This past Thursday morning was a cold one (by Texas standards). I was finishing my first coffee, watching the snow coming down, and catching up on the news. A headline from a week ago and from a respected news outlet captured my attention: “The Incredible, World-Altering ‘Black Swan’ Events That Could Upend Life in 2025.” I can’t resist headlines like that and after refreshing my cup I immersed myself in the article.
By definition, Black Swans are near-impossible to predict or prepare for and fixating on them leads to inaction. So, let’s not dwell, but if you’re interested, Google the article and give me a call to share impressions.
I am certain about one thing and doing something(s) about it. The next few years are bringing increased volatility. Quick definition first (mine): volatility is the degree of deviation from historical norms or an accepted standard. While generally viewed as problematic, volatility has as many ups as downs, and presents great opportunities as well; just watch out for bubbles!
I expect to see increased volatility across the board, manifested by increased financing activity. Which is where, as a lender, we come in. To prepare we are undertaking three major initiatives:
First, we continue to increase our capacity to do more and bigger loans. As part of a successful bank, capital has never been an issue for us and we continue to build up the team, improve our processes, and invest in technology to provide the best service we can. We are also hopeful that both the U.S. SBA and USDA will up our loan limits on SBA 7a loans and USDA B&I loans.
Second, we are offering more financing solutions. We’ve added lines of credit in addition to the traditional SBA 7a term loan product that Gulf Coast Small Business Lending has historically always offered. We’re also offering USDA B&I loans, SBA 504 loans, and even conventional term debt. And that’s not all! Our SBA team also routinely collaborates with our sister companies at the bank to offer asset-based lending, factoring, and equipment finance.
Finally, we are shying away from things we consider “bubbly” or “highly speculative.” We were never big on any of those, but the next few years we will see many more crypto-this, AI-that, and we simply don’t have the temperament for those heady deals.
In summary, I am excited about the continued strength of the economy and the ongoing role of small businesses within it. I expect the next few years to be our most exciting ones and we are ready for them!
“Foot on the accelerator with hands firmly gripping the steering wheel.”
If you have a deal to discuss or simply want to chat about volatility (or any other economic issue), please reach out. You’ll find a listing of our sales team along with their contact information here: https://gulfcoastsba.com/our-people/ or you can find me on LinkedIn here: https://www.linkedin.com/in/nimi-natan/