Multi-Creative Entrepreneur: Producer and Juggler, both figuratively and literally. TV, Film and Radio Producer. Host of "DavidKamatoy.com Show" Entertainment, E-Marketing, Jugglemail.com CRM, Content Marketing, Musician, Tenor
San Diego, CA (For Release) - The DavidKamatoy.com Show will feature a special Black-Owned Business Round Table discussion on a special live stream on Monday, March 1 at 3:00 p.m. pst. Hosts David Kamatoy and Mark Christopher Lawrence will chair the round table discussion, which will feature Black business owners and entrepreneurs. The Discussion will revolve around how Black-owned businesses can grow as the nation begins to move out of heavy Covid-19 restrictions.
“We felt that this was a good way to cap off Black History Month,” says Kamatoy, who has produced nationally syndicated television and radio programs. “But it is also an excellent opportunity for Black business owners and entrepreneurs to share how they have managed to survive, and sometimes thrive, through the Covid-19 lockdowns. Then, looking forward, how can we help support other small businesses moving out of the heavy restrictions we have been under in California and other locations.”
As co-host, actor, comedian and producer Mark Christopher Lawrence, best known as Big Mike on the NBC series “Chuck,” will join the panel to discuss the effects the pandemic has had on the entertainment industry and how he and others are trying to help struggling actors and related businesses. In addition to his noteworthy entertainment career, Lawrence is an entrepreneur with several projects currently in the works.
Panelist Stephen “Steph” Groce is an entrepreneur and business and education advocate with strong ties to the San Diego community. In addition to his business activities, Groce has been the Chairman of the City of San Diego’s Human Relations Commission, a San Diego Unified School Board candidate, and California State Assessment Coordinator for the National Assessment of Educational Progress. He brings a unique perspective to the discussion.
Del Lewis, another member of the panel, is the founder of TriClare Business Holdings, a “venturepreneur” company that provides advisory services relating to business management and business operations. The company provides intellectual, and experience/expertise capital in exchange for a portion of equity in the client’s business venture.
Also joining the panel will be Tinicia Smith, President and Founder of Black San Diego: Empowering Our Community. Smith, who began the organization with a simple question on Facebook, is a business development professional with experience in the non-profit organization management industry. Her organization’s goal is to provide a platform for Black business owners, entrepreneurs and professionals to empower and strengthen the community.
Other invited guests to the panel, pending confirmation, include artist Tony Washington and San Diego entrepreneur and community leader Carlton Overstreet. The panel will air live via Restream on DavidKamatoy.com as well as multiple Facebook and YouTube accounts.
For more information, contact David Kamatoy at DavidKamatoy.com or DavidKamatoy.guru.
(Blog) Steven David Elliott joins me from Florida, Coast to Coast via Skype to talk about Networking in and out of the Pandemic. This is 2 TV show segments together.
Here are a few personal takeaways from this interview...
Steven David Elliot and Rockstar connect reinforce the importance of being an extrovert at times in order to promote yourself, your brand and your business. This is hard in a pandemic and even harder for introverts. But Steven David Elliot and I both are introverts and extroverts. The trick is to just do it, fake it even if its just for 20 minutes or a networking event or a social media post.
Relationships, Building relationships is extremely important for business but also for referrals. Helping and connecting people creates a Karma like effect. Relationships in and out of Covid can be reinforced now by picking up the phone, sending an email and just checking in with people.
(Press Release) Multi-creative entrepreneur and television host and producer David Kamatoy has released his latest video from The DavidKamatoy.com Show on networking in the era of Covid 19 with author and entrepreneur Steven David Elliot. In the segment, “Networking in Covid-19 with Steven David Elliot,” the two discuss the creation of Elliot’s networking program, Rockstar Connect, and the challenges of networking in the coronavirus era.
After beginning a career in social work with the elderly, Steven David Elliot became interested in marketing after learning sales technique from a cousin. Remembering what his elderly clients had often said to him while in social work about regrets for things they had not done, Elliot decided to follow a dream and open up a bookstore. Eventually he had four successful bookstores, two each in North Carolina and Miami , Florida, which he ran for 15 years. Even in an era of growing online book sales, Elliot’s stores thrived because of his emphasis on networking.
“It’s not about what you sell; it’s about the people,” Elliot explains in the interview. “I would help people, and they would reward me by doing business with me.” This focus on networking continued to grow and developed into a consistent networking event that provided the help he needed in his business. “I’m not a small business when I have a networking event, because I have that big tribe, a nation of people who are around me.”
