(To see more photos from our day of Halloween fun go to our Flickr page)

Later on, we're doing a “family potluck” and then we'll have all our kids come by for some trick-or-treating. Halloween's a fun time for us, and I wanted to share it with you. If you have any fun Halloween traditions or stories, please share.

Wishing you a fun and safe Halloween,

Chris

P.S. While you may see a lot of “play” out of us - - Halloween costumes, funny TV shows and outtakes, etc. - - we really do work awfully hard. You can ask any of our hundreds of satisfied Clients. Seriously . . . look them up and give them a call. Or just call us at 1-866-622-4504 and learn for yourself why we're the Experts at providing Smarter Financing for owner-occupied commercial real estate.

P.P.S. Here's who we are today (left to right):
Will - Tickle-Him-Elmo
Nate - Hunter S. Thompson (famous writer, Google him)
Ken - Zombie
Tim - Paintballer
Sean - Russian Driver from WWII (you have to look hard for him)
Nikos - Panathinaikos Hooligan (or terrorist, not sure)
Tammy - Wicked Witch
Yelena - Bumble Bee Girl (from that Blind Melon song?)
Trey - Jason (Varitek, Boston Red Sox catcher and captain)
Natasha - 1950's “Glamour” Chick
Angela - Cleopatra
Chris - Henry VIII (still on wife #1)
Dawn - Jailbird (NOT for SBA loan fraud, we assure you)
Jacki - Wad of Bubblegum
Katie - Hot Dog
Adam - Roger Sterling (from Mad Men)
Melissa - Hippie Chick
Not Pictured: Geof, Tony Shannon, Dwayne, Robin, Jon, Monica, Dan, and Warren — all of whom are out of the office traveling, or are just boring party-poopers.

The first three episodes are still up at www.TheMCCoffice.com, so if you haven't watched them yet, or if you want to watch them again and again, you can do so. All I ask from you is to share it with anyone and everyone who would enjoy a good laugh today (I'm sure you know somebody who's had a long, rough week).

Dedicated to your continued success (and healthy sense of humor),

Chris

P.S. While we don't take ourselves too seriously (as you'll see from the video clips at www.TheMCCoffice.com), we are VERY serious about providing business owners with the Smartest commercial property financing available. We're still closing loans for owners of small and mid-sized businesses all around the Country, and we're not slowing down. If you or someone you know is looking to buy commercial property anytime soon, call us at 1-866-622-4504 or go to www.TheSmartChoiceLoan.com right away. We streamline the process and make it hassle-free for you . . . and there's never been a better time than now to create wealth through commercial property ownership. Plus, now you know why they call us the “fun bankers.”

Last night, my wife and I took our two young children — ages 6 and 8 — to our “part-time” church (since we spread our visits among three) to hear TV star and faith-filled survivalist, Bear Grylls, speak about his adventures.

While I was impressed with his humility and straight-forwardness, I was particularly struck by his explanation for why he accepted his recent appointment as the Chief Scout (head of the Scout Association — previously known as The Boy Scout Association): “Kids are never short on dreams, just opportunities. I want to provide more opportunities for them . . . to live their dreams.”

How succinct a comment, I thought. Never a scout myself, I took his comments in an entirely different direction. I thought, how appropriate and analogous are they to the entrepreneurs of today.

Entrepreneurs, in fact, are in active pursuit of their dreams. In many cases, they are the “kids who refused to fully grow-up.” You know, everybody else — in that “mature” stage of their life — has given up on their dreams more or less. But not these hardy souls.

And yet, for the few who do press on, there are so many obstacles to battle. A slow economy. A depressed state of consumer and business confidence. A barrier-creating political class in Washington (most of whom have never had to meet a payroll) seemingly dead-set on creating even more obstacles . . . just taking from those who've worked hard to create . . . and handing it over to those who've hardly worked.

The President Spoke; I Yawned

So yesterday's announcement from President Obama, as I expected, was merely another incremental step for the group that can lead us into Recovery much quicker — America's much vaulted, but often maligned small business owners and entrepreneurs.

The President's solutions (primarily raising SBA loan sizes and offering to help much smaller banks access some cheap “slush” funds, otherwise known as TARP monies) may marginally result in more loans, but they do nothing to address the fundamental, underlying problem: namely, an unhealthy small business sector.

Lenders will continue to be overly selective to whom they'll lend money, for as long as the vast majority of businesses show decreasing revenue and profit trends, and regulators stay clamped-down on lenders — not realizing the unintended consequences of their actions in prolonging the Funk (defined by me as that lonely, dark period before a Recovery takes hold, where anxious people don't do much of ANYTHING — too scared to move forward; too scared to turn back). Tweaking existing SBA loan programs may help some, but it is still just tinkering on the margins.

For the millionth time, I'll state it again for you here: the SBA doesn't lend money to small businesses; it only guarantees (backstops) it. The banks and non-bank lenders make the loans, and they will continue to restrict credit (and extend the time to Recovery) until small businesses become healthy again (defined by me as increasing revenues, positive net incomes, and acceptable EBITDA's). Yet isn't it ironic that these same lenders often times have far worse financials than the small business owners they're turning down for loans?

This Critical Situation Demands Greater Action than What We're Getting

As I've been saying on this blog since December 2008 (at least 21 references -– yes, one of my interns counted), there are several solutions that would have a much more profound impact than anything the President mentioned yesterday:

• Extend the SBA 7(a) loan program guarantee of 90% until the conclusion of fiscal year 2011 (that's until September 30, 2011).
• Launch (FINALLY!) the $15 billion Treasury purchase program of SBA loans to thaw the secondary markets (was announced in March, but not one dime has been invested yet) — especially for 504 loans, which are still in a deep-freeze.
• Allow a “true” refinance for both SBA loan programs, 7(a)'s AND 504's, so more of the allocated SBA dollars for these programs can be put to use NOW tapping embedded equity in commercial property, for instance — as usual, billions of approved SBA loan funds went unused in the just concluded fiscal year.
• Streamline the paperwork for the new ARC loan program, increase the eligible borrowing limit on these loans, or blow-up it up entirely — I'd vote for the latter since its $255 million is about the equivalent of a pimple on the rear-end of an ant in an elephant stampede.
• Enact a six-month payroll tax holiday to immediately stimulate the sector and the economy.
• Allow capital gains from equity investment made into eligible small businesses (less than $100 million in revenues) in calendar years 2009 and 2010 to be permanently tax-free — this will stimulate dramatic growth of these enterprises.

That's it. Do the above and we accelerate the time it takes for America's small businesses to become “healthy” again. Once that happens, credit will flow more freely and a sustainable Recovery will take hold. It's really not that complicated . . . unless you"d like more social engineering instead of true economic progress — in that case, it takes a bit longer for free-market forces to defeat centralized planning.

The French Are Beating Us in an Ideas Race!

Now, I hate to bring it up here, but . . . France (yes, France!) of all places, just announced the formation of a 2 billion euro (about $2.9 billion) fund to invest in French small businesses as a means of keeping the sector afloat there . . . and retaining (hopefully creating, sometime in the future) French jobs. Two point nine billion dollars for only 65 million people! To formulate an equivalent number for the U.S., we'd need a little over $13.7 billion — peanuts compared to what we did for just AIG alone. And notice that Sarkozy is proposing equity capital, not just regurgitating the same, tired debt capital tweaks.

