2010 Budget provides $113 million to support Small Business Development Centers

The 2010 budget provides funding to continue SBDC operations, and additional funds to help small businesses in America in a number of ways.

Click here for a summary of the funding impacts prepared by the US SBA.

Senators Landrieu & Snowe Introduce Bill to Create Jobs and Increase Small Business Lending

The US Senate Committee on Small Business and Entrepreneurship Chair Mary Landrieu, (D-La.), and Ranking Member Olympia J. Snowe, (R-Maine), introduced legislation to increase access to capital for small businesses and help create jobs. S. 2869, the "Small Business Job Creation and Access to Capital Act of 2009" would increase the small business loan limit to as high as $5.5 million and extend for a year the fee eliminations and increased guarantee set to expire under the Recovery Act.

Key Points;

Specifically, the "Small Business Job Creation and Access to Capital Act of 2009" would:

* Increase the loan limit on 7(a) loans from $2 million to $5 million;
* Increase the loan limit on 504 loans from $1.5 million to $5.5 million;
* Increase the loan limit on microloans from $35,000 to $50,000 and increase the maximum loan made to a microloan intermediary from $3.5 million to $5 million;
* Allow the 504 loan program to refinance short-term commercial real estate debt into, long-term, fixed rate loans;
* Extend the authorization to provide 90 percent guarantees on 7(a) loans and fee elimination for borrowers on 7(a) and 504 loans through December 31, 2010; and
* Direct the SBA to create a website where small businesses can identify lenders in their communities.

Read the full story here.

Tax Preparation Help for Small Business Owners

Live Web Chat with AICPA Vice President of Taxation Thomas P. Ochsenschlager Wednesday, December 16, from 1:00 p.m. to 2:00 p.m., ET

WASHINGTON – The SBA’s Web Chat series picks up in December, as the 2009 tax filing season approaches. Small business owners can begin to prepare now with useful year-end tax tips and information. Business owners can learn more about tax savings tips and mistakes to avoid.

WHO: Thomas P. Ochsenschlager, Vice President of Taxation, American Institute of Certified Public Accountants (AICPA) will host the SBA’s December Web chat on “Tax Preparation for Small Business Owners.” Ochsenschlager will answer questions about the importance of year-end tax planning and preparation.

WHAT: SBA’s Web chat series, providing 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: December 16, 2009, 1 p.m. ET
Ochsenschlager will answer questions for one hour.

HOW: Web chat participants can join the Web chat on December 16 online at https://eweb1.sba.gov/livemeeting/Dec09. They also can post questions for Ochsenschlager in advance online at the same URL.

To review archives of past Web chats, visit online at http://www.sba.gov/tools/monthlywebchat/index.html

US SBA Advisory Number: MA09-14

US SBA ARC Loan Update

Here's a quick snapshot of the impact of the US SBA ARC Loans, listed by US SBA Regions and also a 'Fact Sheet' on the impact of the ARC loans. The MnSBDC is located in Region 5.

Click here for Fact Sheet

Click here for a Snapshot Graphic

US SBA Economic Injury Disaster 11956 of ND with affected MN Counties Listed

Attached is a PDF file of the contiguous MN counties covered by the above designated disaster.

In MN it is the following counties;
Clay, Kittson, Marshall, Norman, Polk, Traverse, Wilkin

Click here for the file

Bonding Assistance available for Disadvantaged Business Enterprise (DBE) for DOT projects

The bonding assistance provided by the DBE ARRA BAP will allow DBEs with traditionally less working capital than large transportation-related contractors to perform on transportation infrastructure projects receiving ARRA funding from any DOT Operating Administration, such as Federal Highway Administration (FHWA), Federal Transit Administration (FTA), Federal Aviation Administration (FAA), Federal Railroad Administration (FRA), and the Maritime Administration (MARAD).

The term DBE means a for-profit small business concern that is owned and controlled by one or more socially and economically disadvantaged individual(s), including women, and is set forth in Title 49 Code of Federal Regulation Part 26 (49 CFR 26).

Click here to view the PDF file with all the information.

Link to the complete program information.

Credit still tight for small businesses

The link below to an article by the Dec 2009 edition of CFO magazine captures the continued woes of small business to get credit. An SBDC Consultant with the MA-SBDC is mentioned, and the CEO of the ASBDC, Charles "Tee" Rowe, is quoted along with the past Chair of the Atlanta SCORE chapter.

