Bob Coleman Featured in Numerous Publications
Chip Mahan, First Internet Banker, Is Back With Tech-Enabled SBA Lender Live Oak Bank
By Amy Feldman
November 17, 2015
How does Live Oak do what it does with no branches, no tellers, and no customer service reps? Essentially, it combines the personal relationship of a small-town banker – using its own planes to visit prospective borrowers in person – and a high-tech backbone to make loans, even small ones, quickly and efficiently. “Live Oak has a different business model than any bank I’ve ever looked at in my years as an analyst,” says Diane Glossman, the former banking analyst who now sits on Live Oak’s board of directors.”They’re very smart and very focused. I’m a fan,” adds Bob Coleman, an industry expert and publisher of “The Coleman Report,” a trade publication for SBA lenders.
Bankmybiz extends from matchmaking into making loans
By Polo Rocha
October 28, 2015
With its shift to direct lending, Bankmybiz has joined a growing market of online lenders, which include Kabbage, Prosper and the Google Ventures-backed OnDeck Capital. But there’s plenty of room for Bankmybiz to grow, said Bob Coleman, editor of the Coleman Report newsletter, which tracks small business loans.
“The market is exploding, and we are not in a situation where we are in a bubble for small business lending,” Coleman said. “So the opportunity for those types of businesses can be very attractive.”
Do Fluctuations In The Stock Market Affect Main Street Small Business?
By Brock Blake
September 16, 2015
Bob Coleman: Long term stock market declines devestate Main Street. Consumers panic and keep their wallets and purses at home. How quickly we forget 2008 and 2009! The great recession devastated Main Street. Not Wall Street, General Motors, or AEI, who all got bailouts. Main Street did not. Every Main Street in every town had shuttered businesses that lost jobs, lost community tax revenues, and lost dreams.
Careless SBA Lending Tells Same Old Story
by Chris Hurn
June 30, 2015
Earlier this month, small business finance authority, Bob Coleman wrote about the excesses that lie in one dark corner of small business lending: 100% financing by some SBA 7(a) lenders. I often wonder how some lenders get away with this. U.S. taxpayers are unwisely put at risk with such reckless commercial lending – the equivalent of handing a 16-year-old your keys and a six-pack.
Banks open the spigots slowly
By Anne Field
January 15, 2015
Crain’s New York Business
Another reason for that interest at many banks is the ability to sell SBA-backed loans on the secondary market, where they are typically purchased by institutional investors and big banks. The market for such loans crashed in 2009, but it has since picked up again, according to Bob Coleman, editor of The Coleman Report, a newsletter for small-business bankers.
That was a big question at a conference on small business lending on Thursday at the Federal Reserve Bank of New York, where executives from high-cost alternative lenders mingled with bankers and regulators.
Bob Coleman, who edits the Coleman Report, a trade publication for small business lenders, put it to an executive from OnDeck, an online lender that charges annualized interest rates as high as 134 percent.
The top lenders for Main Street entrepreneurs March 14, 2014
How long small banks will have an appetite for SBA lending likely depends on the health of the secondary market, which stalled in 2009. “There were problems during the recession in the secondary market, but it has come back,” said Bob Coleman, editor of the “Coleman Report,” a trade newsletter for small-business bankers. “It is a very profitable lending product for some of these smaller lenders. If they do it right, they can make some money in it.”
Club business International – IHRSA Report February 2014
Bob Coleman, the founder of Coleman Publishing, an expert in SBA lending, observes that more than 6,000 SBA loans, totalling nearly $1.3 billion, in the Fitness and Recreational Sports Center category, were funded between 2001 and 2011: “This category is a very active one, which indicates that many SBA lenders are ready, willing, and able to fund SBA loans to qualified applicants.”
Will the Volcker Rule Help Small Business Lending? January 31, 2014
Not everyone is optimistic that the Volcker Rule will improve small business lending. In fact, some worry that it could hurt by imposing compliance burdens and taking market share away from regional and community banks that do much of the traditional lending to small business now. Trade groups that represent those small lenders are already pushing back against the compliance burden and have won some concessions. “Anything that negatively impacts community banks is bad for small business lending,” says Bob Coleman, editor of the Coleman Report, an online newsletter focused on the small business banking sector.