So do you really think President Obama's proposals are the best we can come up with?!? Surely we won't let ourselves get lapped by the French, will we?!? Sadly, we have to admit the French are being just a bit more creative than our leaders, aren't they? Maybe ours are just content to watch Rome burn and simply enjoy another high-quality photo-op.

Now, don't misinterpret what I've written here. I'm NOT suggesting we want the American government (like the French) taking ownership stakes in our small companies too — they've already splurged on our behalf with big bets on such blue-chippers as Bank of America, Citicorp., and GM - - can't wait to see how they'll run health care!

But there ARE other good ideas that need looked at (like the ones I've been proposing for many months — some of which I've AGAIN listed above). We CAN come up with more enlightened ways of giving this sector a hand-up, not merely another hand-out — let the Big Business Dinosaurs live with the strings that come attached to that kind of “aid.”

Getting back to Bear Grylls:

In over 50 episodes of his show, Man versus Wild, he has taught viewers how to survive in the harshest places in the world. For small business owners and entrepreneurs in America these days, that harsh place is here . . . more and more are dropping every day, simply NOT surviving.

Maybe it's time my suggestions earn me a place on the President's proposed panel of small business experts (non-partisan, surely) — tasked with coming up with future solutions . . . or maybe the people, like you, that I advocate for, will just get stranded out in the cold on a sinking piece of ice?!? Who knows? I don't pretend to have ALL of the answers, but I do know one thing: the time has come for a small business survivalist like Bear Grylls!

Later today, President Obama will address the lack of credit that's affecting lots of business owners these days. I'm interested to hear what he has to say, and you can be sure I'll post my thoughts and opinions about it here for all to see . . . so be sure to check back. Whether you agree with me on every issue or not, you can always trust me to say what I think without tip-toeing around anything.

Here's the article from the Orlando Sentinel's website. Let me know what you think by leaving me a comment when you've finished reading it.

* * * * * * * *

Christopher G. Hurn: Changes in Washington, but still same old Small Business Administration

The recent focus on changes for the Small Business Administration with its new America's Recovery Capital loan program has effectively appeased many Washington watchers, convincing them that the concerns of small businesses are being addressed with this long-anticipated program.

Yet the reality outside of the capital is very different, as most observers believe the program will leave thousands of qualifying businesses disappointed and disillusioned after being turned away due to the lack of funds and bank participation. Unfortunately, for these and the rest of America's small businesses, which employ nearly 70 million people and create 80 percent of the new jobs in the country, meaningful changes for the SBA that could truly make a positive impact have not yet been implemented.

The ARC loan program's overall impact will be fairly minimal, as it will be limited to 5,000 to 10,000 loans and the maximum $35,000 amount means little to businesses that require more significant help. Given the anticipated nearly 60 percent default rate, the program could easily turn into a federal bailout for small businesses, which would cause significant harm to the SBA's image and reputation.

Revamping existing SBA loan programs and underwriting practices lacks the sizzle and political appeal of creating and launching a new loan program, but simple changes to the existing loan programs would have a much more significant impact for businesses and the economy as a whole. On June 24, the SBA announced just such a change when it revamped its "504" loan program, which is reserved for the purchase of commercial property and equipment, to allow it to be used to refinance existing debt if the new loan is to fund an expansion.

However, the new measure does not go far enough to help as many businesses as it possibly could, and it appears to be so restrictive that it will only help a very small number of businesses in the current economic climate. Because the refinancing must be tied to business expansions, which are relatively rare in the midst of this recession, most SBA lenders expect demand to be weak.

The SBA and its lenders must accept the reality that most businesses are seeing downward trends this year, including most of the banks that are underwriting the loans. The agency's job creation and expansion requirements are too stringent in the current economy. So now is the time to temporarily suspend them in favor of more general requirements so that funds can be used for legitimate business purposes, including efforts such as marketing and advertising campaigns.

Cash-out refinancings that are not necessarily tied to expansion projects are just the capital jolt that many small businesses need right now. By allowing less-restrictive refinancing into inexpensive SBA loans, the government would provide business owners with the means to secure funds to pay their debts, buy equipment, launch marketing initiatives, add jobs and further grow their businesses.

As an added benefit, SBA-backed cash-out refinancings can help struggling banks reduce their asset size by moving some commercial loans off their books, which would improve their capital ratios.

The adage that desperate times call for desperate measures holds true in this case, and the SBA's responses so far to the current situation, with its ARC loan program and 504 refinance option, are grossly inadequate. The agency needs to embrace some changes that may not be as politically appealing and headline-grabbing as launching a loan program or waiving loan fees (normally financed into SBA loans).

It needs to temporarily suspend and modify its current rules and lending restrictions for its largest loan programs, which would open the door to affordable capital to the small businesses that economists predict will lead the recovery.

* * * * * * * *

Any thoughts or comments? Let me know what you think, and please share this so others can chime in, too!

I know you've heard this from me time and again, but RIGHT NOW really is the best time to purchase commercial property! There's no telling when (or IF) you'll ever have an opportunity like this to get an interest rate this low fixed for 20 years - - it's just unheard of.

The unfortunate part of all this good news is that it may really go unheard - - you're still not likely to see a report about it on the nightly news. They're still pelting us with details about the latest unemployment figures. I firmly believe that acting as a contrarian is a key to success, and I encourage you to share this little bit of positivity with others who need to hear it.

Other lenders may still be playing it safe and refusing to help owners of small and mid-sized businesses get the financing they need, but Mercantile Capital Corporation isn't. We're still closing loans, allowing brilliant entrepreneurs to capitalize on low down payments and ridiculously low interest rates. Commercial property ownership is one of the best long-term investments for a worry-free retirement. Shouldn't you or someone you know be looking into it?

What are your thoughts about our economic recovery? What ideas or concerns do you have? Leave a comment below and let me know what you think . . .

Wouldn't It Be Nice IF:

