brouhaha
BROO-ha-ha, broo-ha-HA, broo-HA-ha
Noise, confusion,
and excitement, especially over something insignificant.
An alteration of
the Hebrew term barukh habba (welcome, literally, "blessed be the one who
comes").
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TIP OF THE WEEK
TIP OF THE WEEK
A brouhaha erupted
recently as the Small Business Administration becomes un-pervicacious with the
lender explicitly calculating a borrower’s ability to repay proposed loans of
$350,000 and less. Effective July 1st, SBA Information Notice
5000-1314 declares that the Small 7(a) loan credit scoring model satisfies the
requirement that the lender demonstrate the applicant’s ability to repay the
loan with earnings from the business. The credit score alone is enough.
Verifications of IRS income tax returns are still required however and if
anything in the lender’s financial analysis demonstrates that the Small Business
Applicant lacks reasonable assurance of repayment in a timely manner from the
cash flow of the business, the loan request must still be declined, regardless
of the collateral available or outside sources of
cash.
Another brouhaha
is also coming on franchise eligibility
determinations!
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Indices:
Indices:
PRIME
RATE= 3.25%
SBA
LIBOR Base Rate June 2014 = 3.15%
SBA
Fixed Base Rate June 2014 = 5.31%
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SBA 504 Loan Debenture Rate for June
SBA 504 Loan Debenture Rate for June
The
debenture rate is only 2.99% but note rate is 3.04% and the effective yield is
5.069%.
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AHEAD OF THE YIELD CURVE
AHEAD OF THE YIELD CURVE
No brouhaha is
expected once the Federal Reserve meets this week on interest
rates.
The last time the
Federal Open Market Committee met on monetary policy they said that they might
have to keep “the target federal funds rate below levels the Committee views as
normal in the longer run.”
So where then are
interest rates going?
Eurodollar futures
settle at a three- month lending rate that has averaged about 22 basis points
more than the Fed's target over the past 10
years.
Here is a summary
of what the market expects for Eurodollar futures based upon the pit-traded
prices at the Chicago Mercantile
Exchange:
DEC14-
0.29
DEC15-
1.01
DEC16-
2.10
DEC17-
2.90
DEC18-
3.41
DEC19-
3.78
DEC20-
4.04
What does all this
mean?
I don’t
know.
Traders are
betting the Federal Reserve won’t raise interest rates any time
soon.
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OFF BASE
OFF BASE
Where’s
the brouhaha over hurricane season?
The
eastern Pacific has never witnessed storms so strong so early. First, hurricane
Amanda became the strongest May hurricane in the eastern Pacific on record, when
its peak winds soared to 155 mph (high-end category 4 level) on May 25. Now,
just over two weeks later, the eastern Pacific has given birth to the powerhouse
hurricane Cristina whose maximum sustained winds also reached 155
mph!
Forecasters
have called for an active eastern Pacific hurricane season due to the
expectation of El Niño conditions which elevate ocean temperatures (in the
tropical Pacific).
The
lack of a brouhaha might all be in their names. People don’t take hurricanes as
seriously if they have a feminine name and the consequences are deadly, finds a
new groundbreaking study.
Female-named
storms have historically killed more because people neither consider them as
risky nor take the same precautions, the study published in the Proceedings of
the National Academy of Sciences concludes. Researchers at the University of Illinois and Arizona State
University