Elliot goes on in the interview to explain how this networking event then grew into what today is the Rockstar Connect series of networking events. His theory, which he has shown to be quite successful, is that if people did a consistent networking event every month, they would never have to do any other form of prospecting. This is the power behind Rockstar Connect events which focus around an event host who is featured through social media pushes. By building an event designed to provide attendees with what they need to be successful, the host earns their gratitude and their connections. Many times a person who was never at the event is inspired by an attendee to connect and do business with the host.
The interview concludes with a discussion on the continued importance of connections and networking during the current Covid-19 era and beyond. Kamatoy points out the challenges of the new generation placing an inordinate emphasis on social media connections in contrast to tried-and-true methods such as phone calls. “That’s something we need to reinforce again, that it’s so strongly about relationships first.” David Kamatoy is a multi-creative entrepreneur - a juggler both literally and figuratively. His mission is to support and inspire like-minded multi-creatives in taking their projects to the next level. With a background in entrepreneurship and entertainment, he has produced hundreds of nationally syndicated Radio and TV episodes. He works in media and business development for clients via KamatoyMedia Group and is co-founder of Jugglemail.com, a CRM, Email Marketing Web Platform. Juggle your business with jugglemail.com
For more information about David Kamatoy, visit DavidKamatoy.com or DavidKamatoy.guru
San Diego,CA-(blog) Twitter is experimenting with expanding the 140 character limit to 280. I am excited to say that I was lucky enough to be included in that beta group, and I dig it.
Back in the day when Twitter launched, I remember trying to explain what Twitter was. We used to say it’s mini blogging... which then led to the question...what is blogging? Well it's writing on a blog. OK what is a blog, etc. etc. etc. The explanation I like to give now is that it’s more like texting to the public. A normal tweet has 140 character limit, a text has 160 the new beta Twitter is 280.
TOP 5-10 Reasons why Twitter should keep the expanded 280 character limit.
1. Express Yourself : With the 280 character limit, I find it easier to craft a more natural complete thought. I also find myself actually being able to use adjectives rather than sacrificing them for brevity. This according to Twitter’s blog post is exactly the reason for the expansion, “9% of all Tweet in English hit the 140 character limit.”.
2. Quicker learning curve for beginners : For those new to Twitter or who never got quite started on Twitter, the 280 character limit will help attract a new or renewed audience.
3. Better Grammar: Speaking of using adjectives, you also get to write in multiple, more correct sentences. I find myself being able to express a complete thought and then add #hashtags. Yes, I am still including some of the text within a sentence structure #hashtagged, but it’s a lot more forgiving and interesting.
4. More characters means more #Hashtags: If your goal is to be read or seen and grow your Twitter following and increase your brand, then the consistent use of #hashtags helps.For example, #actorslife #setlife #entrepreneur these are hashtags I use often, and because of it I get new followers and traffic from those consistent and expanded hashtags.
"Twitter's new 280 limit means more characters which means more #hashtags which means more traffic." -DavidKamatoy.guru
5. Twitter is relevant again: Social media has a tendency to be quickly generational. (Those damn kids on MySpace. Back in my day we used Compuserve and we liked it.) This current generation has a tendency to move towards Instagram and Snapchat vs. Twitter and Facebook. I tell people of all generations that we must communicate with people on whatever platform that they are on. So while your friends are on Instagram, the people hiring you might be on LinkedIn and the people you need to impress may be on Facebook. That and posting a resume on Snapchat doesn’t make a lot of sense.
Twitter has a tendency to be more in the middle and have the best of both worlds. Which is why I focus my efforts here and I try get my clients both in entertainment and business to do the same. Even if you have a dominant presence on other platforms, I still have people focus on Twitter.
Many of the early adopters have a strong presence on Twitter: popular entertainers, business people, platforms, and yes even President Trump is part of the reason that Twitter is relevant. You can be as light or as heavy as you would like, but the fact that the platform allows that lean towards the intellectual makes a lot of sense. Also, Twitter algorithms are a lot less restrictive than Facebook. In Facebook your posts are extremely limited and you often need to pay to play for more exposure. In Twitter your tweets and interactions have a better chance of being seen, and vice versa. Especially now with the character expansion..
