Last week I posted part one of this two-part interview with Newtek’s President of Business Lending, Peter Downs. During that portion we discussed small business lending in more general terms and briefly touched on how non-bank lenders like Newtek can accommodate small business owners seeking small business loans.

Part two of the interview delves a bit further into the small business loan process, providing a glimpse at what applicants can expect as well as how Newtek’s unique relationship with community banks across the country comes into play.

Many business owners seeking lending may prefer to work directly with their community credit unions because they’d prefer to support the little guy. What would you say to someone with that concern?

Peter: We’re actually a unique non-bank lender – we have the best of both worlds because of our relationships with community credit unions, which can be rare with non-bank lenders. Because we take referrals from community credit unions, applicants can continue banking locally, continue cultivating relationships with local branch employees, and continue to track exactly where their deposits are landing nightly – all while reaping the benefits that come with a non-bank lender like Newtek. In essence, they get the comfort of local banking matched with the accessibility offered by a non-bank lender with a non-burdened balance sheet. At this point, we’re working with more than 460 community credit unions nationwide and it’s been proven to be mutually beneficial.

Why might a small business owner experience a greater chance of success in securing financing with a non-bank lender like Newtek?

Peter: In contrast to the burdens other lenders have felt because of the residential and real estate effect, Newtek hasn’t been hurt by tarnished balance sheets. In addition, because we have the benefit of the SBA program behind us, and its 90% guarantee, we’re able to lend in a very broad manner as opposed to those who don’t participate in the SBA program. Because we’re able to lend under more flexible terms, our philosophy is to look at a lot of different types of businesses and industries that qualify under the SBA program, including startups and young companies as well as older companies. There are lots and lots of rules and regulations that SBA participants have to abide by, which is exactly why many lenders don’t participate. Because small business lending is all we do, we’re experts in the SBA field and have the expertise it takes to make it work.

Tell me a bit about the lending process…what can a business owner expect once they’ve contacted Newtek to get the ball rolling?

Peter: Once a business owner contacts us, they’ll be assigned to a dedicated business service specialist whose sole focus is small business lending. The first step is the pre-qualification assessment, which takes about 20 to 30 minutes over the phone. This is done to verify that the business owner is eligible to take advantage of the SBA program. During this phase the specialist will pre-populate all of the necessary fields of the application documents. If together they discover that yes, they are indeed qualified and it’s worth the business owner’s time, effort and energy to move forward the assigned specialist will advance the application. All the applicant will then have to do is sign and return the paperwork with the supporting documents and we take it from there.

Once the completed package is in the underwriting phase, the initial approval process takes 5 business days. We then add a closing specialist to the team to walk the applicant through the closing process to ensure all of the legal documents are in place. We then close it, and fund it with a borrower. The nice thing about it is that each applicant will have one dedicated specialist to walk them through the entire process.

How many small business loans did Newtek facilitate in 2009?

Peter: We did $20M worth of SBA lending in 2009, and we’ll do about $50M to $60M in 2010.

Well, I appreciate your time in not only providing a detailed overview of the state of business lending, but a closer look at how non-bank lenders fit into the equation. Thanks so much, Peter.

Peter: My pleasure.  I’m happy to answer any additional questions that may pop up.

So here’s your chance. For anyone looking to initiate the process, or anyone who might even be toying with the idea of growth via SBA lending, do you have any additional questions for Peter?

Is there anything we didn’t touch on during part one and part two that you’re curious about? Don’t be shy. Either shoot us an email at community@newtektechnologyservices.com or drop your questions below in the comments section. We’d love to hear from you.

For more information about Newtek’s small business financing services, click here.

There’s been a lot of discussion in 2010 surrounding the role the small business community plays in the current economy – specifically, how small businesses could very well be the key to pulling us out of the recession.