• …the President's health care plan would include two critical components not being discussed by the Democrats: tort reform and eliminating barriers which prohibit insurance companies from competing across state lines?
• …teachers received more admiration and respect from students and their parents?
• …more people would recognize that the U.S. recession is essentially over, and companies would begin hiring again?
• …your garbage disposal didn't eat better than two-thirds of the world's population?
• …"far left" liberals and "far right" conservatives would back off a bit?
• …President Obama and the Congressional leadership were more focused on providing incentives for wealth creation and less focused on wealth redistribution?
• …America's silent majority (our parents and grandparents) received greater respect for the enormous wartime sacrifices they made to help protect the freedoms we all enjoy today?
• …Jon and Kate were never heard from again?
• …the Castro brothers would bite the dust and be replaced with a move toward democracy?
• …we actually got serious about U.S. energy independence with a program geared to 1) conservation, 2) alternative sources of energy, 3) access to much more oil and natural gas in Alaska and on the Continental Shelf, and 4) developing massive deposits of oil shale in the West?
• …American military personnel could see their families more often?
• …more working people would save seriously for their Golden Years (an estimated one-third of the U.S. population saves zero for retirement)?
• …the Federal Reserve's upcoming attempts to unwind unprecedented monetary stimulus would be successful, with inflation staying under control?
• …residents of the Middle East could get along with each other?
• …"government" would recognize that it is there to serve the people, and not the other way around?
• …American voters would send a clear message in November 2010 to incumbents of BOTH parties as to what is expected of them in Washington D.C.?
• …energy prices would stabilize near current levels…one that works for both producers and consumers?
• …the news media would run positive stories more than once a generation?
• …the Administration and the Congress would stop bickering and take the modest steps required now to "fix" Social Security and Medicare for the future?
• …fewer people were killed each and every year in the name of "religion"?
• …American corporate and consumer confidence would continue to rise solidly in coming months?
• …U.S. firefighters, police officers, and military personnel received our respect ALL of the time?
• …our illustrious Congressional representatives actually knew what was in various bills they voted on?
• …politicians were elected based on experience and ability, not on who can spend the most money and sling the most mud?
• …the $787 billion stimulus program contained more in the way of real economic stimulus and less social engineering?
• …members of Congress would finally recognize that reducing tax rates typically increases tax revenue…and increasing tax rates typically reduces tax revenue?
• …the Administration and the Congress would get very serious about reducing budget deficits in coming years?
• …America's Vietnam War veterans would finally get credit for serving their country?
• …there was a stronger collective effort to improve opportunities in America's inner cities?
• …our presidential campaign season was much shorter and less exhausting…for candidates AND voters?
• …each long-term member of Congress was required to take a year off, start a new business with limited funding, meet a payroll, and then deal with the complexities and hassles THEY have created?
• …Wall Street "high rollers" had greater legal and financial accountability for the financial market abuses of recent years?
• …the outcome of many lawsuits was determined more by the facts and less by who has the deepest pockets?
• …we didn't have an $11,700,000,000,000 gross national debt, and we weren't spending over $1,000,000,000 DAILY just to pay the INTEREST on that debt?
• …incompetent corporate CEOs who drive companies into the ground were not rewarded with multi-million dollar "golden parachutes" to simply go away?
• …"old fashioned" common courtesy between people made a big comeback?
• …F.I.C.A. (Social Security/Medicare) taxes were less painful…four out of five American workers now pay more F.I.C.A. taxes than they do federal income taxes?
• …primary and secondary schools had to compete for teachers, students, and funding — just like colleges and universities?
• …we would all keep in mind that despite the problems and challenges we face in the U.S., this is still one of the greatest countries in the world?

If you liked this, please write/call in to tell me so – tell me which are your favorites. And don't forget to forward this along to others and also to click on our social media bookmarks (Digg and others too) so others not in our "inner circle" might see these. Thanks again for being one of our valued readers.

And don't forget that there's hardly ever been a better time for business owners and entrepreneurs to buy their commercial property… we can make that happen in the smartest way possible. Just let us know.

Chris

If you have absolutely no clue what I'm talking about…
…you haven't the article on page 7 of the latest issue of our MCC Newsmagazine. Before you continue, go here to download the PDF and get up to speed. Oh, and here's what the shirts look like:

Before we print more shirts, I'd like to find out just how many people would like to have one so no one feels left out. If you'd like a 2009 “Makin' It Rain” Tour shirt of your very own, all you have to do is email info@mercantilecc.com with your request, and promise to wear it proudly. (It'd be even better if you'd send me a photo of you wearing your shirt somewhere out in public — maybe of your next visit to your local bank branch.)

The cutoff for shirt requests will be this coming Monday — October 5th — at 2:22 pm EST.

If we don't get an email from you before then, too bad. Maybe you'll be able to snag one on Ebay someday, but these Collector's Items will likely be going for hundreds of thousands of dollars by then. (It could happen.) This is your chance to own the shirt that says exactly what you think about the recession, and shows off your commitment to success. Don't dawdle and miss out!

Dedicated to Your Continued Success,

Chris

P.S. The fun doesn't stop with these shirts — we're also running a contest on Facebook. If we get to 5,000 “fans” on our MCC Facebook page by October 31st, we're going to give away an iPod Touch to one lucky person. There are only three stipulations for this contest: 1) we must get to 5,000 fans by October 31st, 2009; 2) you must be a fan by October 31st to win; and 3) you have to post a comment on the MCC Facebook wall (this doesn't have to be anything special, we just want to know you're a living, breathing human with thoughts and feelings).

P.P.S. Tell EVERYONE you know about the Facebook thing — 5,000 is an awfully big number. (I'm not actually sure who came up with it, but it's too late to change it now.)

P.P.P.S. And don't forget to email info@mercantilecc.com to request your shirt before 2:22pm on Monday!

Sara Clarke, a charming business reporter for the Orlando Sentinel, recently contacted me for a brief interview, which appeared in yesterday's (September 28th) "Central Florida Business" section. Among other things, I got to share my views on how the recession has affected business owners and how they can capitalize on the smartest financing available to them. Our SmartChoice Commercial Loan (aka the SBA 504 loan) allows brilliant business owners to take advantage of discounted assets that exist . . . even today. I think you'll get something out of the following Q&A, and please share it with a colleague or friend who ought to read what someone "in the trenches" thinks about all this, for a change . . .

——————————–

Central Florida Business: Can you describe what your business does?

We finance commercial property for business owners and entrepreneurs all around the country.

CFB: When you're talking to business owners and entrepreneurs, what do you hear most often from them now?

Everybody seems to be working twice as hard to get half the results they did a couple of years ago.

CFB: I'm hearing from small-business owners that they just want to know 'How do I get a loan?' and 'Where's the money?' What's your response?

It's no secret that it's pretty tough right now to find lenders, commercial lenders that are willing to lend to the small-business community. We are one of them, but we only do it when it involves commercial property, and obviously right now is a great time — believe it or not — to buy commercial property.

But a lot of business owners need access to capital . . . and that's very difficult. I always tell them to work with specialists, not generalists. I tell them to look into community banks, and non-bank lenders. They're going to have to put together a much more comprehensive, much more thorough loan request than they ever have in the past. And they need to be prepared — their expectations need to probably be lowered somewhat as well.

CFB: I've heard that you've gone undercover to shop for small-business loans.

Notoriously, about 15 months ago, I actually donned one of those little spy video things, where, you know, they're in the button or whatever in your shirt? And I went into five banks. What was appalling were the answers I got and the fashion I got them in . . . anything and everything that could go wrong in a sales call is basically what they did. It's mind-blowing, and it was very frustrating. Some people are irritated with me that I did that. On the other hand, I think it exposes a major problem.

CFB: What is the best loan for those owners who want to acquire commercial property?

I'm a little biased, but my opinion is it's definitely the SBA 504 loan, or what we've re-branded as the SmartChoice Commercial Loan. And there's a reason for that. Typically it's 90 percent loan-to-cost financing, which means it's the smartest capital utilization for a business owner. They're able to hang on to more of their precious capital, as opposed to putting it into the project and lessening the risk for the bank.

CFB: What made you get into lending?