Also Twitter has been the most open towards API integration, it seems. The ability to use programs like Hootsuite, Socialoomph, Klout and Manageflitter to manage the data and build a following is exciting.
Random points: As a reference point you can read the blog post about their reasoning for expanding the character limit here.
Not everyone has the 280 limit (including President Trump), and so popular programs that allow you to post from their sites are still using a 140 character default. So I am actually copying and pasting into Twitter natively so I can expand my message.
Financially: Let’s face it Twitter is still trying to figure that one out. But they continue to hold their insane evaluation. So hopefully this experiment will be fruitful to them. If Twitter ever wants to fly my team in to brainstorm on how this thing can make money, I would love to do that.
Conclusion: I hope it sticks. I think it helps the English language. I think it helps us express ourselves, and finally I think that we as users get more out of it with the ability to add #hashtags and be seen by more relevant viewers.
Written by: David Kamatoy Editor: Stephen Prendergast
David Kamatoy is a juggler literally and figuratively. A Nationally Syndicated TV/ Radio producer known for The Big Biz Show and Sully’s Biz Brew. He host’s his own show, “David Kamatoy Blog Show” a magazine style format show covering entertainment, entrepreneurship and e-marketing. He is co-founder of Kamatoy Media Group and Jugglemail.com a CRM email marketing company As an early adopter to social media he understands the long term benefits of self-branding and content creation.
As the Summer comes to an end we wanted to give you a quick update of what’s been happening...
The Summer of 2013 has been both rewarding and exhausting for the KMG team. From corporate events to entertainment and the martial arts, we have been working hard to help keep the wheels rolling for our many clients. We wanted to share just a few of the many events we have been working on.
The summer began early as KMG’s David Kamatoy and producer/musician Tony Woodroffe collaborated on the musical direction for Kroc Junior Theater’s production of Andrew Lloyd Webber’s CATS. The show included young actors from elementary school through college age and was presented at the Joan Kroc Theater in East San Diego. With direction by Laura Hodge, this talented young cast brought the antics of T.S. Eliot’s frenzied felines to life for appreciative audiences. The KMG team also provided marketing and media assistance for the production.
Moving on into the summer, we had the opportunity to partner with AMB Publicity to cover the 2013 National Academy of Television Arts and Sciences Pacific Southwest Chapter Emmy® Awards at the Red Rock Hotel Casino Spa in Las Vegas, Nevada. David Kamatoy and Jason Carlage worked the red carpet, speaking with presenters, nominees and sponsors of the 39th annual event, including Master of Ceremonies Barry Shabaka Henley. Several video interviews have been posted from the event.
With summer comes travel season, and clean car is a happy car. We helped to organize and promote the grand opening of the Sorrento Valley Soapy Joe’s, the newest location for this San Diego-based family-owned line of car care centers. David Kamatoy was joined by actor/producer Mark Christopher Lawrence (NBC’s Chuck and Mark Christopher Lawrence Presents) and UFC fighter Joey “The Mexicutioner” Beltran. Also spending time at Soapy Joe’s were radio personalities Chio from KISS FM 95.7 and Nathan Frost from Channel 93.3, celebrity photographer Gabriela Stark and Dan “The Balloon Man” McClellan.
Summer also included the Fourteenth Annual Masters Hall of Fame Awards Banquet, held at the Costa Mesa Hilton on Saturday, June 22. This was the fourth year that KMG has worked with the Masters Hall of Fame to promote the event, which honors top martial artists every year such as Don “The Dragon” Wilson, Cynthia Rothrock and Kenpo legend Bob White. This year the event honored Women in the Martial Arts and featured Full-Contact Muay Thai Champion Lisa King, aka “The Black Widow,” as guest speaker.
Closer to home, David Kamatoy and Mark Christopher Lawrence took on the 2013 Comic Con at the San Diego Convention Center, covering the action in their own unique style. The pair interviewed participants, celebrities and fans at the annual celebration of all things geek. Former triple-jump Olympian-turned-Media creator Von Ware and friends joined them to document the action.
Right after the Con Mark Christopher Lawrence was asked to present at the First Annual Geekie Awards which oddly had a lot of our friends involved in the industry. It was a good way to end the events of the summer. (Pics coming soon)
We are still wrapping up various videos and media from all the projects and will continue to post.
“We’re very excited about everything that’s been going on these last few months,” said Kamatoy. “We’ve seen some great projects really take flight, and we’re looking forward to taking on some new projects in the next few months. We have a number of very cool concepts in the works and are hoping to expand even further.”
