Government May Loosen SBA Purse Strings April 1, 2013
“Borrowers, however, still must pass the ‘credit elsewhere’ test, which also uses personal assets to calculate if a borrower is likely to get a traditional loan not backed by the SBA, said Bob Coleman, editor of the Coleman Report, a La Canada-based SBA lending industry newsletter.”
S.B.A. Proposes Rule Changes to Lure Borrowers – NYTimes
March 11, 2013
But in fact, S.B.A. loans have been available to larger businesses since 2010, when the Small Business Jobs Act increased both loan limits as well as the size of businesses eligible for loans to include those with net income of $5 million. Under those new size standards, which are ostensibly temporary, even a business with $100 million in revenue and a 5-percent profit margin could obtain a small-business loan. As a result, said Bob Coleman, who collects S.B.A. industry data for banks, most of these larger companies can qualify for an S.B.A.-backed loan even after accounting for all of their affiliations. “That number-crunching, tree killing exercise” — establishing affiliates, that is — “is now moot,” he said.
Commercial short sale benefits for buyers
February 25, 2013
According to Mitch Fogel, a Boca Raton-based lawyer, a short sale is one in which the total of all encumbrances “exceeds the value at which the subject property is being sold.” Fogel was the presenter at a Dec. 18 webinar about commercial short sales. The program was produced and moderated by Bob Coleman of Coleman Publishing. Coleman is a provider of financial information and tools for the banking industry. Fogel noted that the encumbrances may include mortgages, tax liens, assessment liens, special claims blocking transfer of title, and judgments.
Mini Loans in U.S. Feed Bigger Ambitions
February 19, 2013
Generally, many large banks in the U.S. are turning away from small-business loans, preferring instead to issue business credit cards to small-business owners, according to Bob Coleman of Coleman Publishing, a website and weekly newsletter about small-business finance.
SBA MUST BE RECKONED WITH DURING A SHORT SALE
January 14, 2013
SCORE counselor and small business journalist Jerry Chautin gives a nice SBA Short Sale 101 in his column today. SBA niche practice attorney Mitch Fogel and I even get a nod in his article. “The 504 program grants SBA a one-year right of redemption to purchase the property. And if property values continue to rise in Southwest Florida, it is conceivable SBA might try to recapture some of its losses by exercising their redemption rights later on.
End of SBA 504 constricts lending further September 27, 2012
With some lenders tightening the screws on lending, SBA has
proven to be a popular financing alternative for hotels. In the
two years the temporary refinancing option was in effect, 504
loan volume increased, according to Bob Coleman, keep
reading |
Mini Loans Feed Bigger Ambitions – WSJ September 12, 2012
 Generally,
many large banks in the U.S. are turning away from
small-business loans, preferring instead to issue business
credit cards to small-business owners, according to Bob Coleman
of Coleman Publishing, a website and weekly newsletter about
small-business finance. Little data exist on the lending
practices of nonprofit and for-profit U.S. microlenders, but
bankers say the business is expanding. The U.S. microlending
marketplace generally is slightly different from that in other
countries, where peer lending is more common and where loans can
be very tiny, sometimes just hundreds of dollars or less. . . . keep
reading |
The Tools You Need to Underwrite Franchise Loans
SCORE counselor and small business journalist Jerry Chautin
writes today about how franchising can be less risky for
lenders, only when they utilize all the financial analysis tools
available to them. It’s a Franchise Lending 101 article, but
there’s a quick checklist to make sure you are touching all the
bases; . . . keep
reading |
The key to financing is in your own backyard – May 10, 2012
 But
the benefits of community involvement are not limited to the
attorneys among you. As Bob Coleman tried to explain during a
brief financing overview at last week’s Asian American Hotel
Investment Conference, it’s also crucial for hoteliers (or
would-be hoteliers) seeking financing. Don’t scoff. Coleman
knows what he’s talking about. As editor of the Coleman Report,
an author, a former banker and as a guest on both Fox Business
News and CNN (as well as a HotelNewsNow.com columnist), he’s
considered an expert in the realm of hotel financing. . . . keep
reading |
No Sweat: Event Highlights Power of Small Business
 Responding
to calls to downsize the SBA to trim the nation’s budget
deficit, financial pundits Bob Coleman, editor of the Coleman
Report, and Chris Hurn, co-founder and CEO of Mercantile
Capital, wrote in HotelNewsNow.com: “Efforts to end programs
like these lack any foundation of sensibility. It’s the
equivalent of trying to lose weight by cutting your hair.”
