Scott Shane, Professor of Entrepreneurial Studies at Case Western Reserve University published a recent commentary on Bloomberg Businessweek that will likely echo thoughts of many lenders, borrowers and advisors. Professor Shane likens the Federal Reserve’s efforts to manage small business credit to the story of Goldilocks and the Three Bears. Bernanke and his Fed team, supplanting [...]
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Leveraged loans originated prior to the economic downturn are coming due over the next several years. Lender expectations have changed drastically since these loans were originated between 2003 and 2007. Many senior banks and asset-based lenders that were hamstrung throughout the recession by the loss of liquidity are licking their wounds, which in combination with [...]
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Posted in Capital Formation on Feb 10th, 2012
According to a recent survey of mezzanine debt participants conducted by KeyBanc Capital Markets, the total leverage for most transactions falls between 3.1x and 4.5x. According to the survey, more than two thirds of respondents say they limit mezzanine investments to 11 to 20 percent of their capital structure. Just under a third [...]
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While lending to small businesses seemed to be improving last year, numbers from the first quarter of 2011 prove otherwise. Falling 2.4 percent, the Small Business Administration’s Office of Advocacy found that small business lending totaled $609.4 billion over the first quarter this year, compared to $624.3 billion in December, according to a recent Wall [...]
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Posted in Capital Formation on Apr 5th, 2011
Access to capital has been top issue for business owners for the past two years or more. Tightening credit and reduced liquidity from banks has forced businesses to seek alternate forms of financing. The following table outlines the array of capital options available to businesses and represents the amount of covenants versus the percentage of [...]
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Thanks again to those that participated in the survey and contributed to the production of meaningful results. Clear Separation of Data Conveniently, the survey results can be broken-down into four distinct quartiles. Capital Access, Employee Management and Company Performance represented the top 3 business issues. In fact, each of these three business issues were [...]
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The SBA 7(a) loan program is the SBA’s primary program for providing start-up and existing small businesses access to capital. SBA 7(a) loans are issued by commercial lenders, and are guaranteed by on average 75% by the SBA. The program is very flexible in terms of business model and use of proceeds, depending upon the [...]
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Private Equity funded the second busiest quarter in two years in third quarter 2010. The quarter yielded 316 investments totaling $28 billion, and 97 exits, totalling $16.8 billion. According to Pitchbook, each of those totals represents an increase from third quarter 2009, suggesting that Private Equity may be at the beginning of a recovery stage. In addition to Private Equity continuing [...]
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Year | Volume Leaders | $ Loans | Velocity Leaders | # Loans 2010 Wells Fargo $871 Million JP Morgan Chase 3,386 2009 Wells Fargo $827 Million Superior Financial 2,690 2008 CIT Small Business $771 Million JP Morgan Chase 6,139 2007 CIT [...]
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Denver, CO – SDR Ventures, Inc. recently announced a $7.5 million bridge financing investment for Sweetwater Canyon Club. Sweetwater Canyon Ranch encompases about 480 acres in Garfield County, CO. The lake spans nearly 77 acres in size, making it the second largest natural lake in Colorado, second only to Grand Lake. The ranch is located [...]
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