State of the Union Fact Check: Obama’s Rhetoric vs. Reality January 29, 2014
According to Bob Coleman, editor of The Coleman Report, when tracking the numbers back to 1997, Obama is right.
However, if we look purely at number of loans not dollars given, he is wrong. Between 2009 and 2013, President Obama’s been in office, a total of 235,700 loans have been approved. And looking at 2004-2008, the Bush years, 443,433 loans were given. One important point Coleman makes is to remember that the lenders who made these loans “lost their shirt and cut off their small loan program when the recession hit.”
Meet Maria Contreras-Sweet: An S.B.A. Nominee With Lending Experience January 17, 2014
In absolute terms, the bank is not a big participant in the S.B.A. loan guarantee programs that Ms. Contreras-Sweet will soon oversee, assuming she is confirmed. During the governments 2013 fiscal year, according to Bob Coleman, who collects S.B.A. industry data for banks, ProAmérica issued nine loans totaling $2.7 million in the S.B.A.’s flagship general business program, known as the 7(a) loan program. The bank issued five loans, amounting to $4.1 million, through the S.B.A.’s 504 loan program, which is geared toward real estate and capital investment. Mills, however, said that in the context of the bank’s portfolio, S.B.A. lending played a significant role, representing about 22 percent of its loan transactions. And in a column on his website, Mr. Coleman said that the bank had “turned in a very respectable performance” in managing its 7(a) loans — it has had to write off just four of 57 such loans issued since it opened. “Quality is better than quantity,” Mr. Coleman wrote. (The S.B.A. declined to provide any information about ProAmérica’s participation in the agency’s loan programs. The White House said it would not make Ms. Contreras-Sweet available for an interview before she was confirmed, and she did not respond to email sent to her address at the bank.)
Southwest Franchise Lending Spotlight Conference in Houston Connecting Growing Franchise Brands with Lenders January 21, 2014
In addition to the presentations by franchise brands to lenders, the conference will feature various speakers who will share their perspectives on franchise financing, including Manuel Gonzales, SBA District Director; Mary Jo Larson, publisher of Franchise Times; Bob Coleman, publisher of The Coleman Report; and Mike McGeehan, Client Partner of FICO.
How much cash flow is needed to get a loan? November 11, 2013
“In recent years, the SBA’s Inspector General has issued scathing audits criticizing several banks over their underwriting procedures for 7(a) loans, particularly to franchise businesses,” says Bob Coleman, author and publisher of the Coleman Report. “These failures prompted SBA to deny guarantee claims for dozens of failed loans due to poor lender performance of their basic duties to reasonably examine an applicant’s likely ability to repay their loan.”
SBA loans backlogged during shutdown
October 17, 2013
“One-hundred million dollars a day is not being funded, and that is a problem, because those loans are for acquisition of property and equipment, and expansion. All of those were put on hold, so that’s an issue,” said Bob Coleman, editor of the Coleman Report, which tracks the SBA lending industry. “Hospitality is very significant in SBA 7(a) and extremely significant for 504. I believe it’s the No. 1 industry code for 504 lending.” So the longer hoteliers have to wait, the longer their new projects aren’t getting done.
Few Borrowing Options for Small Businesses During Shutdown — CFO Magazine
October 14, 2013
But credit unions may not be able to supply enough long-term funding for many small businesses, says Bob Coleman, editor of Coleman Report, a small business lending newsletter. “A credit union is not going to do a $250,000 loan without a guarantee [from the government],” Coleman says. (Gentile, for his part, says they might — but it depends on the financial institution.) But credit union funding could be a stopgap for companies while the government is shut down, Coleman says.
Capitol Hill Showdown Shuts Down The SBA
October 1, 2013
Earlier this morning Charles Green, reporting for the industry newsletter Coleman Report, shared the results of a survey conducted by the Small Business Finance Institute and Coleman which asked SBA managers, business developers, underwriters, service providers, and others engaged in the SBA process to grade their 2013 performance; along with what they expect to see in 2014. Green suggests that lenders are bullish on the performance of the SBA to the tune of 61 percent indicating they were satisfied with program support and promotion by the SBA. A little better than half of them (58 percent) expect the U.S. economy to expand during 2014 and 39 percent anticipated they would be hiring people to facilitate small business loans in 2014.
