Small Business Jobs Act of 2010
The Small Business Jobs Act was signed by President Obama on September 27. The new law extends the SBA Recovery loans while offering more in lending support and tax breaks for entrepreneurs and small business owners. (This summary was developed by the United States Small Business Administration Press Office, and is copied below in its entirety.)
"New Law Puts More Capital in the Hands of Entrepreneurs and Small Business Owners
• Recovery Act Loans Extension – $14 billion more in lending support
o The law will extend SBA Recovery loans (with the 90% guarantee and reduced fees) through December 31, 2010. The $505 million for Recovery loans in this new law will support about $14 billion in overall small business lending. More than 1,400 small businesses that have been in a queue waiting for this bill to become law will be funded in a matter of days.
o Since passage of the Recovery Act, SBA has supported nearly 70,000 Recovery loans, turning $680 million in taxpayer dollars into more than $30 billion in lending support.
• Higher Loan Limits – significantly increases maximum loan sizes in top loan programs
o The law will permanently increase 7(a) and 504 limits from $2 million to $5 million (for manufacturers in 504 loan program, up to $5.5 million).
o The law will permanently increase microloan limits from $35,000 to $50,000, helping larger entrepreneurs with start-up costs and small business owners in underserved communities.
• Alternative Size Standards – more small businesses eligible to get SBA loans
o The law expands the number of businesses eligible for SBA loans by increasing the alternate size standard to those small businesses with less than $15 million in net worth and $5 million in average net income.
• Temporary Enhancements to Help with Working Capital, Commercial Real Estate Refinancing
o The law will increase maximum amount of SBA Express loans from $350,000 to $1 million (expires 9/27/2011).
o The law will allow some small businesses to refinance their owner-occupied commercial real estate mortgages into the 504 loan program (expires 9/27/2012).
• Dealer Floor Plan Pilot Extension, Expansion
o The pilot program (begun 2009) will be extended to 2013.
o After the $5-million loan limit is implemented, this will help even more small businesses owners who sell cars, RVs, boats, other titleable inventory.
• Small Business Intermediary Lending Pilot
o The law provides $16 million over the next three years for an intermediary-facilitated microloan program that will target small businesses needing microloans up to $200,000.
New Law Strengthens Small Businesses’ Ability to Compete for Contracts, Including Recommendations from the President’s Task Force on Federal Contracting Opportunities for Small Business
• Equal Treatment across Federal Contracting Programs
o The law reaffirms “parity” among federal small business contracting programs. Contracting officers will be free to choose among businesses owned by women and service-disabled veterans, as well as those participating in HUBZone and 8(a) programs, and soon the women’s contracting program when conducting contracts that are set-aside for small business.
• Better Playing Field for Small Businesses – more accountability, integrity, transparency
o The law gives agency procurement officers more ability to provide both large prime contracts and mircocontracts to small businesses. The law makes it harder for agencies to “bundle” contracts, a practice that often takes opportunities away from small business. The law also has stronger enforcement so agencies will be held more accountable for reaching small business goals.
o The law enforces stronger subcontracting plan requirements for large prime contractors to ensure small businesses are utilized in subcontracting. It also discourages late payments to small subcontractors.
o The law enforces SBA’s continuing efforts to combat fraud, waste, and abuse. Federal agencies, including the Department of Justice, will have more ability to vigorously pursue companies that win contracts by misrepresenting their small business status.
• Small Business Teaming Opportunities
o The law provides $10 million for a new pilot that provides grants that will help small businesses team up with each other to compete for larger and more complex federal government contracts.
New Law Promotes Small Business Exporting, Building on the President’s National Export Initiative
• Export Express Pilot Becomes Permanent
o The law turns the Export Express pilot loan program into a permanent program with 90% guarantees for loans up to $350,000 and 75% for loans between $350,000 and $500,000.
• State Trade and Export Promotion Grants Pilot
o The law provides $60 million in competitive grants over next three years for states to help
small business owners with exporting.
• Increased Staff and Strengthened Export Counseling Resources.
Law Expands Training and Counseling:
• Major Investment in Counseling and Training
o The law provides $50 million in grants available to Small Business Development Centers.
