Author Archives: Chris Lehnes

Who is Kelly Loeffler? Trump’s Pick to lead SBA.

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Who is Kelly Loeffler? Trump’s New Pick to Run the Small Business Administration

Kelly Loeffler, a businesswoman and former U.S. senator, has been nominated by President-elect Donald Trump to head the Small Business Administration (SBA). Known for her conservative political stance, Loeffler’s nomination has sparked interest and debate over her potential impact on small businesses nationwide.

Background and Business Career

Born on November 27, 1970, in Bloomington, Illinois, Loeffler grew up in a farming family before pursuing higher education. She earned a Bachelor of Science degree from the University of Illinois Urbana-Champaign and later obtained an MBA from DePaul University.

Loeffler built a successful career in the financial sector, culminating in her role as CEO of Bakkt, a subsidiary of Intercontinental Exchange (ICE). ICE, led by her husband Jeffrey Sprecher, is a major operator of global exchanges, including the New York Stock Exchange. At Bakkt, Loeffler oversaw the development of a cryptocurrency trading platform, gaining valuable experience in managing innovative business models. However, her tenure faced challenges, including reports of operational hurdles and unmet market expectations.

Political Career

Loeffler entered politics in December 2019 when Georgia Governor Brian Kemp appointed her to the U.S. Senate to fill the vacancy left by retiring Senator Johnny Isakson. She served from January 2020 to January 2021, aligning closely with President Trump during her time in office. Loeffler positioned herself as a staunch conservative, emphasizing her “100 percent Trump voting record” during her campaign.

In the 2020 special election, Loeffler faced a high-profile battle against Democrat Raphael Warnock, ultimately losing the seat. Following her Senate term, she founded Greater Georgia, an organization dedicated to registering conservative voters and advocating for voting law reforms.

Nomination to the Small Business Administration

Loeffler’s nomination to lead the SBA comes at a pivotal time for small businesses recovering from economic disruptions. The SBA plays a critical role in providing loans, grants, and support to entrepreneurs across the country. With her background in business and experience in navigating complex financial systems, Loeffler’s supporters argue she is well-equipped to streamline the agency’s operations and bolster its programs.

However, critics have raised questions about her qualifications, pointing to her performance at Bakkt and her limited track record in directly supporting small businesses. As she awaits Senate confirmation, Loeffler is expected to outline her vision for reducing regulatory burdens and fostering innovation among small enterprises.

Looking Ahead at Kelly Loeffler

If confirmed, Loeffler will likely prioritize policies aimed at empowering entrepreneurs and creating jobs. Her leadership style and decisions will be closely watched, especially as the SBA continues its mission to support the backbone of the American economy—small businesses.

Connect with Factoring Specialist, Chris Lehnes

Takeover of US Steel Blocked

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Takeover of US Steel Blocked

In a decisive move to protect American industry and national security, President Joe Biden has intervened to block the proposed takeover of U.S. Steel Corporation by Japan’s Nippon Steel Corporation. The decision underscores the administration’s commitment to safeguarding critical domestic industries from foreign acquisition. Takeover of US Steel Blocked.

Takeover of US Steel by Nippon Steel Blocked

The proposed acquisition had raised concerns among policymakers and industry experts about the potential impact on the U.S. steel sector, a cornerstone of the nation’s infrastructure and defense industries. U.S. Steel, one of the oldest and largest steel manufacturers in the United States, plays a vital role in supplying materials for construction, transportation, and military applications.

According to administration officials, the move aligns with the broader policy agenda to ensure the resilience of U.S. supply chains and the protection of strategic assets. “We must prioritize the long-term economic and national security interests of the United States,” a White House spokesperson stated.

Nippon Steel, Japan’s largest steel producer, had expressed interest in the acquisition as part of its global expansion strategy. The company emphasized that the deal would benefit both parties by fostering technological collaboration and increasing production efficiency. However, U.S. officials remained unconvinced, citing risks related to foreign control over critical infrastructure.

Industry reactions to the decision have been mixed. Some stakeholders applauded the administration’s proactive stance in shielding a key domestic industry, while others voiced concerns about potential disruptions to foreign investment and trade relations with Japan.

“This decision sends a strong message about the importance of maintaining domestic control over critical industries,” said an industry analyst. “However, it also raises questions about the balance between protectionism and fostering global partnerships.”

The blocked acquisition comes amid a broader effort by the Biden administration to bolster the U.S. industrial base and reduce reliance on foreign entities for essential materials. Recent policies, such as the CHIPS and Science Act and the Inflation Reduction Act, highlight a similar focus on revitalizing domestic manufacturing and securing supply chains.

While Nippon Steel has yet to release an official statement regarding the blocked bid, analysts predict that the company may seek alternative avenues for collaboration with U.S.-based firms or pursue other international opportunities. Meanwhile, U.S. Steel has reaffirmed its commitment to remaining an independent leader in the global steel industry.