The White House has gone to some great lengths to ensure those small businesses looking for funding are able to have a fair shot in accessing those funds – in fact, the Small Business Administration (SBA) stimulus extension was renewed yet again. Of course, the hope is that of those small businesses who receive SBA Loans, all will not only invest in their businesses, but hire more employees which will hopefully help to make a dent in the staggering 9.7% unemployment rate.

Keeping up with all of the emerging news from the small business sector can be daunting, so I turned to Peter Downs, President of Newtek Business Lending. Not only did Peter help to shed some light on the situation, but he also clarified how non-bank lenders factor into the mix…

Peter, can you briefly clarify how the recent stimulus funds affect the overall SBA lending program?

Peter: The SBA program has been around for 50 years – it’s always been funded. With the new stimulus funds, all that means is that there are additional funds earmarked for small business lending in addition to what has existed in the past. The stimulus also guarantees 90% of the loan rather than 75% percent of the loan as in years past. That 15% is crucial as it’s covering a greater amount of the loan. If for some reason the borrower defaults, the SBA steps in and actually pays back the lender, thus, minimizing the risk to the lender.

Let’s talk about how this plays out on the front lines. Would a small business owner typically approach a non-bank lender like Newtek for funding?

Peter: In the past I would have say the answer is “no.” Simply because small businesses tend to utilize three different things to fund their business:

1. First, they use the equity in their home because it’s cheap and easy for them to use, and it’s something they own.
2. Next, they’d probably go to their local bank where they had a deposit relationship and ask them for some kind of financing or line of credit against their business assets.
3. Lastly, they would probably consider credit card financing.

That was all in the past though. Most people no longer have much equity in their homes – if they do it’s very hard to get a loan that way as credit criteria has changed significantly. Because banks’ balance sheets have been beaten up so badly by all of the problem loans they’ve serviced, they’re more focused on managing the current situation rather than offering new lending. Obviously credit cards have gone by the wayside because they’re unsecure, and some of the changes Congress has made in how you can charge late fees have made it less profitable for banks and others to issue cards.

Essentially, the economy has wiped out most of the “old ways” of securing funding and so small business owners have had a much tougher time accessing funds. Which is where non-bank lenders enter the picture.

Which leads right into my next question. Why is a non-bank lender a good alternative?

Peter: Non-bank lenders, like Newtek, don’t have balance sheets laden with real estate loans that didn’t perform, don’t have weird investments on their books like large banks, and generally aren’t weighed down by complications. What’s more, we have access to the SBA program, which is being pushed forward aggressively as a viable solution for small business owners. All of these factors make us a unique option for lending.

Be sure to check back for the conclusion of this series when we discuss non-bank lending and its community bank partnerships next week.

In the meantime, we want to hear from those of you who have attempted to secure small business funding recently. Were you successful? Also, have you considered non-bank lending as an option? Tell us about your experience.

Well, this is a little embarrassing… Earlier this week, reports began to surface that the good folks at rollingstone.com—yes, the Rolling Stone—forgot to renew their domain name.

So instead of being greeted with this (their website), they were greeted with this (a parked page that their domain registrar put up in its place).

To be fair, Rolling Stone quickly blamed the incident on a “glitch,” but for the purposes of this blog post, let’s just say they flat-out forgot to renew their domain name.

Why? Because believe it or not this happens all the time. Ordinary people like you and me inadvertently let their registration lapse, and sometimes lose their domain name for good as a result.

So don’t pull a Rolling Stone. Not only is it embarrassing, you could be putting your brand at risk.

A lesson in domain afterlife

Most people aren’t aware of what happens to a domain after it expires. And it’s a little more complicated than you might think.

Let’s go over the typical stages of expiration (in this order):

1. Grace period. Depending on your registrar, this could be anywhere from a week to 30 days. You can renew your domain during the grace period without penalty, but your domain may be routed to a parked page in the meantime, just like the one used for rollingstone.com.

2. Redemption period. This period can also vary at different registrars, but you’re usually looking at 30-40 days. During the redemption period, the domain is still retained for you, but there is often an additional fee to purchase the domain back.

