Join the Greater Bethesda Chamber of Commerce, The Gaithersburg Germantown Chamber of Commerce, and the Greater Silver Spring Chamber of Commerce for a multi-Chamber Challenge and networking event in support of a cause we collectively champion – fundraising for the Montgomery College Scholarship Fund!

Annually, each of our Chambers donates to Montgomery College independently, empowering the College to provide critical resources to “transform student lives and enrich the diverse communities it serves.” But this year we need to do more, because their need is greater than ever – In the Fall of 2021 the College received nearly 4,000 applications for assistance and awarded over $3M in scholarships to 2,520 students.

To address the need, our Chamber Executives have engaged in a friendly challenge: From September 11th – October 31st, YOU our members are in competition to prove your commitment to community and education by out-donating the other Chambers. GBCC asks that you go BOLD in your contribution and live into our Chamber’s vision: to be the cornerstone for business growth and prosperity.

As a THANK YOU for your commitment to financially supporting Montgomery College, we invite you to attend our joint networking event September 26th from 7:30 am - 9:15 am in the Montgomery College Student Serves Center Lobby. You will have the opportunity to expand your network through connecting with members of all three Chambers and hear from student members of the MC Foundation Board about their experience and the need for donor scholarship support. There is no registration fee to attend this event beyond your commitment to donate to the Chamber Challenge!

Step up today to support the Montgomery College Scholarship Foundation – DONATE HERE, and after you have donated REGISTER TO ATTEND THE CHAMBER CHALLENGE networking event! 

New 2023 SBA Loan Rules Make Getting A Small Business Loan Easier
 
New 2023 SBA Loan Rules Make Getting A Small Business Loan Easier
 
By Neil Hare
​


SBA loan rule changes may offer relief to small businesses still struggling after the pandemic.
GETTY
 
On May 11, 2023, crucial changes to the Small Business Administration’s (SBA) 7(a) and 504 loan programs went into effect, aimed at streamlining the loan application process, expanding the number and types of lenders, and relaxing regulations in order to reach more small businesses, especially those in underserved communities.
While these changes may offer much-needed relief to small businesses still struggling in the wake of the pandemic, there is backlash from many who believe the rules signify the end of the SBA’s prudent lending practices and will increase defaults on the taxpayers’ dime.

The SBA has long served as a lender of last resort for small businesses that were unable to access loans through private lenders. The 7(a) loan is the SBA’s most popular loan program and has a maximum borrowing limit of $5 million. Loans can be used for real estate, equipment, acquisitions, and other working capital.
 
The 504 loan program is primarily used for real estate or land loans, with fixed interest rates and maturity up to 25 years and a maximum borrowing limit of $5.5 million. In the 2022 fiscal year,$25.7 billion in 7(a) loans and $9.2 billion in 504 loans were issued.
 
New SBA loan measures come with both strong support and opposition 
Those in favor of the new rules emphasize the importance of access to capital in running a successful small business in the current economic environment. Traditional bank loans often come with revenue demands many businesses can’t meet, and the cost of that capital has increased dramatically with recent ongoing Fed rate hikes. In addition, many small businesses find the SBA loan application process prohibitively complicated and time-consuming; women, minority, and veteran- owned small businesses have also historically struggled with accessing capital, an issue the new rules promise to address. In a January 6, 2023 comment letter to the SBA, Penny Lee, CEO of the Financial Technology Association—the trade association representing fintechs—pledged support for the new rules: “Fintechs play an important role in filling the credit access gap, especially when no other options are available and we encourage the SBA to proceed with this initiative.
In particular, we believe that by leveraging technology and nontraditional data, fintechs can better serve small business borrowers in the 7(a) program while maintaining the high credit and compliance standards set by established participants"
Ami Kassar, CEO and founder of MultiFunding, a Philadelphia-based company that helps small businesses navigate the SBA loan process, worries that the new rules will lead to an uptick in fraud and widespread loan defaults over the next three years, all backstopped by the U.S. taxpayer. Kassar’s concern is that fintechs are not beholden to existing banking regulations that traditional lenders will need to follow regardless of these new rule changes.
 