[Over the course of my career, I] just fell in love with working with small-business owners. I consider myself one, I really relate to it, I'm kind of a serial entrepreneur, I have a lot of different businesses that I run and it's just one of those things. I think the small-business community doesn't quite get the representation the numbers of them would warrant. Everybody's "for" small business, but when the rubber meets the road, a lot of times it's just rhetoric.

CFB: You recently launched a men's barber shop — why and what is that business?

It's Kennedy's All-American Barber Club. The bottom line is, I'd been a member [of Carrs Barber Club] for a couple years, was one day getting a haircut and a shave — and this is the old-fashioned straight-razor shave that we see in movies and on TV — and my barber started talking about some of the problems that they were having. My antennae went up and I said, "Tell me more." By the time he was done I said, "Well, who do I need to speak with about possibly buying it?" To me, it's the classic entrepreneurial story. It's an unexploited niche in the marketplace, it's an innovative idea, and we're running with it.

————————————–

If you want to read more about Smarter Financing via our SmartChoice Commercial Loan, just head over www.TheSmartChoiceLoan.com. And if you think Kennedy's is an interesting concept, you can read all about it (and watch some videos, too) at www.KennedysBarberClub.com.

www.theMCCoffice.com

The first two episodes are still up so if you haven't watched them yet, or if you want to watch them again and again, you can do so. All I ask from you is to not keep this for yourself — be sure to share it with friends, colleagues, and anyone who would enjoy watching something funny in American business.

Dedicated to your continued success (and a healthy sense of humor),

Chris

P.S. While we don't take ourselves too seriously (as you'll see from the video clips at www.theMCCoffice.com), we are VERY serious about providing business owners with the Smartest commercial property financing available. We're still closing loans for owners of small and mid-sized businesses, and we're not slowing down. If you or someone you know is looking to buy commercial property anytime soon, call us at 1-866-622-4504 or go to www.TheSmartChoiceLoan.com right away. We can streamline the process and make it hassle-free . . . and there's never been a better time than now to create wealth through commercial property ownership. Plus, now you know why they call us the "fun bankers."

www.theMCCoffice.com

Not everyone in the small business finance industry is as ordinary as the media would have you think. We, in fact, are the polar opposite of how you see bankers portrayed on the nightly news. If you've ever wondered what REALLY goes on behind closed doors here at MCC . . . but you've been too afraid to ask . . . you're in for a treat.

We want to give you a glimpse into the lighter side of commercial lending. All I ask is that you don't keep any of this to yourself — be sure to share it with friends, colleagues, and anyone else who would get a kick out of a bunch of "fun bankers" . . . however oxymoronic that may sound.

Dedicated to your continued success (and healthy sense of humor),

Chris

P.S. While we don't take ourselves too seriously (as you'll see from the video clips at www.theMCCoffice.com), we are VERY serious about providing business owners with the Smartest commercial property financing. We're still closing loans for our small and mid-sized borrowers, and we're not slowing down. If you or someone you know is looking to buy commercial property anytime soon, call us at 1-866-622-4504 or go to www.TheSmartChoiceLoan.com right away. We can streamline the process and make it hassle-free . . . and there's never been a better time than now to create wealth through commercial property ownership.

In late February, while flipping channels one night, I overheard Chris Matthews on MSNBC declare that President Obama was “promising to tax the rich people in order to pay for health care for the working people.” I've since heard this sound bite repeated over and over again by those sympathetic to the Administration.

Now, I have sometimes been accused of taking things literally (my wife, kids, and employees would attest to that). And in this case, I did/do as well. I resent his remarks and others' too. Deeply. I resent his implication that “rich people” must not be “working people.” In other words, that a business owner (generally considered a “rich person”) doesn't really work for a living. And if you, Beltway Bandit, owned your own business and made the climb only an entrepreneur knows . . . overcame the obstacles that we all must, then you'd probably find Mr. Matthews' remarks as irritating as I do.

You see, we DO work for a living. Most of us “rich people” work longer hours than our employees do. We take home more work to do in the evenings than our employees; we work more hours over the weekends; we travel and spend time away from our families, working; and we have enormous executive responsibilities and the stresses that come with those.

And by the way . . . the work we DO, generally is more valuable work, too. We have worked extremely hard to make ourselves more valuable. We made a conscience choice to learn more and keep learning more; to read more; to play less; to develop expertise. And most of us worked much, much, much harder than the “average working person” for years, even decades to create our businesses, master our crafts and skills, build our reputations, and finally put ourselves in positions to harvest our current high incomes. There may just be — oh the horror! — some cause-and-effect to all of this.

We not only work harder than all those we provide jobs for, we also provide nearly ALL the capital and take ALL the risks to create businesses and everything else that provides the majority of jobs in America. Those they see as “working people” create no jobs for themselves; us so-called non-working “rich people” provide nearly all of them.

And as I've pointed out in these pages before, we also pay an exorbitant share of the total US tax burden — far, far in excess of the difference between our incomes and those paying less, little or none, and far in excess of our ratio to the overall population and our consumption of “public” services. In fact, data was just released that shows the top 1% now pay 40.4% of all federal income tax, yet earned just 22.8% (source: Tax Foundation's “Fiscal Fact No.183”, based on 2007 data from the IRS). The top 5% (income higher than $160,041) paid 60.639%; top 10% (incomes of $113,018 and above) paid 71.22%, and the top 25% (income of $66,532 and higher) paid 86.59% of Federal income taxes.

Back to the letter . . .

WE are Atlas already carrying the entire Nation on our shoulders, and you, Beltway Bandits, throw tacks on the road before us and tempt us to shrug. You see, we could go on strike, too — choose to reign in our spending (already being done), choose to reign in our investing in tomorrow's innovative companies (already being done), and choose to “take time off” while we continue to be antagonized, assaulted, and abused by you. For every one of us who takes this reactionary tract, dozens, if not hundreds, can kiss their jobs good-bye. If you doubt that or it's a surprise to you, I'd be happy to explain.

I'm getting just a little tired of the attacks against the employers in America (the “productive class” as I called us in my recent FOX Business News television interview). The constant cries of class warfare are more than just bothersome. Somehow, those pursuing a profit have recently become the personification of Evil according to the Fourth Branch of government (the Press, which is showing few signs of profit themselves these days). I'm not sure I can pinpoint when this started to happen, but it's very troubling for our country's economic future. Believing in a better future and having a meritocracy in America where anybody can rise up if they just work hard enough is a very valued, yet currently being extinguished, fabric of our culture.

You see, capital is on strike in America because we're living in economic times where you are openly hostile to capitalism and the champions of capitalism: the men and women small business owners in the economic trenches every day battling to grow our businesses . . . who provide up to 80% of the net, new jobs in this country. Now, we have to battle you, too. It's not enough for us to battle foreign and domestic competition . . . we now have to take on the ignorant, the condescending, and the fanatically righteous. The people, including you, who no longer believe in that traditional American mantra, “to the winners go the spoils.” No, you'd rather we share the pain, bring us down to the lowest common denominator, and in the process, stomp out all incentives to excel. The last time I looked it up, that's the very definition of socialism. Government can't provide ALL the jobs. We need some, competitive businesses still staying open, don't we? If everybody works for you, than we're no better than the glory days of the old Soviet Union, and we know how that turned out, don't we?

