But then I’ve payday loans without checking account in Bedford, OH got a lot of clients that can’t get traditional banking loans or they’re on the bubble, then they can go to an SBA lender
Gene: I want to answer that as well, Jon, that the clients that I have that are more established and that they can get traditional bank loans on their own. They generally don’t go with the SBA, mainly because the bankers either of more favorable terms or it takes the bankers a little bit extra work to do an SBA loan. There’s paperwork and stuff like that for them to do. And you can find all those lenders by the way on . ” So it’s just like Julio, like you were saying, it’s the higher the risk, the more opportunity there is for business to get an SBA loan. And I think that’s sort of a rule of thumb.
Jon: And I think it’s especially relevant right now, even just kind of at the class level, that you’re talking about a little bit Julio. So I do think about my restaurant people a lot. I think now is the time if they can get access to capital and kind of invest in maybe some of the changes or kind of enhancements they had to kind of make to survive during COVID. It’s not a bad time to consider if there’s lending opportunities available, can you put that back into your operations? Can you think about all season patios? Because I think we still don’t know what we don’t know about the pandemic and local regulations and how that’s going to play out over the next couple years. So I do get scared sometimes that it’s 2008.2 where you start to look at some organizations and maybe where they need to handle up.
And there’s then can say, “Wow, we can do business with these people now because the government’s going to guarantee the majority, the great majority of these loans
Gene: Julio, you should know that even though Jon works at the Hartford, he is a restaurant manager at Hart.
Julio: So he feels the pain. Here’s what’s interesting and again, during good times SBA performance with lender’s drops because remember SBAs not here to who make life for a banker comfortable. We’re here to support those businesses that otherwise without the SBA, they could not get any funding. And so we expect that during good economic times, SBA’s guaranteed programs across the board drop because why? Banks are lending conventionally. That’s really the goal is for banks to do this without SBA. Now, during hard times, recessions, COVID, etc., then all of a sudden banks shy, they tighten up, they put more restrictions on credit. And as a result SBAs are guarantee and lending programs grow exponentially because of it. So we’re kind of the reverse, in good times our… Because we don’t report to the stockholders or our bottom line isn’t driven by how much money at SBA is making. That’s what drives us because we’d rather see 1000 loans being made by a bank than say 10 million dollars because it has more of an impact numbers than dollars.
Jon: Well, I think it’s interesting too. You said it kind of before it’s a tax payer program. And your obligation is to the community because without small businesses, we wouldn’t have vibrant communities. So I want to encourage our listeners to really kind of think about all that the SBA does have to offer everything from mentorship to lending opportunities just to coaching in order to get what you need. Because I think you’re right, it’s tough that an advertising budget. It’s hard to get the word out, and sometimes people who might need to take advantage of resources during hard times aren’t the first ones to say, “I’m having a hard time.” So I think the work is important and important for people to know about.