Caldeira talked about the benefits of franchising with CEO
Plank. Nodding his head, Plank said, “We’re still working on
getting the model right.” . . . keep
reading |
The key to financing is in your own backyard
 But
the benefits of community involvement are not limited to the
attorneys among you. As Bob Coleman tried to explain during a
brief financing overview at last week’s Asian American Hotel
Investment Conference, it’s also crucial for hoteliers (or
would-be hoteliers) seeking financing. Don’t scoff. Coleman
knows what he’s talking about. As editor of the Coleman Report,
an author, a former banker and as a guest on both Fox Business
News and CNN (as well as a HotelNewsNow.com columnist), he’s
considered an expert in the realm of hotel financing. So during
his presentation, when he could have discussed government policy
and interest rates and underwriting, attendee interest was
piqued when he instead focused on the importance of getting
involved. “Who is lending today are the community banks,” he
said. “… Community bankers are not tied to the financial matrix
that the large banks are. Their mission is to support the
community and revive the community.” . . . keep
reading |
Recession a Hurdle for Small-business Owners Seeking Credit to
Operate
 A
lending index by Paynet, which tracks commercial loans, shows
small-business lending nationwide has not picked up since the
financial crisis began in late 2008. The Chicago area firm’s
index peaked in fourth-quarter 2008 at 115 as the financial
crisis hit and then dropped to 75 by first-quarter 2010. Since
then, it has fluctuated between 70 and 75. “Lending is beginning
to loosen up a bit, but people have to remember how bad it was
in 2009,” said Bob Coleman, editor of the Coleman Report, a La
Canada, Calif.-based publication that tracks SBA loans. “Lenders
say they don’t have enough good-quality applicants, and Main
Street says there aren’t enough lenders providing small-business
loans,” he said. “Is that a supply problem or a demand problem?”
. . . keep
reading |
Hotel Financing Picture Reveals Optimism – March 13, 2012
 There
is a tremendous amount of optimism in the hotel industry in
2012, a far cry from the scary numbers and grim predictions at
the beginning of 2011. It is a very cyclical business; in March
2010, we saw the first increase over the year before in terms of
occupancy, average daily rates, and revenue per available room.
Since then, there have been 20 consecutive months where there
has been RevPAR growth over the same month the previous year.
That is a great indicator that occupancy has stabilized, demand
is coming back, and the threat of overbuilding the new supply
coming into the industry is slight. . . . keep
reading |
SBA Seeks More Money in 2013 for Fewer Loans – Entrepreneur –
February 15, 2012
 Small-business
lending expert Bob Coleman, founder of Coleman Publishing, says
that the lower loan caps are due, in part, to expiration of
stimulus measures that temporarily increased the amount of a
loan that the government would guarantee and decreased the fees,
making SBA loans attractive to both lenders and borrowers. “They
are going back to pre-stimulus numbers,” said Coleman. The newly
stated levels “should be sufficient to meet the demand for the
industry.” Also, while the SBA was given permission by Congress
to support $17.5 billion in 7(a) loans and $7.5 billion worth of
504 loans last year, it was only given enough money to back
$16.5 billion in 7(a) loans and $6.5 billion in 504 loans. The
SBA feels that it will still have plenty of room to meet the
demand for loans with its shrunken authority levels. . . . keep
reading |
Commercial Mortgage Bankers Are Doing Deals As the Real Estate
Market Breathes New Signs of Life – February 1, 2012
 “Values
have probably bottomed out, or very close, on the commercial
(properties) side,” says Bob Coleman, a former banker and
financial publisher of the Coleman Report. He also publishes
underwriting data for the banking industry. Coleman says that
the bottoming out of values are “giving entrepreneurs with
access to cash tremendous buying opportunities.” He recently
authored, Money, Money Everywhere But Not a Drop For Main
Street. “Deals are being done,” he says “but with increased
equity injections.” In other words, to do a deal in today’s
environment investors and developers have to bring lots of cash
to the table. That is why the MBA convention includes a session
called, “Commercial Real Estate Equity Markets – Who’s in the
game?” . . . keep
reading |
SBA Lending in 2012 Gets a Haircut
 October
7, 2011
Not only are the enticements of yesteryear long gone, the SBA’s
budget for 2012 is offering to support fewer of its most popular
7(a) loans. The agency plans to offer $130 million to subsidize
the support of $16.5 billion in 7(a) loans. Last year, it
devoted $165.4 million to support $17.5 billion in 7(a) lending.
“If more money was available, it would allow more businesses to
borrow through the SBA program,” says Bob Coleman, editor of the
Coleman Report, a trade newsletter for the small-business
banking industry. By contrast, less money to go around may mean
that fewer businesses will be able to land a loan, he says.
