Small businesses are waiting for regulations to be written so they can apply to refinance their property. Image: Flickr / MoneyBlogNewz / CC-BY

The process of putting a new law into practice can sometimes take a while. A new two-year Small Business Administration program is taking longer than usual. With one-quarter of the available time already gone, the program has yet to get rules or a process.

SBA refinancing program

During late 2010, a new Small Business Administration refinancing program was passed by Congress. The program was intended to last two years. The program would support the refinancing of business property debt. Small businesses are facing balloon payments on the relatively short-term loans on their businesses. The refinancing program would help remove balloon payments and reduce mortgage payments for struggling businesses. The program is written to last for 24 months only.

Waiting for new rules on refinancing

The 24-month SBA refinancing program has been law for the last six months. In those six months, however, the SBA has not yet written rules for the program. The rules and regulations for the program must be written before loans can be offered. Even though the rules and regulations for the program have not yet been written, the two-year clock on the program has already started running out. This means that once rules are written, the program could only have 16 months to distribute and back loans. While business leaders have indicated they appreciate the SBA taking time to write the regulations right, they are also frustrated with the quickly expiring timeline.

Businesses already applying

Though the Small Business Administration has yet to trip the switch on the refinancing program, businesses are applying. Everywhere from Baltimore, Md., to San Fransisco, Calif., businesses are turning in applications. These “conditional” applications cannot be approved until the SBA writes regulations for who may or may not qualify for these loans. These applications will be processed first when the loan rules are finally written.

Source

Knox News

The Small Business Administration is starting two new programs intended to increase small loan lending. Image: Flickr / MoneyBlogNewz / CC-BY

On Feb. 15, the Small Business Administration will be expanding lending programs. Small Loan Advantage and Community Advantage are both programs aimed at increasing lending to very small businesses. Both programs increase the percentage of the loan the government will guarantee.

SBA’s Small Loan Advantage program

The Small Business Administration is a government-supported program intended to help small businesses grow and expand. Many small businesses that have been asking for less than $250,000, however, have had trouble finding banks willing to lend to them. The amount of time, money and effort it takes to underwrite an SBA loan doesn’t feel “worth it” for banks to lend to small businesses. The Small Loan Advantage program will guarantee 75 percent of loans up to $150,000 and 85 percent of loans between $150,001 and $250,000. The hope is that these guarantees will encourage large banks to make small loans to businesses.

Community Advantage through the SBA

The SBA 7(a) Community Advantage program is aimed at increasing the number of lenders that serve minority and underserved groups. The program will certify “mission-focused community institutions” as SBA lenders. The goal of this new program is to create new lending institutions that are not traditional banks. Groups in Texas, Louisiana and other traditionally under-lent groups are targeted. The SBA will start accepting applications for these “community institutions” on Feb. 15.

The basics of SBA lending

SBA lending, through the traditional program, Small Loan Advantage or Community Advantage, is a facet of traditional lending. Banks underwrite the loans and distribute the loans the same way they would traditional loans. The difference is that the federal government backs these loans, meaning that they can be as easy as bad credit loans or no fax payday loans for some businesses.

Sources

Biz Journals
Business Wire

Louisiana state employees may not be getting a raise. Image: Flickr / MoneyBlogNewz / CC-BY

In Louisiana, state employees may be facing a limit on annual pay raises. This would be the second year of pay freezes in the state. Employee advocates, however, are calling this move the equivalent of a payday loan for the state.

Louisiana state pay raises

The state of Louisiana is facing a $1.6 billion budget shortfall. Each year, along with annual reviews, employees generally qualify for pay raises up to 4 percent. Last year, the state froze Louisiana state employee pay raises and saved about $55 million. Gov. Bobby Jindal has suggested extending these pay raise freezes for the 2011-2012 budget year to continue the savings. This would freeze only annual pay raises, not raises associated with promotions.

Louisiana budgetary woes

By trying to fix the Louisiana budgetary problems with pay freezes, the state legislature is not making friends. State commission members who represent employees have expressed concern that the state is “attempting to balance the budget on the back of workers.” Calling the pay freeze an emergency loan that will end up costing the state more money, employee advocates are attempting to push through at least a cost-of-living adjustment for employees. Many states are using pay freezes, furlough days, and even layoffs as a way to balance budgets. In Louisiana, cutting out pay raises is a relatively low-impact measure to balance the budget.

Where Louisiana stands

Though the state is trying to cut almost $2 billion out of the budget, Louisiana is in a better position than most states, economically. The average unemployment rate in Louisiana is 7.7 percent, while the average national rate is about 9 percent. Louisiana state colleges also have one of the lowest in-state tuition rates in the nation. The state commission is currently drawing up proposals, and the final budgetary decisions will be made by March 11.

Source

Bloomberg

Though millions of dollars are available for small businesses, the money is not being claimed. Image: Flickr / mhofstrand / CC-BY-SA

Getting businesses the money they need has been the focus of recovery efforts. Loans and stimulus money have been focused on creating jobs through small businesses. Many low-interest and no-interest loans, however, are sitting unused.

Using small businesses to create jobs

The American Recovery and Reinvestment Act, among other things, made a point of trying to create jobs. Small businesses account for a large number of the jobs created in the United States each year. The Small Business Jobs Act of 2010 created loans and stimulus programs intended to encourage businesses to hire. The idea is that small businesses are the basis of the economy, and providing money and support would encourage growth.

