Partners (Winter 2000)
Partners (Winter 2000)
In the News
The popular SBA 7(a) General Business Loan Guaranty program will increase the guaranty percentage to 85% for loans up to $150,000, and simplify the guaranty fee structure. According to the SBA, "the New Markets Venture Capital (NMVC) program will combine venture capital investments with expert technical assistance to small businesses in low-income urban and rural areas. This will be the first time SBA has been able to provide funding for technical assistance in connection with a venture capital program."
"Under the new program, SBA will license 10-to-20 new NMVCs to invest in these small businesses, combining $152 million in SBA funding with $100 million in private sector funding to create an investment pool of more than $250 million. The bill also provides $30 million in matching funds to pay for technical assistance for small businesses."
The appropriation increased to $1 million the maximum loans under SBA 504 programs, and increased from $25,000 to $35,000 the maximum for loans under the SBA Microloan programs. It also authorized federal savings associations to invest in small business investment companies (SBICs), and increased the maximum size of surety bonds to $2 million.
For more information, visit the Small Business Administration web site at www.sba.gov.
First USA denies any wrongdoing, but offered a settlement to the U.S. District Court in East St. Louis, Illinois. The court will hold a hearing January 24, 2001, to determine whether to approve the settlement.
First USA is a subsidiary of Bank One Corporation, Chicago, Illinois and is the largest Visa credit card issuer in the world. In addition to the First USA card, the company offers Visa and MasterCard for consumers and businesses under Bank One and the First Card names, and on behalf of other marketing partners (such as universities, affinity organizations, and financial institutions). First USA reports serving approximately 55 million cardmembers, with total loans as of June 30, 2000, of $66.3 billion.
Generally, the rules cover agreements that involve funds or other resources of an insured depository institution or affiliate with an aggregate value of more than $10,000 in a year, or loans with an aggregate principal value of more than $50,000 in a year.
On May 19, 2000, the federal regulatory agencies published a proposed regulation and solicited public comments. The agencies collectively received more than 800 comments from the public on the proposed rule, which they considered before adopting the final regulation.
For a complete copy of the regulation, visit the Federal Reserve Board web site at www.federalreserve.gov and click on Press Releases, Board Actions, and December 21, 2000.
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