United Bank & Trust Blog

Gary Haapala

We start every year with a renewed hope and optimism and a list of New Year resolutions.  Here is part of my list.

1. Eat more vegetables
2. Exercise 5 times a week
3. Volunteer once a month

This list probably looks pretty familiar. Take a look around, more people are bringing their lunch filled with healthy food, and the gym and your church are packed full of people. Then BAM something happens. A bump in the road, like a Super Bowl party and healthy eating goes out the window. I am tired today and it is cold this morning, so I am just going to skip today’s workout. No worries, it’s just once, right? Unfortunately, it tends to be a slippery slope especially if I am trying to follow a new fad. Proven programs and discipline is the key.

This holds true for your financial resolution too. The financial fad today is “market timing.” Get in the stock market when it is low and get out just before it is going down. If you follow this program you will avoid ever having to see your investment portfolio lose value – or so they say. Then BAM something unexpected happens. Like the week ending January 22^nd, the market drops over 5% in four days. I wonder how many “market timers” accurately predicated, and acted, before that happened. I submit not very many, probably none.

I suggest you stick to a proven financial program. One based on understanding your goal, time horizon, tolerance for risk, and diversification. I hear you, this program and discipline is boring and the fad is new and exciting. Just take a moment and take a look at your New Year resolutions. Where are you getting the consistent quality results?

Kenny Leonard

In the recent article ‘Update on the Road to Recovery,’ the Michigan SBA Office provides an update on how recently legislation and funding to the SBA’s loan programs are impacting availability of funding in this current lending environment.

“It has been nearly 11 months since The American Recovery and Reinvestment Act was passed on February 17, 2009. As part of the ARRA, SBA received $730 million, which included $375 million to increase the SBA guaranty on 7(a) loans to 90 percent and to waive borrower fees on most 7(a) and 504 loans. These funds, which were instrumental in helping to jump-start the economic recovery for small businesses across the nation, ran out on November 23.”

USFC was an active member in this program and was able to help create or retain 567 jobs while funding $20 million in SBA loans.

“However, on December 19 President Obama signed the U.S. Department of Defense appropriations bill, which included $125 million to continue the enhancements to SBA’s loan programs through February 28, 2010. This is good news, as these provisions had a significant impact: our guaranty loans increased by 93% after the changes went into effect in mid-March.”

USFC continues to provide a critical level of lending throughout the communities we serve. The Defense appropriations bill that President Obama signed will enhance our ability to provide these loans at a much lower cost to our local business owners and entrepreneurs.

Read more of this article from the Michigan SBA office here. We encourage you to call Mike or me with any questions, comments, or concerns. Have a great week!