Latest news with #Kapitus
Yahoo
10-05-2025
- Business
- Yahoo
5 Home Renovations That Could Skyrocket in Price Once Tariffs Take Effect
In a time where the housing market is still somewhat sluggish as people are holding off buying or selling due to economic uncertainty, renovations are often an ideal option for someone who wants a better living situation without moving. Check Out: Read Next: But will home renovations still be affordable as tariffs take effect? Experts explained what types of home renovations are likely to skyrocket if tariffs remain high. The reciprocal tariffs announced by President Donald Trump, if implemented, are likely to have 'a significant impact on the construction industry and the cost of home construction in the United States,' according to Ben Johnston, chief operating officer at Kapitus. They'll hit lumber and steel especially hard, most of which comes from countries like Canada, Mexico and Brazil, he pointed out. 'Given the magnitude of these tariffs, there is no question that housing will be more expensive to build, maintain and improve for Americans in the coming months,' Johnston said. Explore More: Robert O'Sullivan, a business owner and roofing contractor at Ranch Roofing Inc., has already seen costs on new roofing materials spike. 'Metal roofing costs have already jumped 60%, and contractors warn of further hikes,' he said. He said that some roofers may offer price-lock agreements to shield clients from April's 25% steel tariffs, though that will probably not persist past the summer of 2025. Homeowners in dire need of a new roof can switch to asphalt shingles or synthetic membranes, he said, and should opt for sourcing domestic suppliers like IB Roof Systems. On the upside, he pointed out that while metal roofs' upfront costs rose 25%, 'their 50-year lifespan preserves long-term value.' Asphalt shingles usually have a shorter lifespan, so he warned against installing these 'prematurely.' 'Moreover, opting for solar-integrated roofs or energy-efficient coatings can offset tariffs and can help homeowners cut down their utility bills,' he said. HVAC units, often included in kitchen and other home renovations, are one of the most tariff-sensitive products, according to Jimmy Hiller, CEO and president of Happy Hiller. 'Even though many HVAC units are assembled in the U.S., their key components like compressors, motors, capacitors, coils, circuit boards and refrigerants are usually imported from China, Mexico or South Korea, so these tariffs always reflect the ultimate price of the appliance,' he explained. HVAC systems often go up in price just weeks after tariffs hit since their parts move quickly through the supply chain, he warned. Thus, if you spot a deal, jump on it, otherwise it may be wise to wait for prices to drop or see if there are sales. Since tariffs hit materials with global supply chains the hardest, this means all those little touches that go into kitchen and bathroom upgrades will likely spike, according to Ryan Nelson, founder of PropertyBuild. 'Think imported lumber, ceramic and porcelain tile, engineered wood flooring, kitchen cabinetry and stone countertops like quartz,' he said. If your remodel relies on a lot of tile, engineered flooring or built-in cabinetry, move fast, he urged. 'These projects are material-dense and price-sensitive. Prioritize them while stock is still flowing at pre-tariff prices.' Additionally, appliances that often need replacing in these remodels, especially those from China or Europe 'are extremely vulnerable,' Nelson said. 'Even screws, hinges or underlayment materials can see price jumps if sourced overseas.' Nelson has seen preliminary projections showing 10% to 25% cost increases on these materials. 'That could mean a bathroom reno jumps from $20,000 to $25,000 just based on tile, cabinetry and fixtures.' Tariffs on aluminum could increase the building costs on anything using the material, including windows, doors, gutters, exterior trim and components in appliances, according to Paul Dashevsky, co-CEO at and This could increase the costs of almost any room upgrade, or overall builds. For windows, at least, you could opt for vinyl substitutes, he said. Wood framing doesn't become a room until the drywall is added. Unfortunately, Dashevsky said, Mexico supplies over 70% of American drywall. 'A tariff on this material would translate directly to increased remodeling costs as this material is generally standard practice in today's construction and doesn't have a simple substitute,' he said. For anyone proceeding with a renovation, be patient and flexible and expect change. 