This move by President Biden is expected to influence future foreign investment strategies and could set a precedent for how the U.S. approaches similar situations involving critical industries.
Connect with Factoring Specialist Chris Lehnes

Unemployment Claims Fall to 211,000 – Lowest Since March

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Unemployment Claims Fall to 211,000 – Lowest Since March

The U.S. labor market continues to show signs of resilience as initial unemployment claims fell to 211,000 for the week ending [date], the lowest level since March. This figure, released by the Department of Labor, is a decline of 13,000 from the previous week’s revised total of 224,000. Economists had anticipated claims to remain relatively flat at around 220,000, making this drop a notable surprise.

Unemployment Claims Fall to 211,000 – Lowest Since March

What Are Unemployment Claims?

Unemployment Claims Fall to 211,000 – Lowest Since March

Why This Matters

This reduction underscores the continued strength of the U.S. economy, even in the face of high interest rates and inflationary pressures. Employers seem more inclined to retain workers despite concerns about economic growth slowing. This trend is consistent with other labor market indicators, including a low unemployment rate and steady job openings.

Regional and Sector Insights

The latest data shows that most regions reported decreases in claims, with notable declines. Industries such as hospitality, healthcare, and manufacturing appear to be driving this stability, as they continue to experience steady or increased demand.

Broader Economic Context

The Federal Reserve has been closely monitoring labor market conditions as it weighs future interest rate decisions. A strong labor market complicates efforts to tame inflation, as higher employment can lead to increased consumer spending. However, the drop in claims suggests that the economy may be navigating this delicate balance better than expected.

Looking Ahead

Analysts will be watching for the next round of employment reports and economic data to determine whether this trend is sustainable. A consistently low level of unemployment claims could signal ongoing economic strength, but it may also keep the Federal Reserve on alert regarding inflationary risks.

For now, the decrease in unemployment claims is a positive sign for workers and businesses alike, reinforcing confidence in the stability of the U.S. economy.

Connect with Factoring Specialist, Chris Lehnes

GDP Rose 3.1% in Q3, Signaling Continued Economic Growth

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GDP Rose 3.1% in Q3, Signaling Continued Economic Growth

The U.S. economy expanded at an annual rate of 3.1% in the third quarter (Q3), according to the latest data released by the Department of Commerce. This figure highlights steady economic growth driven by strong consumer spending, robust business investment, and an uptick in exports. GDP Rose 3.1% in Q3

The growth rate exceeded analysts’ expectations, which had forecasted a moderate increase following the 2.1% rise in Q2. The Q3 expansion reflects resilience in key economic sectors despite challenges like higher interest rates and persistent inflation concerns.

Key Drivers of Growth:

  1. Consumer Spending:
    Consumer expenditures, which account for approximately 70% of GDP, remained strong, particularly in services such as travel, dining, and healthcare.
  2. Business Investment:
    Investments in equipment, technology, and infrastructure showed noticeable improvement, supporting productivity and corporate expansion.
  3. Exports:
    A surge in exports contributed positively to the GDP, driven by increased global demand for American goods, including energy and industrial products. GDP Rose 3.1% in Q3

Challenges Ahead:

While the Q3 GDP growth is encouraging, economists warn of potential headwinds in the coming months, such as:

  • High Interest Rates: The Federal Reserve’s ongoing efforts to combat inflation may slow consumer and business borrowing.
  • Inflation: Though inflation rates have eased, elevated prices still impact household budgets.
  • Global Uncertainty: Geopolitical tensions and supply chain disruptions continue to pose risks to economic stability.

Outlook:

Despite these challenges, the latest GDP figures suggest that the U.S. economy remains on a growth trajectory. Policymakers and analysts will closely monitor Q4 data to determine whether this momentum can be sustained into the new year.

Contact Factoring Specialist, Chris Lehnes

Funding for Working Capital Shortfalls

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Funding for Working Capital Shortfalls

Our accounts receivable factoring program can help businesses meet payroll or other essential obligations in as quick as a week.

Funding Working Capital Shortfalls

Factoring Program Overview

  • $100,000 to $10 Million
  • Competitive Advance Rates
  • Non-Recourse
  • No Audits
  • No Financial Covenants
  • Most businesses with strong customers eligible

We specialize in difficult deals:

  • Start-ups
  • Weak Balance Sheets
  • Historic Losses
  • Customer Concentrations
  • Poor Personal Credit
  • Character Issues
We focus on the quality of your client’s accounts receivable, ignoring their financial condition. This enables us to move quickly and fund qualified businesses including Manufacturers, Distributors and a wide variety of Service Businesses in as few as 3-5 days. Contact me today to learn if your client is a fit.
 
Chris Lehnes 203-664-1535 clehnes@chrislehnes.com

Inflation hits 2.7% Amid Stubborn Price Pressures

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The U.S. inflation rate has climbed to 2.7%, marking a slight uptick after months of gradual declines. The increase in the Consumer Price Index (CPI) signals persistent challenges in taming it, which remains above the Federal Reserve’s target of 2%. The latest data indicates that while progress has been made, some key areas continue to exert upward pressure on prices.

