protocol
pro·to·col -ˌkōl,
the customs and regulations dealing with diplomatic
formality, precedence, and etiquette.
an original draft, minute, or record from which a
document, especially a treaty, is prepared.
from Medieval Latin prōtocollum, from Late Greek
prōtókollon originally, “a leaf or tag attached to a rolled papyrus manuscript
and containing notes as to contents
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TIP OF THE WEEK
SBA has broken protocol by correcting and clarifying a
new version of its Standard Operating Procedure before it goes into effect.
SBA SOP 50-10-7 will be effective August 1st, 2023.
A technical update to SOP 50-10-7 is being released
clarifying some issues that arose in the initial version of the SOP.
SBA is indicating that any seller carry utilized as a
portion of an equity injection in a business acquisition can not have a balloon
payment.
In the case of a partial purchase of a business, any
remaining seller that had at least a 20% ownership interest PRIOR to the
transaction must personally guarantee the loan.
The guidance for SSBCI guarantees has also changed
providing more flexibility with debt refinance.
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Indices:
PRIME RATE= 8.25%
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SBA 504 Loan Debenture Rate for July
For 20 year debentures, the debenture rate is only 5.16%
but note rate is 5.23% and the effective yield is 6.637%.
For 25 year debentures, the debenture rate is only 5.18%
but note rate is 5.23% and the effective yield is 6.583%.
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AHEAD OF THE YIELD CURVE
What’s the protocol for the Federal Reserve?
Employment rose by another 209,000 in June. Or did it?
Employment for April was revised down by 77,000, from
+294,000 to +217,000.
Originally, employment in April was estimated at 253,000
new jobs.
A month later, April was revised up by 41,000, from
+253,000 to +294,000.
Now, its been knocked down to 217,000 new jobs.
The change for May was revised down by 33,000, from
+339,000 to +306,000.
With these revisions, employment in April and May
combined is 110,000 lower than previously reported.
Here are the latest jobs numbers from the Bureau of Labor
Statistics.
June 209,000
May 306,000
April 217,000
March 217,000
February 311,000
January 504,000
2022 4,810,000
2021
7,270,000
2020 -9,370,000
2019 2,108,000
2018 2,679,000
2017 2,110,000
2016 2,160,000
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.
One profligate propaedeutic has been that there is a
trade-off between jobs and inflation.
The Fed likes to gauge inflationary pressure by looking
at capacity utilization rates.
Normally the Fed does not feel there are inflationary
pressures until the capacity utilization rate is about 82%.
Last month capacity utilization moved down to 79.6
percent in May.
The decline in however may not be because manufacturing
and utility production has slowed.
Instead capacity has grown.
One of the bright spots in the economy right now is
investment in plants and fixed assets.
Manufacturing capacity expanded about 3/4 percent in 2022
and is expected to grow by 1-1/4 percent in 2023.
Since capacity utilization rates measures output as a
percentage of capacity, if capacity grows faster than output, the capacity
utilization rate would decline.
Keep your eyes and ears open for this week’s Federal
Reserve release on Industrial Production and Capacity Utilization.
The Federal Reserve meets on monetary policy next week.
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OFF BASE
Protocol ultimately comes from Late Greek prōtókollon, a
compound noun meaning “the first kóllēma (sheet) on a papyrus roll,”
It was formed from prōto-, a combining form of prôtos
“first” and the noun kóllēma “something bound or glued together”.
The plural kollēmata means “sheets of papyrus glued
together to form a roll,”.
These rolls were usually 20 sheets, averaging 20–26 feet
in length.
In Medieval Latin prōtocollum acquired the meaning “draft
(of a document), minutes (of a meeting), public register, a document bearing an
official seal.”
In the 19th century, it began to be used in reference to
the etiquette observed by the Head of State of France in ceremonies and
relations with other dignitaries and the accepted and customary codes of
behavior in polite society.
In late 19th-century Russia, protocol ( protokól ) meant
“an official police record of a case or incident,” its meaning in the infamous
“Protocols [ protokóly ] of the Elders of Zion,” first published in Russia in
1903.
It has since extended in meaning to cover any code of
proper conduct.