“These new rules have been carefully lobbied by the fintechs that want to speed up the lending process and get money out the door faster.
There will be increased defaults due to relaxed risk analysis and in three years everyone will wonder why," he says. "The SBA has done no analysis on potential default rates due to these changes prior to issuing these rules.”
 
The new SBA loan requirements and rules outlined 
The new rules affect multiple areas of the SBA lending process, starting with the expansion of approved 7(a) and 504 lenders. Previously, the SBA had limited the number of approved SBA lenders to a small handful. Of course, this cap had been lifted dramatically with the PPP program. Under the new rules, there will no longer be a cap on the number of approved lenders, and fintech companies will be allowed to apply for SBA approval. In theory, this move by the SBA will increase the number of loans issued and decrease the timeline of loan applications.
 
The SBA will also streamline the evaluation of borrowers by eliminating certain criteria. Prior to the new rules, nine factors were considered when evaluating potential borrowers:

• Character, reputation, and credit history of the applicant
• Experience and depth of management
• Strength of business
• Past earnings, projected cash flow, and future prospects
• Ability to repay the loan with earnings from the business
• Sufficient invested equity to operate on a sound financial basis
• Potential for long-term success
• Nature and value of collateral
• Effect of any affiliates on repaying the loan

​
The criteria has been slashed to three distinct factors: the applicant’s credit report, cash flow, and equity or collateral. The removal of “character and reputation” as a factor for consideration aims to remove the weight of individual bias in the evaluation process.
 
The requirement for hazard insurance on collateral for 7(a) and 504 loans under $500,000 also is eliminated. This removes a barrier to obtaining small loans and reduces the timeline to obtain a loan.
 
The potential uses for 7(a) loans are expanded to include partial transfers in ownership. Previously, only full transfers in ownership were eligible for 7(a) loans.
 
Finally, the “credit elsewhere” test whereby applicants must prove they couldn’t obtain loans at other institutions is being reduced to a “check the box” without corresponding paperwork—another area of concern for opponents of these rule changes.
SBA loan program improvements will expand access to funding 
Overall, these new rules are a much-needed boost for small businesses that are still recovering from Covid shutdowns and corresponding supply chain issues and inflation. Many businesses are still struggling to stay afloat and generate enough profit for owners to save for retirement, pay the mortgage, and take a summer vacation.
 
While examining risk is and always should be an important part of any lending process, expanding opportunities, especially in underserved and underbanked communities, can only help the uncertain economic future we all face.
 
About the Author
 
Neil Hare is an attorney and President of GVC Strategies, where he specializes in small business policy, advocacy, and communications campaigns; follow him on Twitter @nehare and on LinkedIn. See more of Neil’s articles and full bio on AllBusiness.com.
​

The Scotland community, here in Bethesda, holds a rich history that dates back many generations. The roots of this African American enclave can be traced to a time when racial segregation and discrimination were prevalent in the United States.

The Scotland community provided a safe haven for African American families who sought to establish a prosperous and supportive neighborhood. Despite facing various challenges and limited resources, the residents of Scotland built a tight-knit community where they could celebrate their culture, traditions, and history.

One of many significant events in the history of the Scotland community was the “Save Our Scotland” Campaign, launched in the 1960’s as a collaboration between residents and Joyce B. Siegel, a Bethesda resident who became an advocate for preservation of the community, as development was rapidly threatening to erase Scotland.

The heart of Scotland has long been recognized as the Scotland AME Zion Church on Seven Locks Road. The church was hand-built between 1915 and 1924 by its congregants, many of whom lived in the Scotland community. Unfortunately, during the summer of 2019, a flood damaged the church building beyond use.

Thankfully, Scotland, as well as the greater Bethesda community, has created an opportunity to collaborate once again in the rebuilding of the historic church. The Scotland Juneteenth Heritage Festival, with events beginning June 17th, continuing through June 19th, will see all net proceeds benefit rebuilding, and festival proceeds from future years earmarked for other African American Causes in the region.  

Juneteenth commemorates the emancipation of enslaved African Americans in the United States. On June 19, 1865, Union soldiers arrived in Galveston, Texas, and announced that the Civil War had ended, and all slaves were now free. In recent years, the significance of Juneteenth has gained increased recognition and importance throughout the United States.

