Community Development Banking List
07-06-2010, 09:08 AM
Original message from: Development@commfirstfund.org
Sam's Club will offer small-business loans
Program will focus on minority-, women- and veteran-owned businesses
BENTONVILLE, Ark. - Sam's Club said Tuesday it will offer small business
<http://www.msnbc.msn.com/id/38103657/ns/business-us_business/> ('http://www.msnbc.msn.com/id/38103657/ns/business-us_business/>') loans
of up to $25,000 to its small business members.
The division of Wal-Mart Stores Inc., which is based in Bentonville,
Ark., is testing a program with Superior Financial Group
<http://www.msnbc.msn.com/id/38103657/ns/business-us_business/> ('http://www.msnbc.msn.com/id/38103657/ns/business-us_business/>') , one of
13 federally licensed nonbank lenders, and will offer $5,000 to $25,000
loans to members who qualify.
Sam's Club says 15 percent of its business members reported they were
denied a loan in a November survey. That's up from 12 percent in April
2009.
The program will focus on minority-, women- and veteran-owned
businesses.
Sam's Club members who apply for a small business loan during the pilot
will receive $100 off the application fee, a 20 percent discount and a
discount on interest rates
<http://www.msnbc.msn.com/id/38103657/ns/business-us_business/> ('http://www.msnbc.msn.com/id/38103657/ns/business-us_business/>') .
Businesses can pay $35 for a membership to Sam's Club that includes
three annual membership cards that allow them to shop at 600 Sam's Clubs
in the U.S. Sam's Club offers other memberships to consumers and
businesses that cost as much as $100 annually depending on the features
included.
Although the economy has grown for three straight quarters, tight credit
remains a problem for many consumers and businesses.
"Access to capital is a major pain point for our members," said
Catherine Corley, vice president, membership at Sam's Club.
Copyright 2010 The Associated Press. All rights reserved. This material
may not be published, broadcast, rewritten or redistributed.
MacDonald Stacks
Development Department
Community First Fund
PO Box 524
Lancaster, PA 17608
717 393-2351, ext 103
www.commfirstfund.org
P Please consider the environment before printing this email
________________________________
From: bounce-6069980-12716141@list.cornell.edu
[mailto:bounce-6069980-12716141@list.cornell.edu] On Behalf Of Leslie
Belay
Sent: Monday, June 28, 2010 1:37 PM
To: communitydevelopmentbanking-l@list.cornell.edu
Subject: Collateral and limiting exposure on micro-loans
Greetings -
I am working with a small micro-lender in the Northeast that is
reviewing its loan approval guidelines. Historically, the fund has
secured loans (up to $35,000) by accepting personal and business assets
as collateral. Unfortunately, during this recent economic downturn, the
organization learned just how limited this collateral really is - if a
borrower defaulted and the loan was sent to a collections agency, the
lender was likely to receive no more than 30 cents on the dollar, and
often less than that. Traditional collateral, such as a car, equipment,
house, or other business assets, are just not practical for a small
non-profit lender to repossess and resell.
So, my question is, do you (small CDFI micro-lender) use personal and
business assets as collateral? Beyond the symbolism, how valuable is
such collateral when a business goes into default? Do you have a policy
about limiting exposure when using such collateral?
Other related questions: If you don't use business or personal assets as
collateral, do you rely on a co-signer? A third party guarantor (city
agency or other lender)? Do you engage in purely "character" lending?
We would like to come up with meaningful policies and procedures for
establishing collateral requirements and would like to know what others
are doing and, most importantly, what works best?
Thanks, and please reply directly to me,
Leslie Belay, Non-Profit Management Consultant
43 Peter Parley Road
Jamaica Plain, MA 02130
leslie.belay@verizon.net
617/522-5417
617/460-5417 (mobile)
symbolic
CDB list instructions http://www.runonthebank.net/cdblist.htm ('http://www.runonthebank.net/cdblist.htm')
CDB list instructions http://www.runonthebank.net/cdblist.htm ('http://www.runonthebank.net/cdblist.htm')
Sam's Club will offer small-business loans
Program will focus on minority-, women- and veteran-owned businesses
BENTONVILLE, Ark. - Sam's Club said Tuesday it will offer small business
<http://www.msnbc.msn.com/id/38103657/ns/business-us_business/> ('http://www.msnbc.msn.com/id/38103657/ns/business-us_business/>') loans
of up to $25,000 to its small business members.