• More Opportunities in Export Counseling (see above)
New Law Provides $12 Billion in Tax Relief to Help Small Businesses Invest in their Firms, Create Jobs
• Extension, Expansion of Tax Cuts – 8 Tax Cuts
1. The highest small business expensing limit ever, of $500,000
2. Carry-back provisions on net operating losses of up to 5 years
3. Accelerated/bonus depreciation
4. Zero capital gains taxes for those who invest in small businesses
5. Increased deductions for start-ups
6. Deductions for employer-provided cell phones
7. Deductions for health insurance costs for the self-employed
8. Limitations on penalties for errors in tax reporting that disproportionately affect small business
Beyond SBA:
• Small Business Lending Fund – $30 billion (administered by Treasury)
o The law will provide smaller community banks with low cost capital (as low as 1%) if they go above and beyond 2009 small business lending levels.
• Establishes State Small Business Credit Initiative (administered by Treasury)
o The law will provide up to $1.5 billion to States to support state run small business lending programs."
Tuesday, September 28, 2010
Thursday, September 16, 2010
IRS to Hold Special Open House Saturday, Sept. 25 for Veterans and Persons with Disabilities
WASHINGTON — The Internal Revenue Service will host a special nationwide open house on Saturday, Sept. 25 to help taxpayers –– especially veterans and people with disabilities –– solve tax problems and respond to IRS notices.
IRS locations will be equipped to handle issues involving notices and payments, return preparation, audits and a variety of other issues. At a previous IRS open house on June 5, over 6,700 taxpayers sought and received assistance and 96 percent had their issues resolved the same day.
The office in Minnesota that will be open from 9am to 2pm on 9/25 is:
Minneapolis Tax Assistance Center
250 Marquette Ave Suite 250
Minneapolis MN 55401
At the Sept. 25 open house, anyone who has a tax question or has received a notice can speak with an IRS employee to get an answer to their question or a clear explanation of what is necessary to satisfy the request. A taxpayer who cannot pay a balance due can find out whether an installment agreement is appropriate and, if so, fill out the paperwork then and there. Assistance with offers-in-compromise — an agreement between a taxpayer and the IRS that settles the taxpayer’s debt for less than the full amount owed — will also be available. Likewise, a taxpayer struggling to complete a certain IRS form or schedule can work directly with IRS staff to get the job done.
Taxpayers requiring special services, such as interpretation for the deaf or hard of hearing, should check local listings and call the local IRS Office/Taxpayer Assistance Center ahead of time to schedule an appointment.
Reminder for Small Tax-Exempt Organizations
The IRS also encourages representatives of small tax-exempt charitable community organizations, many of which serve people with disabilities and veterans, to file Form 990-N before the Oct. 15 deadline. Community organizations that fail to file a Form 990-N by this date risk losing their tax exempt status. As of June 30, more than 320,000 organizations were at risk of losing their exempt status.
The IRS Taxpayer Assistance Centers are opening their doors for a special event on September 25, 2010. This event is a special Open House for Veterans, People with Disabilities, their families and friends. A flyer is attached. I ask all of you to distribute via any means possible to "get the word out" that IRS will be open that Saturday for them. IRS staff can assist taxpayers with making payments, resolving notices, filing returns and many other services that are normally offered during a week day.
WASHINGTON — The Internal Revenue Service will host a special nationwide open house on Saturday, Sept. 25 to help taxpayers –– especially veterans and people with disabilities –– solve tax problems and respond to IRS notices.
IRS locations will be equipped to handle issues involving notices and payments, return preparation, audits and a variety of other issues. At a previous IRS open house on June 5, over 6,700 taxpayers sought and received assistance and 96 percent had their issues resolved the same day.
The office in Minnesota that will be open from 9am to 2pm on 9/25 is:
Minneapolis Tax Assistance Center
250 Marquette Ave Suite 250
Minneapolis MN 55401
At the Sept. 25 open house, anyone who has a tax question or has received a notice can speak with an IRS employee to get an answer to their question or a clear explanation of what is necessary to satisfy the request. A taxpayer who cannot pay a balance due can find out whether an installment agreement is appropriate and, if so, fill out the paperwork then and there. Assistance with offers-in-compromise — an agreement between a taxpayer and the IRS that settles the taxpayer’s debt for less than the full amount owed — will also be available. Likewise, a taxpayer struggling to complete a certain IRS form or schedule can work directly with IRS staff to get the job done.
