SBA Launches New 100-Percent Guarantee Loan Program to Help Struggling Businesses

Recently, SBA Administrator, Karen Mills announced that the SBA will start guaranteeing America's Recovery Capital (ARC) loans on June 15, 2009.  ARC loans are deferred-payment loans of up to $35,000 available to established, viable, for-profit businesses that need short-term help to make their principal and interest payments on existing qualifying debt.  ARC loans are interest-free to the borrower, 100 percent guaranteed by the SBA and have no SBA fees associated with them.  The SBA will pay a monthly interest rate to the bank that makes the loan. Repayment of these loans can be deferred up to 12 months and can be paid back over a period not to exceed 5 years.

There are specific types of loans that qualify.  The loans are not for start up businesses or businesses that are no longer economically viable.  Funding is on a first come-first serve basis or until September 30, 2010. You may apply through your local bank if they participate or you can go the SBA web site @www.sba.gov/ARCloanprogram for participating banks.  ARC loans will be disbursed within a period of up to six months and will provide to be used for payments of principal and interest for existing, qualifying small business debt including, mortgages, term and revolving lines of credit, capital leases, credit card obligations and notes payable to vendors and suppliers.  

Under the American Recovery and Reinvestment Act signed February 17, 2009, these loans provide reduced risk to the bank because of the SBA guaranty.   The loans can benefit the business owner by providing interest free, deferred payment loans to redirect cash flow from loan payments to core business needs like jobs.   

The hope is that these loans will help build and retain community businesses, create jobs and stimulate economic activity.  

Evaluating Your Banking Relationship

For Immediate Release

 

Evaluating Your Banking Relationship is Easier than Ever

 

Atlanta, GA April 14, 2009- Business owners are struggling with all of the changes in the banking industry and recent turmoil in the economy.  Should they stay with their current bank?  Should they change? How do they find the financing they need to take their business to the next stage of growth?  How do they restructure their debt given the changes in cash flow?  After 30 years of experience in the banking industry, Bill McDermott’s desire to provide an independent view of the banking world and help business owners answer those questions led him to open McDermott Financial Solutions. (McDFS)  McDermott Financial Solutions is a full service consulting firm that gives business owners the knowledge and experience of a banker who is independent of any banking organization to make them aware of their banking options.

 The inspiration for McDFS came from several professionals in McDermott’s sphere of influence who are complaining about the challenging issues facing business owners today.  Issues standing in the way of the next stage of growth or overwhelming debt obligations that are poorly structured because of cash flow changes are bombarding business owners.  “The changes in the economy and banking industry have created a dramatic slow down and potential failure for many businesses” said Bill McDermott. “Traditional financing options and approaches are tightening up and may not deliver what is needed.  Business owners need to know that they have options”

 The idea that there could be a better way to help business owners solve banking problems caught McDermott’s attention.  “I believe business owners are looking for an independent second opinion of their banking relationship from a banker with 30 years of experience in the industry.  The ability to leverage banking contacts in the market that business owners don’t have is an added benefit.  If a business owner has a problem, so do I” says McDermott. 

 Today, Bill McDermott will begin offering a free comprehensive banking review to businesses in metro Atlanta to include a review of financing, cash management, investments and electronic banking.  Added McDermott “While most of my career I have worked with businesses in the $2-20 million revenue range, I can certainly work with companies that are either smaller or larger than this.  Businesses are looking for the right strategy at the right time to insure their company’s success.”

 

For further information, contact

 Bill McDermott

McDermott Financial Solutions

5208 Garnaby Lane

Norcross, GA 30092

770-597-3136

bmcdermott@mcdfs.com

www.mcdfs.com

mcdfs.blogspot.com

 

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McDermott Financial Launches Web Site

For Immediate Release

McDermott Financial Solutions Announces New Web Site

Atlanta, GA April 27, 2009-McDermott Financial Solutions (MCDFS), a consulting firm specializing in the development of banking, financial and business strategies for business owners announces the release of their new web site.  

The new web site was developed to assist business owners and professionals find information and resources about MCDFS quickly and efficiently.  Bill McDermott, owner of McDermott Financial Solutions said "the web site is critical to give our existing and prospective clients an understanding of our organization, our mission and the products and services we offer."  

Visit the new web site at www.mcdfs.com.

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Camels and Business in the dry times

No, I'm not talking about cigarettes, but those humped beasts of the desert.  The camel is an amazing animal that lives in the desert regions of North America and Asia.  It can withstand desert climates because it stores fat and water in its body, and some species can travel with as much as 1,000 pounds on them for up to 29 miles per day in the desert.  They also have calluses on their feet, knees and chest to be able to walk or sit on the hot desert sand. 

It has occurred to me given the dry, desert-like economic times we've had recently, it would be nice if business owners could call on reserves in the desert much like these animals.  Here are some things to consider while we're in these conditions.

C-Capital adequacy.  Leveraged balanced sheets don't work in this climate.  Make sure you have adequate capital.  Banks don't like much more than 75% debt, 25% equity.

A-Asset quality.  If you are carrying stale receivables that are uncollectable or inventory that won't sell, it may be time to write them off.

M-Management.  A good company will always have a balanced approach to sales and financial management.  Never sacrifice quality for quantity and vice versa.

E-Earnings.  Are there any aspects of your business, markets-products that are over or under performing others?  It may be time to retool and refocus.

L-Liquidity.  Cash is king, and it's important to have at least one month's sales in working capital to avoid a crisis.

Focusing on these items will surely help get you through the dry spells.