Search

As interest rates rise and banks tighten lending standards, more people are turning to friends and family for loans. Tech tools like Namma, Pigeon, and Zirtue have facilitated over $100 million in loans between loved ones since 2020. These platforms help structure loan agreements, track payments, and adhere to IRS guidelines. While relationship-based loans can be less financially painful for borrowers, financial advisers generally recommend avoiding them due to the inherent risks and potential for strained relationships. [Extracted from the article]

Community banks in the United States are crucial for local communities, as they are the only physical financial presence in one-third of the country's counties. These banks, with assets under $50 billion, provide 80% of agricultural bank loans and 60% of small-business loans. Despite the challenges faced by the banking industry, community banks have shown favorable asset quality, stable deposits, and strong capital ratios, according to Federal Deposit Insurance Corporation data. As interest rates decrease and the bond market stabilizes, community banks are well-positioned to continue serving the needs of small businesses and households. [Extracted from the article]

KPMG, SBA's independent auditor, declined to express an opinion on the agency's fiscal 2020 financial statements, noting that the SBA had "inadequate processes and controls." Last year, the SBA notified Neal Siegal, a commercial real-estate broker and property manager in Glen Cove, N.Y., that payments on his $9,400 SBA disaster loan were deferred with interest accruing, and the first payment was due on Aug. 5, 2021. Loan processors were expected to review a dozen applications an hour, a task made more difficult because of shifting requirements and guidelines, said a former SBA official who helped process loans. Isabel Guzman, the SBA administrator since March, said the agency's staff, including those in the disaster office, faced the challenge of rolling out national programs to help millions of small-business owners. [Extracted from the article]

An SBA spokeswoman said the agency requires a guarantee from each owner of 20% or more of the borrowing business. On top of that, Mr. Wentz, 53 years old, has a personal guarantee on one location that makes him responsible for around $540,000 in rental payments over five years and an additional $175,000 for a liquor license. Keywords: leder; Lodgings/Restaurants/Bars; Restaurants/Cafes/Fast Food Places; Educational Services; Sports/Physical Recreation Instruction; Business/Consumer Services; Leisure/Arts/Hospitality; Corporate Funding; Corporate/Industrial News; Small Business Lending EN leder Lodgings/Restaurants/Bars Restaurants/Cafes/Fast Food Places Educational Services Sports/Physical Recreation Instruction Business/Consumer Services Leisure/Arts/Hospitality Corporate Funding Corporate/Industrial News Small Business Lending N.PAG N.PAG 1 04/06/21 20210405 NES 210405 Many owners promise to be responsible for debts if their businesses can't pay. [Extracted from the article]