What’s more, less money to support SBA loans may have a chilling
effect among banks. Two weeks ago, Vice President Joe Biden and
SBA Administrator Karen Mills announced small-business loan
commitments from 13 of the nation’s biggest lenders that tallied
at $20 billion over the next three years. But Coleman points out
that without a guarantee — that is, if the SBA ran out of
funding for its loan programs — banks won’t be as motivated to
make small-business loans. . . . keep
reading |
Small-Business Lending Jumps, But Credit Struggles Linger
 October
5, 2011
Last October, the SBA expanded the pool of eligible small
businesses by raising the loan amounts it would back to a
maximum of $5 million from $2 million. But that larger pool made
smaller loans less attractive to banks. As larger and stronger
businesses applied for the higher loan amounts, some smaller
businesses were left behind. It takes as much work for a bank to
underwrite small loan as a large loan, says Bob Coleman, an
SBA-loan analyst in La Canada, Calif., and owner of Coleman
Publishing, a trade publisher for SBA lenders. “The amount of
man hours they need to put into the analysis and documentation
— they are losing money on that process,” he says. “Banks are
chartered to make money and if I can only do four deals a month,
I’d rather work on deals that can make a larger profit.” . . . keep
reading |
Lender “Screws Up,” Others Can Learn From Its Mistakes
 August
17, 2011
Motivated by the Banco Popular brouhaha, Charles Green presented
a lenders’ webinar called, “How to analyze borrower projections
to ensure the validity of your SBA Guaranty.” Coleman
Publishing, a financial media company sponsored the August 3
webinar. . . . keep
reading |
Small Businesses go to the Pawn Shop for Short-Term Loans
 August
2, 2011
Check out this great CNNMoney article on small business owners
being the largest customers for pawn shops.
No other options: Some business owners turn to pawning their
valuables because they have no other option. “We have lost a
trillion in credit card lines. We have lost a trillion in home
equity lines. And those are — or were — the two primary
sources of financing,” said Bob Coleman, editor of the small
business lending industry publication, “Coleman Report.” “There
are different things that are filling that void until banks ramp
up.” . . . keep
reading |
Do Your Homework Before Applying for SBA Loans
 July
25, 2011
Even though the recession has been officially over for some
time, getting a small-business loan hasn’t gotten any easier. In
fact, fewer loans backed by the federal Small Business
Administration were made during the first half of this year than
during the same period in 2010. . . .keep
reading |
Is Your Character Good Enough to Lend to?
 July
25, 2011
Earlier this year, I wrote several columns explaining the five
Cs of credit. Lenders use them to approve or reject
business-loan applications. Character is the first C and,
according to Bob Coleman, it has become more important than the
other four in today’s financial environment. Coleman is a
financial publisher, former business lender and recently
released his new book “Money, Money, Everywhere But Not a Drop
for Main Street.” . . . keep
reading |
Less Risky Franchises Attract Lenders
 July
12, 2011
We remain skeptical of the notion that franchise businesses are
any safer than non-franchised businesses, but some recent
evidence does suggest that banks, at least, think franchises are
less risky. And, when the loans do get made, they’re more likely
to get repaid. At least if the business is a restaurant. . . . keep
reading |
Supervisory Insights – Advancing the Practice of Bank
Supervision
 June
23, 2011
In the wake of financial crisis, community banks are looking for
ways to stabilize and increase revenue and expand lending
opportunities to small business to help reinvigorate local
economies. As a result, interest in Small Business
Administration (SBA) lending programs is growing. Created in
1953, the SBA provides support to small businesses through
entrepreneurial development, government contracting, advocacy,
and access to capital. . . . keep
reading |
For Borrowers, Vermont Stacks Up – WSJ
 June
22, 2011
Need a small-business loan? Your chances of securing one may be
better if you live in a state where fellow borrowers pay their
bills on time. That’s according to Bob Coleman, an analyst in La
Canada, Calif., who regularly compiles data on Small Business
Administration loans. He recently examined the default rates of
SBA loans in all 50 states, speculating that would-be borrowers
might have an easier time if banks in that state aren’t
grappling with delinquent payers. His conclusion: Vermont may be
the best place to find a small-business loan, while Florida may
be the worst. . . . keep
reading |
Lending World has Changed for Small Businesses
 March
20, 2011
Bob Coleman says the national recession coupled with stricter
enforcement of banking regulations has produced a much tighter
loan market for small businesses. “I want people to understand
how the world has changed for small-business bankers, and what
small-business owners can do to help their loan application
process,” said Coleman, 56, editor and writer of the
California-based Coleman Report, a newsletter for small-business
lenders. He was a small-business banker in California for years
before starting his newsletter in 1993.
. . . keep
reading |
How to Approach Lenders Now
 March
10, 2011
CIT, an arm of commercial finance company CIT Group Inc. and
once the No. 1 small-business lender by volume, is itself a
survivor. CIT Group sought and emerged from Chapter 11
bankruptcy protection in 2009. Known for its asset-based
lending, loans to franchisees and factoring services for
manufacturers, it still provides those services, but at a much
lower volume. CIT wrote $82.5 million in SBA 7(a) loans in 2010,
down from $771 million in 2008, according to the Coleman Report,
a newsletter for SBA lenders.
