Consider Buying Your Office Space, Expert Advises Small Businesses

The '5 Cs' Lenders Look for When Considering Applicants

It's not a question of if, but when most business owners should think about owning commercial property, says financial expert and small-business advocate, Chris Hurn.

Owning your workplace is a path toward long-term wealth - one that doesn't rely on constantly bringing in new income, says Hurn, author of "The Entrepreneur's Secret to Creating Wealth: How the Smartest Business Owners Build Their Fortunes," (www.TheEntrepreneursSecretBook.com).

"Once they've established their business, usually after about three to six years of operation, they should look into property ownership - owning their store, office, or other workspace," says Hurn, who has been featured in the Wall Street Journal, the New York Times, Bloomberg Businessweek and other financial publications and TV news shows.

"The smartest way to do that is through the SBA 504 - a little-known loan program administered by the Small Business Administration. It offers long-term financing at below-market fixed rates, which businesses generally can't get through banks."

Whether or not business owners qualify for the SBA 504, they will benefit by knowing the "five Cs" lenders look at when considering loans, Hurn says.

• Collateral: Lenders - usually banks - will want to know that the property in question is worth the loan. The property to be purchased is the lender's collateral, so it must have the potential to cover the loan if for some reason owners can't. Lenders will consider the age of a property and other factors, including whatever equipment may be involved.

• Cash flow (or capacity): The lender will look to see how much cash the business generates along with the amount of existing and proposed debt. In other words, they'll want to know the cash available to service the total debt. A lender will also consider current rental payments, plus noncash expenses such as depreciation, amortization and interest costs.

• Credit analysis: This reveals the business owner's history of making good on debts and other obligations. The higher the credit scores, the better. Lenders generally shy away from credit scores lower than 650, however, they will often listen to credible explanations on lower scores.

• Character: Numerous late payments, for example, suggest that owners do not manage debts responsibly, which will likely be indicated in a credit score. Factors that determine character judgment are largely subjective. An applicant can supply evidence in his or her favor.

• Conditions: What are the conditions in the industry and the economy? The better those conditions, the more likely lenders are to give applicants a plus in this bracket. Conditions are often out of a borrower's control, which makes a positive showing of the other four factors that much more important.

About Chris Hurn

Chris Hurn is CEO and co-founder of Mercantile Capital Corp. based in Orlando, Fla. MCC has earned numerous accolades and has been featured in the Wall Street Journal, the New York Times, Bloomberg Businessweek magazine, Forbes and SmartMoney, among others. Hurn has been a frequent guest on Fox Business News and PBS. He graduated from Loyola University Chicago with two magna cum laude bachelor's degrees and earned his master's degree from the University of Pennsylvania's Fels Institute (formerly at the Wharton School of Business).  He is also the CEO, chairman and co-founder of an upscale men's barbershop franchise called Kennedy's All-American Barber Club.

The Quad City Chapter of International Association of
Administrative Professionals® celebrated their 60th anniversary
during the chapter meeting on October 8, 2012. The chapter was
chartered under the name of Rock River Chapter on October 25,
1952. The name was changed recently to better identify where
we are located and to encourage office professionals from both
sides of the river to become members.

The celebration included a ribbon cutting ceremony by the Quad
Cities Chamber of Commerce. The chapter recently joined the
chamber to become part of a larger network of companies and
organizations through the Quad Cities.

The Association has been in existence since 1942 and is now
known as the International Association of Administrative
Professionals (IAAP) to further reflect the various job titles used by
administrative support staff in today's workplace.

Our website www.iaap-quadcity.org provides up to date
information on events happening at the Quad City Chapter.

Quad City Chapter sponsors a student chapter at Black Hawk
College. We encourage the students to attend chapter meetings
and take advantage of the speakers and programs presented on
topics of interest to administrative professionals.

IAAP is celebrating its 70th anniversary through December 31, 2012
and has reduced membership dues to $70.00 for all levels of
membership.

IAAP continues to provide education and training and set
standards of excellence recognized by the business community on
a global perspective. Our present and future vision is "to inspire
and equip all administrative professionals to attain excellence."

Des Moines–Credit union representatives from across the state will gather at the Iowa State Capitol at 1:30 p.m. on Thursday, October 18 as Iowa Governor Terry Branstad signs a proclamation declaring the day as Credit Union Day in Iowa.

"While this is part of an international initiative, it's important that we recognize at the state level the importance credit unions have in their communities," said Patrick S. Jury, CEO/President of the Iowa Credit Union League. "We appreciate Governor Branstad signing this proclamation and recognizing the work credit unions do to help their members."

The Credit Union Day proclamation recognizes the Iowa credit union community for its continuing advancement of the financial well-being of credit union members and the contributions made to their respective communities.

