President Barack Obama announced on Sunday that Republican and Democratic leaders had agreed on a last-ditch deal to raise the US borrowing limit and avoid a catastrophic default, and he urged lawmakers to "do the right thing" and approve the agreement.
Here is a summary of the deal, based on documents provided by both parties, as well as interviews with lawmakers and aides:
* The deal would allow President Barack Obama to raise the debt ceiling in three steps. Congress would get a chance to register its disapproval on two of these, but would not be able to block them unless it musters a two-thirds vote in both the House and the Senate -- an unlikely prospect.
* It envisions spending cuts of roughly $2.4 trillion over 10 years, which Congress would approve in two steps -- an initial $917 billion when the deal passes Congress and another $1.5 trillion by the end of the year.
* The first group of spending cuts would apply to the discretionary programs that Congress approves annually, covering everything from the military to food inspection.
* Those programs would be capped each year for 10 years. The caps would be relatively modest at first to avoid stifling the shaky economy -- spending for the fiscal year that begins Oct. 1 would be only $6 billion below the current level of $1.049 trillion. The caps would have a greater impact in later years, when it is hoped that the economy will have recovered.
* Some $350 billion of the $917 billion total would come from defense and other security programs which now account for more than half of all discretionary spending. Republicans are resisting this idea and it is one of the few areas of dispute left.
* Automatic across-the-board spending cuts would kick in if Congress does not observe the caps in coming years.
* A 12-member congressional committee, made up equally of Republicans and Democrats from each chamber, would be tasked with finding a further $1.5 trillion in budget savings.
* That committee could find savings from an overhaul of the tax code and restructuring benefit programs like Medicare -- the politically risky decisions that lawmakers have not been able to agree on so far.
* The committee would have to complete its work by Nov. 23. Congress would have an up-or-down vote, with no modifications, on the committee's recommendations by Dec. 23.
* If the committee cannot agree on at least $1.2 trillion in savings, or Congress rejects its findings, automatic spending cuts totaling that amount would kick in starting in 2013.
* Those cuts would fall equally on domestic and military programs. Medicare would face automatic cuts as well, but Social Security, Medicaid, federal employee pay, and benefits for veterans and the poor would be exempt.
* The plan also calls for both the House and the Senate to vote on a balanced budget amendment to the Constitution by the end of the year. It is not likely to receive the two-thirds vote in each chamber needed for passage, but its inclusion will make it easier for conservatives to back the overall deal.
July 31, 2011
Key elements of possible US debt deal
INDIA INC ON A STRONG WICKET, BUT NET SLIPS
Indian corporates continue to report robust revenue growth going by the quarterly results so far, but profits are under pressure due to rising interest rates and input costs. The good news is despite inflationary pressures, operating profits have not fallen much in the quarter to June. An analysis by the ET Intelligence Group, based on the performance of 612 companies that have announced results so far, shows aggregate revenue grew 23. 5% during the June quarter over the year-ago period. Operating profit before depreciation rose 19. 4%, compared with 12. 5% in the same quarter previous year. However, net profit growth slowed to 13% from 21% in the year-ago quarter due to higher depreciation and interest outgo. Two-wheeler players Hero MotoCorp and Bajaj Auto, metals and mining major Sterlite, and software exporters TCS and HCL Technologies led the overall sample growth. The sample excludes companies from the banking, finance, and oil and gas sectors.
The early results yet again reflect resilience on the margin front during the quarter. Operating margin shrank just over 60 basis points to 19. 3% despite double-digit increase in raw material costs and salary expenses from the year ago. This validates the Reserve Bank of
July 30, 2011
Weekly Sector Outlook- 30 July
Ø Bank Stocks outlook
1. Bank stocks are likely to stay mostly positive next week with value buying likely in some state-owned banks that announced strong results this week.
2. Analysts expect syndicated Bank, Dena Bank, Andhra Bank, Panjab National Bank and Bank of Baroda to witness strong buying in the coming week, While ICICI Bank’s strong earnings growth is likely to support the stock.
Ø Auto Stocks Outlook
1. Automobile stocks are largely seen in the negative next week tracking the broader market and also due to the likely weak monthly sales numbers.
2. With rising interest rates and high fuel prices slowing down auto sales in the domestic market, the passenger vehicles segment is likely to see a further slowdown in sales in July.