'Brace yourself for change orders' and 'unexpected increases' if your contractor didn't pre-purchase all materials, Nelson said. Also, build a buffer into your budget. 'This is where your contract matters — some have escalation clauses, others don't.' Nelson recommended a contingency fund of 10% to 15%, especially during unstable market conditions like these. There are a variety of ways to cut costs, however, Nelson said. Pre-buy materials when possible, to lock in pricing and availability. Substitute smartly. Perhaps you swap European tile for American stone-look vinyl. Phase your project. Tackle critical or import-heavy parts first. Get multiple bids. Some contractors might have inventory bought pre-tariff and can pass savings on. Johnston recommended a few more: Seek suppliers from lower tariff countries. The European Union carries a much lower tariff than China. Partner with others to place larger orders and obtain volume discounts. See if your contractor is able to do volume ordering. Overall, expect to pay more for the same renovations, and retool your budget, your expectations and your finances to make sure you can afford it. More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for Retirees How Far $750K Plus Social Security Goes in Retirement in Every US Region 7 Overpriced Grocery Items Frugal People Should Quit Buying in 2025 12 SUVs With the Most Reliable Engines Sources Ben Johnston, Kapitus Robert O'Sullivan, Ranch Roofing Jimmy Hiller, Happy Hiller Plumbing Ryan Nelson, PropertyBuild Paul Dashevsky, and This article originally appeared on 5 Home Renovations That Could Skyrocket in Price Once Tariffs Take Effect Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-05-2025
- Business
- Yahoo
5 Home Renovations That Could Skyrocket in Price Once Tariffs Take Effect
In a time where the housing market is still somewhat sluggish as people are holding off buying or selling due to economic uncertainty, renovations are often an ideal option for someone who wants a better living situation without moving. Check Out: Read Next: But will home renovations still be affordable as tariffs take effect? Experts explained what types of home renovations are likely to skyrocket if tariffs remain high. The reciprocal tariffs announced by President Donald Trump, if implemented, are likely to have 'a significant impact on the construction industry and the cost of home construction in the United States,' according to Ben Johnston, chief operating officer at Kapitus. They'll hit lumber and steel especially hard, most of which comes from countries like Canada, Mexico and Brazil, he pointed out. 'Given the magnitude of these tariffs, there is no question that housing will be more expensive to build, maintain and improve for Americans in the coming months,' Johnston said. Explore More: Robert O'Sullivan, a business owner and roofing contractor at Ranch Roofing Inc., has already seen costs on new roofing materials spike. 'Metal roofing costs have already jumped 60%, and contractors warn of further hikes,' he said. He said that some roofers may offer price-lock agreements to shield clients from April's 25% steel tariffs, though that will probably not persist past the summer of 2025. Homeowners in dire need of a new roof can switch to asphalt shingles or synthetic membranes, he said, and should opt for sourcing domestic suppliers like IB Roof Systems. On the upside, he pointed out that while metal roofs' upfront costs rose 25%, 'their 50-year lifespan preserves long-term value.' Asphalt shingles usually have a shorter lifespan, so he warned against installing these 'prematurely.' 'Moreover, opting for solar-integrated roofs or energy-efficient coatings can offset tariffs and can help homeowners cut down their utility bills,' he said. HVAC units, often included in kitchen and other home renovations, are one of the most tariff-sensitive products, according to Jimmy Hiller, CEO and president of Happy Hiller. 'Even though many HVAC units are assembled in the U.S., their key components like compressors, motors, capacitors, coils, circuit boards and refrigerants are usually imported from China, Mexico or South Korea, so these tariffs always reflect the ultimate price of the appliance,' he explained. HVAC systems often go up in price just weeks after tariffs hit since their parts move quickly through the supply chain, he warned. Thus, if you spot a deal, jump on it, otherwise it may be wise to wait for prices to drop or see if there are sales. Since tariffs hit materials with global supply chains the hardest, this means all those little touches that go into kitchen and bathroom upgrades will likely spike, according to Ryan Nelson, founder of PropertyBuild. 