On a vote of 57-41, the U.S. Senate defeated legislation that would have keep the increased guarantees and fee waivers in place for another year. While lending to small business has been difficult at best, the return to the old rules will mean even fewer deals get done, since the banks will have more risk.
For working capital (7a) loans less than $150,000, banks will receive an 85% guarantee and will charge a 2% fee on the guaranteed portion. From $150,001 to $700,000 the guarantee is 75% and the fee is 3%. Loans above that amount will be 75% guaranteed with a 3.5% fee.
For SBA Express loans, the cap is$350,000 with a 50% guarantee and a 2% fee.
Most banks will allow rolling these additional fees into the loan.
On a recent Tuesday, it was not a good day to be a millennial. They learned that, unlike any previous generation, they are entering their work life with an average of $22,000 of student loan debt. They were told by the HR chief of Intel that their liberal arts degrees (far and away the majority for them) are not valuable enough to stop the outsourcing of jobs offshore. One of their own, a 23 year old running a South Bay non-profit, described her struggles with debt and the bewildering number of jobs she’s held in the brief interval since graduation. All of this coming before Reid Hoffman, one of the founders of Linked In, declared that ‘…careers are dead’ and that they should expect to be employed as freelancers their entire working lives.
At a conference hosted by the Atlantic monthly, the National Journal and Allstate Insurance entitled “Millennials in the Next Economy” at UCLA, we learned some interesting facts about this generation who are 92 million strong. They are the most diverse generation ever: 40% are minorities. 28% are college graduates, making them the best educated (in terms of degrees, at least) of any previous generation, with 42% currently in school. 26% are seeking employment. Politicians should note that 72% are registered to vote and 39% believe the country is headed in the wrong direction.
But the one statistic that I found most interesting is, despite the economic collapse and the situation they find themselves in, 60% believe that they are in control of their own destinies, that their decisions will primarily decide the outcome of their lives.
Posted in News and Views
Tagged Allstate Insurance, Anderson School of Business, economy, employement, generation y, generations, jobs, Linked In, millennials, National Journal, Reid Hoffman, the Atlantic Monthly, UCLA, unemployment
This is probably the creepiest think I’ve seen in a while:
3-D Printing From Beyond the Grave: Household Items Made From Dead People | Fast Company.
SBA Proposes Higher Surety Bond Guarantees to Help Small Businesses Secure Larger Contracts in Disaster Areas
WASHINGTON – The U.S. Small Business Administration has proposed changes, including higher surety bond guarantee limits, that will help construction and service sector firms secure larger contracts for work in areas impacted by disasters.
The proposed changes, which were published as part of a Proposed Rule in The Federal Register on April 26, include:
- For a non-federal contract or order up to $5 million, a bond guarantee may be issued if the products will be manufactured or the services are performed in the disaster area.
- For a federal contract or order up to $5 million, the performance site can be outside the disaster area if the contract or order will directly assist the disaster recovery efforts.
- For a federal contract or order, the amount of the guarantee can be as much as $10 million at the request of the head of an agency that is involved in reconstruction efforts.
This is a totally uber groovy tool that allows you to visualize the economic impact of the recession in new and interesting ways. From foreclosures to how many Chrysler dealers are in danger of losing their franchises, Patchwork Nation will show you our economy in a whole new light.
Windows: Free utility Identity Finder scans your hard drive looking for sensitive information, like credit card numbers and passwords.
Cave Lion fashions a fantastic Billy Cat climbing shelf. It looks pretty easy to do too. Looks fun!
Petroleum was formed by the compression and heating of biomass over millennia. Chemical engineers at the University of Michigan hope to do it in minutes.They are applying heat and pressure on microalgae, exploring a method to create affordable biofuel that could replace fossil fuels. They also hope to use the byproducts of bio-oil production as feedstock for more biofuel.
In 2001, Matt Chasen’s mother wanted to send an antique dresser from Ohio to Texas, but was staggered when she received a $1,000 shipping quote — far more than the dresser was worth. Unable to find a cheaper option, she never sent it.
See how this prompted an entrepreneur to find his blue ocean business.
For a brand, nirvana is when your good name is so widely endorsed that it enters the language. “Pass the Kleenex.” “Google it.”
Forget secondhand smoke–the Environmental Working Group thinks we should be worried about “secondhand scents” from perfumes containing hidden chemicals.
A great reputation for safety doesn’t count for much if your car crashes during a demonstration of its crash-avoidance technology.