1. Most pharmaceutical counters will take cues from Apr-Jun earnings with results of Ranbaxy Laboratories Ltd, IPCA Labs and GlaxoSmithKline Pharmaceuticals scheduled next week.
2. With local share indices seen trading in band next week with a likely downward bias, traders may favour stocks of pharma companies as a defensive bit.
3. The Sector’s growth is seen in the 10-15% range during the quarter ended June, Which may attract some buying opportunity in select mid-cap stocks.
Ø Telecom stock Outlook
1. Share of telecom companies are seen bucking the broader market trends and outshining other stocks next week.
2.Reliance communication will sustain above the 100-rupee levels idea will also move in positive trajectory.
Ø Capital Goods Stocks Outlook
1. Shares of capital goods companies, which underperformed the broader indices this week, are likely to extend their losses next week too.
2. Shares of major capital goods companies fell by around 1% to 7% during the concluded week and BSE Capital Goods Index slipped 5.2%, underperforming the broader indices by a wide margin, which fell by close to 3%.
Ø Cement stock Outlook
1. Share of major cement companies are seen down next week on low demand and realisation a construction activity slows during monsoon.
2.“Given Coal
Ø Steel Stocks Outlook
1.Share of steel companies are likely to fall next week due to low demand with short-term outlook for the sector seen weak because of slow growth in industrial demand and weak earnings from companies in Apr-Jun.
2. In week to today, JSW steel has lost a shade over 11% and is expected to fall more next week.
1. Shares of IT companies are seen volatile next week ahead of debt default looming over the
2. Analyst said market would keenly await the
3. Mid-size companies are likely to post even strong performance in the coming quarters as demand from
Ø Oil stock Outlook
1. Reliance Industries was the worst performing stock in the oil and gas sector in the week to Jul 29 after it hit over a 2-year low.
2. Earnings growth is likely to remain slow until E&P (exploration and production) issues are sorted out, “Bank of America- Merrill Lynch said in a note.
3. Share of oil marketing companies too are seen week in the near term as crude oil prices remain stubbornly high.
Ø FMGC Stocks Outlooks
1. Share of major FMGC are seen firm in the week ahead, boosted by good performances of ITC Ltd. and Marico Ltd. in the Apr-Jun quarter.
2. In the week ended Jul 29, Marico shares zoomed by 4.70% , ITC shares rose by 0.46%, and shares of Hindustan Uniliver slid 2.91%.
July 29, 2011
HIGHLIGHTS OF SEBI BOARDS MEETING
· TAKEOVER CODE
1. Open offer trigger increased from 15% to 25%
2. Open offer size increased from 20% to 26%
3. Non-compete fee scrapped
· MUTUAL FUNDS
1. Transaction charge of Rs.100 for old customers and Rs.150 for new customers for investment of over Rs.10, 000
2. Sebi to allow common set of fund managers and research analysts for different pooled assets like offshore funds and pension funds.
3. Sebi to regulate mutual fund distributors
· SECONDARY MARKET
1. Unified and simplified know-your-client requirement; aadhar cards eligible for KYC
2. Single signature required to open a trading account instead of more than 50 at present
· PRIMARY MARKET
1. IPO from to be simplified
2. Information documate with the IPO from to include track record of merchant bankers, comparison with peers
· NSDL
Sebi board to release the report of a two-member committee on IPO irregularities and DSQ software to NSDL
July 28, 2011
Europe, US Debt Woes May Spur Gold Demand
LONDON:Gold may rise toward a record set on Wednesday in London as concern that the US and Europe will struggle to contain their debt burdens spurs demand for the metal as a protection of wealth.
US lawmakers remained at odds on how to raise the country's debt limit in time to avoid a default. Standard & Poor's said Greece will partially default once European officials push through a second bailout plan for the nation agreed to last week. Gold reached a record $1,628.05 an ounce on Wednesday.
"Gold is still the best safe-haven investment," said Bernard Sin, head of currency and metal trading at bullion refinerMKS Finance in Geneva. "In the US, we don't know what damages are going to be created. If you look at Europe, you still have a lot of debt problems."