Click here for the article.

US SBA sets up a Queue for 7(a) and 504 loans under the stimulus program.

The US SBA has set up a webpage with information on the likelihood of additional funds becoming available under the Recovery Act and the Queue established for this purpose. There is a useful gauge on the page listing the 'Funding Likelihood'.

Click here for more information.

Using students in a learning capacity with the SBDC program

At the Southwest SBDC in Marshall, MN, Regional Director, Liz Struve, works closely with Dr. Michael Rich, Marketing Professor at Southwest Minnesota State University and Executive Director of the Southwest Marketing Advisory Center (SMAC) to develop critical information for businesses on specific demographic targets.

This helps small businesses better understand and target their markets, and even assess if the market will be large enough to support the business. This information can be the difference between success and failure of the business. Carrying out the research and developing the reports are Southwest Minnesota State University students, gaining hands-on experience while helping the Southwest SBDC help their small business clients.

A great win/win situation, and one that the MnSBDC strives for in all of their Regional Centers with their educational hosts.

Click here for an advanced peek at the forthcoming article appearing in April 2010 issue of the Journal of Business and Industrial Marketing.

$10 Billion reduction in Small Business Lending by Big Banks

MnSBDC clients have been experiencing the "credit crunch" first hand. While Mn leads the nation in ARC loans that have helped small business clients to continue to operate, these loans come primarily from regional and community banks rather than the large national banks. The latest data indicates that the large banks that have received TARP funds designed to help spur lending to small business clients have in fact pulled back from lending to small business.

The notable exception among big banks is US Bank (US Bancorp), headquartered in Minneapolis, which increased it's lending by almost 2%. Also, BB&T Bank (located in the Southeast) remained essentially at the same level for small business lending.

Click here for the full story.

Twin Cities Metro SBDC Regional Director, Mike Ryan, featured in news article.

Mike Ryan, Regional Director of the Twin Cities Metro SBDC hosted by the University of St. Thomas is quoted in this news article on entrepreneurs who are starting up their own businesses by 'Finance and Commerce' online magazine.

Click here for full article.

Fee Relief on US SBA Guarantee Loans 7(a) and 504 to end.

The American Recovery and Reinvestment Act of 2009 (the "Recovery Act"), provided fee relief for US SBA Guarantee Loans for the 7(a) and 504 program. The amount of funds allocated for this activity are running out, and the US SBA has put in place procedures to end the fee relief for the programs, along with ending the higher guarantee amounts associated with the 7(a) loans.

They have established a deadline of November 23 as the date to begin implementation of the new transition procedures. At that point the loan request will be put in a queue and depending on availability of funds will be funded under the Recovery Act or not. If additional funds are provided by Congress, the program may be continued or modified as directed by any Congressional action.

Click here for the complete transition procedural notice.

Minnesota Leads the Nation in the number of ARC Loans.

As of October 26, 2009, 3,598 ARC loans have been approved. By the end of FY09, the program approved $93 million of the alloted $336 million. Minnesota has the most nationwide with 446 ARC loans.

Here's a link to the details from the US SBA Website.

US SBA Loan Servicing Matrix

On Oct 20, 2009 the US SBA published their latest 'Unilateral Action Matrix' for Servicing and Liquidation Actions for their popular 7a loan.

What is this and why is it important?

If you don't have a US SBA 7a loan it may not interest you, but if you do have this type of loan or are servicing this loan the information gives the 'rules of the road' for what you may and may not do in servicing and liquidating the 7a loan.

For our MnSBDC Professional Business Consultants who work with clients and lenders that use a 7a loan, this information is useful for understanding options, especially if the client is in a work out situation.

Here's the link to the PDF file matrix located on the US SBA Website.

Free Money?

The MnSBDC (and other SBDC networks around the country) are constantly asked - is there 'free money' available in the form of 'grants'? The short answer is 'There is no free money for small, for-profit businesses'. However - as with many things in life - there are always small exceptions.

Below is a link to a recent news article that outlines how to go about trying to find any free money that may be available, with a clear caution that many firms will try to sell you a 'list', 'process', software, DVD or other 'road to riches' that will only enrich the firm selling you the "secret", and leave you out of luck.