Small Business Financing Is Available, Just Not Where You’re Looking
September 24, 2013
Last week I read an interesting piece Charles Green published on the Coleman Report referencing Pepperdine University’s quarterly Private Capital Access Index for the second quarter of 2013. The report suggests and Green points out that where many small business owners are looking for capital isn’t where they’re finding it. This is very consistent with what we observe at Lendio. Although where small businesses are looking for financing isn’t much of a surprise, where they’re finding the money they need might be.
SBA Chief Karen Mills Leaving With No Replacement Named
July 18, 2013
Many in the small-business community have expressed frustration with the White House for prolonging the new chief’s appointment. “There is no excuse for the administration’s inaction. Sadly, it appears the stated support for Main Street by the President during election was only pandering,” says Bob Coleman, the editor of the small-business-lending industry newsletter The Coleman Report. “It is ridiculous that the White House can’t find a qualified nominee after five months. There are a number of worthy candidates available from both the public and private sector.”
Dreams and Risk Converge at the Construction Site
July 15, 2013
In my column last week, I quoted Charles Green saying that new construction is the “riskiest sector of commercial lending.” He founded a community bank, authored “The SBA Loan Book” and “Get Financing Now,” and is the executive director at Small Business Finance Institute. He spoke at a recent business lending Webinar moderated by Bob Coleman, the chief executive of Coleman Publishing. Coleman asked, “Why do we care about what’s going on with construction lending in 2013 as opposed to 2008?”
With Affordable Care Act, do you win or lose?
July 8, 2013
When ACA is fully implemented, construction lenders have to pick winners and losers before the shovel goes into the ground and, in many cases, before the building is leased up. “The loan you make will be secured with collateral that’s not yet fully developed,” Green warns construction lenders who attended a recent webinar sponsored by Coleman Publishing. That means medical practitioners who easily qualified for conventional loans in the past might have to find a lender who specializes in U.S. Small Business Administration-backed financing.
Closing The Lending Gap In Franchising
Resources for Entrepreneurs
July 2, 2013
In the wake of the economic downturn, many entrepreneurs and franchisees have struggled to secure financing due to tightened lending restrictions and other factors. But according to a recent report by the Coleman Report, the National Association of Development Companies (NADCO) and the International Franchise Association (IFA), the volume and number of SBA loans made to franchises has jumped dramatically over the past twelve months. In 2012, franchises secured approximately 3,300 loans totaling $3.8 billion. This represents an annual increase of 34 percent in the number of SBA loans made to franchises and a significant 60 percent leap in dollar volume.
SBA Lending to Franchises Jumps 60 Percent According to New Industry Report
June 19, 2013
New York, NY – A new report released at the start of the International Franchise Expo in New York City shows that U.S. Small Business Administration (SBA) lending to franchising increased more than 60 percent over the previous year, shrinking a credit access gap that has been the focus of industry efforts since the financial crisis. The report, co-authored by the Coleman Report, the National Association of Development Companies (NADCO) and the International Franchise Association (IFA), showed that nearly 3,300 SBA loans went to franchises in 2012 for a total of over $3.8 billion, an increase of 34 percent in number of loans delivered and a 60 percent jump in dollar volume.
Still Waiting for Obama’s SBA Chief Nominee – Terra
May 26, 2013
The wait is frustrating to Bob Coleman, editor of the Coleman Report, a SBA-lending industry newsletter. “It’s embarrassing,” Coleman says. “The one issue that is bipartisan in Washington is small business. Both sides of the aisle played it up during the campaign, both sides of the aisle professed their support of small business, and here we have a situation where you have a vacancy in a very powerful, bully-pulpit position.”
SBA Loans on Upswing – CFO Magazine
May 6, 2013
“The economy is coming back and lenders have worked through their problems,” says Bob Coleman, editor of Coleman Report, a small business lending newsletter. “We’re a lot better off today than we were last year, two years ago and especially three years ago.”
Government May Loosen SBA Purse Strings – San Fernando Valley Business Journal
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.
Getting your products into Walmart has risks – Herald Tribune
February 25, 2013
Bob Coleman writes that “Walmart pays a hefty fee to the SBA for this honor” of connecting its brand with the federal agency. He wrote the book, “Money, Money Everywhere But Not a Drop for Main Street” and says that the SBA wants Walmart’s check and “certainly isn’t concerned about aligning itself with an entity that has contributed to an epidemic of small business failures.”