Taxpayers requiring special services, such as interpretation for the deaf or hard of hearing, should check local listings and call the local IRS Office/Taxpayer Assistance Center ahead of time to schedule an appointment.
Reminder for Small Tax-Exempt Organizations
The IRS also encourages representatives of small tax-exempt charitable community organizations, many of which serve people with disabilities and veterans, to file Form 990-N before the Oct. 15 deadline. Community organizations that fail to file a Form 990-N by this date risk losing their tax exempt status. As of June 30, more than 320,000 organizations were at risk of losing their exempt status.
The IRS Taxpayer Assistance Centers are opening their doors for a special event on September 25, 2010. This event is a special Open House for Veterans, People with Disabilities, their families and friends. A flyer is attached. I ask all of you to distribute via any means possible to "get the word out" that IRS will be open that Saturday for them. IRS staff can assist taxpayers with making payments, resolving notices, filing returns and many other services that are normally offered during a week day.
Friday, September 10, 2010
Patriot Express Loans: What percentage Must be Veteran-Owned?
The article below describes some of the combinations that may be used to apply for the Patriot Express Loan established by the US Small Business Administration and targeted to military veterans.
By Sue Brinck
To qualify under the Patriot Express loan program, an SBA program providing business loans for veterans, 51% of the business must be veteran-owned, including widows or spouses of a veteran. This is simple to calculate if the veteran owns the business 100%. But what about other situations? Here are some of the examples that may apply:
- A veteran owns 51% with the remaining 49% owned by a non-veteran. This is acceptable.
- No one veteran owns 51% but a combination equals that percentage. For example, Fred has a 20% interest and John has a 31% interest, both veterans. This would be acceptable.
- Fred is a veteran and his wife Judy is interested in opening a beauty salon. Even though she is not a veteran, as long as she is the lawful spouse, she can make the application 100% because she may qualify "stand alone" due to her marriage status.
- In the same example just mentioned, Fred and Judy may be on the application as 50% each. This is because either of them by themselves would qualify for the program.
- Hank is not a veteran but his father is. His father may make the application as 51% but he cannot act solely as a co-signer. The father must have some active participation in the business, even though the day-to-day operations are managed by Hank.
Bear in mind that only 20% or more owners of the business fill-out and sign the application. So, for example, if a person only has a 15% interest, they would not be guaranteeing the loan or be part of the loan process.
As seen above, the regulations specify that the current lawful spouse of a veteran or service member may apply under the program. Obviously, this would exclude a divorced spouse, but what about all the gradations in between? Here are some of the rules:
- It is uncertain whether a common law marriage would qualify. It would probably be the case that if your state acknowledges certain benefits between two persons who have a common long relationship, it would also apply to this Federal law.
- If you are simply separated with your spouse, the benefits would probably be available. However there is a gray area if you receive a legal decree of separation.
- But what if you are merely estranged from your spouse and not communicating? Can the other spouse prevent you from signing the papers for a loan? No. This is because you can make the application alone without the knowledge or consent of the other spouse. The other spouse would not be liable for the loan and wouldn't even be entitled to seek information about it (that would be confidential). It is based solely on your credit.
The article below describes some of the combinations that may be used to apply for the Patriot Express Loan established by the US Small Business Administration and targeted to military veterans.
By Sue Brinck
To qualify under the Patriot Express loan program, an SBA program providing business loans for veterans, 51% of the business must be veteran-owned, including widows or spouses of a veteran. This is simple to calculate if the veteran owns the business 100%. But what about other situations? Here are some of the examples that may apply:
- A veteran owns 51% with the remaining 49% owned by a non-veteran. This is acceptable.
- No one veteran owns 51% but a combination equals that percentage. For example, Fred has a 20% interest and John has a 31% interest, both veterans. This would be acceptable.
- Fred is a veteran and his wife Judy is interested in opening a beauty salon. Even though she is not a veteran, as long as she is the lawful spouse, she can make the application 100% because she may qualify "stand alone" due to her marriage status.
