New episode of One on One with Alex Ruggieri featuring Shawn Mallady

New episode of One on One with Alex Ruggieri featuring Shawn Mallady of Chittick Family Eye Care. Dr. mallady is a class act. This guy is not only a Dr. and eyecare specialist but is also one of the most dynamic entrprenures that I know. He started right out of school with ownership in mind by purchasing a practice from a retiring physician. But it didn't stop there. He continued growing his company by adding other physician partners and by acquiring additional practices. It wasn't always easy. He came to work one day to discover that his building was on fire! I think you will enjoy the story and his personal philosophy of NO BAD DAYS even in the face of watching your entire livelihood going up in flames. Go ahead and click the link to see his story. You won't regret it! Click here to watch!

NEW SBA INITIATIVES POISED TO HELP CRE INDUSTRY

WASHINGTON, D.C. — President Obama unveiled several proposals this week aimed at helping small business owners. The proposals will expand two critical Small Business Administration (SBA) lending programs, one of which could help some in the commercial real estate industry.

One of the new SBA initiatives will temporarily allow for the refinancing of owner-occupied properties under the SBA 504 program, which provides guarantees on loans for the development of real estate and other fixed assets but could not be used to refinance maturing debt up until this point. Under the new initiative, businesses with a loan maturing in the next year, and who are current on their loan payments, will be able to refinance up to 70 percent of the current property value, with the SBA helping with the remainder. For less established lenders, the SBA will take on up to 40 percent of the property's value for the refinancing.

The program will be funded through additional fees for refinancing projects instead of through a Congressional appropriation. The refinancing proposal will help refinance up to $18.7 billion a year in commercial real estate that would otherwise be foreclosed on or liquidated.

In a statement, SBA Administrator Karen Mills said, "Thousands of good, creditworthy businesses find themselves caught by declining real estate values as a result of the recession. With many of them now facing mortgages coming due in the next few years, the ability to refinance into SBA's 504 loan will give them the chance to lock in long-term, stable financing, as well as protect jobs by protecting small businesses from foreclosure."

New Episode of One on One with Alex Ruggieri featuring David Hodge

When I first met David I had invited him to come on my radio show Central Illinois Business to talk about his recent acquisition of Porter Athletic. It was then that I got the opportunity to learn about him and his personal story. I was particularly impressed with his sincerity, his humility and his disarming charm. He started working for Gill Sports in accounting at a very tumultuous time. The company was struggling and even though Gill had a long and storied history in the industry, during that period, it looked like the entire enterprise might not even make it. One day the owner (Vince Atkins) called him into his office. David was sure he would be fired but that's not what happened. Instead Vince made David the president of the company! And he also made him a promise. He told him that if he would do all in his power to make the company work, to turn things around successfully, then at the end of ten years he would sell the company to him. Well it wasn't as easy as it sounds. Those ten years were sometimes harrowing and difficult but this quiet unassuming man exercised all his faculties and his faith and did turn the company around. Today David Hodge with his holding group Litiana Sports, Inc. is a major force in the industry and a significant employer in our community. Take the time to watch his interview I promise if nothing else it will leave you inspired! Watch Now!!

One of our lenders put together a great overview on the capital markets

Economic and Interest Rate Outlook

The market has shown strength the first two weeks of the year. A combination of factors including softer than expected Payrolls last Friday, better than expected treasury auctions, and dovish talk from the Fed have driven a sharp move lower in 2010 after a 60 basis point run up into the year-end of 2009.

We continue to see the 10 Year Treasury trade within the range of the 2nd half of 2009—unable to break 3.85% on the high side and 3.20% on the low end. The economic data has improved but not to the point where it is evident that the Fed is prepared to start hiking its target rate. New Treasury supply continues to come, but there is obvious demand for it as evidenced by the solid auctions this week. Every time the 10-Year Treasury rate starts to head toward the high end of the range, buyers emerge and the market rallies. Lack of an imminent move higher in inflation, combined with employment weakness are the key catalysts for fixed income buying at these levels. There are no auctions scheduled for next week, so corporate earning and equity prices will be the primary drivers of the bond market.

The Consumer Price Index excluding the volatile Food and Energy Components showed prices rising 0.1% in December (as expected) and the Fed’s Beige Book characterized the economic conditions as improving modestly. Capacity Utilization inched up higher than expected in December to 72%, the highest level of the past year. Tempering the bullish news this week was a higher than expected initial jobless claims number.

As you might expect, the Fed Funds Futures market lowered its expectations for Fed rate hikes over the course of the week as rates fell. The market still sees about a 30% chance that the Fed will raise it Target rate to 0.50% in August but will certainly move the probability after we see 4th quarter earnings from the Fortune 500

A big thank you to Eric Better of Better Capital for providing this report!