Let me give you an example of just one of your latest, many follies: the SBA's new ARC loans. They are a joke, plain and simple. $35,000 for a small business?!? Are you kidding me?!? This shows how out-of-touch you (our political class) truly is. This is like throwing a cracker to a starving person — he'll think it's the greatest food ever, but he won't last long enough to enjoy a second one.

The $255 million ARC loan program will only help about 10,000 businesses, by the OMB's estimates (plus having nearly 60% default rates in their esteemed projections) . . . yet BILLIONS go unused EVERY year in other, already existing SBA programs! These programs (like the one we specialize in, the 504) only need slight tweaking to unleash a flurry of job-saving and job-creating activity. But no, 'tis better to create more, unnecessary programs that steal the spotlight, than boringly fix already existing programs. Better to brag to the malleable press that you're “really doing things” to help America's small businesses, like waiving loan fees — hoping the all-too-compliant press fails to research the fact that those fees hardly EVER come out-of-pocket for borrowers; they're financed-in every SBA deal. Now, banks that are providing ARC loans (if a borrower can even find one) are only providing them for their existing, mostly defaulting and desperate borrowers, but are failing to give consideration to paying down credit card debt, home equity debt or line of credit debt — virtually all of which was taken on by small business owners to keep their businesses afloat. Remarkable.

When you total the entire amount that your highly touted Stimulus Bill (now called the ARRA) set aside specifically for America's nearly 27 million small businesses, it was only 0.08% of the $788 billion. That's right . . . you did NOT read that incorrectly . . . it was just 0.08% (that's less than 1%, if you're someone who slept poorly last night). I find that appalling! Truly appalling!

To put that into better perspective: the new ARC program, alone, was only roughly 1.5% of 1% of what you invested (on our behalf) into just one of our bailed-out companies (AIG). And that $255 million in just that one new program was just slightly larger than the $165 million AIG bonuses of early Spring that you reacted so quickly to (within 48 hours you had passed legislation in the House exorbitantly taxing it, if I recall . . . which either means your priorities are woefully misguided or you can simply pass higher taxes quicker than you can wink). So this is how you expect to stimulate such an important sector of our economy, huh? Amazing!

This feels the same way it did to me when I was in college (and yes, I paid my own way to go — no silver spoons in my family to go around) and late one night on an “L” train, I saw the pan-handler with the bum leg who, by day, begged for money near the university subway station, but who that night, picked his cane up, rolled his pant-leg down over “supposed” sores and nearly sprinted onto the subway platform like an Olympic athlete. It was all a fraud. Magicians call it the “sleight of hand” — look this way, so I can fool you where you aren't looking. I was shocked then, and if I hadn't become so cynical watching the jokesters in Washington all these years, I'd be shocked now, too. But, sadly, I'm not.

Many small business owners are NOT taking a family vacation this summer — frankly, few of them can afford it these days and most are too busy trying to “right their ships.” Why you feel compelled to take your traditional “Summer Recess” when these are NOT typical times is beyond me? I think you should be required to stay in Washington until you pass a stimulus bill aimed squarely at helping small businesses, rather than just the old, dying dinosaur businesses. And no, I'm NOT suggesting we need more drunken spending from you. Give small business owners access to funds left over every year in already approved and authorized small business lending programs (I project about $4.5 billion this fiscal year alone in just one SBA program, the 504). Give us (and our employees) payroll tax relief so we can try to recoup what we've lost and invest in keeping our businesses afloat. Give investors a massive tax incentive to move their parked capital off the sidelines and into our businesses — that may not quite be what you had in mind when you said you wanted “public-private partnerships,” but it's what"s needed if you're going to get anyone but those near Wall Street to participate. Debt capital shouldn't be your sole focus — we need equity capital reforms, too.

Perhaps you should stop patting yourselves on the back long enough to re-read the Declaration of Independence like I just did to my young children (ages 8 and 6) the other day, as I do every Independence Day. Jefferson very clearly stated, “Whenever any form of government becomes destructive of these ends, it is the Right of the People to alter or abolish it, and to institute new Government.” I'm thinking that time is again, at hand. And if you need me to translate what those austere words mean, like I did to my kids — getting a kindergartner and a second-grader to understand it — I'd be happy to do so. Sadly, I think the rest of what Jefferson said has been the case for us for some time, “all experience hath shown that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed.”

You can keep beating up us “working folks,” but eventually you'll kill the geese that lay your golden eggs. What will you do then? With leadership goes responsibility and no matter how you try to spin it — that this “problem” was the previous guys' doing — you're going to get the blame, so it would be wise to heed my advice. I believe it was Margaret Thatcher who once said socialism works until you run out of other people's money.

Sure capitalism is far from perfect, but I've read/watched our free-market economy receive pot-shot after pot-shot for months by you and the compliant talking heads in the media . . . as if we should now simply scrap what got us here . . . to the place of being the wealthiest society the World has ever known. You seem to forget how truly awful socialism has been for many other countries. Those formerly suffering under repressive regimes (often “justified” in the name of “sharing the spoils among all people”) are frequently the greatest defenders of our free-market economy. I wonder why? Maybe first-hand knowledge of its failures, perhaps?

I think it's time that someone defended the economic system that has served this country so well for centuries. We are still a county where more want to come into, than want to flee — and speaking of learning, whatever happened to those Lear-jet-liberals, I mean celebrities, who were going to move out of the country if a certain President was re-elected a few years ago? Gee, I guess they changed their minds and realized how good they truly have it here, with or without him.

See, you need to understand that capitalism creates an economic environment where businesses must evolve over time or simply become extinct. Yesterday's “great” company is today's bankrupt debacle (think GM, Chryler, AIG, many of our biggest banks, etc.). Therefore, your policies should predominantly go to encouraging the creation of fast-growing, innovative companies, not the dinosaurs of business yesteryear. And this doesn't mean every “mom-and-pop” business with a handful of employees who thinks that $35,000 ARC loans will save them — those businesses probably won't be adding many of the jobs of tomorrow.

We are perilously close to no longer being the wealthiest country in the world sometime in the not-too-distant future.

We are under-going an economic shift, as I've written about previously. Things will NEVER quite be the same as they were in the “heydays” of 2006 and 2007. Our economy is constantly evolving . . . but we have a choice of letting our economy evolve naturally and most efficiently or impose governmental and societal impediments that "channel" the evolution (“well-intended,” as it always is, of course), yet serve to restrain it.

Self-reliance is dying in America. We are teaching, by your heavy-handed actions, a whole generation to look to Big Government to solve our problems. We wait for you to fix things, to improve things. This is highly dangerous . . . as you've clearly shown you have no ability to restrain your own spending. If you had to spend less than you take in, like a business owner does to stay operational, you would have long ago quit your racket. Without the ability to “print-on-demand” and “earmark” at will, your power loses its appeal.

For too long in our culture, we have turned to Big Business as the “ideal” — the “good job,” the “good benefits,” and “stable and secure” with a “decent pension.” Those ideals of only 25 to 30 years ago have gone up in flames. Big Business will not save us. Big Government can only engulf us. It is high time we actively push the development of more self-reliance in our society. That means encouraging entrepreneurship. That means telling our young NOT to “go get an education and then get a good job at a big company and work there for your whole working career.” It may mean suggesting that your children (or your siblings or others looking up to you) take some time off from the pursuit of “traditional education” and go get “hands-on” education — an apprenticeship, for instance. It may mean encouraging their creative dreams for how to earn a living. It may mean seeding their first business idea with your capital.