3. Deletion period. This can take anywhere from a couple of days to a week. During the deletion phase, your domain cannot be renewed until it’s completely released to the public, at which point you will have to compete with anyone else who might be making an attempt to pick up your domain. Unfortunately, for this, there are “bots” out there programmed to snatch up domains as soon as they are released to the public for the sole purpose of selling them back to the previous owner for an excessive profit.

What you can do to avoid a “Rolling Stone”

Fortunately, these steps are rather simple:

1. Keep the email address at your registrar up-to-date. A renewal reminder will be sent to the “admin” contact they have listed for you. If you registered your domain through your web hosting/services provider, be sure your email addresses are up-to-date with them (for example, if you registered your domain through us, we’ll send you multiple email reminders before your domain expires).

2. Know what your expiration date is. If you don’t know when it expires, find out and put it on your calendar.

3. Renew now. You can renew your domain in advanced for up to 10 years. If you can swing the cost, you won’t need to worry about your domain for a decade.

4. Check your website regularly. You might be thinking, with a grace period AND a redemption period, how would anyone not realize their domain expired? Well, when was the last time you pulled up your domain on a web browser? If you don’t remember, make it a habit. Not only will you avoid losing your domain, you’ll catch any other issues your website might be experiencing.

So there you have it, a few easy steps to be sure you never let your domain registration lapse.

Last week, I offered three reasons to give a Do-It-Yourself website builder a try. While many of the emerging builders perfectly fit the needs of business owners desiring a hands-on approach to the website design process, it’s not for everyone.

There are many reasons to consider going the custom web design route, especially if you have more complex needs and are willing to invest more resources into the overall process.

Without Further ado, take a look at three reasons to go the custom website design route:

1.) You don’t even want to entertain the thought of doing it yourself

Let’s face it. When the lawn needs mowing, you’d rather make a call to a landscaping company than head out there to start yanking on the mower chain. (I’m right there with you on this one…no judgment.) Just because you can do it yourself doesn’t mean you should.

More importantly, as a small business owner, spare time is likely something you don’t often encounter. I was talking with my hairdresser about the builder vs. custom route the other day and she said, “I have no idea where I would find the time in my day to do it. Besides, I’d rather be doing what I love…cutting hair.” Therefore, if you’re a person already pressed for time, custom is definitely your solution.

2.) You have some specific needs for your web design

Don’t get me wrong…website builder tools can meet the needs of many, but for those with specific needs, a custom design is the right choice.  Here are a few reasons why:

• You have a WordPress blog (or perhaps a Drupal or Joomla CMS) that you’d like to integrate into your website design
• You already have a shopping cart application, and want to carry it over to your new website design
• You’ve envisioned a website that has lots of advanced Flash applications
• You’d like to integrate a Pay-Per-Click campaign and need the help of a web design professional
• You need a custom database, or segmented log-in pages

3.) You’re not quite sure what you want…

If you know you need a website, but you’re having trouble envisioning the look and feel, tapping the creative mind of a professional is a very enticing choice. Or maybe you have a loose idea of what you want, but would like to see and hear some different options from a well-established web design professional. This is probably one of the biggest benefits when it comes to going the custom route, not to mention the SEO advantages that come along with seeking the expertise of a professional. P.S. If you’re looking for some inspiration to get your own creative juices in motion, this is a great place to start: www.smashingmagazine.com

Whether you go with a website builder tool like  Newtek SiteCenter, or opt for a custom solution, the fact is, there is a solution for everyone, and we’d be happy to help you.

We’d love to hear from you. If you just completed, or are in the process of completing a new website using a builder tool, do you have any tips to share? Same question goes out to those of you currently working with a custom web designer.

If you’re a loyal NPR listener, are married to your New York Times subscription or even a casual CNN viewer, you already know that small businesses are expected to be the underdog champions of the economic recovery.

As every small business owner knows, selecting the right merchant processing plan will weigh heavily on 2010 growth.