Commercial short sale benefits for buyers – Herald Tribune
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.
SBA must be reckoned with during a short sale – Herald Tribune
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 – Hotel News Now
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, editor of the Coleman Report, which tracks SBA lending.
Mini Loans Feed Bigger Ambitions – Wall St. Journal
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.
Franchising Is Safer for Lenders and Entrepreneurs When They Use the Right Tools to Make Better Choices – Huff Post Business
July 18, 2012
Franchises are a “pre-tested business model, (have an) operating plan and playbook with which to run the business,” Charles Green said at a webinar. He is the founder of the Small Business Finance Institute, an author and former chief executive of a community bank. Green presented an online program called, “What You Need to Know to Underwrite Franchise Loans.” Coleman Publishing produced the event for small-business lenders and franchise professionals.
No Sweat: Event Highlights Power of Small Business – IFA FranBlog
May 24, 2012
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.”
The key to financing is in your own backyard – Hotel News Now
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.
Hotel Financing Picture Reveals Optimism – Hotel News Now
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.
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.”
Commercial Mortgage Bankers Are Doing Deals As the Real Estate Market Breathes New Signs of Life – Huff Post Business
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.
SBA Lending in 2012 Gets a Haircut – Entrepreneur
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.
Small-Business Lending Jumps, But Credit Struggles Linger – Wall St. Journal
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.
Lender “Screws Up,” Others Can Learn From Its Mistakes – Huff Post Business
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.
Green, a former bank president, consultant and author says, “Bankers analyze business financial statements and compare the results with the annual financial statement studies compiled for each industry by the Risk Management Association.” With RMA as a baseline, “They also study how the business is trending and compare the financial statements year-over-year.”
Small Businesses go to the Pawn Shop for Short-Term Loans – CNNMoney
August 2, 2011
“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.”
Do Your Homework Before Applying for SBA Loans – LATimes
July 25, 2011
Bankers are also looking more closely at character, the first of the traditional five Cs of creditworthiness. The others are capacity, capital, collateral and conditions, said Bob Coleman, a small-business lending analyst whose latest book is “Money Money Everywhere but Not a Drop for Main Street.”
Is Your Character Good Enough to Lend to? – Herald Tribune
July 25, 2011
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.”
Less Risky Franchises Attract Lenders – Restaurant Finance Monitor
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.
Supervisory Insights – Advancing the Practice of Bank Supervision – FDIC
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.
For Borrowers, Vermont Stacks Up – Wall St. Journal
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.
Lending World has Changed for Small Businesses – El Paso Times
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.
How to Approach Lenders Now – CBS News
March 10, 2011
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. But in the first quarter of its 2011 fiscal year, which ended Dec. 31, CIT’s small-business arm had already approved more than $53 million in loans, according to the SBA.
While the climate for small-business lending isn’t what it was pre-recession, it’s better than it was a year ago, according to Reilly. Borrowers should be ready to talk with lenders about how they made the changes they did to help offset revenue losses and keep their doors open through the recession, she says.
CIT’s Chris Reilly to Entrepreneurs: “Tell Your Survival Story” – Reuters
March 8, 2011
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. But in the first quarter of its 2011 fiscal year, which ended Dec. 31, CIT’s small-business arm had already approved more than $53 million in loans, according to the SBA.
Jobs Act Loan Subsidy Runs Out, SBA Queue Forms – Chicago Small Business
January 4, 2011
Bob Coleman, editor at Coleman Publishing, which provides industry trade media for small business bankers, 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.
Small Companies Finally Get Some Credit from Banks – Los Angeles Business Journal
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.
The Road Taken – SIPA
September 27, 2010
An inside look at a SIPA member, the choices he or she has made on the road to success, and the challenges ahead.
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.
Small Business Conference Set In Maine – CBS News
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.
Small businesses hold off spending while waiting for aid – USAToday
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.
As Lending To Small Businesses Plummets, Bernanke Implores Banks To Do More – Huff Post Business
July 14, 2010
It’s hard to understand, though, what new information the Fed has learned over the past few months that hadn’t been known by experts for some time. Industry consultant Bob Coleman of Coleman Publishing said there hasn’t been much in the way of new information on the credit crunch. But Coleman said he hoped the summits have helped attract attention to the issue, and could prod Congress to pass a much-needed small business lending bill.
