Profess
proh-fes
-to say or declare (something) openly
- to say that you are, do, or feel something when other
people doubt what you say -old-fashioned : to believe in (a particular
religion)
from Latin profess- ‘declared publicly’, from the verb
profiteri, from pro- ‘before’ + fateri ‘confess’
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TIP OF THE WEEK
Professed SBA 7(a) lenders can also utilize SSBCI
guarantees.
The U.S. Small Business Administration’s (“SBA”) release
of SOP 50 10 7, effective November 15th, clarifies that when loan proceeds are used for multiple
purposes and if 51% or more of the proceeds are used for real estate then the
maximum maturity may be up to 25 years.
Lenders should note that the new SOP does not allow the
51% rule to be used when the loan
finances a complete partner buyout or a partial change of ownership, regardless
of whether the business owns real estate.
This appears to primarily impact an Eligible Passive Company partner
buyout, where the real estate is the primary asset, but the 25 year term will
not be available for these transactions.
SBA expressly limits the term for partner buyouts to 10 years.
There is NO guidance on amortization with a SSBCI
guarantee. Lenders can use any
amortization they want.
Any SBA 7(a) loan delayed because of an ETRAN error code
that cannot be resolved in a timely manner can instead utilize a SSBCI
guarantee.
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Indices:
PRIME RATE= 8.50%
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SBA 504 Loan Debenture Rate for October
For 20 year debentures, the debenture rate is only 5.80%
but note rate is 5.879% and the effective yield is 7.276%.
For 25 year debentures, the debenture rate is only 5.82%
but note rate is 5.876% and the effective yield is 7.221%.
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AHEAD OF THE YIELD CURVE
At their last meeting on monetary policy and interest
rates, the Federal Reserve professed that “job gains have moderated since
earlier in the year but remain strong.”
The post-meeting statement was little changed from the
one issued September 20. There were a few tweaks to the language.
Job gains are now said to "have moderated since
earlier in the year" from "slowed in recent months".
What is the difference between moderated and slowed?
Two days after the Federal Reserve met, the report on
employment for October came out.
Here are the latest jobs numbers from the Bureau of Labor
Statistics.
October 150,000
September 297,000
August 165,000
July 236,000
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.
Some of the softer gain in October can be attributed to a
decline of 33,200 in manufacturing of motor vehicles and parts while the UAW
strike is active. These jobs will come back once the strike is settled.
Payrolls among service-providers rose 110,000 reflecting
strong gains among education and health services of 89,000.
In October, the year-over-year change was 2.97 million
jobs. Employment was up solidly
year-over-year but has slowed to more normal levels of job growth recently.
In its statement, the Fed maintained that inflation
remains elevated.
The long end of the yield curve prognosticates
inflationary expectations.
At the last auction of 30 year treasury bonds, the high
yield was awarded at 4.837 percent, way up from 4.345 percent a month ago and
4.189 percent in August.
Keep your eyes and ears open for the next auction of 30
year treasury bonds this Thursday.
The 30 year treasury bond is currently at yields not seen
since June of 2007.
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OFF BASE
So what is the difference between one who professes and a
professor?
Literally, professor derives from Latin as a "person
who professes".
Their job is to profess what they believe after years of
study and thought on an issue.