There are many merchant processing providers available to you, which is why it’s important to cut through the clutter quickly. In the interest of narrowing your options efficiently, we’ve identified five questions you need to prospective processing providers before making a decision:

1. How satisfied are your customers?
   If you’re looking for a long-term solution, this one is important. Don’t be afraid to ask for references from current customers, and search the potential provider’s website for testimonials. Your best advocates in this search are your fellow customers. And if you are handling the back-end aspect of your site yourself, or have a consultant doing it for you, these additional bonuses would be incredibly nice to have: a comprehensive developer library for quick troubleshooting and constant access to customer support (see #2 for more).

2. Will you be there for me 24/7/365?
   Many times, when things go wrong, they don’t happen between the hours of 9 a.m. and 5 p.m. Monday through Friday. If you operate a 24-hour business and you experience a glitch at 3 a.m. on a Sunday morning, it’s essential that your provider be available 24/7/365 to you to help you through the issue promptly.

3. Are your rates competitive with other solutions?
   This is a tricky one as you need to search for the right balance when it comes to rates and fees. If fees seem excessively low, and it looks too good to be true, trust your gut because it probably is. On the flip side, for businesses traditionally viewed as “high risk” (those like travel and tourism businesses that rely almost exclusively on advanced booking), you’ll want to ensure you receive a fair assessment all the way down the line, from gateway fees to transaction fees. Look for a provider that will provide rates that can easily compete with most popular gateways, and ask if they’ll provide a complimentary cost analysis if you provide your statement. And above all, be leery of any provider that locks you into a contract or charges a cancellation fee, both of which are non-existent with Newtek.

4. Will your payment solution integrate easily with my website?
   Again, whether you’re handling the back-end yourself or have hired a consultant to do it for you, this one is incredibly important. If I had to guess, you (or your technical consultant) don’t have time to go looking around for documentation on integrating the payment solution into your custom shopping cart. Sign on with a provider that will readily provide access to web service support in .NET, PHP and more. (If any of these terms are foreign to you, you’re not alone. Click here.)

5. How quickly will I (or my client) have access to transaction funds?
   The goal of any ecommerce plan is to make the sale and see the funds hit your bank account, right? Before committing to working with any merchant processing provider, be sure to inquire about the speed of the process. With some providers it may take 4 to 5 days to see the funds hit, whereas many other programs (like NewtPay) deliver funds in as few as 48 hours. Cash flow is vital to any growth plan, so fund availability is an important factor to include in the decision-making process.

These five questions will help you find a solution that will inevitable become an integral piece of your growth plan in 2010. This list is in no way complete, but rather provides a baseline for early research. In your opinion, what other factors should be considered in identifying and implementing a merchant processing plan? Help us add to the list in the comments below…

Maybe I’m just giddy with anticipation about the Oscar season, but I have a feeling that we’re all due for some feel-good news, starring the small business community.

What do I mean by that? It’s probably fair to say that when it comes to the economy, most of us would like to forget 2009 ever happened. There’s a shift taking shape, though. In the cinema, it’s what they call the “turning point,” and there are some very capable folks pulling for the small business community from behind the camera lens. One of the strongest advocates is sitting in the Oval Office.

When this feel-good film started to play in my mind, I saw a sequence of images. First, I started to think about all of the small business owners across the country that were forced to close their doors, as I witnessed firsthand when I discovered many of my favorite Phoenix spots were no longer open. (RIP Lisa G Wine Bar. I miss you daily.)

But then I remembered all of the other stories of business owners that showed remarkable resiliency in the face of a nearly impossible situation. Owners who took pay cuts themselves just to keep their staff employed one more day. Owners who stuck with it despite a lack of foot traffic because the next customer could be right around the corner. Or those who showed tremendous courage by not letting bad timing squash their dreams of opening a business that ignited their passions.

If you’ve seen Rudy, Seabiscuit, The Blind Side or any of the other Hollywood gems that can brighten any gloomy day, you know where I’m headed with this. I’m not saying it’s going to be easy. No one is. But the outlook for small businesses in 2010 is an optimistic one.

