Houston Logistics Industry Is Top Rated In The Nation

Houston, Texas -among the elite in the logistics industry in the US and receives five stars in seven of the 10 major logistics categories.

In their seventh annual study released this month, Expansion Management and Logistics Today magazines identifies the metro areas that can provide manufacturing companies with the strongest and most robust logistics infrastructure.

For the past seven years, Expansion Management and Logistics Today magazines have partnered to produce what they call their annual Logistics Quotient™ ranking of the most logistics-friendly cities in the United States.

As in years past, the study takes a look at the 362 metropolitan statistical areas (MSA) established by the Office of Management and Budget and compares them according to 10 major categories: the overall transportation & warehousing industry climate, work force/labor costs/availability/skill levels; road/highway basic infrastructure; road density and congestion; road and bridge conditions; interstate highway access (both main and auxiliary routes); fuel taxes & fees; railroad service; water ports (both river/lake and ocean); and air cargo service.

A standard feature of Expansion Management’s various annual metro “Quotient” studies is the awarding of the “5-Star” designation to the top 20 percent of the MSAs. Metros that earn this distinction can rightfully consider themselves to be among the elite logistics cities. Houston ranked in the 99th percentile in the overall 2007 study, the highest overall rating for this year's study and was given to only four other cities: Atlanta, Dallas, Kansas City, and St. Louis.

Houston received the 5-Star rating in the following seven of the 10 major individual logistics categories:

• Overall Transportation and Warehousing Industry
• Transportation and Warehousing Work Force
• Interstate Highway
• State Taxes and Fees
• Railroad Service
• Waterborne Commerce
• Air Cargo

Houston's Manufacturing and Transportation Industries are shining stars in Houston's diverse economy and contribute to the city's standing as one of the best economies in the nation. Read these articles for more in-depth coverage on Houston's Manufacturing and Transportation Sectors:

Houston Economy: Manufacturing and Transportation
Houston Growth In International Trade
Port of Houston Press Release 11/6/07

Sell Your Business Faster - Prequalify it for Bank Financing

Business Owners Should Prequalify Their Business For Potential Buyers Before Putting It On the Market.

Whenever we advise our business-owner clients this, they look at us sideways wondering if we have lost our minds! They usually reply, "isn't it the buyers responsibility to get prequalified and get financing for the purchase of my business?" Nothing could be further from the truth.

It makes good sense for business owners to have their business financial records, tax returns, deal structure, and price reviewed by lending institutions before marketing the business to prospective buyers for several reasons.

1. Based on the financials and tax returns from the previous three years you need to know if your business is eligible for potential buyers to get a loan to buy your business. If you know that your business is not eligible for financing, then you know that the deal structure for selling your business will be very different without bank financing involved.

2. You also won't waste time with buyers who say they can get financing when you already know this cannot be achieved. Most buyers usually scramble at the last minute to get financing and will be further hindered by lenders who won't approve a loan for your business - wasting your time and theirs.

3. You need to know how you should structure your deal correctly. This will bring the right type of buyers to the table who can complete the transaction with minimal complications.

4. If the business is prequalified for bank financing, not only will you get more interest from the right prospective buyers because of your good financial records, but you will have saved the buyer time and effort in securing financing for the acquisition. Time is a deal killer. So any homework done upfront will pay off at this critical stage of the sale process.

5. Furthermore, a business eligible for financing will usually get a higher price and in many instance get all cash instead of having to take back a note and finance it yourself!

6. Lenders who are willing to finance a business will also give advice on what types of buyers would be approved for financing for your type and potential deal structure. Some lenders will issue a letter of prequalification that can be presented to qualified potential buyers!

7. If you know that you have financing lined up for potential buyers, you can better control the deal knowing that you don’t have to rely on the buyers to go out and search for financing - keeping you waiting as they hunt for a loan and other would-be potential business buyers move on to other deals.

8. In the interest of saving time, a good idea is to encourage buyers to utilize the financing institution that has already reviewed the financials and prequalified the business. However, keep in mind that just because your business has passed the test for financing doesn't mean the potential buyer automatically gets a loan. The buyer, too, must be financeable and have the background required to obtain the loan for the business.

What is usually required to get your business prequalified for financing? Usually 30 minutes of phone time answering questions about the business. The recent 3 years of the company's tax returns. The recent 3 years of business financials -- profit and loss statement, balance sheet, and interim financials for the current calendar or fiscal year.

We have relationships with many SBA Banks and other lending establishments that vary in their criteria and preferences in the types of businesses they finance. It is our standard procedure to perform this prequalification exercise with our clients early in the selling process to achieve our client's goal -- the best possible price in the shortest time-frame possible.

Small Business Loans Hit Record Breaking Levels in 2007

The U.S. Small Business Administration posted record-breaking loan numbers again in FY 2007, expanding access to capital to thousands of entrepreneurs across America and setting records for both the combined number and dollar volume of loans, according to their News Release today.

SBA approved 110,275 loans totaling more than $20.6 billion under its two primary small business loan programs during the 12 months ending on Sept.30 2007, compared with 107,233 loans worth $20.25 billion in 2006. With the strong results in 2007, the combined outstanding loan balances in the 7(a) and 504 loan programs increased 6.5 percent to $66.7 billion. The total does not include an additional $2.65 billion in venture capital funding provided by SBA-licensed Small Business Investment Companies to more than 2,000 small businesses.

The SBA plays an increasingly vital role in enabling small businesses across the country to get the capital they need to buy and grow their businesses, create jobs and build their communities. Although SBA does not make direct loans to small businesses, the agency's use of its guaranty authority enables commercial lenders and Certified Development Companies to make loans to small businesses they otherwise would not have made. Both primary loan programs combined set records this year. The 7(a) loan guaranty program - which can be used for nearly any legitimate business purpose including business acquisitions, debt refinance, business expansions, business startups, equipment and working capital - increased the number of loans from 97,290 in FY 2006 to 99,607 loans in FY 2007. The Certified Development Company - or 504 - program, for the purchase of real estate and fixed assets, provided 10,668 loans worth $6.31 billion, up from the 9,943 loans worth $5.73 billion in FY 2006.

The SBA's loan programs have been setting records for six consecutive years, and have more than doubled since fiscal 2000, from 48,313 to 110,275. During this period, SBA has approved more than 555,000 loans worth more than $107 billion to American small businesses, more than in the previous 10 years combined. Over this time, the agency's total small business loan portfolio has grown to $66.7 billion, compared to $45.9billion at the end of FY 2002 and $62.6 billion a year ago.

For more information on how to get an SBA loan, visit http://www.sba.gov/.