Monday, October 5, 2015

The SBA and crapehanger


A gloomy person; a pessimist.

A crapehanger was one who hung up black bands of crape as a symbol of mourning. The word is from English crape, from Latin crispus (curled or wrinkled).


No crapehangers amongst SBA lenders.

Effective October 1, 2015, lender’s annual service fee for SBA 7(a) loans has been reduced to 0.473 percent.  That means 7(a) loans are slightly more profitable for lenders.
Lenders however as of October 1, 2015,can no longer use the sale of the guaranteed portion as a credit elsewhere justification.  SBA will only guarantee a 7(a) loan if the lender determines that the borrower is unable to obtain credit elsewhere.

For loans of $150,000 or less, both the annual service fee and the guarantee fee are ZERO.


SBA LIBOR Base Rate September 2015 = 3.20%
SBA Fixed Base Rate September 2015 = 5.09%
SBA 504 Loan Debenture Rate for September

The debenture rate is only 2.82% but note rate is 2.87% and the effective yield is 4.902%.   


Nobody could possibly still be a crapehanger over interest rates.

Especially after Friday’s report on jobs for September.

Employment growth slowed for the second straight month in September as employers added 142,000 jobs, weakening the case for the Federal Reserve to raise interest rates later this year.

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

September                          142,000
August                                 136,000
July                                       245,000
June                                      245.000
May                                       260,000
April                                     223,000
March                                      85,000
February                             266,000
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.

Traders pared bets on a 2015 hike and subsequent increases after the surprisingly weak labor data for September. The probability the futures market assigns for a boost at or before the Fed’s March meeting is now slightly better than a coin flip, at 53 percent, down from 66 percent Thursday.

The Federal Reserve meets October 28th and 29th.
Crapehangers rejoice!  A three day weekend approaches.
According to the Federal Reserve, here are our remaining holidays for 2015:

Columbus Day October 12
Veterans Day November 11
Thanksgiving Day November 26
Christmas Day December 25 

Columbus Day first became an official state holiday in Colorado in 1906, and became a federal holiday in the United States in 1937, though people have celebrated Columbus's voyage since the colonial period.

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