Sunday, July 1, 2012

The SBA and homologate


(huh-MOL-uh-gayt, ho-)

1. To approve officially.
2. To register a specific model of a motor vehicle to make it eligible to take part in a racing competition.

From Latin homologare (to agree), from Greek homologein (to agree or allow).



SBA is about to homologate the use of a 10 tab submission tool for loan requests.  As reflected in a recent policy notice, the use of these tabs will soon be mandatory.  The National Association of Government Guaranteed Lenders will be offering a web based session on this process taught by yours truly.

If you have ever wondered how complicated this process can be, now is your chance.

For more information, go here-



SBA LIBOR Base Rate June 2012 = 3.24%
SBA Fixed Base Rate June 2012 = 4.58%


504 Debenture Rate for June  

The debenture rate is 2.47% but note rate is 2.46% and effective yield is only 4.50%. 



The last time the Federal Open Market Committee met, they said that they would have to keep interest rates exceptionally low for quite awhile longer. 

The primary reason is that, as they said, “growth in employment has slowed in recent months, and the unemployment rate remains elevated.”

The Federal Reserve not only dictates interest rates but holidays. 

They have homologated that the Fourth of July holiday is Wednesday and Wednesday only.

According to them, here are our remaining holidays for the year:

Independence Day         July 4 
Labor Day           September 3   
Columbus Day   October 8       
Veterans Day    November 12  
Thanksgiving Day           November 22  
Christmas Day   December 25

With the Fourth of July holiday breaking up the week, Friday’s report on employment for June may slip through the cracks.   

Last month the Labor Department reported that U.S. employers added only 69,000 jobs in May.  April was also revised down from +115,000 to +77,000.

Job growth over the past three months is less than half the average 200,000-plus jobs added in the three earlier months.  There are a total of 12.7 million Americans still unemployed and 5.4 million have been unemployed for more than 6 months.

In the last 24 months, ONLY 3.45 million jobs have been created.  That’s not even keeping up with population growth.  The United States has added 3 million people a year since the recession began four years ago.  We will add 30 million people in the next 10 years. 

The unemployment rate is at 8.2 percent.  It had peaked at 10.2 percent in October of 2009.

The jobless rate dropped as unemployed workers stopped looking for work and left the labor force.  They've given up.  In other words, a shrinking percentage of our country is looking for work or employed.

Only one president since World War II - - Ronald Reagan -- has been re-elected with a jobless rate above 6 percent. Reagan won a second term in 1984 with 7.2 percent unemployment in the month of the election, after the rate had fallen almost three percentage points in the previous 18 months.



You’ve heard of the Pontiac GTO right?  It’s one of the all time classic Great American Muscle cars celebrated in song by Beach Boys sound- alike Ronnie and the Daytonas (Little GTO, you're really lookin' fine).

In 1964, Pontiac borrowed the term from the Italian car maker Ferrari.  Ferrari had been making a GTO racing car for quite a while.  Recently, a 1962 Ferrari 250 GTO just sold for $35 million.  Yes, $35,000,000.

 So what does GTO mean?

Some auto racing competitions require participating vehicles to be available for sale to the general public, and not be custom made for racing. The process of homologation verifies this. The initials GTO listed after some auto names (Ferrari, Pontiac, etc.) mean "Gran Turismo Omologato", Italian for "Grand Touring, Homologated".

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