S.B.A. Lending Plunged in June – NYTimes
July 12, 2010
“This year we’ve really been concentrating on S.B.A. loans because the government guarantee is 90 percent. It’s good for the customer, and we’re protecting the bank as well,” said Jack Byun, executive vice president of First Intercontinental Bank, a community bank serving Atlanta’s northeast suburbs. 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. Once the 90 percent guarantee expired, Mr. Byun said, the bank approved “very few” loans.
More Lending to Small Businesses – Marketplace
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.
JPMorgan Cuts Rates to Small Businesses that Hire – Reuters
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.
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.
Consumer Reporter Clark Howard- Continued Coverage of the Coleman Report
June 14, 2010
“Best and Worst Franchises” List of franchises with some of the highest and lowest failure rates between 2000 and 2009 according to the Coleman Report.
Financing Programs Aim to Help Franchisees – Wall St. Journal
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.
Credit Freeze Will Thaw in 2010 – Kiplinger
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.
SBA-Backed Loans Are Bright Spot in Gloomy Climate – Wall St. Journal
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.
For many, SBA loans never looked so good – Arizon Daily Star
January 24, 2010
Because the SBA guarantees are based on lenders’ losses after they have pursued borrowers and liquidated available collateral, the SBA was on the hook for about 4.3 percent of the total loan amount nationally and about 3 percent in Arizona. 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.
A Jump Start for Stalled Small Business Lenders – BusinessWeek
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.
Start-Ups Will Keep Struggling in 2010 – Wall St. Journal
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. Still, getting the money may be a challenge. “Whether it’s an SBA loan or a conventional loan, you really have to be perceived as the ‘cream,'” Mr. Coleman says. Start-up entrepreneurs in particular will have to show they have a significant amount of their own savings in the venture, plus solid cash-flow projections, he says.
Small firms still facing hurdles in borrowing – Sign on San Diego
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.
Out of the Bunker for 2010 – Entrepreneur
December 15, 2009
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.
BBVA Compass ranked third for SBA lending – Birmingham Business Journal
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. According to the report, the bank boosted its SBA loan volume by 34 percent in 2009 – despite a significant 29 percent drop in total SBA loan volume within the fiscal year.
As others lie low, Cincinnati’s Quadrant boosts loans by 38 percent – Business Courier
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. That’s out of 2,600 banks. President George Vredeveld Jr. figured his firm was among the fastest-growing SBA lenders.
Small Businesses Could Face New Credit Squeeze – Wall St. Journal
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.
Focus on small business: Ridgestone tosses a lifeline of loans – Chicago Tribune
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.”
Wells Fargo SBA Lending is “Last Bank Left Standing” – CNNMoney
September 25, 2009
Given the retraction of a number of key lenders, Wells Fargo’s leap to the top is not a major surprise. “I don’t see anything shocking with Wells Fargo being number one,” says Bob Coleman, editor of the Coleman Report, which monitors small business lending trends.
Status Report: Small-Business Lending – Smart Money Small Business
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.
S.B.A. Lending Is Rising, But What Happens When the Stimulus Runs Out? – NYTimes
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.
A market that healed itself – CNNMoney
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. “They dropped out in ’07 to ’08 and they’ve not really come back. [What] started picking up in the first quarter of this year was a more diverse mix of buyers — a lot of domestic buyers, hedge funds, government buyers and others.”
SBA’s “Rescue” Loans Have Big Problems – Herald Tribune
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.”
Norwalk Furniture: The Factory That Refused to Die – BusinessWeek
July 23, 2009
“It’s very difficult for banks to embrace lending to smaller businesses,” says Robert Coleman, editor of the La Canada (Calif.)-based Coleman Report, which tracks small business loans.
CIT Tremors Force Sleeping-Bag Maker to Seek Cover (Update 2) – Bloomberg
July 22, 2009
Wells Fargo’s lending to small businesses in the second quarter increased 27 percent from a year earlier to $586.9 million, while CIT’s plunged 88 percent to $65.7 million, according to the Coleman Report. Wells Fargo was the quarter’s biggest lender to U.S. small businesses.
