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The SBA 504 Experts Discuss a Double-Dip Recession
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I recently read a blog post by Jay Goltz on the New York Times website (yes, I get ALL perspectives), and wanted to share it with you for a couple reasons.

First, he makes some pretty good points about how to handle all the talk and “news” reports we hear about our economy – – be they good or bad. I’ve talked to more than a few business owners who simply don’t know what to think or how to react to what’s going on in these “interesting” economic times. Well, Jay addresses these fears and concerns in a way that makes perfect sense to me and might be helpful for you or someone you know who ought to be reading this.

Second, Jay went and purchased a new building for his business because he could get a great deal on the property and reduce his overhead. He basically drives home what I’ve been saying for months now: that RIGHT NOW is a great time to buy commercial property. “But Chris,” you say, “you provide smarter financing for commercial property for a living . . . so of course you’re going to like that guy and his blog post when he advocates buying commercial property. Right?” But there’s more to it than that. Even though we’re not in the boom economy we enjoyed in years past, there are still opportunities to grow and become more efficient . . . instead of merely hunkering down and trying to wait things out. Buying commercial property might not be the smartest move for you right now, but it IS for a LOT of business owners (whether they know it yet or not).

If you think you might benefit from owning your commercial property, or if you’re not sure and would like to find out, call me at 1-866-622-4504 or email me at TODAY. We pride ourselves on giving quick answers to each and every one of our small business Clients so as not to waste your time or ours. In fact, we even have a 24-hour Pre-Approval Application you can fill out that requires only seven, very basic documents (go here to get it now). So let me know how we can help you or someone you know – – it’s never too late to get started with the Right lending partner.

And that’s enough from me for now. Here’s Jay’s blog post, as I promised:

July 13, 2010

A Double-Dip Recession? No, Thank You.

It’s been almost two years since the economy hit the brakes. Now I keep reading about the possibility of a double-dip recession. If you listen to economists, the odds of this happening seem to range from very likely to next to nil. Of course, the odds of getting an accurate prediction might be just as good if you go to a fortune teller (or perhaps a lack-of-fortune teller, in this case).

As a small-business owner, I’m trying to figure out how to react to this talk of a double dip. The fact is, even if I knew whom to believe, I’m not sure it would affect my decisions. I don’t know about you, but most of the small-business owners I know are still licking their wounds from the first dip: smaller staffs, no raises, lots of uneasiness. Have things gotten better? Yes, to some degree, but this recovery is slow and sporadic.

When the economy goes into recession, small-business owners cut expenses, take a harder look at staffing and make some difficult decisions they probably should have made even without a bad economy. When a potential second round comes, there’s not much left to do. Unfortunately, the one thing a lot of owners probably won’t do is hire more staff – – even if they need them. That in turn keeps the unemployment numbers high, which gives the predictors of gloom something else to crow about. It is a vicious cycle.

And the 24/7 news cycle doesn’t help either. At any given moment, you can find someone screaming about a new disaster, a potential disaster, an old disaster or a made-up disaster. There is a lot of money to be made in making up disasters, whether to sell books, gold, politics or stock market strategies. It has been a long two years. As with any bad economy, many companies have gotten leaner and more focused; others have gone out of business.

If you want to convince yourself that things are going to get worse, you will have no problem finding an expert to support your fears. I can also tell you that it is very hard to inspire the troops – – even if you’re the only troop – – if you are waiting for the next dip. But I don’t think you can play defense forever. If you do, competitors can take advantage of your retreat in the marketplace and your better employees will look for better opportunities. On the other hand, you still need to be careful to protect your cash and watch expenses. It is quite a balancing act.

Here are some of the things I’ve been doing: I bought a new building in order to reduce my overhead expense (commercial buildings are on sale) and give me more room for efficiency and growth. I bought a new truck that will be more efficient because it is bigger and the right height for the new building’s dock, which makes loading much easier. It also matches the dock door, which reduces the heat loss from the building. On a cold winter day, a wide open dock door can cool an entire building. Because of the current situation, I financed 90 percent of the purchase price, which means the truck will create a tax deduction that will actually provide positive cash flow for more than a year. I am also planning to resume more of my advertising, as customers seem to be getting back to buying.

There is one more element that is far less tangible: battle fatigue. I always think of the famous line, “Damn the torpedoes!” That attitude isn’t always smart; in fact, it has blown up many businesses. On the other hand, hiding under the table and waiting for the economists to say it is safe to go outside has probably done just as much damage.

I’m forging ahead, with or without a double dip. If we hit one, and sales fall again, I’ll make more adjustments. Business is all about calculated risks. Owners need to figure out how much risk they can take and still recuperate if things get worse. Avoiding all risk in business, ironically, can be more damaging in the long run.

Jay Goltz owns five small businesses in Chicago.

Dedicated to Your Continued Success,


P.S. When I read this the first time, I immediately thought of at least 10 people who ought to read it. Once I forwarded it to them, I realized that there are probably a lot more people who might not have read it, and needed to . . . which is why I posted it here. That said, I know you can probably think of at least two or three people who should also read what Jay has to say here. Please forward this blog to them via email or the social media links above. Thanks!

P.P.S. Also, don’t forget to leave a comment below to let me know what you think about Jay’s blog or anything else I’ve written here.

P.P.P.S. We’re on Facebook and Twitter too, so please click below to follow our goings on there. That’s where you’ll read the VERY latest from us, often daily and often hilarious: and

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  1. Bruce Hurta says:

    I especially liked his statement, “If you want to convince yourself that things are going to get worse, you will have no problem finding an expert to support your fears.” It’s the “herd mentality”.

  2. Steve Staller says:

    Your articles are very interesting.

  3. Mark Eric Bailey says:

    Thanks Chris!

  4. Cashin D White says:

    Dude – crazy use of social media – I like it. Keep up the good work.

  5. Glenn Muhammad says:

    Thanks for all the great content.

  6. Mark Eric Bailey says:

    Jay’s points are well-taken. We all need to remember that if we are maintaining the status quo we are really going backwards. Good article to share with us all Chris!

    Thanks Mark!

  7. leo clark says:


  8. Joel says:

    there will be a double dip recession. high unemployment, real estate going lower. our gov is in so much debt they may destroy the value of the dollar. just ask Warren Buffet.

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