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Archive for December, 2011

Contributed by Gary Markle, President, Central Bank & Trust

The U.S. Small Business Administration recently revamped their CAPLines program after engaging financial industry leaders in all 50 states to implement changes benefiting SBA lending partners—such as Central Bank & Trust—and small business owners.

According to the SBA revised guidelines, the new CapLines program gives small businesses more flexibility to finance the contracts, subcontracts, and purchase orders they compete for and win. “By addressing the short-term and cyclical working capital needs of small businesses, the revolving line of credit will help them manage their cash cycle, scale up, and create jobs,” the SBA explains.

From our perspective as an SBA lender, these revisions make this once-underutilized lending program more attractive and allow us to fund a borrower’s short-term working capital needs under the SBA guidelines. For businesses that are growing and have been awarded new contracts, banks now have the capacity to do revolving lines of credit up to $5 million utilizing their own credit parameters. This means business owners can work directly with a dedicated SBA lender and process their line of credit expeditiously.

Key benefits of the CAPLines program (which can be found at SBA.gov):

– Small businesses can pledge accounts receivable, inventory, contracts, and purchase orders to secure an SBA revolving line of credit.

–  The SBA will no longer require small business owners without buildings or equipment to use their personal assets as collateral to secure working capital.

–  Small business subcontractors can now obtain an SBA-guaranteed line of credit to finance their work on a contract with a federal prime contractor.

To understand the benefits and details of the CAPLines program, small business owners should work with a lender who knows the SBA policies, procedures, and systems to deliver and service this type of revolving credit. The small business owner should also know who they’re talking to, who’s processing the loan, and who’s making the decisions that potentially affect their future growth.

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Contributed by Steve Schneider, President, CB Insurance

ImageSo the gifts are all opened, the holiday cookies are all gone, and you’re now anticipating a week of uninterrupted football bliss. Sounds good, huh?

There is only one thing that could make this better: An insurance review!

Now is a great time to take stock of new jewelry, gifts, and other trinkets that should be added to your insurance. And, take stock of older pieces of jewelry, art, or other collectibles that have appreciated in value over the years.

Those items valued at over $2,500 may require special coverage on your homeowner’s insurance. New “grown up” toys such as ATVs, motorcycles, and snow mobiles should be insured properly for damage to the equipment and liability arising from their use.

Finally, dig out your old homeowner policy and look to see that the replacement-cost values are correct. While the market value of your home could have dropped over the past few years, the cost to actually replace the home, should it be destroyed, has likely increased.

So, drop that turkey leg, grab a pencil and paper, and make a list of items to review with your insurance consultant.

The time spent now reviewing these items can save you countless hours and headaches in the future should the unthinkable occur.

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