Linda MacMahon leads the SBA - I like it!! (legal, regular, independent)

[metalmancpa]

If there was one major factor about Donald Trump that skewed me away from a lifelong liberal leaning independent, it's Trump and business.

Trump's involvement in the casino industry is legendary. He's taken major risks in the real estate world. I don't care if he started out with Dad's money. He dared to dream and take chances. Bankruptcy is legal, so I have no issues with that. Not paying taxes within the Internal Revenue Code is fine by me, myself a CPA.

Linda MacMahon is business. The SBA is business. I really like this appointment.

[middle-aged mom]

She donated $7 million to Trump Superpacs.

SBA's primary purpose is to guarantee conforming loans made by banks to small businesses.

Sweet deal for banks.

[banjomike]

Originally Posted by middle-aged mom

She donated $7 million to Trump Superpacs.

SBA's primary purpose is to guarantee conforming loans made by banks to small businesses.

Sweet deal for banks.

Sweet deal for Linda, too.

But I have no problem with her if she loosens up small business loan guarantees. I got one when I owned a small business, and the loan helped me build a badly needed new shop building.

Without the SBA, I never would have qualified for a regular bank loan back then, as I didn't have a lot of capital and I was too young to have a long credit record.

I think there are a lot of young, industrious folks who want nothing more than to build their businesses. If Linda does her work for them, that's just right. I think she deserves a chance to show that before she gets walloped around for her contributions.

Small business isn't looking for handouts. They just want a little hand up to give them the boost they need when they need it, and they'll do the rest.

[Threerun]

Originally Posted by middle-aged mom

She donated $7 million to Trump Superpacs.

SBA's primary purpose is to guarantee conforming loans made by banks to small businesses.

Sweet deal for banks.

They mainly do not conform. Usually there is a collateral weakness that would preclude the lender from making the loan (as dictated by their governing regulating body- state or FDIC). The SBA offsets the risk with the guaranty.

SBA is not a substitute for a cash flow weakness, or personal credit issues of the principals of a firm, but it is a great tool for businesses starting out with little to no collateral (start-ups, leased facilities) or with capital constraints due to working capital needs.

I've done my fair share of SBA deals as a commercial lender, mostly when I was a younger lender. It's a good program. Losses are generally funded from a reserve that is capitalized by an upfront guaranty fee that is paid by the applicant and/or bank.