. . . keep
reading |
CIT’s Chris Reilly to Entrepreneurs: “Tell Your Survival Story”
 March
8, 2011
Tell your survival story. That’s the advice to entrepreneurs
seeking loans from the head of a leader in small-business
lending. “I like to say that if there were four dry cleaners in
your town, and now there are two, those are the two that never
ruined people’s shirts,” says Chris Reilly, president of CIT
Small Business Lending, a Small Business Administration-approved
lender based in Livingston, N.J. “There’s a natural selection
process that’s happened over the past two years. The survivors
are the companies that had a better business and better owners.”
Chris Reilly, president of CIT Small Business Lending. . . . keep
reading |
Summit to bring lenders together
 March
6, 2011
Bob Coleman, small-business expert and founder-publisher of
Coleman Report, a trade newsletter on small-business lending,
will be the keynote luncheon speaker. As an expert in small
business and lending, Coleman has been featured in USA Today,
WSJ.com, the New York Times and Fox Business television shows,
and many other media outlets. In a recent national television
interview, he reported that “the economic recovery will come
from small business and that’s where the jobs will be created.”
. . . keep
reading |
Jobs Act Loan Subsidy Runs Out, SBA Queue Forms
 January
4, 2011
Bob Coleman, editor at Coleman Publishing, says that whether a
small business enters the queue or applies for other, non-Jobs
Act loans depends on the opportunity cost to that business. The
90 percent government guarantee “is a great mitigator for the
banks,” Coleman said. The return to the SBA’s standard fees and
guarantees now means banks are responsible for a quarter of the
amount borrowed, reducing the incentive for lenders to make the
loans and consequently reducing the supply of money available to
small businesses, Coleman said.
. . . keep
reading |
Small Companies Finally Get Some Credit from Banks
 November
29, 2010
“It’s nice to see SBA lending up. It is the one bright spot in
the problems that small business has had in getting access to
capital,” said industry analyst Bob Coleman, who runs Coleman
Report, an independent publication examining small-business
lending. . . . keep
reading |
The Road Taken – An inside look at a SIPA member, the choices he
or she has made on the road to success, and the challenges
ahead.
 September
27, 2010
SIPA: What was your first job out of college and how did you get
into this business?
COLEMAN: Management trainee position with a West Coast bank.
After a few twists and turns, I became a small business lender.
It was in Hollywood that I became aware of the newsletter
industry. People come together for a project, then disband.
There are a number of vehicles and opportunities that allow
people to network and to stay in tune with various industry
niches. My “ah ha” moment came when I needed some information
and asked around for the small business lending “industry”
newsletter. It didn’t exist. Thinking it would be easy and
romantic to write for a living, I quit my job and started
working from the kitchen table. . . . keep
reading |
Small Business Conference Set In Maine
 August
30, 2010 The conference has a guest list of about 350. Gov. John
Baldacci and other government officials, Tom’s of Maine founder
Tom Chappell and Bob Coleman, founder and publisher of Coleman
Publishing, are also among those attending.
. . . keep
reading |
Small businesses hold off spending while waiting for aid
 August
30, 2010
Many other businesses have paused expansion as they wait for the
outcome of the bill, says Bob Coleman, publisher of the Coleman
Report, which provides information on small-business lending.Some businesses can save thousands of dollars on the waived
loan-fee provision alone, and they are thinking, ” ‘I might as
well hold off and save the money,’ ” he says. . . . keep
reading |
Bill to help small businesses could put banks at risk
 July
28, 2010
People in favor of the bill says those kinds of fears are
overblown. Bob Coleman is editor of a trade newsletter that
reports on small business loans. He says banks are in the
business of figuring out who they should and shouldn’t lend to.
BOB COLEMAN: They understand there’s a risk, but they’re in the
job of mitigating risk. The bill, which is part of a bigger
package of aid for small businesses, could get voted on this
week. . . . keep
reading |
As Lending To Small Businesses Plummets, Bernanke Implores Banks
To Do More
 July
14, 2010
Coleman blames the economy for the lack of available loans,
pointing to near-double-digit unemployment and the lack of
demand for goods that’s causing businesses and banks to hold
back. Coleman also said uncertainty over new regulations — like
those businesses will face as part of the recently-enacted
health care law — has made some think twice about borrowing.
. . . keep
reading |
S.B.A. Lending Plunged in June
 July
12, 2010
According to industry consultant Coleman Publishing, in the
first half of the S.B.A.’s 2010 fiscal year (which began in
October 2009), First Intercontinental made nearly $28 million in
loans, making it the 45th largest S.B.A. lender by dollar
volume.
. . . keep
reading |
More Lending to Small Businesses
 July
12, 2010
Bob Coleman publishes a trade newsletter on small-business
lending. He says it’s really the slightly bigger than
mom-and-pop shops that are having the most trouble borrowing.
. . . keep
reading |
JPMorgan Cuts Rates to Small Businesses that Hire
 June
29, 2010
JPMorgan’s average rate on a small-business loan is about 6
percent, a spokesman said. The average rate on a small-business
loan across U.S. banks is about 5.5 percent, estimated Bob
Coleman, author of the Coleman Report on loans backed by the
Small Business Association.