- In the same example just mentioned, Fred and Judy may be on the application as 50% each. This is because either of them by themselves would qualify for the program.
- Hank is not a veteran but his father is. His father may make the application as 51% but he cannot act solely as a co-signer. The father must have some active participation in the business, even though the day-to-day operations are managed by Hank.
Bear in mind that only 20% or more owners of the business fill-out and sign the application. So, for example, if a person only has a 15% interest, they would not be guaranteeing the loan or be part of the loan process.
As seen above, the regulations specify that the current lawful spouse of a veteran or service member may apply under the program. Obviously, this would exclude a divorced spouse, but what about all the gradations in between? Here are some of the rules:
- It is uncertain whether a common law marriage would qualify. It would probably be the case that if your state acknowledges certain benefits between two persons who have a common long relationship, it would also apply to this Federal law.
- If you are simply separated with your spouse, the benefits would probably be available. However there is a gray area if you receive a legal decree of separation.
- But what if you are merely estranged from your spouse and not communicating? Can the other spouse prevent you from signing the papers for a loan? No. This is because you can make the application alone without the knowledge or consent of the other spouse. The other spouse would not be liable for the loan and wouldn't even be entitled to seek information about it (that would be confidential). It is based solely on your credit.
Friday, September 3, 2010
Great Plains Venture Capital Fair - Application Fee Waived!
The 2nd annual Great Plains Venture Capital Fair (GPVCF), which showcases the region's most promising companies for an audience of venture investors and service professionals from regional and national venues has waived it's application fee for companies interested in presenting.
Companies interested in presenting at GPVCF should submit the application form to Molly Sullivan at gpvcf@ideacenternd.org no later than Sept 14, 2010.
For more information, go to www.marketplaceofideas.org or contact Molly at gpvcf@ideacenternd.org
Format: The executive summary shoudl fully describe the company's business, market opportunity, innovative solution, value proposition, competitive advantage, entrepreneurial team and financial highlights and offerings (not to exceed 4 pages in length)
When - September 28, 2010
Where - FargoDome - Fargo, ND
The 2nd annual Great Plains Venture Capital Fair (GPVCF), which showcases the region's most promising companies for an audience of venture investors and service professionals from regional and national venues has waived it's application fee for companies interested in presenting.
Companies interested in presenting at GPVCF should submit the application form to Molly Sullivan at gpvcf@ideacenternd.org no later than Sept 14, 2010.
For more information, go to www.marketplaceofideas.org or contact Molly at gpvcf@ideacenternd.org
Format: The executive summary shoudl fully describe the company's business, market opportunity, innovative solution, value proposition, competitive advantage, entrepreneurial team and financial highlights and offerings (not to exceed 4 pages in length)
When - September 28, 2010
Where - FargoDome - Fargo, ND
Tuesday, August 31, 2010
Inventors Network- Licensing Event, September 28th, with Stephen Key
Licensing Expert, Stephen Key will be covering a step-by-step process for bringing ideas/inventions to market through licensing. This workshop is geared for individuals and companies who have ideas for products and would like to learn an easy way to bring them to market, for those who provide services for the creative endeavor (engineers, attorneys, graphic designers, marketing personnel, manufacturers, researchers, paralegals, etc) and for family, friends and colleagues who are interested in understanding and helping with the process.
The event is from 5-9 on Tuesday, September 28th at Dunwoody Institute in Minneapolis and costs $10-$20, depending upon membership in Inventors’ Network. Stephen only comes to the Twin Cities every 2-3 years to present live seminars, so this is a "don't miss" opportunity.
What Attendees Will Learn
Attendees will learn a simple and effective step-by-step process on how to license their inventions:
- Licensing versus Manufacturing
- Creating a Marketable Product
- Protecting Your Inventions
- Bringing Your Product to Life
- How to Get Your Product Inside Companies, Easily
- What to Submit and How
- Negotiating Terms and Royalties
- Signing a Contract
- How to Keep Moving Ahead
- And more!
In addition to the presentation, there will be time for question & answers.
