proceed
pro·ceed prō-ˈsēd
begin or continue a course of action
move forward, especially after reaching a certain point
or after a pause or interruption
from Latin procedere, from pro- forward + cedere to go
As you can tell from the etymology of this word, proceed and procedure are closely related.
Procedure however refers to not just going on but to go
on in an orderly regulated way
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TIP OF THE WEEK
The SBA will soon proceed with the release of a new
version of its Standard Operating Procedures.
This new version of the SOP promulgates changes from two
pending Proposed Rules once finalized addressing affiliation and lending
criteria.
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Indices:
PRIME RATE= 7.75%
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SBA 504 Loan Debenture Rate for February
For 20 year debentures, the debenture rate is only 4.51%
but note rate is 4.578% and the effective yield is 5.988%.
For 25 year debentures, the debenture rate is only 4.61%
but note rate is 4.66% and the effective yield is 6.015%.
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AHEAD OF THE YIELD CURVE
How will the Federal Reserve proceed? There is no procedure.
The Bureau of Labor Statistics reported an unbelievable
517,000 new jobs in January. That
compares to an average monthly gain of 401,000 in 2022.
Seasonal adjustments, always big in January, had an even
larger than usual upward impact, likely adding over 200,000 to the jobs figure.
Keep your eyes and ears open for this week’s release on
the capacity utilization rate.
One of the Federal Reserve’s preferred measures of
inflation is the capacity utilization rate.
Here is what capacity utilization has been doing and this
week interesting little table of data:
2007- 81.5
2008- 79.9
2009- 66.9
2010- 74.8
2011- 76.7
2012- 79.0
2013- 77.8
2014- 78.8
2015- 76.5
2016- 75.4
2017- 76.2
2018- 78.5
2019- 79.7
2020- 74.5
2021- 76.4
2022- 80.0
What does all this mean?
I don’t know.
Capacity utilization dropped 0.6 percentage point in
December to 78.8 percent.
The drop would have been even greater but Utilities
capacity use was up 2.7 points to 76.8 percent.
A bout of extreme cold weather in December is likely
behind the rise in utilities output. Electric production was up 2.9 percent in
December and natural gas up 8.2 percent.
At last week’s auction of 30 year treasury bonds the high
yield was awarded at 3.686 percent, up from 3.585 percent last month but down
from a high of 4.080 percent in November.
The Federal Reserve does not meet again until March 21
and 22.
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OFF BASE
A three day weekend approaches.
The Federal Reserve has proscribed banks from being open
on the following days:
Washington's Birthday February 20
Memorial Day May 29
Juneteenth
June 19
Independence Day July 4
Labor Day September 4
Columbus Day October 9
Veterans Day November 11
Thanksgiving Day November 23
Christmas Day December 25
This upcoming three day weekend is officially referred as
Washington’s Birthday.
The effort to rename the holiday Presidents Day, intended
to honor the birthdays of both Washington and Lincoln, failed in Congressional
committee.
The bill, which was then signed into law on June 28,
1968, specified that the Federal holiday would retain the name Washington’s
Birthday.
The Uniform Monday Holiday Act of January 1, 1971,
established its observance on the third Monday in February.