The inaugural Juneteenth celebration in the Scotland community marks a significant milestone in its history and ours. It serves as a reminder of the community's strength and determination to preserve and honor their heritage. It is a testament to the profound impact that a united community can have in creating a brighter and more inclusive future for all.
​
Learn more about how you can support and attend the Scotland Juneteenth Heritage Festival HERE.

Chamber members and friends,
 
A concerned chamber member, a wide-ranging Development Company, asked that we share a message with you…

In the very near future, the County Council will be approving our FY24 budget, the largest budget ever and the largest increase we’ve seen in several years.
The budget supersizes County government by $330M, creating a $145M structural deficit next year all while our population is decreasing. This is property tax hike being sold as necessary to fund our schools. However, there are ample available funds available in the current budget to fully fund schools, by example:
 

• The budget includes funding for 1,300 new government (non-school) positions over two years, all while there are 1,200 vacant positions, many have been vacant for several years. 
• It includes make-up pay raises from Great Recession 12 years ago.
• It increases reserves $86M above the policy mandated 10%
• MCPS underspent $100M on salaries last year due to vacancies, however they are budgeting wage increases on all vacancies as if they will all be filled July 1st.

 
No other jurisdiction in the Region (or DC) is raising property taxes – even as they all significantly increase school funding.

Please use this link to email your concerns to your County Council members:  https://www.stopthemocotaxhike.com/ 

Thank you, and please share this link with your family, friends, and neighbors.
 
Respectfully,
 
Your GBCC

 
The Greater Bethesda Chamber of Commerce
BETHESDA | CABIN JOHN | CHEVY CHASE | FRIENDSHIP HEIGHTS | GARRETT PARK
GLEN ECHO | NORTH BETHESDA | POTOMAC | PIKE DISTRICT | ROCK SPRING | WESTBARD
7910 Woodmont Ave., Suite 1204, Bethesda, MD 20814
P: (301) 652-4900

