villages
By DAVID R. CORDER, DAILY SUN
THE VILLAGES — During the past year, The Villages medical community experienced a surge in growth that shows no sign of abating.

No fewer than two dozen health care practices of all kinds either expanded or opened new offices to serve the community’s still-growing population.
This is an exciting time for The Villages health care industry and its patients, said Nelson Kraucak, M.D., who has seen the dramatic evolution of the local medical community since opening his family medicine practice about 15 years ago.

“It is very exciting,” said Kraucak, managing physician of Life Family Practice Center and an affiliate of the community’s Villa Medical Group. “This is an oasis. What’s happening here is not happening anywhere else I know of.”

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Fed Holds Rates, Retains ‘Extended Period’ Timeframe

The Federal Reserve left short-term interest rates untouched following the Federal Open Market Committee’s (FOMC) second meeting of 2010.

The FOMC left the fed funds rate at 0% to 0.25%, where it has been since December 2008. As it has said since March 2009, the committee repeated that the rate would probably remain “exceptionally low” for “an extended period.”

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http://FunnyOrDie.com/m/3052

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Bank of America, Banking on Overdrafts?
Anastasia Crosson
March 12, 2010
File under Tags: Bank of America, overdraft fee, overdraft rules, the Federal Reserve
Bank of America is going ahead with a new overdraft policy, announced Wednesday, intended to protect customers by avoiding account overdrafts. This action comes in advance of the Federal Reserve’s July 1 deadline for banks to comply with new opt-in overdraft regulation. Overdraft fees are a more than $100 million dollar business for banks, so a large decline in profits is imminent. This begs the question, what are these institutions banking on to keep their revenues a float? For Bank of America, overdraft protection plans may be the new revenue earner. For consumers, they may not yet be as protected as hoped for.

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Trouble for more banks

The monitor daily reported on the recent downgrade of Regions Bank.

S&P Cuts Ratings on Regions; Outlook Negative

Standard & Poor’s Ratings Services lowered its ratings on Regions Financial Corp., including lowering the counterparty credit rating to BBB-/A-3 from BBB/A-3. The outlook is negative. S&P also lowered its rating on the company’s primary subsidiary Regions Bank to BBB/A-2 from BBB2′.
(more…)

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What is the current Prime rate?

The Current Wall Street Journal Prime Rate is: 3.25%

(the last rate change — a decrease of 75 basis points
[0.75 percentage point] — occurred on December 16, 2008)

The U.S. Prime Rate is a commonly used, short-term interest rate in the banking system of the United States. All types of American lending institutions (traditional banks, credit unions, etc.) use the U.S. Prime Rate as an index or foundation rate for pricing various short-term loan products. The Prime Rate is consistent because banks want to offer businesses and consumers loan products that are both profitable and competitive. A consistent U.S. Prime Rate also makes it easier and more efficient for individuals and businesses to compare similar loan products offered by competing banks.

When newspapers, academics, investors and economists refer to the National, Fed, U.S. or WSJ Prime Rate, it is widely accepted that they are in fact referring to The United States Prime Rate as listed in the Eastern print edition of the Wall Street Journal® (WSJ). Furthermore, each U.S. state does not have its own individual Prime Rate, so the “New York Prime Rate” or the “California Prime Rate” are in fact the same as the United States Prime Rate.

Traditionally, the WSJ Prime Rate was determined by polling thirty (30) of America’s largest banks. When twenty-three (23) of those 30 banks had changed their prime lending rate, The WSJ would respond by updating its published Prime Rate. Effective December 16, 2008, however, the WSJ now determines the Prime Rate by polling the 10 largest banks in the United States. When at least 7 out of the top 10 banks have changed their Prime, the WSJ will update its published Prime Rate.

Providers of consumer and commercial loan products often use the U.S. Prime Rate as their base lending rate, then add a margin (profit) based primarily on the amount of risk associated with a loan. Moreover, some financial institutions use Prime as an index for pricing certain time-deposit products like variable-rate Certificates of Deposit.

It’s important to note that the Prime Rate is an index, not a law. Consumers and business owners can sometimes find a loan or credit card with an interest rate that is below the current Prime Rate. Lenders will sometimes offer below-Prime-Rate loans to highly qualified customers as a way of generating business. Furthermore, below-Prime-Rate loans are relatively common when the loan product in question is secured, as is the case with home equity loans, home equity lines of credit and car loans.

The U.S. Prime Rate is invariably tied to America’s cardinal, benchmark interest rate: the Federal Funds Target Rate (also known as The Fed Funds Target Rate.) The Fed Funds Target Rate is set by a committee within the Federal Reserve system called The Federal Open Market Committee (FOMC). The FOMC usually meets every six weeks, and it is at these meetings that the FOMC votes on whether or not to make changes to the Federal Funds Target Rate. When the Fed Funds Target Rate changes, it is almost a certainty that the Wall Street Journal Prime Rate will also change. If the FOMC votes to make no changes to The Fed Funds Target Rate, then it is almost a certainty that the WSJ Prime Rate will also remain unchanged. Since the second quarter of 1994, a rule of thumb for the U.S. Prime Rate has been:

U.S. Prime Rate = (The Fed Funds Target Rate + 3)

The FOMC’s primary objectives are to keep inflation under control and maintain steady economic growth with maximum sustainable employment within the United States.

The U.S. Prime Rate is used by many banks to set rates on many consumer loan products, such as student loans, home equity lines of credit, car loans and credit cards. If you read or hear about a change to the U.S. Prime Rate, then any loan product that is tied to the Prime Rate will also change, like variable-rate credit cards or certain adjustable-rate mortgages.

Click on http://www.pfcfinance.com for business loans or a free handbook on small business loans.

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