New York
. . . keep
reading |
Obama wants $30B to boost small biz
 February
2, 2010
Bob Coleman, who publishes a newsletter on small-business
borrowing, says the president’s plan will surely help.
BOB COLEMAN: $30 billion with a “b” is certainly a positive
development for the entrepreneur on Main Street. That
entrepreneur needs the local community bank to meet payroll, to
fund their working capital to pay their vendors.
But Coleman says, even with $30 billion in new government
capital and financial incentives for banks, it may still be hard
for a cash-starved small business to land a loan. After a lousy
year, many of them don’t look credit-worthy on paper.
COLEMAN: That small business person walks into the bank, and
first of all, revenues have decreased, and most likely
profitability, if there is any at all. Bankers are risk-averse.
. . . keep
reading |
Consumer Reporter Clark Howard- TV Coverage of the Coleman
Report with Video Clip (2:30)
 June
14, 2010
It’s been a tough decade for small business owners. Since 2001,
17 percent of franchise owners have closed their doors. If you
are considering a franchise, how do you pick a winner? Gary
Pipcorn was laid off about 10 months ago, and he was looking for
a new opportunity. “I’ve done several start-ups before,” Gary
said, “But they’ve always been for somebody else, and this time
I’d like to do a start-up on my own.” But how do you tell if
your franchise will be a success? One way banks decide whether
to give you a loan: The Coleman Report. . .
Atlanta, Georgia
. . . keep
reading |
You Can Take Advantage of Your “Expert” Status in Many Ways
 June
6, 2010
“The thing about being a specialized publisher is that you’re on
the front line. You’re someone who has been in the field for a
long time. It’s an outlook no one else can have. Whereas an
industry newsletter can see the trend, a specialized publisher
will see trends even better.” Bob Coleman, a specialized
publisher, does a Small Business Lender Internet Radio Show on
his Website with sponsors.
. . . keep
reading |
Financing Programs Aim to Help Franchisees
 April
29, 2010
Before the recession, too-lenient franchisers sometimes funneled
weak candidates through the start-up process, says Bob Coleman,
who collects data on loans backed by the Small Business
Administration. According to a preliminary report compiled on
loans from the government’s last fiscal year, some franchises
had loss rates as high as 27%. As a result, “banks today look at
the performance of the franchiser,” he says.
. . . keep
reading |
Credit Freeze Will Thaw in 2010
 February
6, 2010
Look for lending to smalls to rise about 10% this year, says Bob
Coleman, a small business lending expert. The free flow won’t
start until late in the year, when banks and companies are more
confident of growth. That, in turn, will help spur the economy.
. . . keep
reading |
SBA-Backed Loans Are Bright Spot in Gloomy Climate
 February
4, 2010
SBA-backed loans in the past have made up only a small portion
of overall small-business loans–around 7% to 8% according to
the SBA’s estimations, and as little as 1% by other counts.
But thanks to stimulus-related measures, SBA loans this year
could be “pushing 10% to 15%,” according to industry expert Bob
Coleman, who keeps a pulse on SBA lending through his
independent publication, the Coleman Report.
. . . keep
reading |
For many, SBA loans never looked so good
 January
24, 2010
Bob Coleman, editor of a newsletter on small business lending,
said the SBA has historically funded all or most of its
guarantee obligations through its fees.
The fee waiver funded by stimulus dollars means taxpayers will
take a hit, but Coleman said that may be worth the cost.
“The dollars are minuscule compared with the benefit to
taxpayers in (preserved) jobs and tax revenues,” said Coleman,
editor of Coleman Publishing in La Canada, Calif.
. . . keep
reading |
A Jump Start for Stalled Small Business Lenders
 January
8, 2010
Nationwide, 257 lenders that made 504 loans in the 12 months
before Sept. 30, 2008, dropped out of the program the following
year, a decline of 13%, according to the SBA. Loan volume
dropped 28%, from $5.4 billion to $3.9 billion, in the same
period. “If the bank wants to make these loans, they have to
hold them on the books,” says Bob Coleman, publisher of the
Coleman Report newsletter on SBA lending.
. . . keep
reading |
Start-Ups Will Keep Struggling in 2010
 January
5, 2010
As for Small Business Administration-guaranteed loans or
conventional bank loans, the best thing about 2010 is that it
won’t be 2009, says Bob Coleman, publisher of “The Coleman
Report,” a La Canada, Calif., trade publication for SBA lenders.
“We’re better off than where we were 12 months ago, but we are
nowhere near where we were two years ago,” he says.
The SBA approved less than 45,000 loans for the 12 months ended
Sept. 30, down 36% from a year earlier. Total volume for its
flagship 7(a) loan was $9.3 billion, off year-ago levels by $3.4
billion.
Stimulus-related measures, however, contributed to an uptick in
SBA lending in recent months. Mr. Coleman expects that trend to
continue for 2010.