Factors Driving Inflation

The recent rise to 2.7% comes after the inflation rate held at 2.6% in previous months. Contributing factors include:

  • Shelter Costs: Housing-related prices remain elevated, with shelter costs increasing by 4.9% year-over-year. Shelter accounts for a significant portion of the overall CPI, making it a critical driver of inflation.
  • Energy Prices: Although energy prices had been declining earlier in the year, the recent report shows a slower decline. Gasoline prices, for example, fell by 12.2%, compared to a sharper 15.3% drop in prior months.
  • Core Services: Prices for core services, excluding food and energy, remain sticky. Transportation and medical services costs continue to rise, keeping core inflation at 3.3%.
  • Food Prices: The rate for food showed some moderation, easing to 2.1% from 2.3%. However, certain grocery staples continue to see price increases.

Federal Reserve’s Challenge

The Federal Reserve’s goal is to achieve a 2% rate, using the Personal Consumption Expenditures (PCE) deflator as its preferred measure. The PCE typically runs lower than the CPI, but with current CPI inflation at 2.7%, the Fed faces a delicate balancing act. While the central bank has paused interest rate hikes in recent months, a sustained increase in inflation may force policymakers to reconsider their stance.

Fed Chair Jerome Powell has indicated that the path to 2% inflation could be bumpy, especially with stubborn pressures in services and housing sectors. The upcoming Fed policy meeting will be closely watched to see if this latest inflation data influences any shift in interest rate policies.

inflation Outlook for Consumers

For American consumers, this inflationary environment means that the cost of living remains elevated, particularly in essential areas like housing, transportation, and healthcare. While wage growth has helped offset some inflationary pressures, purchasing power continues to be strained for many households.

Conclusion

As U.S. inflation hits 2.7%, the challenge of fully containing inflation persists. Whether this trend continues or moderates will depend on several factors, including energy markets, supply chain stability, and the housing sector. The Federal Reserve’s response in the coming months will be crucial in determining the trajectory and economic stability.

Contact Factoring Specialist, Chris Lehnes

Thanksgiving Dinner in 2024: A Little Lighter on the Wallet

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Thanksgiving Dinner in 2024: A Little Lighter on the Wallet

Thanksgiving Dinner in 2024. Good news for Americans preparing to celebrate Thanksgiving in 2024: the cost of the traditional holiday feast is expected to be slightly cheaper this year. Analysts point to several factors contributing to the cost reduction, including improved agricultural yields, lower transportation expenses, and a decrease in inflationary pressures compared to recent years

.

Thanksgiving Dinner in 2024

Why Prices Are Falling

  1. Improved Harvests: This year saw strong harvests for staple crops like corn and wheat, which contribute to lower prices for items like stuffing, pies, and baked goods. Additionally, a mild growing season for produce has ensured an abundance of sweet potatoes, green beans, and cranberries.
  2. Stable Turkey Supplies: Unlike the challenges of previous years, when avian flu and supply chain disruptions drove up the price of turkeys, this year’s market has stabilized. Turkey farmers report higher inventory levels, which has helped reduce per-pound prices.
  3. Lower Fuel Costs: Decreased fuel prices have led to lower transportation costs, which benefits consumers purchasing goods that need to travel long distances, like canned pumpkin or cranberries.

How Much Can You Save?
According to preliminary estimates, a traditional Thanksgiving meal for 10 people, including turkey, stuffing, potatoes, vegetables, and dessert, is expected to cost about 4-6% less than in 2023. While savings may vary by region and retailer, savvy shoppers can look forward to even better deals through promotions and bulk buying. Thanksgiving Dinner in 2024

Tips for Stretching Your Thanksgiving Budget

  • Shop Early: Lock in deals before the holiday rush drives up demand.
  • Compare Prices: Use grocery store apps to find the best deals on key ingredients.
  • Consider Alternatives: If turkey prices rise locally, consider ham, chicken, or plant-based mains as cost-effective options.

Thanksgiving Dinner in 2024 – promises not only to be a time for gratitude and gathering but also a chance to feast without breaking the bank.

Connect with Factoring Specialist, Chris Lehnes

Non-Dilutive Growth Financing

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Non-Dilutive Growth Financing  

Versant’s accounts receivable factoring program can be the ideal source of financing for businesses which are growing, but not ready to raise equity.   Non-Dilutive Growth Financing  

Program Overview
$100,000 to $10 Million
Non-Recourse
No Audits
No Financial Covenants
No Long-Term Commitment
Most businesses with strong customers are eligible

We like challenging deals :
Start-ups
Turnarounds
Historic Losses
Customer Concentrations
Poor Personal Credit
Character Issues  

We focus on the quality of your client’s accounts receivable, ignoring their financial condition. This enables us to move quickly and fund qualified businesses including Manufacturers, Distributors and a wide variety of Service Businesses ( includes SaaS) in as few as 3-5 days.

Contact me to discover the power of factoring!    


Chris Lehnes
203-664-1535
clehnes@chrislehnes.com
Learn more about Factoring