United Bank & Trust Blog

Kenny Leonard

The Senate yesterday fell two votes short of the 60 needed to limit debate on a new substitute amendment to the American Bankers Association (ABA) backed small-business lending bill (H.R. 5297). All GOP senators voted against the measure in a 58-42 cloture vote, and the chamber moved on to other business. Senate Majority Leader Harry Reid (D-Nev.) said he would work with Republicans over the next few days to seek a compromise on which amendments would be offered to the legislation.

Negotiations between Senate Democratic and Republican leaders on the number and types of amendments broke down Wednesday night. Democrats had hoped to pass the bill before Congress leaves for the August recess, but that won’t happen with the House scheduled to adjourn today. The Senate is in session for another week, but Reid said there would be no more votes until Monday evening.

Here is an update on the SBA fee waiver: This bill, even if passed by the senate next week will not be enacted until they return after Labor Day. Bottom line at this point is that the 90% guaranty and the fee waiver are dead until After Labor Day at least.

While we are disappointed that this didn’t legislation hasn’t passed we are still committed to utilizing the SBA loan program to help our local small businesses.

As always please feel free to contact us.

(Source: ABA Daily email update)

More info:

http://thehill.com/blogs/on-the-money/domestic-taxes/111763-small-business-bill-appears-stalled-unti

http://www.bloomberg.com/news/2010-07-29/senate-republicans-block-small-business-lending-bill-sought-by-democrats.html

Gary Haapala

I remember the day when the 11:00 p.m. evening news and the daily newspaper (printed version) were my primary sources of current news and information. An hour in the morning and an hour in the evening and I could get a real good feel for the information to keep me up to date and relevant. It was also a time when it was clear what was “news” and what was “entertainment”. Those days are gone. Social networking, reality TV, PDAs, 24-hour cable “news” stations, satellite radio talk shows, and of course the internet keep us connected by the second. The line between news and entertainment has become overwhelming and hard to decipher. How do you keep informed and do you know if it is credible? This is an important question to consider when evaluating your investment portfolio.

As we have blogged throughout this year, we expect the financial markets to be volatile for the balance of the year and the foreseeable future. The financial markets are influenced by a variety of things such as; accounting data, facts, rumors, expectations, predictions, forecast, new products and services, government regulation, etc… The explosion of information and the instant availability has contributed to the volatility of the market.

Even with abundance of information – and mis-information available today, it is even more important than ever to find a trusted resource to keep you informed. It is also necessary to maintain a keen awareness of the fundamental aspects of the market. While the list continues to grow with the globalization of the economic world, I suggest you focus on inflation, the labor markets (unemployment) and consumer behavior (consumer confidence and spending). Following are links to two pieces, from LPL Financial – one of United’s trusted resources – to give some insight on these areas.

• July 12 Weekly Market Commentary: Earning Seasons Preview
• July 12 Weekly Economic Commentary: Mid-July Fireworks

The amount and speed of information is overwhelming, we can help you navigate towards your financial goal. Our financial advisors are professionals, with years of experience and are highly credentialed with focused expertise. We will be conducting a webinar on August 18, 2010 and will provide an update on the economic and financial markets. Please join us by registering for the event at www.ubat.com.

Bob Chapman

I was recently in Lansing representing the Michigan Banker’s Association (MBA) supporting the Hardest Hit Homeowner fund, which has been created to help consumers who are currently receiving unemployment benefits, may have fallen behind in their mortgage payments due to unforeseen circumstances such as a medical emergency, or can no longer afford their mortgage payments as a result of reduced income. This fund is designed to invest in our neighbors, friends and relatives who are struggling to work out arrangements so that they can remain in their homes. The first-come, first-serve program is expected to help 17,000 households statewide over the next 12 to 18 months.

If you – or someone you know – is currently struggling, one of the most important things that you can do is to proactively contact your mortgage provider today to discuss options.

There are many different programs out there that have been designed to help all of us get through this economic downturn. Your banks and credit unions are here to help inform you of your options so that you can make an educated decision on what is right for you and your family.

Please be careful as there are also many companies trying to take advantage and exploit those in need so it is important that you use a trusted financial advisor, such as United, to educate yourself on your options.

For more information on the Hardest Hit Homeowner Fund you can go to http://www.michigan.gov/mshda/0,1607,7-141–235359–,00.html

Kenny Leonard

CNN Money reports stimulus money helped revive the government’s small business lending program after the recession threw it into a near freeze. But this quarter, as the bonus funds ran out, the program’s growth again began to stall. In essence lending volume dropped by 75% and dollars lent dropped by nearly 84% compared to the 10 day period prior to the expiration of the above mentioned provisions. Read the full article here: http://money.cnn.com/2010/07/02/smallbusiness/small_business_sba_loans/

In similar news, the North Bay Business Journal provides a timeline of the legislation related to the fee waiver and 90% guaranty provisions which originated in the American Recovery and Reinvestment Act (ARRA) passed back in February of 2009. You can also read real-life examples of borrowers who have suffered as a result of Congress not sending a clear message to the marketplace on whether these provisions will be extended or not. Read the full article here: http://www.northbaybusinessjournal.com/22828/waiting-game-as-sba-program-lapses/?tc=ar

At USFC we have numerous customers who are in similar predicaments and are gambling on the hope that Congress will extend these provisions through the end of the year. We are actively having open conversations with our customers on their specific situations. If your SBA lender hasn’t approached you yet, I would suggest you go to your lender and ask to discuss your situation. Each situation is different and depending on the circumstances of each customer will determine whether it is advisable to wait for the reinstatement of the fee waiver or not. I will say that as time continues to pass I become less and less optimistic about the reinstatement coming to fruition.