About Stephen Key
Stephen has been licensing products for over 30 years in a variety of industries (beverage, pharmaceutical, music, entertainment, toys...), has been featured in national media outlets (Dr. Phil, The Big Idea with Donny Deutsch, USA Today...), speaks world-wide on the topic of licensing and educates people on how to bring their products to market. In addition to licensing, Stephen has also manufactured and distributed products and has sold his products in retailing giants such as Wal-mart, Walgreens, 7-Eleven and Disney theme parks and stores world-wide. You can learn more about him at http://www.inventright.com.
Event Details
The event is being sponsored by Inventors’ Network http://www.inventorsnetwork.org.
WHO: Licensing Expert, Stephen Key
WHAT: Learn How to Bring Ideas to Market
WHEN: Tuesday, September 28th, 2010
TIME: 5:00 - 9:00, program begins at 5:30. (For those of you who need to eat on-site, the cafeteria will be open until 8:00. Food will not be served during the meeting).
WHERE: Dunwoody College of Technology, Minneapolis
COST:
$10 for Inventors’ Network Members
$20 for Non-members
Registration
Online: www.InventingCoach.com (Under Store, Stephen Key Event) Link = http://www.inventingcoach.com/store_key_event.html
At the event: Cash and check preferred.
For More Information
Jack Smith
952-470-8045
DrawPatent@aol.com
Linda Pollock
952-405-6910
Linda@InventingCoach.com
Licensing Expert, Stephen Key will be covering a step-by-step process for bringing ideas/inventions to market through licensing. This workshop is geared for individuals and companies who have ideas for products and would like to learn an easy way to bring them to market, for those who provide services for the creative endeavor (engineers, attorneys, graphic designers, marketing personnel, manufacturers, researchers, paralegals, etc) and for family, friends and colleagues who are interested in understanding and helping with the process.
The event is from 5-9 on Tuesday, September 28th at Dunwoody Institute in Minneapolis and costs $10-$20, depending upon membership in Inventors’ Network. Stephen only comes to the Twin Cities every 2-3 years to present live seminars, so this is a "don't miss" opportunity.
What Attendees Will Learn
Attendees will learn a simple and effective step-by-step process on how to license their inventions:
- Licensing versus Manufacturing
- Creating a Marketable Product
- Protecting Your Inventions
- Bringing Your Product to Life
- How to Get Your Product Inside Companies, Easily
- What to Submit and How
- Negotiating Terms and Royalties
- Signing a Contract
- How to Keep Moving Ahead
- And more!
In addition to the presentation, there will be time for question & answers.
About Stephen Key
Stephen has been licensing products for over 30 years in a variety of industries (beverage, pharmaceutical, music, entertainment, toys...), has been featured in national media outlets (Dr. Phil, The Big Idea with Donny Deutsch, USA Today...), speaks world-wide on the topic of licensing and educates people on how to bring their products to market. In addition to licensing, Stephen has also manufactured and distributed products and has sold his products in retailing giants such as Wal-mart, Walgreens, 7-Eleven and Disney theme parks and stores world-wide. You can learn more about him at http://www.inventright.com.
Event Details
The event is being sponsored by Inventors’ Network http://www.inventorsnetwork.org.
WHO: Licensing Expert, Stephen Key
WHAT: Learn How to Bring Ideas to Market
WHEN: Tuesday, September 28th, 2010
TIME: 5:00 - 9:00, program begins at 5:30. (For those of you who need to eat on-site, the cafeteria will be open until 8:00. Food will not be served during the meeting).
WHERE: Dunwoody College of Technology, Minneapolis
COST:
$10 for Inventors’ Network Members
$20 for Non-members
Registration
Online: www.InventingCoach.com (Under Store, Stephen Key Event) Link = http://www.inventingcoach.com/store_key_event.html
At the event: Cash and check preferred.
For More Information
Jack Smith
952-470-8045
DrawPatent@aol.com
Linda Pollock
952-405-6910
Linda@InventingCoach.com
Thursday, August 5, 2010
August Web Chat: Tips and Advice on Health Care Tax Credits Provided for Small Business Owners
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Thursday, August 12, 2010, from 1:00 p.m. to 2:00 p.m., ET
WASHINGTON – The SBA’s Web Chat will highlight small business health care, with a focus on how the Affordable Care Act will benefit small business owners through available tax-saving incentives. Participants can learn about the newest tax credits they can take advantage of, and additional tax provisions to be implemented during the next several years.