For more information about how we can help you with your business or project, please contact Kamatoy Media Group at [email protected] or call 619-573-9456.
The annual "Doodle 4 Google" is happening now and the winning artist will see their work on the Google homepage for a day, win a $30,000 college scholarship, and win a $50,000 technology grant for his or her school.
A nice nod to 1984 Apple Commercial which worked well for taking a stab at the the rest of Genre. This promo had a lot of pressure behind it because ABC has not jumped into the Genre till now. LOTS OF PRESSURE.
Congrats to the ABC Promo Department...NICE!
It was also interesting when this popped into my email from AD AGE regarding this promo.
Brek A Leg to Marla Provencio, the new chief marketing officer for the Disney broadcast network's prime-time,has bit off a big bite by Green Lighting this promo. Read the article she has an awesome resume and I hope this promo / show works well.
This is seriously going after the American Idol / Voice Audience.
ABC is finally throwing its hat into the ring with DUETS. Launching on the week of that American Idol hits its Season Finale. GOOD TIMING!
Anyway check out the original and check out the show.
Ironically the original promo was with Lionol Richie and he has since been replaced by John Legend.
Lamb’s Players Theatre Presents “Big Mike vs The Con”
NBC Co-Star of Chuck Hosts Comedy Extravaganzas
San Diego, CA - Lamb’s Players Theatre, in conjunction with Prayer Dudz, presents Mark Christopher Lawrence of NBC’s hit series Chuck in a two-night comedy extravaganza, “Big Mike vs The Con” at the Horton Grand Theater on July 21 and 22. Mark is joined on Thursday night for a family-oriented “clean comedy” show with comics Jimmy Burns, Lester Barrie, and Scott Wood and guest musician K.C. Murdock. Friday night’s show is an edgier, more adult-oriented evening with Chuck co-star Scott Krinsky and comics Chris Clobber and Vicki Barbolak and musical guest Josh Damigo. The two nights are a counterpoint to the wildly successful Comic-Con which runs Thursday through Sunday.
Thursday, July 21 Mark Christopher Lawrence is joined onstage by Jimmy Burns, known as "The Teacher Comedian," “Mister Punchline” Scott Wood, and Gospel comedian Lester Barrie. Jimmy Burns has toured with George Lopez, Arsenio Hall, Brad Garrett, and the late Richard Jeni. Jimmy has also co-hosted "Live from Here with James P. Connolly" on the National Lampoon Comedy Radio Network. Scott Wood has performed at such venues as The Ice House, The Comedy Store, and The Laugh Factory, and was named Stand Up Comedy Champion at the Improv Comedy Club in 2010. Lester Barrie has been the opening act for Ray Charles and been a co-headliner with Mike Epps, Jonnie Witherspoon, and Bruce Bruce. Musical guest K.C. Murdock opens the night with his mix of classic and alternative rock and blues.
Friday, July 22 Mark and his co-star from Chuck, Scott Krinsky, are joined by talented comics Chris Clobber and Vicki Barbolack for a night of edgy and adult-oriented humor. Besides his role as Jeff Barnes on Chuck, Scott Krinsky regularly performs at the Comedy Store and Improv in Los Angeles. Chris Clobber is the co-producer of BrewHaHa comedy and has written for major Las Vegas and Hollywood performers. Named Nikelodeon’s “America’s Funniest Mom” and “California’s Funniest Female,” Vicki Barbolak has worked with the likes of Pauley Shore, Rhonda Shear, and Roseanne Barr during her years on stage.. Friday’s musical guest Josh Damigo was the 2010 winner in the San Diego Music Awards “Best Acoustic” category and the 2009 “Best Local Recording Artist.”
We extend a special invitation for the media to attend and review the “Big Mike vs The Con” show on Thursday, July 21, or on Friday, July 22, for a fun filled night celebrating Comic Con in San Diego. For tickets call 619-437-6000. To learn more about Big Mike vs The Con comedy show visit Lamb’s Players Theatre at http://www.lambsplayers.org. For media inquiries or to schedule and interview with Mark Christopher Lawrence, call David Kamatoy/Kamatoy Media Group at 619-940-5648.
Blog This w/ David Kamatoy returns with a brand new virtual set, new music and solid content. If you're an entrepreneur, entertainer or e-markter. This is the show to watch. Please RT, Tweet, Digg, Like and of course BLOG THIS.
