Monday, December 5, 2016

The SBA and burke

1. To murder by suffocation.
2. To silence or suppress.
3. To avoid or bypass.

After William Burke (1792-1829), who killed people to sell their bodies for dissection. His preferred method was smothering so as to leave the body unmarked and suitable for dissection. He was captured, hanged, and on the judge's orders, his body was publicly dissected.


A burking  enervation of the guidance on affiliation and franchises is in the new Standard Operating Procedures, effective January 1st, 2017.  The intractable trichotillomania over eligibility should grow quiescent.

SBA will no longer review franchise and license agreements to determine affiliation.  Instead SBA will require the SBA Addendum to the Franchise Agreement.  Every loan applicant who is subject to a franchise or license agreement will have to have this document executed.  No more franchise registry.  No more franchise findings list.

Additional guidance on credit elsewhere and fee relief for Veterans are in the SOP

SBA expects that the SOP should be arrant and not frustraneous.

In other words, there is no reason to be pervicacious and oppugned to SBA loans.

SBA LIBOR Base Rate December 2016 =3.63%
SBA Fixed Base Rate December 2016 = 5.71%
SBA 504 Loan Debenture Rate for November  
The debenture rate is only 2.57% but note rate is 2.6147% and the effective yield is 4.357%.

The latest report on jobs burked any splentic presentiment over a bigly recrudescence of interest rates.

According to the Bureau of Labor Statistics, total nonfarm payroll increased by 178,000 in November.  This follows a 142,000 increase in October.  In November, the year-over-year change was 2.25 million jobs.  Keep in mind over 2.25 million  jobs were lost in just four months in early 2009.

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

October                               142,000
September                         208,000
August                                 167,000
July                                      252,000
June                                     292,000
May                                         11,000
April                                     123,000
March                                   186,000
February                             244,000
January                               172,000
2015     2,740,000
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.

While jobs continue to grow, there is some weakness.

The change in jobs for October, the last report before the Presidential  election, was revised down from 161,000 to 142,000.

Despite the strong headline number, a lackluster reading on average hourly earnings, which slumped 0.1% in November, helped weigh on Treasury yields by dampening inflation expectations.  The 30 year Treasury bond, which is most sensitive to inflationary expectations, gained in price as its yield dropped 5.2 basis points to 3.057%.  The Federal Reserve meets next week.  Just before their meeting, there will be an auction of 30 year Treasury bonds.  At the last auction in November demand was weak and the yield of 2.902% was a hefty 43.2 basis points above the previous month’s auction rate.  Inflation has generally been moving up, and most of these measures are at or above the Fed's target.

Only 20 days until Christmas.  Since Christmas this year falls on a Sunday, the next day, the 26th will be a bank holiday.

That means we are finally celebrating Boxing Day.  Boxing Day is a holiday celebrated throughout the United Kingdom and Commonwealth nations on the day following Christmas Day, when servants and tradesmen would traditionally receive gifts known as a "Christmas box" from their masters, employers or customers. 

It began as a way of showing others less fortunate that we cared for them.  Sounds like something we should all be doing.

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