'Think imported lumber, ceramic and porcelain tile, engineered wood flooring, kitchen cabinetry and stone countertops like quartz,' he said. If your remodel relies on a lot of tile, engineered flooring or built-in cabinetry, move fast, he urged. 'These projects are material-dense and price-sensitive. Prioritize them while stock is still flowing at pre-tariff prices.' Additionally, appliances that often need replacing in these remodels, especially those from China or Europe 'are extremely vulnerable,' Nelson said. 'Even screws, hinges or underlayment materials can see price jumps if sourced overseas.' Nelson has seen preliminary projections showing 10% to 25% cost increases on these materials. 'That could mean a bathroom reno jumps from $20,000 to $25,000 just based on tile, cabinetry and fixtures.' Tariffs on aluminum could increase the building costs on anything using the material, including windows, doors, gutters, exterior trim and components in appliances, according to Paul Dashevsky, co-CEO at and This could increase the costs of almost any room upgrade, or overall builds. For windows, at least, you could opt for vinyl substitutes, he said. Wood framing doesn't become a room until the drywall is added. Unfortunately, Dashevsky said, Mexico supplies over 70% of American drywall. 'A tariff on this material would translate directly to increased remodeling costs as this material is generally standard practice in today's construction and doesn't have a simple substitute,' he said. For anyone proceeding with a renovation, be patient and flexible and expect change. 'Brace yourself for change orders' and 'unexpected increases' if your contractor didn't pre-purchase all materials, Nelson said. Also, build a buffer into your budget. 'This is where your contract matters — some have escalation clauses, others don't.' Nelson recommended a contingency fund of 10% to 15%, especially during unstable market conditions like these. There are a variety of ways to cut costs, however, Nelson said. Pre-buy materials when possible, to lock in pricing and availability. Substitute smartly. Perhaps you swap European tile for American stone-look vinyl. Phase your project. Tackle critical or import-heavy parts first. Get multiple bids. Some contractors might have inventory bought pre-tariff and can pass savings on. Johnston recommended a few more: Seek suppliers from lower tariff countries. The European Union carries a much lower tariff than China. Partner with others to place larger orders and obtain volume discounts. See if your contractor is able to do volume ordering. Overall, expect to pay more for the same renovations, and retool your budget, your expectations and your finances to make sure you can afford it. More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for Retirees How Far $750K Plus Social Security Goes in Retirement in Every US Region 7 Overpriced Grocery Items Frugal People Should Quit Buying in 2025 12 SUVs With the Most Reliable Engines Sources Ben Johnston, Kapitus Robert O'Sullivan, Ranch Roofing Jimmy Hiller, Happy Hiller Plumbing Ryan Nelson, PropertyBuild Paul Dashevsky, and This article originally appeared on 5 Home Renovations That Could Skyrocket in Price Once Tariffs Take Effect Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
25-04-2025
- Business
- Business Wire
KBRA Assigns Preliminary Ratings to Kapitus Asset Securitization V LLC, Series 2025-1
NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to four classes of notes (the 'Notes') issued by Kapitus Asset Securitization V LLC, Series 2025-1. Kapitus, formerly known as Strategic Funding Source, Inc. ('Kapitus' or the 'Company'), was founded in 2006 and provides financing to small and medium-sized businesses through the use of proprietary risk scoring models, transactional data and technology systems. Since 2014, Kapitus has received financial support from Pine Brook Partners, a New York-based private equity firm with experience investing in financial services companies. This transaction represents the first series of notes issued by Kapitus Asset Securitization V LLC (the 'Issuer'), but the eighth series of notes sponsored by the Company. The Issuer will issue four classes of Series 2025-1 Notes totaling $250 million initially. The transaction features a three-year revolving period unless a Rapid Amortization Event has occurred (the 'Revolving Period'). During the Revolving Period, the Issuer will purchase additional receivables that meet the eligibility criteria and concentration limits. The Series 2025-1 Notes are 'expandable' term notes such that at any time during the Revolving Period, the Issuer may upsize the current Notes, up to a maximum amount of $500 million, as long as certain conditions are met, including receipt of Rating Agency Confirmation. The consent of existing noteholders will not be required for these upsizes. As such, upsizes may dilute the control and voting rights of existing noteholders. To access ratings and relevant documents, click here. Click here to view the report. Methodologies Disclosures Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above. A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1009128