We originally hit elance back in the day looking for some outsourcing ala 4 hour work week. We enjoyed the interaction but it was such a long time ago and we were not bidding on projects.
We are now starting to look at being a virtual provider and expand out networking via our online presence. These are my initial thoughts based on wandering around for a while...
a. Great opportunitty if you can spend the time. We are going to segment a part of the day to virtual submissions and try not to get lost in the sheer numbers....However it is a NUMBERS GAME.
SCHEDULE 1-2 hours a day or days to submit.
b. Create an engaging profile(s). It's one of their biggest tips but I have to agree on this one. Just by looking at the site you can see that every job has multiple bids going in and creating some smart copy is a GREAT IDEA. More and more it bodes to great copy writing and an e-version of the elevator pitch.
Create a solid Elevator Pitch First Paragraph. Do not be afraid to change the copy until you start getting work.
c. A Lower the hourly rate in order to get jobs and reviews? Elance lists the amount of money and jobs that you've completed. It's only common sense that you would want to work with companies that have a history of achievment. The quickest way to get there is via JOBS and great reviews.
Consider a discounted rate in order to get jobs & reviews.
d. Don't be afraid to be an AMERICAN... The power or weakness of the American Dollar on this site does freak me out. I mean we originally came to elance via the 4 hour work week looking for cost-effective solutions.
However in actually outsourcing stuff, I can tell you that there are certain jobs that you want to keep a US based contractor for. Any writing or editing is a definite plus and any project where an uderstanding of it's end application in the business world or US is also important.
Find a Niche where you can compete based on your location and dollar power.
e. Embrace the restrictions...ARGH! So one of my biggest challenges is the format. We are used to meeting clients in person first. So this FORMAT is extremely foreign to us. Normally our online presence supports our physical presence and in this virtual situation our Virtual presence is now our "FIRST IMPRESSION" and it's not even our site but a profile.
We will try to keep within the restrictions or elance. I sort of hope its either a booming success and we are able to find a niche on elance for our team or the other business picks up suvstantially.
Moreno Valley, California – Hanshi Daniel Hect, the Masters Hall of Fame CEO, has been named as the United States Air Force Space and Missile Command selection for the 2010 Outstanding Individual Reservist of the Year Award.
The Martial Arts world knows Hanshi Daniel Hect as a dedicated and talented martial artist, a Karate Champion, and a 12-time medalist in the Western States Police and Fire Summer games in martial arts events, as well as the current CEO of the Masters Hall of Fame. Most of the Martial Arts world does not know that Hanshi Daniel Hect is also Sergeant Daniel Hect in the 61st Security Forces Squadron, USAF.
On 30 September, 2010, Daniel Hect received the 2010 Outstanding Individual Reservist of the Year Award, Enlisted Category, for the Space and Missile Command. He will now move on to represent the Space and Missile Command in the Air Force-wide competition.
The Outstanding Individual Reservist of the Year Award recognizes enlisted members who demonstrate exceptional performance in leadership, educational achievements, and self-improvement efforts. Sergeant Hect was also promoted to Master Sergeant that same day.
“I did not do anything special. Call me weird, I like school. I believe education is an important part of the self-development of a warrior.” Hanshi Daniel Hect.
Daniel Hect graduated from the University of Southern California with a Masters Degree and now attends Cal Southern Law School in Riverside, CA. He is well known as a pioneer in the development and deployment of innovative communication applications within the Martial Arts community. The ability to use the lessons from his Martial Arts training to improve his professional career is another example of what Hanshi Daniel Hect brings to the Martial Arts Community.
The Masters Hall of Fame’s expertise in developing partnerships, working with community associates in support of the Masters mission of “Recognizing Excellence” in the Martial Arts has impacted over 1000 alumni and thousands of martial artists world wide. Masters Hall of Fame has held their events in conjunction with Long Beach International Martial Arts Festival, the World Wide Martial Arts Festival, and the Disney Martial Arts Festival in Anaheim.
With the passage and signing into law of the Small Business Jobs Bill, it seemed an appropriate time to get back with SBA Loan broker Craig G. Francis. In this email interview I asked Craig for his thoughts on the various parts of the bill and how they might affect the country’s economy.
David Kamatoy: We have been waiting for passage of the Small Business Jobs Bill for some time now. What do you think the real reasons behind the holdup were?
