News

Shawnee County Small Business Awards

On Thursday, May 14 the Greater Topeka Chamber of Commerce and GO Topeka Economic Partnership will recognize local businesses and a nonprofit agency for their outstanding achievements and contributions to the Shawnee County community. These businesses have all met the following criteria:

  • - Membership: Must be a member-in-good-standing of the Greater Topeka Chamber of Commerce
  • - Longevity:  Must be in business a minimum of 3 years
  • Growth: Demonstrates growth in employees, sales and business expansion
  • - Community Involvement: Shows initiative to aid the community through the use of personal or financial resources including examples of involvement of its business or in product and service
  • - Imagination/Creativity: Demonstrates creativity and imagination in the development of its business.


Wakarusa Valley Development has helped 18 of the recipients of the small business awards! We are proud to have helped these past recipients!

 

LINC

Wakarusa Valley Development has teamed up with the SBA’s new program called LINC (Leveraging Information and Networks to Access Capital). LINC is a service that takes advantage of technology to provide an alternative to a borrower who may lack a banking relationship or is having difficulty finding a lender.

How LINC works with WVDI: A borrower is asked a series of questions about their financing needs and their project information is sent to us. We are then able to provide loan program options along with lender referrals in their local market. Currently we are registered to receive information from borrowers in the entire state of Kansas.

If you are interested in working with us on our LINC matches please let us know! It is a great tool for all involved!

 

Welcome New Staff Member!

Liz Clement joined us on February 2, 2015 as a loan assistant. Her focus is to assist senior staff with the management and servicing of current 504 loan portfolios. Liz brings with her nearly 7 years of banking experience. Having been a teller, assistant branch manager, account operations clerk, and loan operations clerk, Liz has a strong understanding for how the financial system works.
She was born and raised in Lawrence and loves the local community. She is a season ticket holder for both the Royals and the Chiefs and is a die-hard Kansas Jayhawk fan. Liz enjoys going to sports games, being outdoors and spending time with her family, friends and her dog - a puggle named Toby.

Please help us welcome Liz!

 

Reminder: We Have Moved

Wakarusa Valley Development, Inc. has moved to 4321 W 6th Street, Suite B, Lawrence, KS 66049. Please note that we no longer have the PO Box number. Our mailing address is the same as above. Our phone number 785-749-7600 and fax number 785-749-7601 remain the same.

 

Stop by and see our new office when you are in the neighborhood!

 

Affordable Care Act 101 Weekly Webinars and Office Move

Affordable Care Act 101 Weekly Webinars

SBA and Small Business Majority will continue to host free Affordable Care Act 101 weekly webinars so small business owners can learn the basics of the Affordable Care Act and how they can enroll in health insurance marketplaces.

Thursday, August 14 at 2 PM ET:
Thursday, August 21 at 2 PM ET:

Link to register:  http://links.govdelivery.com/track

We Have Moved

If you missed our June Newsletter, Wakarusa Valley Development, Inc. has moved to 4321 W. 6th Street, Suite B, Lawrence, KS 66049.  Please note that the MAILING address is the mailing address, we no longer have the P.O. Box number.  Phone number 785-749-7600 and fax number 785-749-7601 also remain the same.  Stop by and see our new office when you are in the neighborhood.

So, don't forget to contact Troy or Glenna to discuss your latest financing project!

Now you can follow us on Twitter at @WakarusaValley!
 

Final Rule on 504 and 7(a) Loan Program Updates

SBA will no longer require that the personal resources of owners be used to reduce the financing package.  The elimination of the Personal Resources Test was effective April 21, 2014.

SBA will no longer limit financing of expenses toward a 504 project to 9-Months prior to submission of application.  Effective April 21, 2014, expenses toward a project will be permitted regardless when the cost was incurred as long as the expenses are directly attributable to the project.
 

Weekly SBA Loan Approval Statistics

In the December 2012 Wakarusa News, a website for various SBA loan performance was given.  There is another SBA website that gives weekly loan approval statistics for the current year-to-date along with a comparison of the two previous fiscal years.  Two separate tables are shown on the same page, one table for 7a activity and the other for 504 activity.

Among the information in these tables in total number and total dollar amount approved:  Loans to startup businesses, minorities, women, rural, veterans, loans $150,000 and under.

Some comments about the 1st quarter ending 12-31-2013 data:

A slower start in loan activity was expected due to the federal government shutdown for 17 days in October 2013.