Immediate-delivery gold rose $1.10, or 0.1%, to $1,614.75 an ounce by 11:21 a.m. in London. Gold for December delivery was little changed at $1,617.50 on the Comex in New York after reaching a record $1,631.20 on Wednesday. Bullion fell to $1,617.50 an ounce on Thursday morning "fixing" in London, used by some mining companies to sell output, from $1,625 at on Wednesday's afternoon fixing.
Gold is up 14% this year, heading for an 11th straight annual gain, the longest winning streak since at least 1920 in London. The MSCI All-Country World Index of equities gained 2% in 2011, the Standard & Poor's GSCI Index of 24 commodities is up 9.8% and Treasuries returned 3.3%, according to a Bank of America Merrill Lynch index.
The House of Representatives planned to vote on Thursday on a debt-limit increase proposal that confronts unified Democratic opposition in the Senate. Blackrock, Franklin Templeton Investments, Loomis Sayles, Pacific Investment Management and Western Asset Management are among those warning the US may lose its top-level debt rating as officials struggle to raise the $14.3 trillion borrowing limit and reduce spending.
"There are major fundamental issues around the size of debt, the inability to control spending," Sean Boyd, chief executive officer of Agnico-Eagle Mines, North America's fifth-largest gold producer, said. Debasement of paper currencies "is forcing people to start to look at gold," he said.
S&P on Wednesday lowered its ranking for Greece to CC, two steps above default, and said the outlook on the debt is negative. Last week's accord strengthened the region's bailout mechanism to offer protection to other euro region nations such as Ireland and Spain to avert contagion.
"Physical demand is generally staying absent at gold prices above $1,610," Edel Tully, a Londonbased analyst at UBS, said in a report. "The fact that we've begun to see average purchases at these levels suggests that buyers are starting to adjust to a much higher gold price."
Silver for immediate delivery fell 0.7% to $39.9975 an ounce after on Wednesday climbing to a 12-week high of $41.45.
SEBI proposes new takeover rules to ease acquisitions for India Inc & scrap non-compete fee
MUMBAI: The Securities & Exchange Board of India, or SEBI, has proposed new takeover rules that will ease acquisitions by Indian companies and scrap the non-compete fee, an anomaly that enriched promoters over minority shareholders. But it will dilute the spirit of a committee that mandated total buyout of minority holders by acquirers as in the developed markets.
The minimum holding requirement to trigger an offer to minority holders has been raised to 25% of the company from 15%. Once that level is reached, the acquirer must offer to buy 26%, up from 20% now.
New norms make it mandatory for the board of the target company to suggest its opinion to shareholders, and the rise in minimum limit may benefit private equity investors who can own more of a listed company without having to invest a substantial sum.
"Going by our interactions with people who matter in the banking regulatory circles, it was understood that bank financing of acquisitions may not happen in the near future," SEBI Chairman UK Sinha told reporters after a board meeting. "We should not start something that will only help a certain set of investors," he said referring to international companies that get liberal funding from their banking systems.
A committee headed by C Achuthan, after many complaints that minority holders were shortchanged during takeovers, had proposed that the acquirer offer to buy out all the minority holders, which could lead to delisting of a stock from the exchanges, so that the benefit of a takeover is uniform.
But corporates and investment bankers said it would raise the cost of acquisition in a country where banks are barred from funding takeovers. Achuthan, a former presiding officer at the Securities Appellate Tribunal who ruled on many takeover disputes, was also for scrapping the non-compete fee.
Ever since the Achuthan committee submitted its report, corporates and investment banks have been against some of the proposals such as 100% buyout.
Any takeover can lead to 51% ownership
The report also recommended scrapping of the so-called 'non-compete fee' that many promoters took advantage to benefit more than other shareholders.
"The move to increase the threshold limit to 25% will increase private equity activity," said V Anantharaman, regional co-head, wholesale banking, South Asia, Standard Chartered Bank.
"And the move to increase the open offer size to 26% will ensure the transaction in which control is sought, the objective of the acquirer is met. It would have been good if certain changes in delisting guidelines were also implemented to make it more practical."
Mergers and acquisitions in India fell 37% to $27.5 billion last year, data from Bloomberg shows. The proposed norm for buyout of minority holders differs from what is in practice in developed markets. Regulations in Japan, Hong Kong and Singapore mandate total buyout of minority holders.
The new norms also indicate the regulator is particular that those who manage the company rather take controlling stake than doing with smaller stakes.
