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Bob Coleman on the biggest problems facing 'Main Street' and struggling entrepreneurs.
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-- here -- set in from LA the editor of the Coleman report.
And also the editor the author of money money everywhere but not a drop four main street certainly some of our viewers have felt your pain and in totally understand what you're talking about the ten things you need to know to get a small business loan.
Today and and Bob glad frequent guest on Fox Business thank you for joining us here we.
Just wrapped up small business week and you know we're -- talking -- about you President Obama naming the ahead of the SBA administration -- Karen mills.
To the cabinets.
Step in the right direction but not quite enough.
Absolutely step in the right direction are the way I like to characterize it it's the USD now has a seat at that big boys' team what the delta but Thanksgiving.
On the problem that we have is.
It's very simply it out of our recession and get out -- -- account is to get small business to be able to hire people.
It get the economy going -- -- and that's what really needs so.
When you look at that numbers.
That are going to be -- steep budget I don't -- -- get in the weeds too much with with dollar amounts due to -- -- for small business company.
Because the small business -- north -- dollars.
Per employee.
In how quick I'm an economist at how quickly does a -- to repay debt.
Money so.
-- out we'd like it that we're at the -- -- table we'd like it that attention is being paid but.
-- street needs a lot more.
They -- a lot more and we we've talked a lot about it we've had some small business owners on.
Last -- and nods and they it was bad I've mentioned you live a bank on -- today sure.
Who cater to small businesses.
Across the nation and we look at the numbers from ADP -- can see.
By and large particularly over the past six months but in generally historically small businesses were -- -- with fifty or fewer employees.
-- creating the lion's share the jobs but that is starting to slow down now what is it that you're seeing in in talking to folks on main street that we could do or that.
Is that anyone can do if there's anything they can be done to juice up the hiring on main street in turn generates more growth here.
It's -- circular argument.
You want to have that local business -- people hire more people what they need more people walking in the door -- -- of course so for the forecast to go under the don't write it out right.
-- and it's it's not a quick fix.
But what I'd like is the debate is this the debate is hate.
Com bipartisan debate the small business is creating 6770%.
In the new jobs.
The recovery had -- -- I think we all agree with this is not as fast as we would like.
But let's get a little historical perspective we're certainly a lot better than we were 23 years ago so it it's slow it's writing.
You know what do what's good news Robert -- -- is the small business people that are out there that are surviving.
There are a lot smarter than they were 35 years ago there a lot more technologically savvy -- a lot more customer oriented.
So the survivors that we have today.
Are pretty Smart in running their business and that is good news we're about refinancing that we talk of another look at bill rates mean did you know the treasury yields are so low in the -- loans are tied that are followed a direction.
And mortgage rates are historic lows of about for small businesses -- -- -- trying to refi -- benevolence the good news small business loan interest rates are historical -- the problem is access to capital.
That is critical.
You hear so many stories.
In commercial real estate the difference between the commercial.
Business loan and the residential loan that we have.
It's a residential lots fully amortized we can can -- 2530 years the problem with commercial loans they have these due dates.
There are so many stories where that.
-- street entrepreneur is current on the loan the -- the hotel owner this is classic for hotels.
The -- is coming due but because the value of that property is now underwater they can't get refinancing for the big.
-- -- It's difficult to be -- debate but the promise the regulators are just hammering these -- community banks -- They're seeing if you want to refinance that we're basically -- make you write off why.
Because it's under water what we think the market value was worth.
And it very difficult situation -- putting pressure on the community banks -- have frozen credit unions which is where you would historically see a lot of excellence being generated for absolutely.
There's so many sad stories successful entrepreneurs who are losing their property.
Because the cannot get access to the capital and that that is really the number one concern and main street is how do we get that access to capital.
And how do -- with a capital.
Guess what we can buy stuff we can.
Hire employees you know and it was so -- how do we -- -- going -- mean you mentioned there a couple of loan programs that need to be extended past September would this be a step in the right direction absolute leaders in the SBA has to specific programs one is.
Something called -- 504 program for what commercial real estate.
Exactly what we're talking about.
Briefly what happened was congress said they didn't congress.
Smart people they don't you don't we have a problem in refinance.
So we're gonna have a stronger for twenty for much of fortunately ticket bureaucrats who are friends of mine.
Fourteen months to write the -- so we only had a ten month window and at all that there is a number in the industry says you know what guys who started it paid for some very small sets it.
Let's extend that for another twelve months.
And that's very critical for allowing these hotel owners these restaurant owners these veterinarians to refinance -- this is -- -- that people.
Who are current on the loans that they were not talking about.
People for six months nine months were not enough people who want forgiveness.
They simply -- to be able to rewrite their loan.
And and move on with their business.
Well Bob strategy consultant -- go get your reporting library lakes elementary question giants -- Bob Coleman nine is the editor of the Coleman report.
About in in everything you need to know about small business loans.
You find her in his report or from the -- money money everywhere but not a drop four main street thank you again for coming in and -- your expertise Robert for to have you here in.
