Monday, March 30, 2015

The SBA and discursive


1. Jumping from topic to topic; rambling.
2. Proceeding logically, using reason or argument rather than emotion.

From Latin discurrere (to run about), from dis- (apart) + currere (to run).

SBA has revised SBA form 413, the personal financial statement.
Make sure that you are using the current version that has an expiration date of 01/31/2018.

While a personal guarantee will always be required with a SBA loan, guidance for SBA 7(a) loans don’t necessarily require the personal guarantee be secured by personal real estate.


SBA LIBOR Base Rate March 2015 = 3.17%
SBA Fixed Base Rate March 2015 = 5.15%
SBA 504 Loan Debenture Rate for March

The debenture rate is only 2.72% but note rate is 2.76% and the effective yield is 4.799%.       


Will Good Friday be a good Friday?

That’s when the Bureau of Labor Statistics will release its jobs report for the month of March.

February reflected total employment increasing 295,000.  The year-over-year change was 3.3 million jobs. This was the highest year-over-year gain since March of 2000.

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

February                             295,000
January                               239,000

2014     3,116,000
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 all this mean?

I don’t know.

Revisions to employment gains in December and January ended up 18,000 lower than previously reported.  There will be additional revisions with the report for March.

The Federal Reserve at its last meeting on monetary policy slightly downgraded its economic outlook, saying that growth "has moderated somewhat."

It said it will raise its benchmark short-term rate, now near zero, only when the labor market improves further.

There was a lot of consternation after the Fed's policymaking committee dropped a pledge to "be patient" as it considers raising the fed funds rate.

Despite claiming to no longer being patient, Federal Reserve officials lowered their median estimate for the federal funds rate at the end of 2015 to 0.625 percent, compared with 1.125 percent in December forecasts.

The 30-year Treasury bond yield has declined to 2.529% as inflation remains below the Federal Reserve’s 2 percent target, increasing speculation the central bank won’t rush to raise interest rates.

The Federal Reserve unexplainably does not recognize Good Friday as a bank holiday.
It should as its existence can be tied in some ways to Good Friday itself.  
While Good Friday isn't a federal holiday, it is a stock market and bond market holiday.  After being usually closed on Good Friday, 1907 was the final year in which the exchange was open on Good Friday.
That last one was the same year as the infamous Panic of 1907, when the total value of all Big Board stocks plunged by more than a third.   
Traders took it as a sign from God that he didn’t want the exchange open.
By November 1907, the aggregate value of all shares on the NYSE had plunged 37 percent, and at least 25 banks and 17 trust companies collapsed
The crisis ultimately prompted the creation of the Federal Reserve system.
So what is Good Friday?
The day marks the crucifixion and death of Jesus Christ.  How could that possibly be considered good?  

Many believe this name simply evolved—as language does. Originally it was called "God's Friday."

This seems a reasonable conjecture, given that "goodbye" evolved from "God be with you."


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