Some Small Business Still Struggle to Get Financing – USAToday
July 22, 2009
Today’s reports are gloomy, but there are bright spots on the lending front. From Feb. 17 to July 10, more than 700 lenders that had not made a 7(a) loan since October 2008 made such loans, according to the SBA. Yet the numbers remain down vs. last year. 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.
CIT Group Strikes Deal with Creditors to Avoid Bankruptcy – The Washington Post
July 21, 2009
Even if CIT survives, the company’s lending is in steep decline. 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.
CIT $3-B Rescue May Not Provide Cure – Business Mirror
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.
CIT Expects Loss of $1.5 Billion, May Seek Bankruptcy (Update2) – Bloomberg
July 21, 2009
The cash shortage has forced CIT to cut back its lending. In the quarter ended 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. CIT finances about 1 million businesses from Dunkin’ Brands Inc. to Eddie Bauer Holdings Inc.
Wells Fargo Wins Small-Business Customers From CIT (Update 1) – Bloomberg
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. Wells Fargo was the quarter’s biggest lender to U.S. small businesses.
Alternatives to CIT Are Scarce, for Now – NYTimes
July 17, 2009
Unfortunately, few banks seem eager to expand in this economic climate, even though S.B.A. lending is supposed to be countercyclical — in recent years, many have even dropped out of the program. 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).
CIT Group’s Borrowers May Find No Shortage of Credit – Bloomberg
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.
CIT’s Troubles Are Small Business’s Troubles – NYTimes
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.” Though CIT’s corporate financing segment lost $167 million in 2008, it was hardly the company’s worst performer: CIT Group reported a total net loss of $633 million.
Tweeters Talk Banks and Business Lending – Herald Tribune
July 13, 2009
Ending the event, Bob Coleman, publisher of the Coleman Report, said, “Loved the twitter town hall format. A lot of ground breaking stuff happening here.”
Lender Fears Force SBA Program into Slow Lane – American Banker
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.
SBA Loans Start to Trickle – Bue MauMau
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.”
SBA Tweaks Rules of 504 Loan Program – Wall St. Journal
June 26, 2009
Some industry experts, however, doubt that this will help struggling small businesses that need to pay a 504 loan coming due soon. Many aren’t in an expansion mode and so aren’t poised to take advantage of the debt refinance provision. “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.
Will Anyone Be Saved by the SBA’s New ARC? – Washington Post
June 23, 2009
In addition, the SBA is offering a lower interest rate than other loan programs.The Coleman Report, a newsletter for banks, states that “the ARC loan program is already being positioned to be a failure, and lenders are going to be the key players behind that failure.”Even the SBA says it expects ARC loans to default at a higher rate than its other programs. Banks will have to absorb the administrative costs of pursuing delinquent loans and liquidating those that default.
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.” The ARC program offers as much as $35,000 for small businesses that have been profitable in the past but are having problems now because of the recession. Borrowers don’t have to begin repaying for at least a year, and have five years total to pay back the amount.
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. One of the most interesting pieces of data is that the fitness industry collectively secured more than $1 billion in financing from the SBA in this decade. “The fitness industry is currently 17th as an industry category of 1,185 industry categories for SBA lending, so lenders are comfortable and have a history of lending to fitness centers,” Coleman says.
The Lowdown on ARC Loans – Washington Post
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.
Befriend Your Small Biz Lender – CNNMoney
May 5, 2009
Expert: Jump Start SBA – CNNMoney
May 5, 2009
Business Closure Picture Incomplete for Gainesville – Gainsville Times
April 18, 2009
Gainesville did have a double-digit percentage of small business closures in this recession-battered economy, it wouldn’t surprise Robert Coleman. 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.
Why Obama’Why Obama’s Small Biz Rescue Plan is Collapsing – Inc.
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.
SBA Numbers: Declining loans? Whose de-fault is it?
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.
Top Lenders Pull Plug on Small Biz Loans – CNNMoney
March 23, 2009
These four institutions were among the 30 largest SBA lenders in the 2008 fiscal year, accounting for 4% of the program’s loan volume, or $524 million of the $12.8 billion that was lent to nearly 70,000 businesses, according to data compiled by Coleman Publishing, which monitors small business lending trends. Their sudden absence from the lending scene has left a hole that the banks continuing to participate in the program have not filled in. 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.