​Reduced Access To Debt Financing Is Coming—How To Prepare Your Small Business
 
Apr 4, 2023,12:09pm EDT

By Neil Hare
 
Recent bank collapses mean that banks are starting to change their risk models for lending.
If you’re like most business owners, you’re looking at the Silicon Valley Bank (SVB) and Signature Bank collapses and wondering what it means for your access to capital—but perhaps not in the way in which you originally thought. The question of whether your money will be safe at your bank has, for the most part, been answered affirmatively by the government. But the question of where you’re going to get an influx of capital this year if you need it, is not looking positive.
To date, the explanation for the SVB collapse is that it had gobs of cash deposits from its startup clients during the recent boon, and like most banks, it invested it in the safest bet you can make: U.S. Treasuries. The problem was SVB bought longer-term Treasuries, meaning they couldn’t be converted back into cash quickly and easily.
Ben Lozano, CEO and cofounder of Bay Area fintech startup SMBX and an expert on the bond market, explains, “SVB had a classic liquidity crisis.
They issued short-term loans to their customers and bought long-term Treasury bonds at low interest rates. When the rates went up quickly, those long-term bonds lost value and so, they were basically insolvent. Depositors lost confidence and started withdrawing their funds.”
It remains to be determined why the tech community, which is not risk averse, decided a run on the bank was necessary.
While it largely seems like there isn’t an endemic banking crisis like in 2008 and everyone’s deposits are safe, banks are already starting to change their risk models for lending. This means your ability to borrow money for a line of credit or to invest in your business is going to be much tougher for the foreseeable future. Banks will be offering less money at higher interest rates and with more demands from your balance sheet.
How to plan for the cash crunch
This crisis may force you to seek alternative sources of funding, so you must plan accordingly. As we learned during Covid, make sure your books are in order. Remember that the vast majority of American businesses did not get much or any of that government bailout money. The Small Business Administration (SBA) issued roughly 5.2 million Paycheck Protection Program (PPP) loans out of a total of 30 million U.S. small businesses—and that doesn’t include solopreneurs, independent contractors, and gig workers.
The main reason that businesses were shut out of PPP was simply that they didn’t have their tax returns, P&Ls, balance sheets, and other documentation ready to go at a moment’s notice. Getting these items prepared does cost time and money, but not as much as you may think.
Accounting software, like QuickBooks, is available for as little as $15 per month. Also, some accounting software comes with invoicing, credit card, and other forms of electronic payment acceptance, and even marketing tools. Credit card companies, in addition to providing access to capital, offer many other services and helpful information on managing your business. Check out Mastercard’s Master Your Card and Digital Doors programs, for example.
Your local community will definitely have resources for finding affordable service providers. For example, in Washington, DC, the Coalition for Nonprofit Housing and Economic Development (CNHED) provides technical assistance, including free accounting and legal advice to small businesses, among other things, to ready businesses to apply for loans.
Steve Glaude, president and CEO of CNHED says, "There are many organizations on the national and local levels that provide free or low cost technical assistance for small businesses, including Community Development Financial Institutions (CDFIs), which provide a range of financial products and services to underserved communities. I’d advise businesses to find a CDFI in their community and start a conversation.”
Other resources include SCORE and its free mentorship program, Small Business Development Centers (SBDCs), chambers of commerce, and municipal economic development offices.
Grants and bank alternatives for debt funding
So, where else should you look for funds outside of your bank? For starters, it’s always worth checking if there is government grant money available. Covid relief funds, like the Small Business Opportunity Fund and Community Navigator Pilot Program (CNPP) authorized by President Biden in the American Rescue Plan Act, are still working their way through the system to state and local governments. The best place to find information on these federal grants is the SBA.
If you can’t find grant opportunities, you can always apply for an SBA loan. While the process is often long and arduous, the interest rates are very competitive and the risk models are lower than conventional banks.
There are also organizations, like Hello Alice, the Accion Opportunity Fund, and even private companies like FedEx, which offer small business grants and vast libraries of “how-to” content. These grants are often small amounts and are typically issued in a lottery format, so they are not overly reliable, but worth looking at.
Finally, crowdfunding is now becoming a much more viable option for debt funding. SMBX, an online marketplace that connects small business owners with everyday investors, for example, can help businesses borrow from $25,000 to $5 million dollars in debt at competitive interest rates with terms ranging from one to 10 years. An added bonus to crowdfunding is that promoting your business as a strong investment is also a unique opportunity to market your products and services. Plus, your investors are more likely to support your business over the longer term and protect their investment.
“We’ve seen a tremendous uptick in issuer listings the first quarter of 2023, even before the banking problems began,” says Lozano. “I think businesses are starting to realize that they can access the capital they need, engage their customers and keep wealth in their communities in a way they can’t do with traditional banks.”
Unfortunately, with inflation still problematic enough to cause ongoing Fed rate hikes, the corresponding banking crisis, the war in Ukraine, and other issues disrupting supply chains, a recession or down market this year is looking likely. It is critical to learn the lessons of Covid and get your affairs in order. If there's a storm coming, the time to fix the roof is when the sun is shining.
About the Author
Neil Hare is an attorney and President of GVC Strategies, where he specializes in small business policy, advocacy, and communications campaigns; follow him on Twitter @nehare and on LinkedIn. See more of Neil’s articles and full bio on AllBusiness.com.
 
 

​GBCC is honored to celebrate Women’s History Month by spotlighting GBCC Women's Networking Group members who are creating history in our community today through their careers, interests, and influential perspectives.

Today, we would like to introduce Brittany LaFleur, Founder of Your Best Self Therapy.

GBCC is honored to celebrate Women’s History Month by spotlighting GBCC Women's Networking Group members who are creating history in our community today through their careers, interests, and influential perspectives.

Today, we would like to introduce Maria Bardos is Director of Sales at the brand new AC Hotel Bethesda Downtown

GBCC is honored to celebrate Women’s History Month by spotlighting GBCC Women's Networking Group members who are creating history in our community today through their careers, interests, and influential perspectives.

Today, we would like to introduce Eliza Freeman, Marketing and Sales Manager for Servpro of Wheaton/Kensington/Clarksburg/Damascus/Poolesville. 

​www.servprowheatonkensington.com

GBCC is honored to celebrate Women’s History Month by spotlighting GBCC Women's Networking Group members who are creating history in our community today through their careers, interests, and influential perspectives.

Today, we would like to introduce Tatiana M. Gillespie Co- Founder & President of SŌL & MAISON Real Estate.