You and I know the parable of “giving a man a fish” versus “teaching him to fish” . . . in America, right now, you're giving fish out like it's about to spoil. We need to go back to the basics of how our Country became great in the first place . . . and that means independence and self-reliance, not dependence and central planning.

And by the way, roughly 5 million Americans earn $250,000 a year or more (where you seem to define the “rich”), but no matter how much of our incomes you tax . . . even if you confiscated 100 percent… you simply can't raise enough revenue to pay for everyone's health care. Five million paying for the health needs of 300 million? Absurd. Those fifth-graders on TV are certainly smarter than you on even this.

What you don't realize is that every dollar stolen from me and others like me with taxes, will be retrieved right back from those “working folks” you so desperately, parentally want to protect. How will I do so, you ask? By downsizing companies and cutting jobs, by outsourcing jobs, by not investing in expansion and creating new jobs, and by raising prices. It's already been happening in anticipation. The last, raising prices, causes inflation (as does your heavy borrowing to finance the supposed stimulation of big, broken, dying companies) and inflation is the biggest tax on the “working folks” there is and the ONLY tax on poor people. Every tax-the-rich scheme costs far more than it gets. Nothing else could come close to the destruction guaranteed by you abusively taxing the rich.

Us “rich” ought to be thanked, daily, for our contributions to our society . . . better yet, we should be encouraged to work at creating and building things, rather than trying to outmaneuver you Bandits in Washington. We'll be working very hard at that, trust me, rather than what we ought to be working on (using our creative powers to invent the industries of tomorrow). It's called the Backlash, and it's been a major reason why the “Stimulus” has been failing so miserably. A plan long on social engineering and short on truly stimulative effects was doomed to failure from the beginning, but that's what we get when you're so out-of-touch with the real, daily goings on. If less of you were professional politicians, rather than ex-business owners (meeting payrolls rather than playing with others' money), you'd understand that better.

Respectfully yours,

Chris Hurn, CEO/Cofounder

Mercantile Capital Corporation

Most of you have been as rightly appalled by these videos, as I have been. Many of you have made very good comments here and for that, I appreciate your remarks. I just want to note, for the record so to speak, why the bankers in these videos disgraced themselves and their banks so much: they made one of the greatest mistakes you can in sales or in business, in general – – trying to answer questions you have NO IDEA how to answer. Rather than "looking slightly less knowledgeable," these bankers all committed the ultimate business sin of trying to appear competent about something they clearly were not. It's perfectly OKAY to say you "don't know" or "I'll have to look into that" or "You'll need to speak with our specialist on that. Here, let me call him for you." Unfortunately, those things really didn't happen much in these videos. In a couple, the bankers also contradicted themselves and even disparaged other programs their banks offer instead of staying "objective" on all their products and services and trying to find the best one for their potential customer.

Some of have said that these videos might be a little "unfair" as branch employees shouldn't be held to the standards of a commercial loan officer or a small business lending specialist… to this I'd simply point out that it is the banks in these videos (and across the American landscape) that point to their branches as their "distribution points" for their products and services. That's the business model THEY chose. Maybe it's time they train their people better in them and NOT subject America's small business owners to such ignorance. The only thing worse than bad information is misinformation, and we now can all see from my simple sampling that banks are committing these heinous acts regularly – – several of which, even we, as taxpayers, are "propping-up." No wonder most small business owners are starting to turn a distrustful eye toward their bank.

It's unfortunate that these actions occurred on these undercover videos, but at least they occurred to me and not some business owner really needing the help of their bank. Thanks again for your encouraging words and for your trust in us… in our exclusive focus on financing commercial property for America's business owners – – as the "entrepreneurial bankers" – – you can expect straight answers from us always. Take care.

- Chris

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Comment Submitted to Coleman 8/6/09:

To Coleman Publishing,

Once again, your coverage of Chris Hurn's, of Mercantile Capital Corporation comments have indicted the 7a lending industry while simultaneously propping Chris' own mortgage brokerage company. I don't beleive unannounced visits to a bank retail personnel is an accurate portrayal of the SBA 7a industry.

To shed light on this shameless promotion of a mortgage broker, please offer some perspective on Chris and his company as the prior articles you covered have offended many of your clients. Specifically, let me point out the following:

1) Mercantile Capital Corporation (MCC) is a licensed mortgage broker and they are neither a lender nor a bank; they just pass themselves off as a lender. MCC solely promotes 504 loans. They arrange financing through a wholesale lender who pays MCC a premium. The higher the spread, fees, or pre-payment penalty, the higher MCC gets compensated.

2) Chris Hurn cut his teeth in lending making SBA 7a loans and had to compete against the 504 loan product. Since his prior firms did not offer the 504 loan, he had to sell his clients on the benefits of SBA 7a loans and he did this quite well. One can only speculate why all those loans he made to his prior cleints are now considered the wrong product for the client.

3) Chris states his firm can handle a lot of franchise lending and other needs for businesses, but his brokerage company is not in a position to do so. Owner-occupied real estate loans are still getting done fairly easily. The real need, and the real shortfall, is in what businesses need most: working capital, equipment financing, acquisition financing, etc.

I will hope you post my article so the industry can have an open debate on the person and the firm who is indicting the SBA 7a industry to promote their own brokerage firm. I can't list my name as I am one of those "Zombie" bankers Chris refers to in his interview.

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My response, also featured at ColemanPublishing.com:

I'm not sure how my marketing necessarily "indicts" the whole 7(a) lending industry, especially when in these videos, I only mentioned once that the bankers lumped 7(a)'s in with 504's, but there clearly are some inaccuracies in the anonymous commentator's statements:

We are a licensed mortgage lender, not a licensed mortgage broker — as are, incidentally, all banks in Florida where we're based. There is a substantial difference between a broker and a lender. Even our trade association, NADCO, recognizes what we've done for the industry and has honored us by naming us the "Banker of the Year" a couple years ago.

We attempted to become a national bank earlier this year, and we did receive approval from the OCC, but the FDIC was apparently too busy shutting down banks to realize that fresh bank capital would be a welcome addition to the marketplace. We actually portfolio some of our loans, rather than sell "everything" off to the secondary markets… something that happens with upwards of 40% of all SBA loans. Maybe the anonymous criticizer hasn't been in SBA lending long enough to know that.

I "cut my teeth" making both 7(a) and 504 loans — my prior firm did both, not only 7(a) loans as the anonymous commentator states. I've only ever said that 7(a) loans are the "wrong loans" when commercial property is involved — and I've been relentless as one of the lone voices out there for years advocating for the interests of small business owners who routinely get taken advantage of by their bankers looking out only for their own interests above those of their borrowers — these videos demonstrated that.

I think 7(a) loans are a wonderful loan product for business acquisitions, working capital, and other start-up needs. And yes, I have made many 7(a) loans over the years, so much so that I know the industry wouldn't have had the funding problems it has had over the years if all SBA loans involving commercial real estate were done with 504's.