Forbes
15-04-2025
- Business
- Forbes
How DOGE Will Impact The SBA And Small Business Owners
By Rieva Lesonsky As well as getting staffing cuts, the SBA will also be overseeing certain aspects of federal student ... More loan programs. The Small Business Administration (SBA) has long been pivotal in helping entrepreneurs and small business owners start and grow businesses. I have seen its accomplishments up close, having worked with them, on and off, since the end of the first Bush Administration. The agency has undergone significant transformations in recent months as part of broader federal restructuring initiatives. Notably, it was announced that the SBA would reduce its workforce by 43%, equating to around 2,700 positions. Additionally, the agency is set to assume new responsibilities, including overseeing certain aspects of federal student loan programs. These changes reflect a shift in the agency's role and priorities. We don't know if this shift will adversely affect the long-standing small business contracting goals (the percentage of federal contracts mandated to go to small businesses). Small businesses are also worried about the unknowns, such as loan processing times, the decline rates, assisting those (not just businesses) impacted by natural disasters, and what this implies for the agency itself and the millions of small businesses it supports. I talked to Ben Johnston, the COO of Kapitus, a small business lender and loan marketplace, for insight from the perspective of a small business lender. As the SBA likely reduces its lending activity, small business lenders are better positioned to serve small business owners as their need for capital becomes more acute. Rieva Lesonsky: How do you think these changes will impact the SBA? Ben Johnston: While the recently announced cuts to the SBA are considerable, the SBA has seen significant fluctuations in overall staffing nearly every year since the beginning of the pandemic. As the SBA's mandate grew to include management of the Paycheck Protection Program (PPP) in 2020 and 2021, its staff grew as well, from 4,432 in 2019 to a peak of 9,806 in 2021. As the PPP program ended and the loans issued were either forgiven, repaid, or charged off, SBA headcount dropped, reaching 6,279 in 2024. While a 43% reduction in 2024 staff is significant, it is only 19% below pre-pandemic staffing levels, indicating that disruption to core SBA 7(a) and 504 lending programs may not be as severe as the headline number suggests. It is also important to note that the Biden Administration expanded the SBA's mandate to include new programs such as the 2024 Green Lender Initiative, which promoted the inclusion of mission-driven climate lenders, and the 2021 Community Navigator Pilot Program designed to help 'disadvantaged business owners' such as veterans, women, rural community businesses, and business owners of color, gain access to small business loans. This helped broaden the reach of the SBA as the share of loans disbursed to African American business owners grew from 4.9% in 2021 to 7.2% in 2024, and the share of loans disbursed to Hispanics rose from 8.4% to 12.5%. The new administration has taken aim at these programs, citing them specifically in their press release announcing staffing cuts. It is safe to say that many aspects of these programs will be eliminated, disproportionately impacting disadvantaged businesses. Lesonsky: How do you think the reorganization of the SBA will impact small businesses? Johnston: During the Biden Administration, certain origination fees were reduced to make SBA loans more affordable, and certain underwriting guidelines were relaxed to expand access. Over the past several years, losses on the SBA portfolio have risen, and in 2024, the SBA, which is normally a self-funding agency, experienced negative cash flow for the first time in years. In its announcement of staff reductions in March 2025, the new leadership of the SBA explicitly identified changes made to the 7(a) program under the Biden Administration as responsible for rising delinquency rates and the resulting shortfall. As a result, we expect to see