Economic Perspectives with Hopeton Hay on KAZI 88.7 FM in Austin, TX

Posts Tagged ‘BiGAustin’

PODCAST: BiG Austin Energy and Transportation Economic Development Summitt October 10

Posted by Hopeton on July 29, 2013

Stacy Dukes-Rhone

Stacy Dukes-Rhone

On the July 29 edition of Economic Perspectives, BigAustin executive director Stacy Dukes-Rhone discussed the upcoming Energy and Transportation Economic Development Summitt BigAustin is hosting October 10.  To listen to the interview click here:  .

Posted in Business, Economic Development, Podcast | Tagged: , , | Leave a Comment »

The Challenges Facing Fannie Mae and Freddie Mac Focus of April 25 Economic Perspectives

Posted by Hopeton on April 25, 2011

Stijn Van Nieuwerburgh, co-author of Guaranteed to Fail: Fannie Mae, Freddie Mac, and the Debacle of Mortgage Finance will be a guest on Economic Perspectives today at 5:30 p.m. central time. Stacy Dukes-Rhone, executive director of BiGAustin, will also be a guest and will discuss BiG Idea Day which is on April 29. Listen live online at kazifm.org.

Guaranteed to Fail opines how “poorly designed government guarantees” for Fannie Mae and Freddie Mac led to the debacle of mortgage finance in the United States, weighs different reform proposals, and provides recommendations. This book unravels the dizzyingly immense, highly interconnected businesses of Fannie and Freddie. It proposes a model of reform that emphasizes public-private partnership, one that can serve as a blueprint for better organizing and managing government-sponsored enterprises like Fannie Mae and Freddie Mac. In doing so, Guaranteed to Fail strikes a cautionary note about excessive government intervention in markets.

Posted in Austin, Banking, Books, Business, Entrepreneurship, Housing, Interview, Mortgages, small business | Tagged: , , , , , | Leave a Comment »

The Future of Small Business Under President Obama Focus of March 30 Economic Perspectives

Posted by Hopeton on March 28, 2009

Jeannette Peten will discuss the future of small business under President Barack Obama’s Administration on the March 30 edition of Economic Perspectives.  Peten is the founder and president of BiGAustin, the 2nd oldest microlender in Texas.  Founded in 1995, BiGAustin provides entrepreneurial training, business counseling, and loans up to $50,000 to small businesses in central Texas.  It has served over 1600 small business owners and aspiring entrepreneurs.  BiGAustin has helped its clients leverage $6 million in financing to start or expand their businesses.

Jeannette Peten

Jeannette Peten

Peten, who has a business degree from The University of Texas at Austin, has been providing financing, training, and technical assistance to small, minority, and women-owned businesses since 1989.  She served for six years on the Board of Directors of the Association of Enterprise Opportunities, the leading voice for microenterprise in the nation.  Peten has also testified in support of the the SBA Microenterprise Loan Program before the U.S. House of Representativess Small Business Committee

She started working with small businesses as a business consultant for Grant Thornton CPA firm while it was operating the Austin Minority Business Development Center.  In addition to her small business experience, Peten worked in corporate finance for IBM and Merrill Lynch.  She also served as

Peten says her passion for helping small businesses came from her family experience in entrepreneurship.  Her father owned a construction firm and her mother operated a beauty salon in her home town of Philadelphia.  Both her parents benefitted from special assistance programs for minority businesses.

Posted in Business, small business, Small Business Loans | Tagged: , , , | Leave a Comment »

Business Financing During Tight Credit Times

Posted by Hopeton on November 13, 2008

By Hopeton Hay

Hopeton Hay

Hopeton Hay

The recent upheavals in the banking system of the U.S. have made it much more difficult for small businesses, especially those without pristine personal and business credit and strong financial statements to obtain loans and lines of credit. News reports indicate a number of small business owners are having their lines of credit withdrawn or bank loans called by their financial institutions. But even with all the challenges, there are still sources of capital available and strategies entrepreneurs can employ to improve access to capital.

Tight Credit Times

According to the Federal Reserve System’s national summary of the October 2008 Senior Loan Officer Opinion Survey on Bank Lending Practices, 75 percent of respondents from domestic banks “indicated that they had tightened their lending standards on” commercial and industrial loans to small firms since July 2008. The survey also indicated that “85 percent of domestic banks reported that they had tightened their lending standards on commercial real estate loans over the past three months.”

Even the U.S. Small Business Administration (SBA), which in the past has had an increase in the number of loan guarantees approved during hard economic times according to a report by the U.S. Senate Committee on Small Business, has seen a historic decline in it guaranteed loans. The SBA’s Acting Administrator Sandy Baruah announced in October that the SBA approved 30,000 fewer government guaranteed loans through the SBA’s 7(a) program, declining from 99,604 in fiscal year 2007 to 69,434 in fiscal year 2008, the largest decline in one year in the history of the program. In response to the decline Baruah said in a press statement that “the SBA is holding meetings across the country to better understand how the agency can work with both lenders and small businesses to help them during these difficult times,”

Strategies to Improve Access to Capital

But with all the upheaval there are some things entrepreneurs can do to improve their access to capital

  1. Identify alternatives to bank financing in Austin -While the news is bad on the banking front, community development financial institutions such as AccionTexas, BiGAustin, and PeopleFund provide financing to small businesses that don’t meet traditional bank underwriting guideliness. In addition factoring companies such as Working Capital Solutions can provide accounts receivable financing. Representaives from BiGAustin, PeopleFund, and Working Capital Solutions will be making presentations on their respective capital programs at the seminar, Building Black Wealth: Surviving and Thriving During the Financial Crisison Saturday, November 15, 10 a.m. -12:30 p.m. at BiGAustin, 1050 E. 11th, Suite 350. Email hopeton@econpers.com to make your reservation.
  2. Cut business expenses – look to see what expenses you can cut and reductions you can obtain by negotiating with current suppliers of the products or services you purchase
  3. Reduce personal debt to improve credit score- as small business owners your personal credit is your business credit, so the stronger your personal credit, the more attractive you are to lenders
  4. Reduce personal cost of living – many lenders when evaluating your ability to repay the loan look at the availability of cash flow from the business and from the household. Reduced household expenses means more cash flow available to make loan payments
  5. Improve the quality and reliability of your financial statements – Lenders need to have confidence that the business financial statements you provide them accurately reflect the condition and performance of your business and that you have a good understanding of them. It is these statements that provide the “proof” that your business has the financial structure and historical performance to meet key components of their underwriting guidelines. Knowing that the owners of the business understand the financial side of the business increases the lenders confidence in your ability to make good financial decisions. Also, having your financial statements prepared by a certified public accountant may increase the confidence the lenders have in the reliability of the financial statements.

Posted in Austin, Business, Small Business Loans | Tagged: , , , , | 1 Comment »