"The amendments also suggest the regulator's underlying intention appears to be that once an acquirer takes 25%, there must be a definite change in the management control," said Vishwang Desai, managing partner, Desai & Diwanji, a leading M&A law firm that ranked No. 1 on the M&A tables for 2011 prepared by Mergermarket.
"Previously, with 15% threshold and 20% offer size limit, there were situations where control could still continue with the previous management." Now, any takeover could lead to 51% ownership.
Although all minority holders won't benefit to the fullest of their holdings, it may be something better than the previous one. "For minority shareholders, the increase of open offer size to 26% is a positive move because it results in higher acceptance ratio from public shareholders," said Mehul Savla, director at RippleWave Equity Advisors. "But, for promoters, it could create an imbalance.
For those promoters having a low holding in the company, they continue to have a restriction of 5% (creeping acquisition) whereas a minority investor can acquire up to 25% without any time limit for making an open offer."
Food inflation at 20-month low of 7.33% on July 16
Food inflation fell to its lowest level in 20 months at 7.33% for the week ended July 16 on the back of cheaper pulses, even as other items grew more expensive.
Food inflation, as measured by Wholesale Price Index (WPI), stood at 7.58% in the previous week.
The decline could also be attributed to the high inflation figure of 18.56% for the corresponding year-ago period, a phenomenon dubbed the 'high base effect' in economic parlance.
The latest figure is the lowest since separate data for food inflation was first released in November, 2009.
During the week under review, prices of pulses fell by 8% year-on-year. However, prices of other items went up.
Onions became more expensive by 22.66% and fruits became 13.90% dearer on an annual basis.
Potatoes became 10.55% costlier, while milk was up 9.96%. Vegetable prices were up by 7.59% year-on-year.
Overall, primary articles recorded inflation of 10.49% for the week ended July 16, down from 11.13% in the previous week. Primary articles have a share of over 20% in the WPI.
However, inflation of non-food articles went up to 16.05% from 15.50% in the previous week.
Furthermore, fibres became more expensive by over 28% and oil seeds were up 13.72%. Minerals became dearer by 23.12% year-on-year.
Meanwhile, the index for fuel and power stood at 12.12%.
The moderation in food inflation is expected to come as a relief for the government and the Reserve Bank, who have adopted a series of measures for battling inflationary pressure.
Headline inflation stood at 9.44% in June. The RBI has already hiked interest rates 11 times since March, 2010, to tame demand and curb inflation.
In its quarterly review earlier this week, the RBI raised its overall inflation projection for March, 2012, to 7% from 6% estimated earlier, "in view of the domestic demand-supply balance, global trends in commodity prices and the likely demand scenario."
July 27, 2011
SEBI board meet 28-07-11; New takeover code, NSDL on agenda
The Securities and Exchange Board of India (SEBI) in its board meeting today is reportedly likely to take a call on the much-awaited takeover code of listed companies.According to reports, SEBI may also reopen a probe against the National Securities Depository (NSDL) in relation to the various IPO scams between 2003 and 2005.Other key issues like eligibility criteria for IPOs, electronic reporting on a SEBI unified platform, norms for the proposed infrastructure debt funds and uniform KYC norms are also on the agenda, according to reports.
The infrastructure debt fund was proposed by Finance Minister Pranab Mukherjee in the Budget for FY12.The Government has already announced that the Infrastructure Debt Fund (IDF) could be set up either as a company or trust.SEBI is unlikely to accept all the proposals of the C Achuthan panel on the new takeover code.The committee had suggested hiking open offer trigger limit to 25%, from 15% at present.
It had also recommended 100% open offer size rule that to provide an exit option to shareholders of the target company and abolition of non-compete fees.The SEBI board is chaired by Chairman UK Sinha.The board meeting was scheduled for June 30, but got postponed, as Sinha was then in the
Asian Stocks Decline on U.S. Debt, Falling Goods Orders; China Banks Slide
Asian stocks fell for a third day this week as U.S. lawmakers failed to break a deadlock over raising the federal debt limit, and durable goods orders in the world’s biggest economy unexpectedly declined.
