Monday, August 30, 2010

The SBA and obambulate

To walk about.
From Latin ob- (towards, against) + ambulare (to walk).
No obambulating in circles.
Small Business is getting bigger.

The SBA has indicated that they intend to make the alternative size standard PERMANENT for 7(a) loans. This alternative size standard had been set to expire on September 30th. This does not require a vote from the Senate or anything like that.

What is the alternative size standard? Under SBA's 504 program, a business concern must meet either the size eligibility criteria of the 7(a) program, or have tangible net worth not in excess of $8.5 million and average net income after Federal income taxes (excluding any carry-over losses) for the preceding two completed fiscal years not in excess of $3.0 million

As a result, businesses such as multi-unit franchisees usually too big for SBA financial assistance and manufacturers with more than 500 employees can utilize SBA 7(a) loans for real estate purchase, real estate debt refinance, business debt refinance, equipment, purchase, working capital and business acquisition.
SBA LIBOR Base Rate August 2010 = 3.30%
SBA Fixed Base Rate August 2010 = 5.67%

504 Debenture Rate for August
The debenture rate is 3.52% but note rate is 3.57% and effective yield is only 4.93%.

Do you remember the difference between a depression and a recession?

A recession is when your neighbor loses his job. A depression is when you lose your job.

With the housing market still obviously slumping, any job creation will have to come from small business.

This morning, the Intuit Small Business Employment Index reported that small business employment grew slightly in August, but at a declining rate compared to healthy gains made in January through April. The Index is based on figures from the country’s smallest businesses that use Intuit Online Payroll. The August employment growth translates to approximately 26,000 new jobs nationwide, the same number of jobs added in July based on revised estimates.

Keep your eye on Friday’s payroll report from the Department of Labor.

Here is a summary of payroll employment and this week’s interesting little table of data:

July (131,000)
June (221,000)
May 431,000
April 218,000
March 230,000
February (36,000)
January (26,000)
December (150,000)
November (11,000)
October (111,000)
September (215,000)
August (201,000)
July (304,000)
June (443,000)
May (322,000)
April (504,000)
March (699,000)
February (651,000)
January (655,000)
December (681,000)
November (597,000)
October (423,000)
September (403,000)
August (127,000)
July (67,000)
June (100,000)
May (47,000)
April (67,000)
March (88,000)
February- (83,000)
January- (76,000)

What does all this mean?

Overall employment fell 131,000 in July. The Census Bureau said it let go about 144,000 of the people conducting the decennial population count from mid-June to mid-July. It still had about 200,000 temporary workers on staff as of July 17, indicating additional cuts to come that will keep distorting the payroll figures for months. For that reason, economists say private payrolls will be a better gauge of the state of the labor market for much of 2010. Private payrolls that exclude government agencies rose by 71,000 last month, less than forecast, after a June gain of 31,000. Total employment fell a revised 221,000 in June.

The pace of hiring signals it will take years for the world’s largest economy to recover the more than 8 million jobs lost during the recession that began in December 2007.

As a result, interest rates will remain low for an extended period.
Happy Birthday Ted Williams.

Today is the birthday of Ted Williams. He would have been 92 years old.

In 1941, Williams was hitting .39955, which would round up to .400, on the last day of the season. Williams was offered a seat on the bench to protect the first .400 season since 1930 but in his typical Teddy Ballgame way, Williams declined. He then torched A's pitchers for six hits in eight at bats finishing the season at .406. No hitter has had a .400 batting average since. Despite that hitting, he was not the Most Valuable Player that season. He also led the league in runs, home runs, walks, on base percentage, and slugging yet lost the MVP to DiMaggio. DiMaggio that year had a 56 game hitting streak.
Both a .400 batting average and a 56 game hitting streak are records that will not be broken, at least not this season.

The real excitement left in the season is what happens with the Chicago White Sox.

For some reason, they seem to think that Manny Ramirez might help them out. The White Sox have lost nine of 14 and 13 of 20 to fall 4½ games back of AL Central-leading Minnesota with three games left in the season series between the teams. Interestingly enough, the first two stops on their 10-game trip are Cleveland and Boston, two of Ramirez's former clubs. Ramirez already has played at Boston this season. As a member of the Dodgers, he was 5-for-12 a home run over the Green Monster in a three-game series in June. As a member of the White Sox, Manny will now be playing in the best home run park in the game.

In addition to Manny, the White Sox also have the best new pitcher in the major leagues. That would be Chris Sale. A college baseball player just a few months ago, left hander Chris Sale became the first player from the 2010 draft to make it to the majors. In the eight innings he has now pitched over his first eight games, Sale has allowed only one run while striking out eleven. He is an incredible strike out pitcher. During his brief stay in the minors he struck out 15 in only 6 1/3 innings. He also led all of college baseball with 146 strikeouts.

It is also a brand new season for college football starting this weekend.

It will also be a brand new game.

There are three new college football rules in effect. Wedge blocking on kickoffs is banned. A wedge block is when two or more players form a wall of blockers to create a running lane for a return on kickoffs. The new rule defines a wedge as two or more players aligned shoulder to shoulder within 2 yards of each other. In addition, taunting in the field of play will start costing teams points in 2011. Currently, players who are penalized for taunting on their way to the end zone draw a 15-yard penalty on the extra point attempt, 2-point conversion attempt or the ensuing kickoff. Beginning in 2011, live-ball penalties will be assessed from the spot of the foul and eliminate the score. Examples include players finishing touchdown runs by high-stepping into the end zone or pointing the ball toward an opponent.

A third change bans the use of eye black containing symbols or messages, a trend that grew in popularity because of the use by Heisman Trophy winner Tim Tebow.

In what some are already calling the "Tim Tebow rule," college football players are now prohibited from writing anything on their eye black -- the very types of messages the former Florida Gator quarterback made popular with various Bible verses.

Tebow -- the 2007 Heisman Trophy winner popularized the trend, and the nation noticed. On the same day that Florida played Alabama in the SEC Championship Game December 5th, the No. 1 Google "hot" search in the U.S. was John 16:33, the verse Tebow wore on his eye black.

In fact, Tebow's Scripture choices were among the Top 10 Google searches in the U.S. during nearly every major Florida game in 2009. For the Sept. 19 game against Tennessee, his choice of Romans 8:28 was the No. 5 search; for the Oct. 10 game against LSU, 1 Thessalonians 5:18 was the No. 7 search; and for the game against Florida State -- his final home game -- Hebrews 12:1-2 was the No. 3 search. His choice of Ephesians 2:8-10 was the No. 4 search for the Jan. 1 Sugar Bowl. The Google trend dates back to the 2008 BCS Championship Game, when John 3:16 -- Tebow's verse for that game -- landed at the No. 1 spot.

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