Business life: My finance news blog

From 2005 to 2006, Wells Fargo increased its total number of small business loans of $100,000 or less by 27 percent in Alaska, according to the latest Community Reinvestment Act data. Wells Fargo was the top small-business lender in Alaska, with 5,753 loans of $100,000 or less for a total of more than $151 million in 2006, a 20.6 percent increase in dollar volume over 2005. Wells Fargo is the top lender to small businesses in Alaska’s low- and moderate-income neighborhoods, with 620 loans of less than $100,000 for a total of $17.3 million, a 12 percent increase in dollar volume over 2005.

The national small-business lending market totaled $126 billion in 2006, with Wells Fargo holding steady as America’s top small-business lender for the fifth consecutive year. With an 18 percent year-over-year increase in its 2006 lending, Wells Fargo extended $21 billion to small-business owners nationwide in loans of less than $100,000, according to the 2006 CRA data.

Body shop colors itself green

Driven Auto Body, 5011 Spenard Road, said it has received a Green Star Award. Green Star is a nonprofit organization that encourages businesses to practice waste reduction, energy conservation and pollution prevention. The body shop uses water-borne paints, which reduce toxins in comparison to other paints, and dries the paint using an air flow system rather than baking, which saves on energy. The painter is also exposed to fewer toxins. The shop has also instituted a recycling program that results in significant reduction of waste going to the city landfill. Driven Auto Body is owned by Kevin Stalder.

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New research has suggested that people don’t understand the value of a one per cent difference in mortgage rates.

According to Nationwide Building Society, a one per cent difference in rates on a five-year fixed rate mortgage could be worth over ?4,000.

But when presented with the details of two five-year mortgage deals, 28 per cent of respondents said they thought the difference on a ?120,000 mortgage with an interest rate at 5.6 per cent compared to 6.6 per cent would be between ?500 and ?2,000.

A total of 23 per cent had no idea at all while 25 per cent were able to identify the correct difference.

When it comes to mortgages, men have the edge over women - 33 per cent of men answered correctly compared to 18 per cent of women.

Older age groups also did better, 31 per cent of 55 to 64-year-olds guessed correctly while 16 per cent of 18 to 24-year-olds were right.

Matthew Carter, Nationwide Building Society’s divisional director for mortgages, said: “People’s lives are busier than ever in the run up to the festive season and, as a result, they may be less inclined to shop around for the best deal.

“The temptation may be to take a slightly higher rate as an easier, less hassle option. But, as our research shows, most people don’t understand the impact that just a one per cent difference can make, meaning they could be wasting thousands of pounds.”

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