Commercial Real Estate

April’s SBA 504 20-year effective rate is 5.77%.  10-year bonds are funded every other month so the next sale will be in May.  The March SBA 504 10-year bond effective rate was 4.60.  (Rates may vary slightly based on approval date.)

The 12^th Annual Michigan SBA Lender’s Conference was held on March 23, 2010.  It included several informative break-out sessions on SBA lending.  The conference also gave EDF the opportunity to honor our 2009 Lender of the Year, Brent Kehrwecker of Byron Bank.  A portion of the press release is below.

The second article details the next ReadyTalk Session on May 6, 2010, offered by SBA’s Detroit District Office.  Details and directions are in the second article below.

The last article is another reminder regarding the fee waiver extension through April.  A borrower has until the end of the month to obtain an Authorization that includes the fee waivers.

Lender of the Year

Economic Development Foundation (EDF) is pleased to announce Brent Kehrwecker, Second Vice President, Commercial Banking Loan Officer at Byron Bank, as their “Small Business Administration (SBA) 504 Lender of the Year”.  This award is given annually to a lender that shows leadership and resourcefulness by working closely with small businesses to help them finance fixed assets through the SBA 504 program.

Brent was awarded this honor by partnering with EDF on several SBA 504 loans throughout 2009 that assisted small businesses to create and retain jobs in Michigan.  “We need bankers like Brent that help the State of Michigan back to economic recovery by lending money to businesses that are expanding”, EDF President Sandy Bloem said during the presentation at the Michigan SBA Lenders Conference in Lansing on March 23, 2010.

“Despite obvious challenges in our economy, Byron Bank remains dedicated to supporting the growth of the West Michigan business community, ” said Joel Rahn, Byron Bank’s Executive Vice President, Commercial Banking. “Brent’s work with the SBA 504 program is an excellent example of this. Brent is an important part of our lending team.”

Thank you Brent for being a great advocate of the SBA 504 program and Economic Development Foundation!

SBA ReadyTalk Session

The next monthly ReadyTalk session for lenders is scheduled for Thursday, May 6 at 10:00 a.m. and will cover the following topics:

• Recovery Act update
• Lender portal presentation
• Updates on loan activity
• General Q & A

ReadyTalk is a Webinar program utilizing the Internet and a conference call system. To access the system:

From your computer:

1. Logon to www.readytalk.com

2. Login as a participant using the access code 3051501

3. Enter your name, email address, and company name as requested

From your telephone:

1. Dial 866.740.1260

2. Enter the Access Code 3051501 and press #

3. Say hello!

Recovery Act Update

New legislation was introduced and passed by the House and the Senate on March 25, 2010 (H.R. 4938) to provide additional funds to cover the fees for both 504 and 7(a)!

Up to $40 million is made available for 504 and 7(a) fee reductions and 90% 7(a) guarantees.  These new funds should enable SBA to continue providing loan authorizations for much of April.  The bill also extends the sunset on 90% 7(a) guarantees to April 30th.

There is also a bill that has been approved by the Senate and is being considered by the House (H.R. 4302) that will provide both the $5 million debenture limit and the ability to refinance existing debt through 504.  Stay tuned!

EDF Contacts

Ph.  616-459-4825
Fax 616-458-5736

TF  888-330-1776

Sandy Bloem
Executive Director
sandy@growmichigan.com

Bradd Pierce
Loan Officer
bradd@growmichigan.com

Gary Witkowski
Relationship Manager
gary@growmichigan.com

You don’t need to win a federal government contract to have the federal government as a client.  Many businesses are realizing the value of partnering with HUBZone, 8(a) and Service-Disabled Veteran-owned certified companies.

The federal government is the largest purchasing organization in the country, procuring over $200 billion in goods and services each year.  Much of this is awarded to small businesses.  However, there is a greater advantage for those businesses that can qualify for HUBZone, 8(a) and service-disabled veteran (SDV) certification to access set-aside programs.

HUBZone certification requires the business be headquartered in a HUBZone (historically underutilized business zone) qualified area, 51% controlled by US citizens and employ 35% of their workforce who reside in such an area.  8(a) certification requires the business to meet the small business standards, be controlled by socially and economically disadvantaged individuals and demonstrate a potential for success.  Service-disabled veteran must be a small business, controlled and no less than 51% owned by veterans.  The certification process is not difficult and the staff at the Michigan Minority Business Enterprise Center can assist you with this.  However, the real work and opportunity begins after you are certified and looking to market your status to the various federal (and local) agencies.  See the tip list below on how to make the most of your certification.

Not able to qualify, don’t give up!  Partnering is a successful path to accessing government contracts. Many certified firms are looking for teaming opportunities to expand their capabilities to win larger contracts.  Creating a partnership requires a high level of trust, cooperation and high level of planning.  The partnership can be for a joint-venture which is commonly used for a specific project or length of time (i.e. servicing a client on a construction project) or a strategic alliance in which the companies remain independent but leans on each other for additional capacity, knowledge and ability.

Winning a federal government contract is not easy, no matter what the books, experts, and spam emails may say.  Just like the private-sector, suppliers must do their homework- research the client to understand their needs, analyze their buying habits, and read, re-read and read again (can we stress this enough!) the request for quotes (RFQ).  Government suppliers must be proficient in federal acquisition regulations (FAR), registrations & certifications (CRR/ORCA), and most importantly where to go for help.  Contact us at the Michigan Minority Business Enterprise Center, 616.776.1724 or visit our website, www.mmbec.com.

Tips:

• Contact your local Minority Business Enterprise Center office to become a client, www.mbda.gov
• Make contact with the agencies that buy your products and services through their Office of Small and Disadvantage Business Utilization
• Attend local sessions on how to market your certification
• Ask the Center to assist you in identifying procurement opportunities and preparing your bid

Valencia Cooper is an Executive Business Consultant at the Michigan Minority Business Enterprise Center.  She works with minority-owned companies to provide them access to markets, access to education and access to capital.  She can be reached at 616.776.1724 or vrcooper@mmbec.com.

A few months ago I wrote an article titled  “Forced Entrepreneurism,” a growing trend in today’s economic climate.  Gone are the days of a 30-year plus factory job and in its stead are individuals who have been knocked off their track 10 years too soon – forced to hit an ever declining job market.  What is one to do?  Many have gone into business for themselves; often pursuing lifelong dreams of owning their own restaurant.

Well, it just so happens that today I am proud to offer just that, an opportunity to own your very own restaurant.  Well-established, profitable, locally involved restaurant seeks new ownership.  Loyal customer following, brand new equipment and furniture, and solid profit margins make this a must see for anyone serious about owning their own business.

Due to the sensitivity of this sale, all interest will be handled case by case and confidentially.  All interested parties will be subject to a confidentiality agreement and credit application prior to disclosure of address and internal data.  If you would like additional information pertaining to this opportunity please give Chip LaFleur or me a call today to begin the process- 616-459-8000.  As always, to our loyal readership, make sure you are following us on Twitter for real time, local industry updates:

@GregoryMahalick & @ChipLaFleur

Thanks for visiting the blog!

Greg Mahalick