But SBA loans make up only about 1% of overall small-business
lending, Mr. Coleman estimates. That figure may grow to 5% to
10% in 2010 as the government provides more incentives for
financial institutions, especially community banks, to provide
financing to small businesses, he says.
. . . keep
reading |
Out of the Bunker for 2010
 January
2010
The news isn’t as good on the loans front. According to Bob
Coleman, who analyzes SBA lending, 2010 should be better for
government-backed loans, but lending will not return to
pre-recession levels for several years. To put it in
perspective: There were 43 percent more SBA loans going into
default in 2008 than the year before, according to the Coleman
Report, including 13 percent of all franchise loans. In 2009,
SBA lending was off by at least 35 percent.
Naturally, entrepreneurs also need to be aware that the
recession has completely remapped franchise financing. “In the
past, there were 10 or 12 big national lenders that would
finance franchises anywhere in the country,” Coleman says. “Now
you have to go through a community or regional bank. The
national lenders aren’t out there.”
. . . keep
reading |
Small firms still facing hurdles in borrowing
 December
16, 2009
Bob Coleman, publisher of Small Business Lending News in La
Cañada, adds that for small to midsized lenders, another problem
is that many SBA loans are secured by commercial property. Now
that commercial property prices are plummeting, the value of the
collateral has dropped, drawing the scrutiny of the regulators.
“If a bank extends a $750,000 loan based on the value of the
property being used as collateral and then the value of the
property drops to $650,000, the regulators are going to tell the
banks they need more capital to cover that loan,” Coleman said.
But Coleman added that those problems are generally associated
with regional or community lenders, not the big banks that have
been generating profits with the help of federal stimulus
dollars.
. . . keep
reading |
Superior Financial Group Emerges as Nation’s Top SBA Lender
 December
2, 2009
Superior Financial Group, a small, independent operation located
in Suburban Walnut Creek, CA, produced 2,690 SBA (7a) loans
totaling $27.1 million to entrepreneurs during SBA’s fiscal year
running October 1, 2008 to September 30, 2009. “This independent
lender was able to outperform the larger, more established Banks
by providing financial products to meet the needs of Main Street
businesses providing capital and training to expand their
business and hire new employees. In doing so, SFG has become the
top SBA lender in the country,” stated Bob Coleman, Founder of
Coleman publishing. “This really is a story of David and
Goliath,” he added.
. . . keep
reading |
BBVA Compass ranked third for SBA lending
 November
23, 2009
The Birmingham-based bank received third place for doling out a
hefty amount of loans backed by the Small Business
Administration, according to the recently released Coleman
Report 500, which provides information for SBA lenders.
. . . keep
reading |
Can Treasury, SBA help small business?
 November
18, 2009
The stimulus package passed by Congress made it easier for banks
to make SBA loans and waived fees to borrowers. And that helped
a lot, says Bob Coleman, who puts out a report on small-business
lending.
. . . keep
reading |
As others lie low, Cincinnati’s Quadrant boosts loans by 38
percent
 October
30, 2009
Quadrant Financial Inc. boosted its lending volume by a whopping
38 percent in the first nine months of the fiscal year ended in
September. Its affiliated banking company finished the fiscal
year as the nation’s 28th-largest SBA lender by dollar volume,
with $47 million in SBA loans, according to Bob Coleman of trade
publication The Coleman Report.
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Small Businesses Could Face New Credit Squeeze
 October
30, 2009
“We’re entering into an era of uncertainty,” says Bob Coleman,
founder of Coleman Publishing, a firm in La Canada, Calif. that
tracks and reports government-guaranteed lending activity.
Previous government programs, including last summer’s
emergency-loan ARC program, have taken time to ramp up, as banks
must evaluate the rules and — if they decide to participate —
prepare their internal systems to support it. Even if Mr.
Obama’s plan successfully launches by year’s end, there could be
a dip in SBA lending for weeks or months until risk-averse banks
engage, Mr. Coleman says.”
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Focus on small business: Ridgestone tosses a lifeline of loans
 October
19, 2009
The stimulus programs lowered the risk for lenders, said Bob
Coleman, editor of Coleman SBA Lender Daily, a La Canada,
Calif.-based newsletter for small-business lenders. “For the
lender to say ‘yes,’ now they are only taking a 10 percent risk
as opposed to a 25 percent risk.”
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Status Report: Small-Business Lending
 September
19, 2009
Firms holding their expansion plans in check may have a good
reason, says Bob Coleman, a small business banking analyst in La
Canada, Calif. “We’re still in a recession,” he says. “We’re not
talking Armageddon here, but it will [likely] remain tough for
businesses to get loans,” says Coleman.
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S.B.A. Lending Is Rising, But What Happens When the Stimulus
Runs Out?
 September
14, 2009
Industry analysts and players give much of the credit to the
American Recovery and Reinvestment Act of 2009. Sure it gave us
the ARC loan program, but it also contained two important
provisions that stimulated government guaranteed lending.
