The Small Business Administration (SBA) released a study that examines the types of credit used by small businesses, namely bank credits (loans or lines of credit) and trade credits (from suppliers). The study compares companies that use credit (leveraged) with those that do not (unleveraged).

The report found that the two types of credit are complements, with many small firms using both types simultaneously. The study also found that small firms that use no credit are significantly smaller, more profitable and have better credit quality, but hold fewer tangible assets. Firms that use credit tend to be larger, and the amount of credit used as a percentage of assets is positively related to the firm’s liquidity.

Trade credits are used by about 60% of the leveraged firms. Credit use varies by industry. Firms avoiding credit are generally associated with the service and retail sectors, while the manufacturing sector is more likely to borrow bank loans or use trade credits.

Click here to download the [PDF] report. 

Questions may be directed to Stuart Gosswein stuartg@sema.org.

The Small Business Administration (SBA) released a study that examines the types of credit used by small businesses, namely bank credits (loans or lines of credit) and trade credits (from suppliers). The study compares companies that use credit (leveraged) with those that do not (unleveraged).

The report found that the two types of credit are complements, with many small firms using both types simultaneously. The study also found that small firms that use no credit are significantly smaller, more profitable and have better credit quality, but hold fewer tangible assets. Firms that use credit tend to be larger, and the amount of credit used as a percentage of assets is positively related to the firm’s liquidity.

Trade credits are used by about 60% of the leveraged firms. Credit use varies by industry. Firms avoiding credit are generally associated with the service and retail sectors, while the manufacturing sector is more likely to borrow bank loans or use trade credits.

Click here to download the [PDF] report. 

Questions may be directed to Stuart Gosswein stuartg@sema.org.

SEMA-supported legislation to extend the emissions inspection exemption to vehicles five model years old or newer has been signed into law by New Jersey Governor Chris Christie. The new law acknowledges the relatively minimal environmental impact of the vehicles targeted for this exemption and that it is senseless to test newer vehicles, the results of which demonstrate no significant air-quality benefits.

The idea behind exempting any class of vehicles is to reduce costs while not losing appreciable emissions reductions. This strategy builds support for emissions-inspection programs, but also directs finite resources to where they will be most valuable in cleaning the air. New Jersey already exempts historic (at least 25 years old) and collector (driven no more than 3,000 miles per year and insured for limited use) vehicles from emissions testing. The logic for this trend is clear—such vehicles do not contribute in significant ways to air-quality problems. This logic applies equally to newer cars.

For details, contact Steve McDonald at stevem@sema.org.

SEMA-supported legislation to extend the emissions inspection exemption to vehicles five model years old or newer has been signed into law by New Jersey Governor Chris Christie. The new law acknowledges the relatively minimal environmental impact of the vehicles targeted for this exemption and that it is senseless to test newer vehicles, the results of which demonstrate no significant air-quality benefits.

The idea behind exempting any class of vehicles is to reduce costs while not losing appreciable emissions reductions. This strategy builds support for emissions-inspection programs, but also directs finite resources to where they will be most valuable in cleaning the air. New Jersey already exempts historic (at least 25 years old) and collector (driven no more than 3,000 miles per year and insured for limited use) vehicles from emissions testing. The logic for this trend is clear—such vehicles do not contribute in significant ways to air-quality problems. This logic applies equally to newer cars.

For details, contact Steve McDonald at stevem@sema.org.

We've just come from the first SEMA Show Exhibitor Summit, held May 25–27, at the Las Vegas Convention Center, and the feedback we gathered was tremendous. The goal of the summit was to inform attendees about how to maximize each exhibitor's presence, save money on Show expenses, demonstrate how social media can extend any exhibitor's marketing reach and increase traffic—and sales—at every booth. The SEMA Board of Directors, SEMA Show Committee and association staff committed themselves to innovation and improvement for each aspect of the SEMA Show, ensuring that every exhibitor's investment delivers the greatest possible value.

If you weren't able to attend, here are just a couple of programs we highlighted to help exhibitors get ready for the 2010 SEMA Show.

We've just come from the first SEMA Show Exhibitor Summit, held May 25–27, at the Las Vegas Convention Center, and the feedback we gathered was tremendous. The goal of the summit was to inform attendees about how to maximize each exhibitor's presence, save money on Show expenses, demonstrate how social media can extend any exhibitor's marketing reach and increase traffic—and sales—at every booth. The SEMA Board of Directors, SEMA Show Committee and association staff committed themselves to innovation and improvement for each aspect of the SEMA Show, ensuring that every exhibitor's investment delivers the greatest possible value.

