Monday, January 12, 2026

The SBA and PROficient

Proficient

proFISHant

competent or skilled in doing or using something.

 

from Latin pro- ("forward") and facere ("to make, do"), meaning someone skilled who moves forward or succeeds in a task

 

 

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TIP OF THE WEEK

 

Proficiency with SBA lending requires knowing SOP 50-10-8.

 

It has a prolix 163,291 words.   467 pages.

 

The guidance manual for SSBCI guarantees has only 6,742 words.    Only 22 pages.

 

 

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Indices:

PRIME RATE= 6.75%

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SBA 504 Loan Debenture Rate for January

 

For 20 year debentures, the debenture rate is only 4.72% but note rate is 4.79013% and the effective yield is 6.065%.

For 25 year debentures, the debenture rate is only 4.72% but note rate is 4.77119% and the effective yield is 5.856%.

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AHEAD OF THE YIELD CURVE

 

Is the Bureau of Labor Statistics being proficient with their reporting on employment?

 

Total payrolls increased by 50 thousand in December.

 

The change in total nonfarm payroll employment for October was revised down by 68,000, from -105,000 to -173,000, and the change for November was revised down by 8,000, from +64,000 to +56,000.

 

With these revisions, employment in October and November combined is 76,000 lower than previously reported.

 

Last year the March 2024 total nonfarm payroll employment level was revised downward by 598,000.

 

Don’t question the probity of the BLS.

 

Revisions are part of the normal process used to gauge job gains and losses in the U.S.

 

Over the prior 10 years, absolute benchmark revisions have averaged 0.1 percent, with a range from < 0.05 percent to 0.3 percent. Benchmark revisions are a standard part of the payroll survey estimation process. The benchmark adjustment represents a once-a-year re-anchoring, based on March data, of sample-based employment estimates to full population counts available through Unemployment Insurance (UI) tax records filed by nearly all employers with State Workforce Agencies.

 

The next benchmark revision comes out in two months.

 

Here are the latest jobs numbers from the Bureau of Labor Statistics.

 

2025          594,000

2024      2,230,000

2023     2,700,000

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.

 

The economy has only added 93 thousand jobs since April (8 months).

 

This brings the monthly average change in nonfarm payrolls to a decrease of 22,000 compared to increases of 111,000 in the first quarter, 55, 000 in the second quarter, and 51,000 in the third quarter. Some of the weakness in the fourth quarter can be attributed to the government shutdown which encompassed October and the first days of November. However, even allowing for that, hiring continues its downward trend.

 

Minutes from the Federal Reserve’s December 9th and 10th meeting on monetary policy reflect divisions among committee participants as to the proper path of monetary policy to achieve the dual mandate for maximum employment and price stability.

 

The next meeting is January 27-28, 2026.

 

 

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OFF BASE

 

A three day weekend approaches!

 

The Federal Reserve has proscribed banks from being open on the following days:

 

Martin Luther King, Jr.'s Birthday January 19 

Washington's Birthday February 16 

Memorial Day May 25 

Juneteenth June 19 Independence Day Fourth of July 

Labor Day September 7 

Columbus Day October 12 

Thanksgiving November 26 

Christmas December 25