Bankers want to keep commercial real estate financing available in the 7(a) loan program because it lessens their collateral risk and makes for larger loans — makes sense for them. Despite this, floating rate 7(a) loans are a worse deal for most borrowers than below-market, fixed-rate 504's where commercial property financing is concerned. If the SBA hadn't outlawed bastardized 504's ("piggy-backs") a few years ago, bankers would love to be promoting those also at the expense of the 504 industry.

Bankers use 504 loans, predominately, as a convenience for them on larger, small business loans… consideration is rarely ever given to what's a better deal for their borrower, despite bank ad slogans that say otherwise. This is why I've often said a "love-hate relationship" exists between the CDC community and the small business banking community. Sadly, CDC's tend to be order-takers from bankers and only get used when the banker needs them… not when the borrower should be getting the best overall deal.

I am actually a minority investor in a commercial property where we examined all financing vehicles available at the time (conventional, 7(a), life insurance financing, 504's), yet we selected a 504 loan because it provided the highest cash-on-cash return of all loan options. I can only imagine there are less than a handful of bankers that believe enough in and/or are entrepreneurial enough to use their own loan products.

So unlike the unnamed criticizer, I've "walked a mile in my borrowers' shoes" and these videos just continue to show that. Perhaps more bankers should mystery shop their own banks to get a better sense of why the stereotypes about bankers exist in the small business community — that would prove enlightening.

Actually, my lending company IS in a position to fund 504 loans and has continued to do so throughout this year. We've been very active, yet many others have chosen not to be… maybe even the commentator's admitted "zombie bank."

I do not disagree that some small businesses need working capital right now, and to that end, we are investigating getting into the 7(a) marketplace as well. Be careful of wanting an "open debate" about this… you may just get it sooner than you think. It takes big shoulders to do what I did; it's far easier to hide behind anonymity.

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What do you think about all this?
Leave a comment below to voice your thoughts about what you"ve read above. And also tell anyone else you know who would be interested in this back-and-forth about the state of small business lending in America.

There are a couple things you need to keep in mind as you watch:

1) The date on the videos indicates that these clips were filmed in the year 2000. Actually, this “experiment” was conducted in May of 2008. Our film crew made a slight error when they edited the tape. You may also catch a few mistakes in the captions — again some oversight by our (former) film crew.

2) We went to five banks, but you'll find only four clips. That's because I didn't even get to talk with a loan officer at bank #5. I waited for nearly half an hour, and couldn't get anyone to help me. I could have included the footage of me waiting in the bank lobby, but I'd rather not waste your valuable time.

3) I was hesitant to put these out there for the entire world to see, which is why I sat on them for 14 months. When we taped these, MCC was actively working to become a national bank (see my previous post, The “Great Big Quivering Gelatinous Invertebrate Jelly of Indecision”). Having been stonewalled by the FDIC (who only seems concerned with covering its rear-end), and with the banking crisis going from bad to worse, we decided that now is the right time to put these videos out there.

4) I am deeply appalled and saddened (as any viewer ought to be) at what these undercover clips reveal. Many business owners rely on their bankers for advice and it appears, from what you'll see, that this trust is likely misplaced. It doesn't bode well for the lending industry as a whole, but please know that some lenders (read: MCC) DO know what they're doing and DO have their Clients' best interests in mind.

The video clips you'll see make us cringe when we watch them, so be prepared. The mistakes these un-named bankers make are glaring and unfortunate, so much so that I think I may have to post some sort of video response to set things straight (what they SHOULD have said). Let me know if you think that would be helpful. Also, please leave a comment below to let me know what you think about all this. If we can create enough buzz about what's going on in the banking industry, maybe we can ignite some actual change in our government, the economy, and in this important industry for America's Small Businesses.

If you didn't see it, or if you'd like to share it with someone else who would appreciate the discussion, I've posted the video clip below. I'd really like to hear what you think about my comments. And please DO share this with someone else — this blog has become quite a forum for you, me, and other entrepreneurial business people to spar about what kinds of things will get our economy back on track . . . and I'd like it to continue.

By the way, I neglected to follow up on my blog post from June 26th. I promised to write about a “possible, easy solution” — H.R. 2527. This bill, which has been introduced in the House, goes a step further than the recent changes made by the SBA to remove some restrictions on using SBA 504 loan funds for the purposes of refinancing.

If approved, H.R. 2527 will remove nearly all existing restrictions and allow SBA loan proceeds to include debt refinancing relating to conventional loans as well as SBA guaranteed debt for a period of two years. This small measure would have a much bigger impact than the SBA's announcement last month, and will give small businesses a much needed boost.

Take a look at the clip below, and be sure to leave a comment or question in the section below — all viewpoints are welcome!

The video can also be seen here.

This month, the 20-year fixed interest rate on SBA 504 loan projects fell to 5.24% — the lowest in the 22-year history of the program. This news comes on the heels of fee reductions included in the Stimulus Bill and the announcement that the SBA would ease restrictions on using 504 loan funds for the purposes of refinancing. I firmly believe that the 504 loans are the single most powerful tool for owners of small and mid-sized businesses who want to truly create wealth and increase their net worth. These recent developments only sweeten the deal.

The vast majority of Americans remain glued to their TV sets, and are therefore too scared-stiff by the nightly news to take any real action and actually contribute to our nation's economic recovery. The doom-and-gloom reports have everyone hunkering down, waiting for “the end.” You and I, acting as contrarians, must do everything we can to 1) capitalize on the opportunities that exist all around us, and 2) help others recognize that all is not lost.

There IS a crisis of credit in the financial markets, but we (Mercantile Capital Corporation) are still lending. Loans are still getting approved, deals are still getting closed, and businesses continue to earn profits . . . even during this changing economy.

What do you think about all this? What advice or encouragement would you give to other business owners during these interesting times?

The major stipulation that concerns me is that this new rule requires businesses to use the funds for expansion purposes. Don't get me wrong — I think right now is a great time for companies to consider expanding, given all the discounted assets that are all around us. But the fact of the matter is that not too many business owners are truly in expansion mode right now. I really don't foresee many new loans being created because of this small change the SBA has announced.

This is a shame, because the total number of 504 loans the SBA has approved this fiscal year is down 41.5% from the same period last year. Total dollar amount funded has dropped 42.5% from last year. It's apparent that the SBA needs to do more than it did earlier this week to stimulate lending (and this minor change was announced back in February . . . not exactly quick action on stimulating the economy). We need to do something to soak up the billions of SBA dollars that are just sitting on the table right now rather than create a new loan program (like the new ARC loan program with $255 million to help maybe 10,000 businesses with only up to $35,000 per business). The ARC loan program is merely a drop in the bucket of capital for America's small businesses. Allowing the SBA to free-up some of the billions already approved could make a significant difference . . . only $255 million and only $35,000 per business is nearly an insult to the 6.5 million small businesses with over 5 employees . . . ground zero for economic growth in America.

This change to the SBA 504 loan program is a small step in the right direction — they've finally started to put the 504 on par with the 7(a) program in terms of refinancing, which is long overdue. But the SBA will have to fully lift the restriction on refinancing in order to have the impact they want (and we all need) to have for America's small businesses. I'll write about a possible, easy solution (H.R. 2527) in my next post . . . so stay tuned.

