Monthly Archives: May 2017

The Difference between 7a and 504

When it comes to loans, small business owners have a lot of options to consider. From selecting a lender to determining the type of loan you need, the path to financing can be a confusing one. Of the many places you may look, the Unite States Small Business Administration (SBA) could be a great resource for information on loans, and specifically, different loan programs that are exclusively available to small businesses.

Of those SBA loan programs, the SBA 504 and the SBA 7(a) programs represent options that, depending on your needs and intended outcome, can present many advantages to you as a borrower. It should be noted that SBA typically does not offer direct loans. Instead, these are guaranteed by the SBA and fulfilled through banks or Certified Development Companies (CDC’s).

 

SBA 7(a) and SBA 504 Loans

While both of these SBA loan types can help small business owners to grow or maintain their business, each differs in the purposes for which it can be used.

To start, let’s look at the SBA 7(a) loan. The SBA 7(a) loan is the SBA’s most popular loan program. If you want to take out a loan so that you can have access to working capital, purchase furniture and fixtures, make leasehold improvements, or acquire an existing business, you should consider applying for a SBA 7(a) loan.

On the other hand, if you need to finance the purchase of land or existing buildings or improvement to lands or existing buildings, purchase ground-up construction commercial real estate, or purchase heavy equipment or machinery to operate your business, you should consider the SBA 504 loan.

Under the umbrella of the 7(a) loan program is the SBAExpress loan. The advantage of the Express loan is turnaround time — completed applications will receive a response within 36 hours, a process which usually takes about one month. Express loans generally follow the same standards and uses as the 7(a) loan program.

 

The Reason You Must Buy Apple Shares Anytime

Apple Inc. (AAPL) is in play this week, just ahead of earnings from the tech giant’s number-one “frenemy” Qualcomm Inc. (QCOM) .

Qualcomm and Apple have a love/hate relationship. While two companies are engaged in legal battles, Apple still uses Qualcomm-sourced modems in some of its iPhones, and pays hefty licensing fees for Qualcomm’s patents (though Apple is suspending royalty payments to Qualcomm until their dispute is resolved in court).

Qualcomm’s earnings after the bell today should provide an interesting update on the state of the feud.

While all eyes are on the battle between the two tech giants, there’s a buy signal kicking off in Apple this month.

Think Apple’s massive 30% rally is over in 2017? Think again.

Apple’s positive momentum has been substantial this year. The firm has added approximately $180 billion to its market capitalization since the calendar flipped to January, accounting for a material chunk of the broad market’s overall performance year-to-date.

Apple doesn’t report earnings until August, but Wall Street is feeling confident about the quarter. On average, analysts are expecting a $1.57 profit for Q3, a number that represents a nearly 14% profit boost over last year’s consensus bet for quarterly earnings.

A Major Buy Chart

Honeywell International Inc. (HON) is enjoying a 1% shot in the arm Friday, boosted by second-quarter earnings that topped analysts’ estimates.

While Friday’s post-earnings pop is modest, it’s triggering a buy signal that could lead to much more upside as the summer comes to a close. To figure out Honeywell’s price trajectory here — and when to buy shares — we’re turning to the charts for a technical look.

First though, a closer look at Honeywell’s earnings.

Honeywell earned a second-quarter profit of $1.80 per share, adjusted for one-time charges. That comes in slightly above the $1.78 consensus estimate from Wall Street. Likewise, the firm upped the low-end of its 2017 earnings forecast, estimating earnings of $7.00 to $7.10 a share on revenues between $39.3 billion and $40 billion.

The favorable second-quarter stats are well-timed for Honeywell — activist investor Dan Loeb is campaigning to split off Honeywell’s aerospace business and positive numbers from the firm might give management more leeway with shareholders this year.

Sending a Powerful Message

Even though Bank of America (BAC) beat earnings estimates Tuesday, bringing in a 48-cent comparable profit for the quarter versus a 43 cent average guess from analysts, shares dipped slightly on the session.

The big reason why BofA’s stock price isn’t capitalizing on the earnings beat? It all comes down to interest income.

Higher interest rates have been the big catalyst captivating financial sector investors all year long, and the fact that BofA’s interest income declined last quarter in spite of rate hikes from the Federal Reserve is making investors anxious. BofA’s net interest margin fell 5 basis points to 2.34% for the quarter.

A pair of big factors in that interest income dip was the sale of the firm’s U.K. credit card business as well as low yields on long-dated Treasuries. At the same time, the firm’s biggest banking peers that have already reported their quarterly numbers have actually managed to post higher interest income this quarter. That makes BofA look less than stellar by comparison.

But while the bank’s quarter was mixed, the message that this behemoth is sending from a price standpoint is a whole lot less ambiguous. Simply put, Bank of America could still rally this summer thanks to a bullish price setup that’s been forming in shares since March.