Small business loan availability

A large portion of the small-business investment strategy from both the federal and local governments has centered on loans. These loans are offered with little or no interest to be paid. Everywhere from Delaware County, Ohio, to Louisiana, small businesses can get bad credit loans and emergency money for expansion, new jobs and the purchase of equipment. In some states, this money doesn’t have to be paid back if the businesses fulfill requirements such as staying in a downtown location or hiring low-income individuals. In other states, the interest is subsidized and stays low.

Unused emergency loans

Much of the emergency loans offered to small businesses is sitting unused. Many businesses are choosing traditional financing because loans through the Small Business Jobs Act of 2010 come with too many requirements. Businesses have to fill out extra forms and ensure that they are hiring low to moderate income individuals. Just one Ohio county has more than $1 million of available money that hasn’t been lent, simply because businesses are returning to banks for financing. This presents a problem, because the government has said funding will be taken away if more than $100,000 sits unused.

Sources

Dispatch Politics
The Advocate

Sugarcane grown in the Southern United States could become ethanol, if funding is secured. Image: Flickr / arriabelli / CC-BY-SA

A company that has been trying since 2006 to make Louisiana ethanol is still waiting on funding. Louisiana Green Fuels is hoping to purchase a syrup mill from the state. Until short term loans or funding solutions are secured, several plants will sit idle.

Louisiana Green Fuels, LLC

Founded in 2006, Louisiana Green Fuels, LLC, has the goal of creating ethanol from sugarcane and other Louisiana agricultural crops. Louisiana Green Fuels started the process to purchase a sugarcane syrup plant originally built by the state. The last of four $100,000 payments to the state is due by Louisiana Green Fuels in December of this year, at which point the company is required to start making $2 million payments on the $60 million principal.

Creating sugarcane ethanol

The cost of starting up the plant for production of sugarcane ethanol is estimated to run between $60 million and $200 million, depending on agricultural product prices and other costs. Briefly in 2009, the syrup mill and connected ethanol plant ran just long enough to create sorghum syrup and sugarcane syrup test runs. When an investor pulled out, however, production had to be stopped. Once the production is up and running, Louisiana Green Fuels has already brokered agreements to sell the byproducts of the ethanol production.

The problem with Louisiana ethanol

Louisiana Green Fuels hopes to create ethanol biofuels from agricultural products grown in the state. Farmers in Louisiana, however, are facing very difficult times. A hard freeze ruined several sugarcane crops, and many agricultural products are being sold at a loss or at cost. Several farmers are applying for emergency loans through the U.S. Department of Agriculture. The U.S. Department of Agriculture is also offering short term loan guarantees for Louisiana Biofuels. In short, Louisiana Green Fuels may soon be producing biofuels, but only if long- and short-term funding, agricultural products and governmental support can be secured.

Source

Ethanol Producer Magazine

Nucor steel is taking advantage of new-business incentives and loans from Louisiana. Image: Flickr / chasbot / CC-BY-SA

In Louisiana, 2010 has been an up-and-down economic year. Economic development in the state suffered several major setbacks. By using a combination of tax incentives and short-term loans, though, the state is likely to see slow growth in 2011.

Effect of closures on Louisiana

The biggest hit to Louisiana’s economic development this year was the BP oil spill. When the federal government shut down offshore oil drilling in the Gulf, many workers in Louisiana found themselves unemployed. Employees and businesses have been reliant on emergency loans or remuneration from BP and the federal government to stay afloat. Beyond just the oil spill, NASA, Northrop Grumman Corp. and General Motors have announced shutdowns that will cut 7,500 jobs from the state.

New businesses opening in Louisiana

In some mid-size Louisiana cities such as St. James Parish, Michoud and Alexandria, Louisiana, the economic outlook is not entirely negative. By using a combination of tax incentives and short term loans, the state has attracted some big new businesses. A Nucor Corp. steel plant is expected to open in St. James Parish and employ 1,250 people and spend $3.4 billion in the state. A high-tech wind turbine company is also using Louisiana’s offer of short term loans to help open a wind turbine plant that will employ 600.

New proposed taxes on drilling

The federal government is currently considering $36 billion in proposed taxes on the oil drilling industry. The government has also ordered the industry to spend $4 billion on cleaning up abandoned oil rigs. The relationship of oil companies to the state of Louisiana is a tumultuous one. The industry has spent billions of dollars in the state. At the same time, oil drilling is moving to other countries and not quickly paying up on promises of emergency loans to residents.

Source

Bloomberg

What are the requirements to get a Louisiana payday loan?

1. Must be at least 18 years old to apply
2. Must have a job for at least 3 months and currently working
3. Have a valid social security number
4. Legal U.S. citizenship

How much cash can I get with a Louisiana payday loan?

If you are in a situation where you need money now, you can apply for up to $1,500 and have the cash deposited straight to your bank account, sometimes in as little as two hours. The amount you are approved for will depend on the information you submit on your application as well as how much you make each month. Once you submit your application, we’ll get right to work to find you the best lender that fits you best.

Can I get his loan if I have bankruptcy?

Yes. You can still get approved for this loan because our loan companies typically don’t look at credit histories. Based on the information you provide, we will match you with the lender that best reflects your situation, no matter how good or bad your credit history may be.

I need a loan. Where can I get started?

Below this article is a short application form where you can input your information. It should take only a few minutes to complete and, after submitting your application, you will know whether or not you are approved for a Louisiana payday loan in no time.

Start your Louisiana payday loan application HERE!