Newtek CEO and Chairman Barry Sloane recently spoke with Fox Business News’ Rebecca Diamond about what it’s going to take to dig the SMB community out of this hole. In addition to optimism, it’s going to take a little bit of guts, too. But the cash flow is coming back.

Take a look at the interview here:

So who else is ready to watch this feel-good flick unfold? Are you going to take advantage of a reinvigorated lending market? Planning to seek out an SBA loan? Let’s chat about what’s ahead for those of you on the front lines. We want to help you succeed in 2010!

P.S. Can someone please pass the popcorn?

Last week our Chairman and CEO, Barry Sloane, shared his thoughts on the financial outlook for small business owners in 2010 during an interview on the Bob Coleman Small Business Banker radio show.

While Barry’s outlook for the economy as a whole remains cautious, he remians optimistic about the financial backing future for small businesses.

Listen to the full interview:

Highlights from the interview include:

• A significant increase in lending for small business owners  in 2010 versus what was dispersed in 2009
• Newtek forecasts its lending division will lend up to $50 million in SBA 7a loans in 2010
• The extension of the 2009 Recovery Act provides a great opportunity to further bolster the successful and popular program, which reduces fees and increases guarantees. Read the Wall Street Journal overview here.
• Barry stresses the benefit of working with an organization that can meet every need of the small business owner, including lending, ecommerce, web hosting, data storage, insurance and payment processing

We want to hear from the small business owners out there. What do you forsee in 2010? Do you think the stimulus extension will make an impact for your business? Are you planning to invest or grow your business in 2010? Let us know in the comments below.

Welcome to Part Two of the DIYPR series. In Part One, we discussed a key resource to any business owner or company representative. Now that you’ve all joined HARO (ahem, you can do so here if you haven’t already) you’re ready for the next level of self promotion. In addition to a multitude of social media options, there are many ways to score traditional media hits for your company.

To provide an example – in our local Phoenix market, The Arizona Republic asks citizen reporters to submit content in what it calls “News By You.” It’s typically a section best suited for news that is very community-centric, and just like it sounds, invites community representatives to share news stories written in the same manner as those generated by the publication.

For those who are still in the habit of receiving the local newspaper every morning, you may have noticed it getting thinner and thinner throughout the recession, and it hasn’t just affected the little guys – the big guys are feeling it, too. Unfortunately, many papers have been forced to lay off reporters as advertising dollars have diminished. It’s the same story in every city, which is why the “News By You” or “Citizen Reporter” (or whatever it may be called in your city) is a win-win option for both your company and the paper.

So what types of announcements qualify for community columns such as these? Really, anything that is of significance to your surrounding community, but many of the following are good options:

• New hire announcements (if possible, include a head shot)
• Company philanthropy initiatives
• Any partnerships or programs you’ve initiated with a local high school, hospital or other community entity (include photos from any public meetings or events with the organization)
• Expert tips on a relevant, top-of-mind topic (such as expert insights on area foreclosures, etc.)
• Summary of a recent community event sponsored by your organization (be sure to offer photos from the event)
• Contests you’ve launched that invite the local community to participate

Also keep in mind that anything you write for your own blog, e-newsletter, etc. may be useful for your local weekly/monthly publication. Just be sure that the focus of the article is designed to educate/inform rather than come off sounding “salesy.” Write in a tone that is unbiased. It should read as if it could have been written by a journalist. Click here to see a good example.

So do yourself a favor, and take a moment to research the local publications around you. Initiate a relationship with your local editors, (this is SO important) and be sure to keep this rule in mind: is this news that would be of legitimate value to a community reader? If in doubt, pitch a reporter/editor first with a simple email to gauge their interest in the story you have to offer. It can’t hurt, right?

Are any of you already engaged with local media through practices such as those mentioned above? If so, we want to hear about what’s worked and what hasn’t. And if you have any questions, feel free to leave those in the comments as well.