If you weren't able to attend, here are just a couple of programs we highlighted to help exhibitors get ready for the 2010 SEMA Show.

Holley Performance Products Inc. has significantly improved its capital structure and liquidity through a successful voluntary bankruptcy reorganization that became effective on June 22, 2010. As a result, the company has reduced its debt by more than $59 million and obtained new credit arrangements, including a revolving credit facility, which provides the company with substantial flexibility to pursue its growth initiatives.

Originally founded in 1903 by brothers George and Earl Holley, the company provides automotive aftermarket products that enhance vehicle performance through increased horsepower, torque and drivability. Holley products have provided the flow of fuel and air to notable vehicles, including the original Model T, World War II fighter aircraft, factory performance cars of the musclecar era, every NASCAR Cup Series race car and the majority of winning NHRA Pro Stock race cars.

“Holley has emerged with an extraordinarily strong balance sheet, which provides us with the flexibility to reinvest in our business and positions us well for continued growth,” said Tom Tomlinson, Holley's chief executive officer. “We have accomplished a true restructuring in a cooperative, efficient and timely manner, and we are deeply grateful for the support and loyalty we received from our customers, dedicated employees, suppliers, lenders and shareholders. We have an exciting array of new products slated for introduction in the immediate future, and we are dedicated to the execution of our mission to provide the most highly sought-after products in the high-performance automotive aftermarket. With our new balance sheet, we now have the financial strength to create value through long-term sustainable organic growth and appropriate strategic acquisitions while continuing to enhance the reputation and reach of our core stable of brands.”

Holley’s reorganization converted principal and interest associated with its former second lien notes into equity and established new credit facilities with its existing senior lenders. Also during the reorganization, Holley successfully completed the sale of its diesel OEM business.

“The sale of our diesel OEM business yielded excellent value that we are reinvesting in our performance business,” Tomlinson said. “Our team is excited that we are now able to focus 100% of our energy on our very successful high-performance automotive aftermarket business.”

“We initiated Holley’s voluntary bankruptcy case in September 2009 after carefully evaluating the effects of the economic recession and related collapse of the credit markets,” said David G. Elkins, chairman of Holley’s Board of Directors. “Our goal was to significantly reduce Holley’s corporate debt and overall leverage and thereby establish a sustainable, long-term capital structure that would allow the company to carry out its growth and product expansion plans.”

Holley Performance Products Inc. has significantly improved its capital structure and liquidity through a successful voluntary bankruptcy reorganization that became effective on June 22, 2010. As a result, the company has reduced its debt by more than $59 million and obtained new credit arrangements, including a revolving credit facility, which provides the company with substantial flexibility to pursue its growth initiatives.

Originally founded in 1903 by brothers George and Earl Holley, the company provides automotive aftermarket products that enhance vehicle performance through increased horsepower, torque and drivability. Holley products have provided the flow of fuel and air to notable vehicles, including the original Model T, World War II fighter aircraft, factory performance cars of the musclecar era, every NASCAR Cup Series race car and the majority of winning NHRA Pro Stock race cars.

“Holley has emerged with an extraordinarily strong balance sheet, which provides us with the flexibility to reinvest in our business and positions us well for continued growth,” said Tom Tomlinson, Holley's chief executive officer. “We have accomplished a true restructuring in a cooperative, efficient and timely manner, and we are deeply grateful for the support and loyalty we received from our customers, dedicated employees, suppliers, lenders and shareholders. We have an exciting array of new products slated for introduction in the immediate future, and we are dedicated to the execution of our mission to provide the most highly sought-after products in the high-performance automotive aftermarket. With our new balance sheet, we now have the financial strength to create value through long-term sustainable organic growth and appropriate strategic acquisitions while continuing to enhance the reputation and reach of our core stable of brands.”

Holley’s reorganization converted principal and interest associated with its former second lien notes into equity and established new credit facilities with its existing senior lenders. Also during the reorganization, Holley successfully completed the sale of its diesel OEM business.

“The sale of our diesel OEM business yielded excellent value that we are reinvesting in our performance business,” Tomlinson said. “Our team is excited that we are now able to focus 100% of our energy on our very successful high-performance automotive aftermarket business.”

“We initiated Holley’s voluntary bankruptcy case in September 2009 after carefully evaluating the effects of the economic recession and related collapse of the credit markets,” said David G. Elkins, chairman of Holley’s Board of Directors. “Our goal was to significantly reduce Holley’s corporate debt and overall leverage and thereby establish a sustainable, long-term capital structure that would allow the company to carry out its growth and product expansion plans.”