The division of Wal-Mart Stores Inc., which is based in Bentonville,
Ark., is testing a program with Superior Financial Group
<http://www.msnbc.msn.com/id/38103657/ns/business-us_business/> ('http://www.msnbc.msn.com/id/38103657/ns/business-us_business/>') , one of
13 federally licensed nonbank lenders, and will offer $5,000 to $25,000
loans to members who qualify.
Sam's Club says 15 percent of its business members reported they were
denied a loan in a November survey. That's up from 12 percent in April
2009.
The program will focus on minority-, women- and veteran-owned
businesses.
Sam's Club members who apply for a small business loan during the pilot
will receive $100 off the application fee, a 20 percent discount and a
discount on interest rates
<http://www.msnbc.msn.com/id/38103657/ns/business-us_business/> ('http://www.msnbc.msn.com/id/38103657/ns/business-us_business/>') .
Businesses can pay $35 for a membership to Sam's Club that includes
three annual membership cards that allow them to shop at 600 Sam's Clubs
in the U.S. Sam's Club offers other memberships to consumers and
businesses that cost as much as $100 annually depending on the features
included.
Although the economy has grown for three straight quarters, tight credit
remains a problem for many consumers and businesses.
"Access to capital is a major pain point for our members," said
Catherine Corley, vice president, membership at Sam's Club.
Copyright 2010 The Associated Press. All rights reserved. This material
may not be published, broadcast, rewritten or redistributed.
MacDonald Stacks
Development Department
Community First Fund
PO Box 524
Lancaster, PA 17608
717 393-2351, ext 103
www.commfirstfund.org
P Please consider the environment before printing this email
________________________________
From: bounce-6069980-12716141@list.cornell.edu
[mailto:bounce-6069980-12716141@list.cornell.edu] On Behalf Of Leslie
Belay
Sent: Monday, June 28, 2010 1:37 PM
To: communitydevelopmentbanking-l@list.cornell.edu
Subject: Collateral and limiting exposure on micro-loans
Greetings -
I am working with a small micro-lender in the Northeast that is
reviewing its loan approval guidelines. Historically, the fund has
secured loans (up to $35,000) by accepting personal and business assets
as collateral. Unfortunately, during this recent economic downturn, the
organization learned just how limited this collateral really is - if a
borrower defaulted and the loan was sent to a collections agency, the
lender was likely to receive no more than 30 cents on the dollar, and
often less than that. Traditional collateral, such as a car, equipment,
house, or other business assets, are just not practical for a small
non-profit lender to repossess and resell.
So, my question is, do you (small CDFI micro-lender) use personal and
business assets as collateral? Beyond the symbolism, how valuable is
such collateral when a business goes into default? Do you have a policy
about limiting exposure when using such collateral?
Other related questions: If you don't use business or personal assets as
collateral, do you rely on a co-signer? A third party guarantor (city
agency or other lender)? Do you engage in purely "character" lending?
We would like to come up with meaningful policies and procedures for
establishing collateral requirements and would like to know what others
are doing and, most importantly, what works best?
Thanks, and please reply directly to me,
Leslie Belay, Non-Profit Management Consultant
43 Peter Parley Road
Jamaica Plain, MA 02130
leslie.belay@verizon.net
617/522-5417
617/460-5417 (mobile)
symbolic
CDB list instructions http://www.runonthebank.net/cdblist.htm ('http://www.runonthebank.net/cdblist.htm')
CDB list instructions http://www.runonthebank.net/cdblist.htm ('http://www.runonthebank.net/cdblist.htm')