WHO: John Tuzynski, chief of Employment Tax and Specialty Programs for the Small Business Self-Employed (SB/SE) Division at the Internal Revenue Service, will host the August web chat on “Health Care and Small Business.”
WHAT: SBA’s Web chat series provides small business owners with an opportunity to discuss relevant business issues online with experts, industry leaders and successful entrepreneurs. Chat participants will have direct, real-time access to the Web chats via questions they submit online in advance and during the live session, with instant answers.
WHEN: August 12, 2010, 2010, 1 p.m. ET
Tuzynski will answer questions for one hour.
HOW: Participants can join the live Web chat by going online to www.sba.gov, and clicking “Online Business Chat.” Web chat participants may post questions before the August 12th chat by visiting http://web.sba.gov/livemeeting/Aug10/ and posting their questions online.
# # #
Advisory Date: August 4, 2010 Contact: Cecelia Taylor (202) 401-3059
Advisory Number: MA10-12 Internet Address: http://www.sba.gov/news
---
Thursday, August 12, 2010, from 1:00 p.m. to 2:00 p.m., ET
WASHINGTON – The SBA’s Web Chat will highlight small business health care, with a focus on how the Affordable Care Act will benefit small business owners through available tax-saving incentives. Participants can learn about the newest tax credits they can take advantage of, and additional tax provisions to be implemented during the next several years.
WHO: John Tuzynski, chief of Employment Tax and Specialty Programs for the Small Business Self-Employed (SB/SE) Division at the Internal Revenue Service, will host the August web chat on “Health Care and Small Business.”
WHAT: SBA’s Web chat series provides small business owners with an opportunity to discuss relevant business issues online with experts, industry leaders and successful entrepreneurs. Chat participants will have direct, real-time access to the Web chats via questions they submit online in advance and during the live session, with instant answers.
WHEN: August 12, 2010, 2010, 1 p.m. ET
Tuzynski will answer questions for one hour.
HOW: Participants can join the live Web chat by going online to www.sba.gov, and clicking “Online Business Chat.” Web chat participants may post questions before the August 12th chat by visiting http://web.sba.gov/livemeeting/Aug10/ and posting their questions online.
# # #
Advisory Date: August 4, 2010 Contact: Cecelia Taylor (202) 401-3059
Advisory Number: MA10-12 Internet Address: http://www.sba.gov/news
Thursday, July 29, 2010
Overhauled SBA Website to Go Live in the Fall
The new SBA.gov will make it easier for small businesses, lending institutions, small business counselors and other members of the small business community to more quickly find the information they need through a simplified navigation structure. In addition, new features will allow users to tailor their experience to provide information that is specific to their needs and location.
The new website also will offer a dedicated lender area that helps banks and other financial institutions that partner with the SBA.
The website redesign is part of the SBA’s goal to create a dynamic online presence that delivers information to customers wherever they are online. To achieve this goal, the agency recently began using social media to reach constituents through a variety of online channels such as Facebook and Twitter. The agency also recently launched an improved search function on the current SBA.gov website which vastly improves the speed at which users can find the information they are looking for in advance of the launch of the new site this fall.
For more information on the SBA’s online expansion, please visit www.sba.gov/next.
Release Date: July 29, 2010 Contact: Cecelia Taylor (202) 401-3059
Release Number: 10-41
The new SBA.gov will make it easier for small businesses, lending institutions, small business counselors and other members of the small business community to more quickly find the information they need through a simplified navigation structure. In addition, new features will allow users to tailor their experience to provide information that is specific to their needs and location.
The new website also will offer a dedicated lender area that helps banks and other financial institutions that partner with the SBA.
The website redesign is part of the SBA’s goal to create a dynamic online presence that delivers information to customers wherever they are online. To achieve this goal, the agency recently began using social media to reach constituents through a variety of online channels such as Facebook and Twitter. The agency also recently launched an improved search function on the current SBA.gov website which vastly improves the speed at which users can find the information they are looking for in advance of the launch of the new site this fall.
For more information on the SBA’s online expansion, please visit www.sba.gov/next.
Release Date: July 29, 2010 Contact: Cecelia Taylor (202) 401-3059
Release Number: 10-41
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