Crucially, it bolstered the guaranty in the agency’s flagship
7(a) loan to 90 percent, from, depending on the size of the
loan, 75 or 85 percent. On a million-dollar loan, for example,
the higher guaranty reduces the bank’s exposure by $150,000,
says Bob Coleman, an industry analyst.
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A market that healed itself
 August
28, 2009
“The current investor community is different than few years ago,
when foreign investors represented a large portion of the buyers
of SBA pools,” said Chris Laporte, chairman of Coastal Financial
Holdings, at a conference on TALF held last week by trade
publisher Coleman Publishing.”
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SBA’s “Rescue” Loans Have Big Problems
 July
27, 2009
In a Twitter communiqu online, Bob Coleman, publisher of the
Coleman Report, wrote, “ARC is a bust. SBA has only approved 139
loans for $4.6 million in the first 2 weeks. Go another way.”
His follow-up tweet says, “Good CNN article about SBA ARC Loans
http://tr.im/qlw3.”
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Some Small Business Still Struggle to Get Financing
 July
22, 2009
SBA 7(a) lending for the fiscal third quarter ended in June
dropped 38% by volume and 50% by number of loans compared with
the same quarter last year, according to the Coleman Report,
which provides information on small-business lending.
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CIT Group Strikes Deal with Creditors to Avoid Bankruptcy
 July
21, 2009
The Coleman Report, an industry publication, said last week that
CIT’s originations of government-guaranteed small-business loans
in the past nine months fell 88 percent from the corresponding
period a year earlier. The total volume, $66 million, dropped
the company from its position as the nation’s largest
small-business lender for the first time in nine years.
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CIT $3-B Rescue May Not Provide Cure
 July
21, 2009
In the quarter ended on June, CIT’s loans to small businesses
plunged 88 percent to $65.7 million and the company fell to 15th
in the category from first a year earlier, according to the La
Canada, California-based Coleman Report.
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Wells Fargo Wins Small-Business Customers From CIT (Update 1)
 July
20, 2009
Wells Fargo & Co., the biggest bank on the U.S. West Coast,
gained small-business customers in the quarter that ended in
June as CIT Group Inc. ran short on cash, according to the
Coleman Report. Wells Fargo’s lending to small businesses
increased 27 percent from a year earlier to $586.9 million,
while CIT’s plunged 88 percent to $65.7 million, Coleman said in
a report dated July 13 that was e-mailed today… “CIT will not
be a player in the industry until it solves its liquidity
problems — one way or another,” Coleman said. The Coleman
Report… provides weekly data on small business lending in the
U.S. The third-quarter report, issued according to the
government’s fiscal calendar, said lending fell 38 percent in
the period from a year earlier to $2.5 billion. Wells Fargo’s
market-share gains were helped by acquisition in January of
Wachovia Corp., which was the fourth-biggest small-business
lender last year, Coleman said.
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Alternatives to CIT Are Scarce, for Now
 July
17, 2009
Though 7(a) lending was up in the last quarter, that’s mainly
due to the more generous (and temporary) 90 percent guarantee
authorized by the February stimulus law, according to Bob
Coleman, the S.B.A. industry analyst who publishes the Coleman
Report. Nonetheless, Mr. Coleman sees a handful of banks gearing
up for additional 7(a) lending once the economy improves, most
notably Wells Fargo, now the largest lender by volume. Others to
watch are Live Oak Banking Corp. of Wilmington, N.C. (the
fifth-largest lender by volume), and Excel National Bank, of
Beverly Hills, Calif. (the 14th-largest).
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CIT Group’s Borrowers May Find No Shortage of Credit
 July
15, 2009
Defaults on loans from participants in the Small Business
Administration jumped to 3 percent of those provided in 2008
from 2.4 percent in 2007 and 1.5 percent in 2006, according to
March data from the Coleman Report in La Canada, California.
CIT’s small-business unit was the fifth-biggest SBA lender in
the first quarter, issuing $44.9 million in loans, the Coleman
Report said. Last year, CIT was the top small-business lender at
$771.4 million, according to the report, which projects CIT’s
volume for this year will drop by $591.8 million.
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CIT’s Troubles Are Small Business’s Troubles
 July
13, 2009
CIT had an unusual method for financing 25-year loans, according
to Bob Coleman, an industry analyst who publishes the Coleman
Report. It would sell the S.B.A.-guaranteed portion, or 75
percent of the loan, on the secondary market, and the proceeds
would finance much of the company’s new loans. To finance the
other 25 percent, CIT would borrow short-term money and
refinance it every three months. “They had a very good credit
rating, so they could borrow at low rates in the commercial
90-day paper market.” But when credit markets, including both
for short-term notes and pools of S.B.A.-guaranteed loans, froze
last fall, CIT couldn’t make new loans. Mr. Coleman does not
believe these problems figure greatly in CIT’s bigger liquidity
problems. In S.B.A. lending circles, CIT is regarded as having a
strong portfolio of loans. “You cannot be the No. 1 lender for
10 years in a row and have a sloppy portfolio,” he says. “They
weren’t doing some of the crazy things that other lenders would
do.”