Toyota Motor Corp. (7203), the No. 1 carmaker, slid 1.8 percent in Tokyo. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest publicly traded lender, fell 1.7 percent. China Construction Bank Corp. led Chinese lenders lower after the government prohibited banks from renewing loans to local financing vehicles. BHP Billiton Ltd. (BHP), the world’s largest mining company by market value, retreated 1.7 percent in Sydney after oil and metal prices declined. Hitachi Construction Machinery Co. jumped 4.6 percent in Tokyo after boosting its net income forecast.
“There’s increased nervousness in equity markets as the debt ceiling deadline draws near,” saidTim Schroeders, who helps manage $1 billion in global equities at Pengana Capital Ltd. in Melbourne. “A de-rating of U.S. debt down the track could reduce monetary liquidity, and some bank earnings may be hurt. Exporter-led earnings are increasingly at risk under such a volatile backdrop.”
The MSCI Asia Pacific Index slid 0.9 percent to 137.69 as of 11:17 a.m. in Tokyo. About seven stocks fell for each that rose on the gauge. The measure is headed for a decline this week as forecasts for higher earnings at companies from Canon Inc. to Baidu Inc. were overshadowed by concern the U.S. may default on its debt if lawmakers can’t reach an agreement on raising the government’s borrowing limit by Aug. 2
The Region Declines
Japan’s Nikkei 225 (NKY) Stock Average fell 1.1 percent, sliding below the 10,000 yen level for the first time in a week. South Korea’s Kospi index declined 0.9 percent and Australia’s S&P/ASX 200 Index slipped 1.4 percent. Hong Kong’s Hang Seng Index (HSI) dropped 1.2 percent while the Shanghai Composite Index retreated 1.2 percent.
Futures on the Standard & Poor’s 500 Index rose 0.1 percent today. The index sank 2 percent yesterday in New York as lawmakers indicated they were no closer to reaching a compromise on the federal debt limit, while a government report showed orders for durable goods unexpectedly decreased.
A ‘True Compromise’
The S&P 500’s biggest decline since June 1 came as House Speaker John Boehner’s reworked deficit-cutting plan gained support among Republicans, while Senate Majority Leader Harry Reidsaid his competing proposal to avert a potential U.S. default is the only “true compromise.”
Stocks extended declines after the U.S. Commerce Department yesterday said bookings for goods meant to last at least three years fell 2.1 percent in June after a 1.9 percent gain in May that was smaller than last reported. The median forecast of 76 economists surveyed by Bloomberg News projected a 0.3 percent increase. Demand for business equipment, including machinery and computers, also dropped.
Consumer discretionary stocks, including exporters such as Toyota and Honda Motor Co., dropped the second-most among the 10 industry groups on the MSCI Asia Pacific Index today.
Toyota, which counts North America as its biggest market for sales, slid 1.8 percent to 3,195 yen. Honda, the automaker which receives 83 percent of its revenue abroad, also declined 1.8 percent to 3,090 yen in Tokyo. Samsung Electronics Co., a South Korean consumer and industrial electronics maker that gets about 85 percent of its revenue abroad, lost 1.5 percent to 832,000 won in Seoul. The companies were among the biggest drags on the MSCI Asia Pacific index.
‘Risk Avoidance’
“In addition to the recent debt impasse in the U.S., investors need to be more conscious about the deterioration of the actual economy,” said Mitsushige Akino, who oversees about $600 million in Tokyo at Ichiyoshi Investment Management Co. “Risk avoidance is increasing again.”
Stocks also fell after Standard & Poor’s said Greece will partially default on its debt once European officials push through a plan that will see bondholders foot part of the bill of a second bailout agreed to last week in Brussels. The rating company also cut its ranking for Greece to CC, two steps above default, from CCC.
Mitsubishi UFJ Financial Group fell 1.7 percent to 396 yen. Westpac Banking Corp., Australia’s second-largest lender by market value, slumped 1.5 percent to A$20.70. Australia & New Zealand Banking Group Ltd., Australia’s No. 3, lost 1.5 percent to A$20.96.
A Heavy Drag
Banks as a group were the heaviest drags to the MSCI Asia Pacific Index among its 10 industry groups.
Chinese banks fell after commercial lenders were banned from rolling over or renewing their loans to local-government financing vehicles, according to a statement posted on the China Banking Regulatory Commission’s website today.
China Construction Bank slid 1.9 percent to HK$6.24 in Hong Kong. Industrial & CommercialBank of China Ltd. (601988) slumped 2 percent to HK$5.87. Bank of China Ltd. declined 0.7 percent to 3.03 yuan in Shanghai.
