Ever thought about taking a “mini sabbatical”? As in, longer than a week vacation and focused specifically on total rest? Here’s why I ask…
Tax Day has come and gone, and, after a four-month sprint of paperwork marathons and client demands, my tax pro friends are prioritizing downtime. A lot of them take extended periods off this time of year to mentally break away from the stress their busiest season brings.
They’re not the only ones who understand the necessity of doing so. Teachers are another great example. Those summer months away from the classroom are essential for closure and a clearer head for the new school year.
Despite the value seen in a prolonged rest from work, generally, we aren’t very good at taking time off of work… but maybe we should be.
Burnout is real. 2020 helped us not only slow down but actually recover from the stressful demands of work. Now, more people are catching on, embracing extended rest as an essential part of their adult life.
Why do I bring this up today? Mainly to get you thinking about rest for yourself as a business owner – you work around the clock to keep your business running. And since it depends on you to thrive, you also need to promote lifestyle practices that help you thrive as well.
And that thought process needs to extend to your employees as well. How can you implement more “rest” into the lives of your employees so they don’t burn out?
Something to consider today.
Now, while you’re thinking about how to implement sustainable work cycles, I also want to help you be mentally prepared for something the Consumer Financial Protection Bureau (CFPB) is considering that could impact your business (for good or not remains to be seen).
I shared with you recently about some new small business loan requirements that are coming to a local bank near you (pending litigation). The verdict on whether this will make getting a business loan more difficult, in the short-term or long-term, is yet to be seen.
So in the name of keeping you informed about what’s coming, here’s a brief on why these changes are happening and what it means for your Harford County business…
CFPB Small Business Loan Requirements & Your Baltimore Biz
“There are known knowns, there are known unknowns, and there are unknown unknowns.” – Donald Rumsfeld
The new small business loan requirements for lenders which have been mandated by the Consumer Financial Protection Bureau (CFPB) are supposed to go into effect later this year (October to be specific). But the controversy and litigation surrounding the new rule has put compliance and enforcement on hold.
Why all the fuss?
Well, let’s start first with what exactly is being asked of lenders.
Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act mandates that lenders begin gathering additional information on small business loan applications, including:
- Geographic location
- Demographics (business ownership – race, gender)
- Loan details (amount, type, terms)
- Lending decisions (approved, denied, withdrawn)
- Price of credit
Implementation of these small business loan requirements will be phased in for lenders, with larger lenders required to collect and report data earlier (October 2o24) then the smaller lenders (January 2026).
The intention here, purportedly, is to provide a more comprehensive view of small business lending to the public, with the main intent being to make sure lenders are serving small businesses “fairly.”
There is currently very limited data on small business entrepreneurs’ access to credit, and this is the government’s attempt to combat unlawful discrimination in who gets access to those loans (and the better terms available).
Of course combatting discrimination in lending is a good thing, especially if it makes it easier for businesses like yours to get loans. But some argue that these new rules may actually do the reverse, saying it could slow down and make it harder to get small business loan approvals.
Small Business & Entrepreneurship Council president and CEO Karen Kerrigan said it would “bury small businesses and financial institutions with costly and time-consuming paperwork.”
That remains to be seen. So unless the rule survives litigation, nothing will officially be changing – yet – when it comes to meeting small business loan requirements during your application process.
But since there is a larger trend toward greater regulatory scrutiny over commercial lending, the likelihood is that
Our hope is that they can make the data collection process painless for business owners like you and that the long-term result is that financing your business becomes more accessible.
Knowing the government like I (we) do, I have my doubts about that, but time will tell.
Should this pending rule impact your decisions about timing the financing of your next business investment? I’m happy to sit down with you to look at your current financials to help you time things according to the most accurate projections we can make.
dacpapro.10to8.com
Looking out for your best interests,
Paulo Delatado