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Lender Fears Force SBA Program into Slow Lane
 July
2, 2009
Coleman Publishing, which tracks SBA loan data and puts out a
daily newspaper on the subject, said Wednesday that unless
lending picked up, the funds allotted for the Arc program would
only be half disbursed at the current lending rate by the time
the program ends on Sept. 30, 2010.
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SBA Loans Start to Trickle
 June
28, 2009
And on Friday, Coleman Publishing reported, “In just two year’s
time, the U.S. Small Business Administration’s Patriot Express
Pilot Loan Initiative has supported more than $315 million in
loans to more than 3,750 veterans and their spouses who are
using the SBA-guaranteed funds to establish and expand their
small businesses. As a result of the American Recovery and
Reinvestment Act, which raised loan guarantees to 90 percent,
and eliminated fees temporarily, the number of Patriot Express
loans increased to record levels in April and May of 2009.”
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SBA Tweaks Rules of 504 Loan Program
 June
26, 2009
“Most are struggling and working overtime to figure out how to
be able to survive this economy,” says Bob Coleman, publisher of
the Coleman Report, a newsletter for SBA lenders.
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SBA Offers Aid to Cash-Strapped
 June
20, 2009
“The general consensus is that the lenders aren’t too excited
about it,” says Bob Coleman, publisher of “The Coleman Report,”
a La Canada, Calif.-based trade publication for SBA lenders.
“It’s a tremendous amount of paperwork.”
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Surprising Funding Source for the Fitness Industry
 June
10, 2009
This column includes some interesting figures, provided to me by
Bob Coleman, the founder of the “Coleman Report,” a newsletter
covering the U.S. SBA loan programs. Coleman also is a national
expert covering SBA lending programs and has worked for more
than 25 years in the SBA industry.
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The Lowdown on ARC Loans
 June
10, 2009
Bob Coleman who provides training and publishes reports for
participating SBA banks conducted a survey of bankers in which
some participants say they are scared to death to participate in
such a program.
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Business Closure Picture Incomplete for Gainesville
 April
18, 2009
Coleman, an expert on small businesses and publisher of the
financial newsletter The Coleman Report, said that small
business failure rates increased 154 percent from 2007 to 2008.
Of all the businesses that have received Small Business
Administration loans since 2001, nearly 12 percent have
defaulted. The default rate “spiked tremendously” in the past
two years, Coleman said…
“That is one of the reasons you have credit constriction at the
bank level for small businesses and restricting capital for Main
Street,” Coleman said. “Small business performance,
unfortunately, is indicative of the entire economic climate.”…
“All new employment is coming from small business right now,” he
said. “The buzz is that small business will be the leader in
taking us out of the recession.”…
“It’s tragic what’s happening in our local communities from that
standpoint,” he said. “The problem we have is while there will
be a recovery, and the banks will survive and Detroit will
survive, those people aren’t coming back to Main Street. That’s
the real tragedy for our communities.”
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Why Obama’Why Obama’s Small Biz Rescue Plan is Collapsing
 April
3, 2009
The most recent casualty is Community West Bank. In 2008, this
little California-based bank wrote 62 SBA loans for $25 million,
while expanding its reach to 20 states across the U.S. Earlier
this week, industry analyst Coleman reported that Community West
had changed its mind. By Wednesday, it had reduced its lending
footprint to the Rockies and west, and halved its staff.
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SBA Numbers: Declining loans? Whose de-fault is it?
 April,
2009
The default rate on SBA-backed loans given to franchisees has
more than quadrupled since 2004, according to information
prepared by the Coleman Report, a newsletter out of California
that tracks the SBA lending market. In 2004, the default rate
for franchisees was 3.1 percent. By 2008 it was 13.4 percent…
And Bob Coleman, publisher of the Coleman Report, stressed that
not too much should be read into the difference. He said that
the majority of franchise loans are in the 7(a) program, which
has a higher default rate than the 504 program, which is tied to
property. The default rates include numbers for both programs.
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Top Lenders Pull Plug on Small Biz Loans
 March
23, 2009
If current lending trends continue, only two of the top 30
lenders are projected to increase their loan volume this year,
according to Bob Coleman, the head of Coleman Publishing…
“Regulators are demanding that banks put more into their
reserves right now. The SBA is being nitpicky with the defaulted
loans, and lenders are finding it more difficult to get paid the
government guarantee,” he said…”Right now these loans aren’t
profitable,” Coleman said. “The stimulus hasn’t taken effect,
and it’s still months away from helping lenders. Some lenders
don’t think it’ll be effective – they don’t think it will be
strong enough by itself, that the economy also needs to turn
around.” With a sigh, he added: “I guess that’s where you get
the chicken-and-the-egg thing.”
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