Economic and Lending Perspectives Considering Recent Events

We were thinking the past few days on how Kinlow Advisors could help small businesses during this traumatic experience. Some of the information we thought was the most helpful and pertinent is described here. We all have strengths and allowing them to shine now is good for the economy, society, and humanity! Here you go:

Covid-19 Economic Perspective

Our first thoughts and wishes are to all those who are so suddenly and dramatically impacted by this silent and invisible assassin, both individually and professionally. In particular, the world of many small and medium-sized businesses – the backbone of our economy – has been shattered. Beyond the physical harms, many of us struggle with non-stop negative media coverage, and occasional selective or incomplete use of facts. We do all need to be realists and understand the gravity of the situation, but optimistic and positive thoughts and actions are so much more helpful. We will win this war, as all of those impacted would want us to. This is the greatest country on earth with the best scientists, educators, doctors, analysts, strategists, etc.

Let’s focus some energy every day, in these trying times, on the evolution of the country, and how this will affect the shaping of our future, there will be positives, the higher level of awareness, the increased sensitivity to others, our vulnerability and mortality, but ultimately the will, brainpower, and drive of the people of this nation will conquer all obstacles and return us to economic prosperity.

Etch in your mind the economic strength of so many facets of our economy a short one month ago. “All hands on deck” is needed to get us out of this, and to get us back to a full re-focus on the economic strength we had been enjoying through February. We will be there sooner than the media has us programmed to believe. Everyone needs to do their part. Our part is playing whatever role we can to get SBA or other loan proceeds in the hands of those that need it, and more importantly, as quickly as possible. Contact us now.

Business Lending Market

We have had a dizzying array of state and federal programs and packages implemented or in progress in the last 7 days. The Fed today (March 23) just announced, with little detail, another massive loan pool for businesses. At this time, for both the “up and running” SBA EIDL (Economic Injury Disaster Loans), and the proposed FED offering, borrowers are asked to go direct to both governmental bodies to apply for financing. This is a concern that may significantly hinder economic recovery. Neither agency is geared up to promptly process the massive volume of loans on the way. It is essential that our multitude of preferred SBA lenders, be immediately assigned the task of processing and funding loans as they are set up to do, and have been doing for many years. The experts need to be able to do their job. Our suffering businesses that request financing need to get funded quickly, and a substantial volume of applications must be processed simultaneously. We need to unleash the capabilities of our preferred SBA lenders now.

Benefits of SBA Preferred Lenders

Kinlow Advisors partners with a dozen SBA preferred lenders. What does this mean and how does this benefit you?

The preferred lender program (PLP) provides delegated underwriting. This allows lenders that are approved by the SBA to make loan-by-loan credit decisions without the involvement of the SBA. Preferred SBA lenders are thus able to expedite and simplify the loan approval and closing process.

The primary benefits of working with a preferred lender include:

  • Improved turnaround times:
    • Offering of terms
    • Underwriting approval
    • Getting to closing
  • A proven track record and ability to handle high volumes
  • Staff expertise, with many lenders devoted exclusively to SBA products
  • Better loan terms are often available
  • Underwriting approval is quicker than the many weeks it generally takes for non-PLP SBA lenders to get to a credit decision

It’s also important to understand there are variations between PLP lenders; in risk appetite or aversion, industries served, liquidity required, the acceptable level of under-collateralization, etc. Kinlow Advisors can help you align with the PLP lender best suited for your profile.

Stay well, stay healthy and help each other!

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