CEO Tony Hsieh has created a culture that can barely be described as “corporate.” Zappos employees are encouraged to literally pour themselves into what they do — working there becomes an extension of who they are. I won"t go into everything they do here — I"m saving it for the next issue of our Newsmagazine. But I will tell you about their fascinating HR practice that"s a little revolutionary.

Every new hire is put through four weeks of training — two weeks in a classroom learning the history of Zappos and two weeks learning how to answer customer calls. At the end of the training period, every single new hire is offered $2,000 to quit. Paying them to quit saves the company money by weeding out the people who would “jump ship” anyway. The way Zappos sees things, they don"t want someone who would take the money and run. They want people who will stick around and make an indelible mark on their company.

I have a lot more to share with you from my tour of Zappos, so be sure to look for the next issue of our Newsmagzine — the July issue. You"ll be surprised, entertained and inspired by some of the things you"ll read about this online shoe retailer.

If “40” is the new “30” and “60” is the new “45,” then I guess I'm about “25” right now, despite being chronologically “37.” It's not all bad, despite being closer to “40.” Plus, “37” has always been my favorite (lucky?) number. So I'm planning on this being a VERY BIG year for me. Look Out!

Now, my wife was a little shocked by my email late Friday (apparently she opted-into my database long ago – who knew?). Her comment with the first direct email she received was, “Does this mean I'm going to get hundreds of these?!?” Ah… no, dear, of course not.

Turns out, she only got about a dozen (dozens more only responded to me – sparring her and me, thankfully – they're on the blog now and many are very funny). But in that dozen she got, were about 4 different offers for Orlando MAGIC tickets. She went ahead and contacted a couple of the offerees, selected one, and bought the tickets (thank you, Alan). She still paid quite a bit more than I would have, but my veto powers were stripped from me with only 24 hours to go before my birthday and no other shopping having been done. To truly understand the magnitude of this situation you must first come to appreciate that my wife is one of those people who normally get their Christmas shopping done before Thanksgiving. Yes, she's one of them. To say she was in panic mode Friday night is a supreme understatement.

Her and my kids came back Saturday morning from getting the tickets with a bag of “goodies”: a MAGIC drum (noise-maker); a Superman bobble-head; gift wrapping paper; and so on. Of course, I knew what was going on – my wife and I were in on it, but we dared not tell the kids. They LOVE to surprise Daddy! When my son showed me his bobble-head, I promptly asked him where he got it (just to test him thinking fast on his feet). “Got it at Target, Dad.” Oh… and is that where the wrapping paper came from too? “Yep, Target…you know we just LOVE Target, Dad.” Very suspiciously put, hmmm.

On Sunday morning, I was allowed to sleep-in until 9:30 (oh, for the days in college when I could get up and just roll out to lunch!). At that precise moment, I was handed cards and a gift-wrapped envelope with the tickets in it. I feigned surprise – the kids loved it! From there, it was mostly just family time the rest of the day. Lots of basketball playing in the pool, and Winston (our black lab puppy) FINALLY learned to stop barking when we don't want to let him into the pool to swim – he'd stay in the water all day if we let him.

My wife and I left the house Sunday night around 6:30 for the 8:00 game as we'd heard about the carnival atmosphere outside Amway Arena. We were NOT disappointed. Pictures will follow later this week (you really ought to subscribe to our RSS feed now, so you don't miss these).

The noise in the arena was RIDICULOUS! The MAGIC themselves, however, were a bit of a disappointment. They started the game well, but quickly fell behind in the 2nd and 3rd quarters and didn't start making 3-pointers until it was too late in the 4th. No one was able to truly contain Kobe the entire series. While his supporting cast was slightly better than LeBron's in Cleveland, they will be hard-pressed to repeat next year if their free agents do what I expect them to do. As for Orlando, we have most everyone locked-up (Hedo is the lone exception) and the average age of our starters is around 27. With a new arena being build for next season, I think the “agony of defeat” will motivate our young guys into the Finals again next year. Just a hunch.

And by the way, I'm so glad you folks in California have learned to “just get along” – only 5 police officers were hurt and about 25 people arrested in the “celebrations” last night. I'd say that's marginally better than 7 years ago, when you won it last and burned police cars, vandalized 70 cars and 11 people were arrested. Anyway, “enjoy” it while it lasts. I think Master Phil is headed back to Montana on his motorcycle to end on a “high”-note – pun intended.

While many in Orlando (myself included) are still mourning the near-collapse of our beloved MAGIC last night at the hands of "Evil Kobe," as my almost 6-year old son calls him…my dear, sweet wife continues unabated to try to secure me game tickets for my birthday (37th one this Sunday, Flag Day - yeah, don't forget to hang your American flag out on Sunday and through Independence Day…that's the proper "flag etiquette" this time of year) and/or an early Father's Day present. I know. I know. Virtually impossible these days as they are Orlando's only major professional sports team…but she has great intentions and has been trying for weeks.

See, we used to share season tickets with another family, but as our children got older (in other words, they weren't babies that I could simply hold on my lap, whether they fell asleep at the game or not), we ditched them…the tickets that is, not the babies!

At least that's the rational I repeat to myself when I think about "those days." That and the terrible 21-win season of 2003-2004 (Superman didn't arrive until the 2004-2005 season). It just became too difficult to try to go to all those mid-week home games, and giving most of them away started to make me wonder why I had such expensive tickets at all (yeah, the seats we had were awfully good ones, too).

Now, my wife has been realizing the consequences of letting our "participation" lapse, and she's been frantically trying to buy me tickets as a gift. I've vetoed several of her bids on eBay, "too much for a game I can watch in my underwear in front of my big screen TV." I've even heard from friends of mine that she's asked about buying their tickets…seems they want to attend the NBA Finals a bit more than they want our money.

SO…if you've read this far and you happen to have decent tickets you want to part with, contact my wife at her email address (eshurn@bellsouth.net) and tell her so. I'm happy to have her accept a "slight mark-up" over face-value and if you want more, then let her write a check to your favorite charity - let's try to be capitalists AND philanthropists!

Yes, I'll pretend I don't know anything and that you just "magically" heard she was trying to buy me the "perfect gift" for Father's Day (I already own Kennedy's All-American Barber Club, so getting me a membership there has already been taken care of long ago). She'll be very grateful, as I will be too, even though it's for my own gratuitous benefit.

I really don't want to keep hearing it from my friends in LA! "Yeah, we KNOW Kobe's AMAZING, but an earthquake may one day send your awful state into the Pacific…so there! And our Mickey palace is better than yours!"

Anyway, we still BELIEVE…Now, if the MAGIC don't blow it Sunday night…that'll be a very special birthday present for me, regardless of whether my wife gets a rush of ticket offers this weekend or not. And if she doesn't, you know where I'll be on my birthday…just sitting there in my…okay, I'll spare you the visual. Let's just say I hope to be enjoying my birthday and getting ready to enjoy the following weekend's Father's Day. Now you know how you can help her and me.

Thanks again for indulging a very rare "personal" message from us and me at Mercantile. Have a great weekend and
GO MAGIC!