Holley Performance Products Inc. has significantly improved its capital structure and liquidity through a successful voluntary bankruptcy reorganization that became effective on June 22, 2010. As a result, the company has reduced its debt by more than $59 million and obtained new credit arrangements, including a revolving credit facility, which provides the company with substantial flexibility to pursue its growth initiatives.

Originally founded in 1903 by brothers George and Earl Holley, the company provides automotive aftermarket products that enhance vehicle performance through increased horsepower, torque and drivability. Holley products have provided the flow of fuel and air to notable vehicles, including the original Model T, World War II fighter aircraft, factory performance cars of the musclecar era, every NASCAR Cup Series race car and the majority of winning NHRA Pro Stock race cars.

“Holley has emerged with an extraordinarily strong balance sheet, which provides us with the flexibility to reinvest in our business and positions us well for continued growth,” said Tom Tomlinson, Holley's chief executive officer. “We have accomplished a true restructuring in a cooperative, efficient and timely manner, and we are deeply grateful for the support and loyalty we received from our customers, dedicated employees, suppliers, lenders and shareholders. We have an exciting array of new products slated for introduction in the immediate future, and we are dedicated to the execution of our mission to provide the most highly sought-after products in the high-performance automotive aftermarket. With our new balance sheet, we now have the financial strength to create value through long-term sustainable organic growth and appropriate strategic acquisitions while continuing to enhance the reputation and reach of our core stable of brands.”

Holley’s reorganization converted principal and interest associated with its former second lien notes into equity and established new credit facilities with its existing senior lenders. Also during the reorganization, Holley successfully completed the sale of its diesel OEM business.

“The sale of our diesel OEM business yielded excellent value that we are reinvesting in our performance business,” Tomlinson said. “Our team is excited that we are now able to focus 100% of our energy on our very successful high-performance automotive aftermarket business.”

“We initiated Holley’s voluntary bankruptcy case in September 2009 after carefully evaluating the effects of the economic recession and related collapse of the credit markets,” said David G. Elkins, chairman of Holley’s Board of Directors. “Our goal was to significantly reduce Holley’s corporate debt and overall leverage and thereby establish a sustainable, long-term capital structure that would allow the company to carry out its growth and product expansion plans.”

A CLARIFICATION: The June 21 hearing in United States District Court, Southern District of Indiana in the case of SFI Foundation Inc. vs. Impact Racing LLC, kept SFI from terminating SFI’s Contracts of Participation until Impact officials have afforded Impact with “some meaningful opportunity to be heard either in writing or by personal appearance.” The hearing had nothing to do with the certification of products. Products in question manufactured by Impact in 2009 and 2010 were certified April 1.

WHAT CURSE?: Will Power put an end to the “Penske Curse” at Watkins Glen (New York) International Sunday, giving car owner Roger Penske his first IZOD IndyCar Series triumph at the historic facility.

NOMINEES: The NASCAR Hall of Fame has revealed the 25 nominees for the 2011 class, of which 20 are repeats from 2010. The five new nominees are T. Wayne Robertson, Jack Ingram, Jerry Cook, Fred Lorenzen and Dale Inman.

NEW HORSEPOWER: Earnhardt Childress Racing Engines has worked out an agreement to supply engines to the No. 99 Gainsco Daytona Prototype Grand Am Rolex Series team.

POSTPONED: The USAC K&N Silver Crown Series race scheduled for July 8 (Thursday) at Illiana Motor Speedway in Schererville, Indiana, was postponed because of scheduling conflicts. A reschedule date will be announced later.

PENNSYLVANIA BOSS: For the second-straight year Greg Hodnett claimed the eight-race Pennsylvania Sprint Car Speedweek crown.

REPAVING BEGINS: Daytona International Speedway officials began tearing up the old asphalt at the 2.5-mile oval immediately after Saturday’s Coke Zero 400, which was won by Kevin Harvick. The track will be completely repaved in time for the 2011 Daytona 500.

CHANGES: IZOD IndyCar Series CEO Randy Bernard said last weekend that there will be several changes to the 2011 series schedule. One confirmed change is that Florida’s Homestead-Miami Speedway will no longer host the season finale.

STICKING AROUND: Ryan Hunter-Reay and Andretti Autosport have collected enough sponsorship dollars to keep Hunter-Reay in the No. 37 entry for the rest of the IZOD IndyCar Series season.

HONORABLE TRIBUTE: Dale Earnhardt Jr., driving the No. 3 Wrangler-sponsored Chevrolet in honor of his late father, drove to victory Friday during the NASCAR Nationwide Series Subway Jalapeno 250 at Daytona International Speedway.

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