Raw-material producers dropped after crude oil dropped for a second day in New York, while the London Metal Exchange Index of prices for six metals including copper and aluminum slid 0.2 percent yesterday.
Copper, Oil Falls
BHP retreated 1.7 percent to A$42.26, the biggest single drag on the MSCI Asia Pacific Index. Woodside Petroleum Ltd., Australia’s second-biggest oil and gas producer, slumped 1.3 percent to A$39.03. Inpex Corp., a Japanese energy exploration company, declined 1.8 percent to 591,000 yen.
Crude oil for September delivery slid as much as 0.6 percent to $96.80 a barrel today, its second day of declines. Copper in London dropped as much as 0.3 percent to $9,750 a metric ton, also falling for a second day.
Among stocks that advanced, Hitachi Construction Machinery, which makes as well as repairs machinery, jumped 4.6 percent to 1,759 yen, the second-biggest gain on the MSCI Asia Pacific Index. The company boosted its forecast for net income to 3.8 billion yen from 1.5 billion yen for the six months ending Sept. 30, citing higher sales of parts and cost reductions.
U.S. May Lose AAA Rating Even With a Debt Deal, BlackRock, Templeton Say
BlackRock Inc., Loomis Sayles & Co. and Franklin Templeton Investments said the U.S. faces losing its top-level debt rating as officials struggle to raise the $14.3 trillion borrowing limit.
Investors are warning a cut is likely as President Barack Obama and House Speaker John Boehner argue over how to increase the debt ceiling, while also trying to curb borrowing. The government needs to boost the cap by Aug. 2 so it can keep paying its bills, according to the Treasury Department.
“Our guess is, when push comes to shove, the debt ceiling will be raised,” said Bob Doll, chief equity strategist at New York-based BlackRock, which manages $3.66 trillion. “What goes along with that is very difficult to tell, and that’s why the threat of a downgrade still exists,” Doll said in an interview today on Bloomberg Television’s “First Up.”
Obama has said the nation’s record borrowings may “do serious damage” to the U.S. economy by diverting tax dollars to interest payments. Yields indicate investors are favoring bank or company debt over Treasuries, raising concern the credibility of government debt is waning.
Moody’s Investors Service, Standard & Poor’s and Fitch Ratings have said they may cut the nation’s top-level sovereign ranking if officials fail to resolve the stalemate.
The ratings may be reduced because politicians probably won’t agree on a plan to trim spending, said Kathleen Gaffney, co-manager of the $21 billion Loomis Sayles Bond Fund.
‘Certain’ Downgrade
“I’m pretty certain that at least by one agency we’re going to see a downgrade,” Gaffney, who is based in Boston, said yesterday in an interview on Bloomberg Television’s “Street Smart.” Treasuries will “continue to be a large, liquid market whether it’s AAA or AA,” she said.
Gaffney’s fund returned 14 percent in the past year, beating 98 percent of its competitors, according to data compiled by Bloomberg.
The TED spread, the difference between what lenders and the U.S. government pay to borrow for three months, narrowed to 18.7 basis points yesterday, the least since March.
Debentures from Wal-Mart Stores Inc. (WMT), the largest retailer, and Paris-based utility EDF SA (EDF), both rated in the second-highest AA level, are the best-performing investment-grade corporate securities globally this month through July 25, Bank of America Merrill Lynch indexes show.
An index of corporate debt with the same AAA rating that the U.S. is at risk of losing is outperforming Treasuries by 0.13 percent, the most since March.
Credibility ‘Falling’
“The credibility of Treasury bonds is falling,” said Tomohisa Fujiki, an interest-rate strategist at BNP Paribas Securities Japan Ltd. in Tokyo. BNP’s U.S. unit is one of the 20 primary dealers that trade directly with the Federal Reserve.
The 10-year Treasury yield was little changed today at 2.96 percent as of 10:29 a.m. in London, according to Bloomberg Bond Trader prices. The budget stalemate hasn’t been enough to push the rate to its decade-long average of 4.05 percent.
“Our growing debt could cost us jobs and do serious damage to the economy,” Obama said in a speech July 25. “Interest rates could climb for everyone who borrows money: the homeowner with a mortgage, the student with a college loan, the corner store that wants to expand.”