higher fees and restricted underwriting guidelines on the 7(a)-product going forward. This will ultimately restrict access to capital for many small businesses and make it harder for numerous entrepreneurs to obtain capital for growth. Lesonsky: Do these cutbacks underscore how the SBA is underappreciated? Is it too late for the SBA to tout its accomplishments? Johnston: Traditionally, the SBA has enjoyed bipartisan support as, according to SBA data, small businesses generate approximately 44% of U.S. GDP and employ 46% of the U.S. workforce. However, since the pandemic, there has been some recognition that there was considerable fraud in the PPP program the SBA administered. While this is not necessarily the fault of the SBA as partner lending institutions were in charge of underwriting most of these loans, there is a sense by many in Washington that the SBA's mandate may have stretched too far and should be reined in. Now, with DOGE pursuing aggressive cuts across most government agencies, the SBA is a natural target. Lesonsky: The SBA collaborates with many entities, including banks, the Small Business Development Centers, Women's Centers, SCORE, and more. Do you anticipate any repercussions for those organizations? Johnston: The SBA has several partners who help it fulfill its mission, but the most numerous and arguably the most important are the 1,450 banks, credit unions, and non-bank lending institutions that underwrote and funded loans through the SBA 7(a) program in 2024. These banks receive a government guarantee from the SBA of between 50% and 90% on each loan they issue, depending on loan size and type, and are responsible for funding and servicing the loans they make on behalf of the SBA. Given the tighter guarantee restrictions we expect going forward, these institutions will likely see origination volume drop in 2025 and beyond. In addition, partner institutions such as Small Business Development Centers, Women's Centers, and SCORE are crucial for helping educate business owners about their financing options and helping them navigate the SBA application process. It is likely that new SBA restrictions will make their jobs harder and will mean that fewer of their constituents will be able to access financing in 2025. More from AllBusiness: Lesonsky: What organizations do you anticipate stepping up to the plate to fill in the gaps the SBA may not be tending to? Johnston: We expect traditional bank lenders to fill some of the void left as the SBA retrenches, but few will be willing to offer growing small businesses as favorable terms as the SBA, which often includes ten-year repayment terms and highly competitive interest rates. In addition, many non-bank small business lenders do not require collateral and use alternative credit data in their decisioning process, which will help fill the void. But once again, these lenders will offer shorter terms and higher rates than the SBA. Lesonsky: What's the future for women and minority-owned businesses given that DEI is 'dead'? The SBA offered specific help to these typically underserved groups. Now what? How do we ensure these folks get the help they need? Johnston: The current administration has made it quite clear that promoting diversity and offering any special assistance to traditionally underserved business communities will not be a priority for the SBA in the future. While that creates real hardships for these businesses, it also creates an opportunity for other lenders to better serve those communities and build lasting brand equity as a trusted provider of capital to these valuable businesses. Lesonsky: As a lender, how do you think these layoffs will impact SBA loans? Johnston: It is safe to assume that fewer SBA loans will be originated this year, given the announced staff reductions, expected credit tightening, and with the SBA taking on the additional responsibilities of managing approximately $100 billion in annual U.S. student loan originations. Note that the SBA in 2024 oversaw only $31 billion in total loan originations and did not perform the function of underwriting or servicing most of these loans. Merging the lending apparatus of the Department of Education with the existing infrastructure of the SBA is a huge undertaking and will inevitably impact the performance of both departments. About the Author Rieva Lesonsky creates content focusing on small business and entrepreneurship. Email Rieva at rieva@ follow her on Twitter @Rieva, and visit her website to get the scoop on business trends and sign up for Rieva's free Currents newsletter. RELATED: Microloans for Small Business: Learn What's Available and Whether to Apply