Craig G. Francis: The real reason for the delay in passing the bill was that the Republicans did not want to give Barak Obama a win for business that he could crow about. Until the Democrats got the one filibuster proof vote from Sen Voinovich, they could not ram it through. Chalk it up to politics as usual and the $3 trillion dollar agenda of progressive bills that had to come first. Businesses are an afterthought. In general, business owners won’t vote for the Democrats.
David Kamatoy: Now that this Bill has been signed into law, how long do you think it will be before we see real results?
Craig G. Francis:Real results started taking place 3 months before the bill was passed as 7(a) and 504 borrowers got into the reduced fee queue to get some of the stimulus money. From what I heard, the stimulus money started to be made available this week. How large an effect it will have can’t be measured precisely, but there were probably tens of thousands of jobs to be created that were hanging in limbo. SBA lending is all about creating jobs.
SBA lending is all about creating jobs.
David Kamatoy: What do you think will be the most beneficial portion of the Bill? What element of this Bill will have the strongest positive effect on the economy?
Craig G. Francis:If we can quantify the effect in real time, the best we can expect is that business owners will see this bill passage as a sign that the government supports the expansion of businesses. Entrepreneurs are eternal optimists; that is their nature. But encouraging signs from any quarter can give the businessman or woman the needed boost in economic confidence to get started and moving again.
The most beneficial aspect of the bill is the reduction in SBA fees. Just the loan costs alone could pay for one employee.
The other important benefit is the 90% guaranty, a level of SBA backing that may get some banks off the fence. If their risk window is 10% of a loan versus 25%, or $100,000 versus $250,000 on a $1,000,000 loan, that could allow some of the banks with strained capital bases to make loans. Besides which, the premium on the 7(a) loan is about 10%, so the income from that premium would nearly cover the risk window. Making SBA loans may allow the bank to provide capital without the heavy hand of the federal regulators questioning their loan portfolio or motives in making loans to the riskier small business field.
David Kamatoy: Opponents have warned that this Bill is “TARP Junior” – how accurate do you think that assessment is?
Craig G. Francis:The “TARP Junior” label applies to the government funding of a secondary market for the 504 loans. Yes, there will be some oversight and control involved in that, but to a lesser degree than the first round of TARP. If the bank decides making a pact with the devil is worth it, they will sign on - or not - as the case might be.
David Kamatoy: There have been suggestions that banks may not be willing to tap into the $30 billion fund because they are concerned what the long-term ramifications would be. Could you explain just what these banks are worried about?
Craig G. Francis:The long-term ramifications may be further control of the bank, dividends to be paid to the government, and potential management oversight by the government for those who take these funds. It is a time to be cautious in these matters as the long reach of the government and its intentions for good or ill are to be carefully scrutinized. Think about the camel and its nose in your tent.
David Kamatoy: Do you think that there is really a market for the $30 billion in funds that the Bill provides, or are businesses more concerned with survival than with expansion right now?
Craig G. Francis:There is a large market for the $30,000,000,000 which can be leveraged 10 to 1. Smaller banks who could not portfolio the 504 first-trust deed, or who dealt with a client whose loan could not be sold to the presently-established secondary market, may find this arrangement very attractive. Bear in mind, that despite this economic rough patch, banks still have to lend. And compete. If their fellow bankers jump on board by using these funds and beat their lending neighbors, this could create a rush to the funds that would help the business owners, if for no more reason than the community bank can offload a risky loan to the secondary market, gain an account relationship, and garner a market sale premium of as much as 6 percent. Good money if you can get it. Think of it as a financial cattle call for lenders. Some eat well and some get trampled. And even more get turned into hamburger.
David Kamatoy: What is it about the $30 billion lending portion that concerns bankers?
Craig G. Francis:The bankers are concerned about the government control and oversight for the $30,000,000,000, particularly if these funds provide an avenue to taking some small amount of control over the bank, its lending preferences, and the geographical priorities of the bank. In other words, who they lend to and where they lend.
David Kamatoy: How will the increased limits on SBA loans benefit the businesses community and the economy?
Craig G. Francis: To some extent, $30,000,000 seems like a drop in the bucket. But in the past the SBA provided between 30-50% of all long-term financing to the small business community and did so with low risk to the banks and government. Small business owners and entrepreneurs can stretch a buck farther than Ebenezer Scrooge.
David Kamatoy: There have been suggestions that banks might begin making risky loans with this $30 billion pool of money. Do you think these concerns are valid?
