Monday, June 2, 2014

The SBA and pervicacious

Very stubborn.
From Latin pervicax (stubborn).


The Small Business Administration is avulsing itself of its pervicacious propensities with its latest improvements to the SOP (Standard Operating Procedures).

The pervicaciousness continues somewhat as there are just over 100 days until the next SOP comes out.

Borrowers however should not be pervicacious about SBA loans with more money available at better terms than conventional financing.


SBA LIBOR Base Rate May 2014 = 3.15%
SBA Fixed Base Rate May 2014 = 5.39%

SBA 504 Loan Debenture Rate for May
The debenture rate is only 3.00% but note rate is 3.05% and the effective yield is 5.08%.

Is the economy being pervicacious?

The U.S. economy suffered its first contraction since 2011 in the first quarter of 2013. 

Gross domestic product fell at a 1 percent annualized rate according to revised Commerce Department figures.  

The advance estimate originally had the economy crawling along at only a 0.1 percent rate.  This revised decline was due to a drop in inventory.  Stockpiles grew at less than half the pace than in the final three months of 2013, lopping 1.6 percentage points off GDP.  Change in private inventories tends to bounce around quarter-to-quarter so this is more of a statistically aberration than anything else.

You can not be pervivacious about any of the numbers on the economy.

For example, the Bureau of Labor Statistics last month revised up the change in jobs for March from 192,000 to 203,000 while February was bumped up to 222,000 from 197,000.  With these revisions, employment gains in February and March were 36,000 higher than previously reported.

The U.S. also added 288,000 nonfarm jobs in April.  This was the most in more than two years.

Keep your eyes and ears open for Friday’s report on jobs for May.

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

April          288,000
March        203,000
February      222,000
January     144,000
2013     2,074,000
2012     2,193,000
2011      2,103,000
2010     1,022,000
2009     -5,052,000
2008     -3,617,000
2007    1,115,000
2006     2,071,000
2005     2,484,000
2004     2,019,000

What does this mean?

I don’t know.

Through the first four months of 2014, the economy has added 857,000 payroll jobs - slightly better than during the same period in 2013 (there were 821,000 payroll jobs added during the first four months of 2013).  Total nonfarm U.S. employment is currently 113 thousand below the pre-recession peak.  With the release of the May employment report next Friday, total employment will probably be at an all time high.

Despite this, the labor force shrank by more than 800,000 in April. The so-called participation rate, which indicates the share of working-age people in the labor force, decreased to 62.8 percent, matching the lowest level since 1978, from 63.2 percent a month earlier.  Even the strongest job growth in more than two years isn’t enough to entice more people into the labor force, one of the biggest conundrums of the U.S. economic expansion.

As a result, the Federal Reserve will remain pervicacious about keeping interest rates low.

June 6th marks the 70th anniversary of the D Day invasion.
June 6, 1944, 160,000 Allied troops landed along a 50-mile stretch of heavily-fortified French coastline to fight Nazi Germany on the beaches of Normandy, France.
More than 9,000 Allied Soldiers were killed or wounded in the first few hours but they were pervicacious with the assault and more than 150,000 soldiers began the march across Europe to defeat Hitler.
Have you ever wondered what the D in D Day meant?

The most ordinary and likely of explanations is the one offered by the U.S. Army in their published manuals. The Army began using the codes "H-hour" and "D-day" during World War I to indicate the time or date of an operation's start. Military planners would write of events planned to occur on "H-hour" or "D-day" -- long before the actual dates and times of the operations would be known, or in order to keep plans secret. And so the "D" may simply refer to the "day" of invasion.

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