Average 7a loan size at $378,529 is a slight fall from FY 2013, but a significant increase over 2012.

Interesting to note, loans $150,000 and under fell by approx. 30% in both dollar amount and number.  SBA dropped the guaranty and lender fees on loans $150,000 and less effective October 1, 2013.

504 lending also showed a decrease in number of about 30% over the FY 2013 first quarter.

You may look at the full performance table as of 12/31/2013 at:  http://www.sba.gov/about-sba/sba_newsroom/weekly_lending_report.  The newest information will always been the first article in the list.

If you don't have the performance reports link referred to in our December 2012 Wakarusa News, it is:  http://www.sba.gov/about-sba/sba_performance/performance_budget/loan_program_performance_reports.
 

Issuance of SOP 50 10 5(F)

The Office of Capital Access is announcing the issuance of the Standard Operating Procedure (SOP) 50 10 5(F) on Lender and Development Company Loan Programs.  This update will be applied to all applications received by SBA on or after January 1, 2014.

The following is a summary of some of the more significant clarifications and changes:

Franchise Agreement Review – Delegated lenders (PLP and Express) will be able to submit franchise agreements to SBA for an affiliation determination.  Clarification on fitness centers that target one gender

Businesses Engaged in Promoting Religion – SBA Form 1971, Religious Eligibility Worksheet is incorporated into the new SOP and contains updated eligibility and processing information.

Collateral – A loan is considered “fully secured” if the lender has taken a security interest in all available fixed assets with a combined “net book value” up to loan amount.  Adjusted Net Book Value:

   New machinery and equipment – 75% of net book value

   Used or existing machinery and equipment – 50% of net book value

   Real Estate – 85% of appraised value

    If there is a shortfall (not fully secured) trading assets may be included
    using 10% of net book value.  Lender will be required to take available
    equity in personal real estate of principals.

All SBA Form 1502 reporting to Colson must be submitted electronically – fax or mail will no longer be accepted.

 

7(a) and 504 Fees Effective on October 1, 2013

Each year SBA reviews certain fees payable to SBA by 7(a) participating lenders ("Lenders"), Certified Development Companies ("CDCs"), and borrowers to determine if any of those fees need to be adjusted to cover estimated subsidy costs of the 7(a) and 504 loan programs. SBA has announced several reductions for SBA's FY 2014.
Fee Reductions:

For 7(a) loans greater than $150,000

   On-going guaranty fee or annual service fee is reduced to .52 percent (52 basis points) of the guaranteed portion of the outstanding balance of the loan.

     Upfront guaranty fee for all 7(a) loans will continue to depend on the loan amount and the maturity of the loan.

For loans with a maturity that exceeds 12 months: Loans of $150,001 to $700,000, 3% of the guaranteed portion,

For loans with a maturity that exceeds 12 months: Loans of $700,001 to $5,000,000, 3.5% of the guaranteed portion up to $1,000,000 PLUS 3.75% of the guaranteed portion over $1,000,000

For loans with a maturity of 12 months or less and $150,001 and OVER, the guaranty fee remains .25% of the guaranteed portion

A significant change is for 7(a) loans $150,000 and less. BOTH the yearly fee AND the upfront guaranty fee will be ZERO. Lender may not charge a guaranty fee to the borrower in connection with these loans.

Wakarusa Valley Development will package the SBA 7(a) loan guaranty application and will work directly with the SBA through the approval process. Once approved, the participating lender will close, disburse and service the loan.

There are no changes to fees for 504 loans approved during SBA's FY 2014. The annual fee continues to be 0.9375 percent (93.75 basis points) of the outstanding balance of the loan and the one-time guaranty fee continues to be .50 percent (50 basis points).
 

Free Affordable Care Act Webinar

Throughout September, SBA and Small Business Majority will hold a weekly Affordable Care Act 101 webinar. During each presentation, small business owners can learn about the law and what it means for their company and employees. 

  
•Thursday, September 12 at 2:00 PM ET: Click to Register
•Thursday, September 19 at 2:00 PM ET: Click to Register
•Thursday, September 26 at 2:00 PM ET: Click to Register
 

504 Interest Rates

20 Year Rates

March 2.80%
February 3.46%
January 3.71%

10 Year Rates

March 2.85%
January 3.80%
November 3.93%

* Interest rates may vary.

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