Craig G. Francis: Banks will make 'riskier' loans to their clients if the risk is reduced to near zero. See the subprime debacle as an example. This small pot of money won't create a bubble and businesses will use the money wisely, but we will have some increased risk-taking on the part of the banks.
Of course, when you consider the fact that the banks have been taking zero risk lately when lending to the small business community because they are making zero loans to that community, all the while trading free fed money for treasuries and making huge spreads, I think that the banks will see SBA as a more profitable loan deal. They can make much more money with higher leverage with limited risk, so why not go for it. They will now boost risk modestly but I am certain not to the prior level that got us in this jam in the first place.
David Kamatoy: Having been in the business for 30 years, what is the most exciting piece of this Bill?
Craig G. Francis: I love to tell my clients I got them zero-fee SBA loans for their businesses and commercial real estate owner/user purchases. Just like the two approvals I got today. Oh, I also like to tell business owners that the government is here to help them.
I love to tell my clients I got them zero-fee SBA loans for their businesses and commercial real estate owner/user purchases.
David Kamatoy: The Bill also includes some tax breaks for businesses. How effective do you think these will be in stimulating business growth?
Craig G. Francis: Regarding the other items in the bill to help businesses, like accelerated depreciation, see my blog from two weeks ago. This administration does NOTHING to help ANYONE that does not disempower or enable the recipients of Uncle Sam's boon and well being. Trust me on this, if you take supper with the devil use a loooooong spoon. This administration is not business friendly. They are doing these things for appearances only and only to garner votes.
David Kamatoy: Who should really be paying attention to this Bill? Give us some examples of who this is going to benefit most and how it will help.
Craig G. Francis: The bill itself is a real benefit for the business owner using SBA loans. The waiver of the SBA fee, saving up to 3.5% of the loan for a 7(a) and about 1% on the 504, is a solid achievement of fiscal assistance to the business borrower. Startups with good credentials and support of equity injection and backup collateral should provide this borrowing class with an improved chance of getting financing. Expansion loans and business acquisitions will be more likely to get financing since the guaranty protecting a bank loan is now 90%, reducing the bank's potential loss dramatically, and at a historic low of 10%.
Commercial real estate purchases are also going to benefit. Presently we are seeing a 50 year low in rates, which makes the purchase of owner-user property very inexpensive in terms of fees and monthly payments. The benefits of owner-user property have always been a financial boon to the business since it improves the value of the business, secures long-term equity appreciation, and provides a tax shelter depreciation to the borrower. Prices on many properties and in many areas in the US have dropped 40% or more, so they are lower than any time in the last 20 years.
David Kamatoy: Are there any last concerns about the possible effects of this bill, anything we should watch out for?
Craig G. Francis: The people who should be paying closest attention to this bill are the banks. They risk taking on shaky loans because of the manna of high SBA guaranties. They also run the risk of a TARP-like intrusion into their credit affairs that could lead to loan steering from the highest offices in the land - or at least from the offices of Senators Chris Dodd and Barney Frank. They will micro-manage anything they have their political fingers into.
As for businesses, they don’t need to watch out too much. An SBA loan is a pretty decent form of financing and can do a lot to help secure a business owner's future if they use the funds judiciously and look to the long term well being of their firm before plunging into debt the likes of which can be obtained from the SBA bank loans. Once a borrower has the SBA loan funding, they are largely free to do what they please so long as they don't damage the collateral and make sure they make their payments on time. Just don't do anything crazy.
Craig G. Francis is the owner of Francis Financial and The SBA Loan Store. He has been a top producer of SBA Loans since 1981, and has worked with Dun & Bradstreet and Bank of Commerce. Craig Francis has the expertise to steer clients through the often confusing rules and regulations associated with SBA Loans, having helped over 2,000 businesses acquire over a billion dollars in loans. He can be contacted through CraigGFrancis.com, SBALoanStore.com, on LinkedIn, or at 888-666-9722.
David Kamatoy is an entrepreneur and entertainer. Kamatoy Media Group is an interactive agency that works within social media, pr, email marketing and video. David originally interviewed Craig on his radio show in 2006. Shortly afterward it became clear that the place to communicate the message was clearly the internet. Craig G. Francis, Francis Financial, SBALoanstore are a client of the Kamatoy Media Group. Special Thanks to Editor Stephen Prendergast.
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