International Credit Union Day is celebrated the third Thursday of October each year. This year's theme "Members Matter Most" speaks to the heart of the credit union philosophy of "people helping people."

Credit unions are not-for-profit financial cooperatives that provide an effective and viable alternative to for-profit financial institutions for more than 196 million members in 100 countries worldwide. They exist to serve their members, providing a safe place to save money and access affordable loans.

As part of Credit Union Day, many Iowa credit unions will be holding celebrations in their branches. To find out more about International Credit Union Day, visit www.woccu.org/events/icuday.

The Iowa Credit Union League is the trade association that represents the interests of Iowa credit unions and their nearly one million members. Credit unions are not-for-profit, financial cooperatives owned and operated by their members. Iowans use their credit union membership to receive higher interest rates on savings and lower interest rates on loans. For more information on ICUL and Iowa credit unions, visit IowaCreditUnions.com. Follow ICUL on Twitter at www.twitter.com/icul or on Facebook at www.facebook.com/iowalittleguy.

 

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Thousands of Illinois Residents Getting Help to Save Their Homes; South Holland Event is Latest to Connect Families Facing Foreclosure with Resources

SOUTH HOLLAND - October 13, 2012. Governor Pat Quinn today met with homeowners seeking help from foreclosure and outlined the progress of his Illinois Foreclosure Prevention Network (IFPN) that has been helping thousands of families across the state stay in their homes.

Thanks to the network, Illinois homeowners who are struggling with their mortgage payments are able to access the assistance and information they need to help them avoid foreclosure. The "Keep Your Home, Illinois" regional foreclosure prevention workshop was held at the South Holland Community Center.

"The home is the foundation of working families across Illinois," Governor Quinn said. "Keeping people in their homes strengthens families, communities and our economy. The Illinois Foreclosure Prevention Network provides homeowners with the guidance they need to do what's best for their families at no cost."

Most importantly, it offers homeowners a safe and trusted source for assistance so they do not fall prey to mortgage rescue scams offered by unscrupulous business entities.

IFPN has made a far-reaching impact, enabling tens of thousands of residents in every part of Illinois to access services they need to help them keep their homes. Thanks to IFPN:

·         Almost 350,000 homeowners have accessed either the IFPN website or the Illinois Hardest Hit program website.

·         More than 10,000 people have called IFPN help hotlines.

·         More than 37,000 homeowners have received homeownership counseling.

·         Almost 1,800 people have attended a series of IFPN workshops across the state.

·         More than 4,600 homeowners have been given more than $52 million in mortgage payment assistance with almost $105 million in funds approved through the Illinois Hardest Hit program.

"When the governor launched the IFPN, we knew that it was the best way to help people navigate the often confusing and overwhelming world of foreclosure prevention assistance programs," said Mary Kenney, executive director of the IHDA. "We now see the impact and success of IFPN and we will continue to reach out across the state so more and more people can get the help they need."

As states across the nation recover from the Great Recession, foreclosures continue to be a challenge. As of September, according to RealtyTrac, one in 376 Illinois homes had some form of foreclosure filing on record. The first half of 2012 saw a 3.1 percent increase in foreclosure filings in the Chicago region, compared to the same period in 2011. For the same period, Cook County as a whole saw an increase of 3.4 percent.

"Under Governor Quinn's leadership, Illinois has made many important strides to reduce foreclosures and protect homeowners - including providing access to free homeownership counseling," Kenney said. "Studies show that housing counseling nearly doubles the chances of mortgage modifications and reduces the likelihood of re-default by at least 67 percent. We are pleased that through IFPN, more than 37,000 homeowners have been referred to counseling."

Interagency cooperation and partnerships are a key element of IFPN, linking the various agencies and nonprofit organizations that play essential roles in providing resources to Illinois homeowners.

"We are proud to be one of the 68 counseling agencies providing services under the network," said Ofelia Navarro, executive director of the Spanish Coalition for Housing. "Governor Quinn understands that homeowners have difficulty understanding and keeping up with which foreclosure prevention programs are available to them. Now more than ever, as the number of programs increase, homeowners need guidance to choose the best option for them."

Under Governor Quinn, the Illinois Housing Development Authority (IHDA), Illinois Department of Financial and Professional Regulation (IDFPR) and Illinois Department of Employment Security (IDES) comprise the IFPN.

Illinois residents who are having trouble paying their mortgage, facing foreclosure or know someone who is should reach out to IFPN as soon as possible by calling the IFPN hotline at 855-KEEP-411 or by visiting www.keepyourhomeillinois.org. A list of upcoming IFPN events is also available.

 

About IHDA

The Illinois Housing Development Authority (www.ihda.org) is an independent, self-supporting bonding authority that finances the creation and preservation of affordable housing throughout Illinois. Since 1967, IHDA has allocated more than $11.1 billion to finance more than 221,000 affordable housing units for the residents of Illinois.

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