“E-commerce spending continues to grow faster compared to other retail categories, as more people become comfortable shopping online and also shopping online during the holidays,” Kamalesh Rao, director of economic research for MasterCard Advisors SpendingPulse, tells PaymentsSource.

This is great news for retailers who sell their products online. According to Master Card advisors, even during a recession, online sales were up 15% over last year. The largest increases were in electronics, jewelry, footwear, and men’s apparel. Many factors contributed to this figure, including the fact that some online stores offered free shipping during the holidays to sweeten the deal.

Given that more young people are becoming savvy online shoppers, coupled with an increased level of confidence in online security from the boomer demographic, the percentage of online sales should continue to grow. These indicators support the fact that retailers who sell online understand the value of ecommerce and return on investment.

Ecommerce is especially important in this market for the following reasons:

• Convenience. Customers may not have time to visit your physical store.
• Always open. Customers can order products at any time day or night.
• Branding. A good website store complements and enhances your positive brand experience.
• Credit Card Processing. Accepting credit card payments online makes transactions fast and returns easy.
• Marketing. Having a web presence is one of the least expensive ways to stay top-of-mind with your customer base.

There has never been a better time to sell your products and services online than now. In the past, depending on how many products you had to sell and the volume of traffic to your server, setting up an online store would cost anywhere from 5 to 20 thousand dollars. This is because you needed to hire a web developer and web designer to design web graphics and set up your hosting account, merchant account, shopping cart software, database, gateway, SSL, and upload all of your product descriptions and images.

Now you can do all of the above autonomously, essentially bypassing the web developer and web designer. Knowledge of HTML, CSS or any database languages to use our online storefront builder isn’t no longer necessary. Newtek Web Services even offers a FREE trial so you can see how easy it is to set up your store by yourself. PLUS, you get expert assistance 24/7/365. Newtek Web Services is the one-stop-shop for your online needs: websites, online shops, even credit card processing and merchant accounts!

As a service provider, we’ve always wanted to do one important thing for our customers, which is to help them succeed. As simple as that may sound, it’s what drives us each day.

Establishing a strong web presence equipped with a full array of ecommerce capabilities is key to not only succeeding in business, but cultivating and growing that business.

Understanding that, we’re proud to announce the launch of Newtek Web Services, (NWS) a one-stop resource for the online business community, specializing in web design, ecommerce, merchant processing, web hosting, payroll services, small business loans, insurance and so much more. If it can impact your business, chances are, we offer it.

Whether you’re a business owner looking to grow in 2010, or a proud mom-and-pop shop owner looking to raise online awareness, we can add value to your organization. It’s OUR job to identify your needs and fill in the gaps with reliable, high-quality services backed by superior technical and customer support. The launch of NWS is our way of filling a crucial gap – helping you stand out on the web.

In the last decade we’ve witnessed a categorical shift in the way business is done. More specifically, we’ve seen two concepts emerge in the internet space:

1. Providers (like NWS) have streamlined their business models to meet ALL of your online business needs. Whether you need a basic brochure website or a full ecommerce site, we can support your needs…with ONE phone call. As a division of Newtek Business Services, we’re able to provide you with every tool you need to succeed, both from an infrastructure standpoint (financing, insurance, payroll etc.) to your customer-facing online presence (web design, ecommerce, weg hosting, payment processing, etc.)
   
2. It’s a DIY (Do-It-Yourself) world. All you need are the tools and support, which is where we come in. With our Storefront Builder, you can select from 1,000 different design schemes to build your own unique website, and control the maintenance of your site – updating and editing your content whenever it’s convenient for you. In business, things can change in a minute and you need to be able to stay ahead of the curve to stand out. Fresh website content is key.

It would be an immense understatement to say we’re extremely excited about the launch of Newtek Web Services. Thanks for joining us as we set out on this new venture. Check back here often for valuable content that will provide you with tips, tricks and resource lists spanning the realm of business and ecommerce.