Your best source to find grants at the federal level is the website "Grants.Gov" which is the complete listing of ALL federal grants available for everything and anything.

Here's a link to the article to find some other tips to "potentially" find some funds - and many times it must be "matched" with your own money before you can access it, by the way. To repeat, there really is no "free money" out there for small, for-profit businesses, and you would be better served to invest your time and effort trying to find ways to improve your small business operations. The SBDC program nationwide is ready to help small businesses to start, grow and succeed.

Link to online article on finding grant money.

(http://money.cnn.com/2009/10/27/smallbusiness/free_money_small_business_grants/index.htm?postversion=2009110108)

Inventors Bonanza!

What: Innovation Roadshow Workshop, brought to you by the US Department of Commerce's NIST/MEP Network
When: Saturday, November 21st - 8:30 a.m. to 5:00 p.m.
Where: Mall of America Executive Center, 4th Floor, 60 E Broadway, Bloomington MN 55425 park in P5
Fee: $99.00, includes lunch and 2 breaks

It's all about helping you get your invention to market & includes:
• Access to a live invention marketing workshop by Eureka! Ranch International
• A $2000 market research report endorsed by the U.S. Department of Commerce's National Institute of Standards & Technology
• Publication of invention research reports to the official USA National Innovation Marketplace
• Help in making connections to buyers, licensees, manufacturers, etc., from the 1,600 person strong NIST/MEP network.

For more information - go to the Minnesota Inventors Congress website and look for the "Innovation Roadshow" link on the Right Hand side of the site.

UMC BUSINESS STUDENTS GIVE PRESENTATION TO BEMIDJI BUSINESS MEN AND WOMEN

In collaboration with Jorge Prince, director of the Northwest Minnesota Small Business Development Center (SBDC), the students addressed the use of social media in communicating and marketing with customers.

Click here for the full story.

In addition to this presentation, the students are working with regional small businesses through the SBDC to develop marketing plans that address those businesses’ specific needs.

Statement by Administrator Karen Mills on President Obama’s Proposal to Raise SBA Loan Limits
Release Date: October 21, 2009 Release Number: 09-73
Contact: Hayley Matz (202) 205-6948 Internet Address: http://www.sba.gov/news

WASHINGTON – The U.S. Small Business Administration today issued the following statement by SBA Administrator Karen Mills on today’s proposal by President Barack Obama to raise the maximum loan size for SBA-backed loans to small business:

“America’s 29 million small businesses have been hard hit in this recession. Nine months ago, President Obama sent small businesses a life line: the American Recovery and Reinvestment Act. Since then, the SBA has supported more than 33,000 loans for a total of almost $13 billion in small business lending. This has helped save or create tens of thousands of jobs.

“But there is much more work to be done, which is why President Obama today pledged his support for legislation that would increase the maximum size of some SBA loans. Increasing maximum loan sizes will allow the SBA to ensure that more small business owners and entrepreneurs can get access to the credit they need to expand their operations and create jobs.

“The President also announced additional support from the Treasury Department for smaller community lenders that are committed to increasing their lending to small businesses. Secretary Geithner and I will host a conference on small business lending with Members of Congress, regulators, lenders and the small business community. The conference will discuss additional efforts that can be taken to provide small businesses with access to credit. These steps, coupled with SBA’s ongoing efforts, will help small businesses grow and create jobs throughout America.”

Specifically, President Obama called for:
• Increasing the size of SBA’s 7(a) loan from $2 million to $5 million.
• Increasing the size of SBA’s 504 loan from $2 million to $5 million for standard borrowers (supporting a total project of $12.5 million) and from $4 million to $5.5 million for manufacturers (supporting a total project of $13.75 million).
• Increasing the size of SBA’s Microloan from $35,000 to $50,000.

A copy of the President’s remarks and a fact sheet on the announcement can be found at:
http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_rcvry_obama_evnt_remrks09.pdf.

A fact sheet on the proposal can be found at: http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_rcvry_new_effort_credit_sb.pdf

# # #

SBA disaster loans available in Minnesota


MINNEAPOLIS — The Small Business Administration says disaster loans are available in some eastern Minnesota counties because of the drought that began earlier this year.

The affected counties are Carlton, Chisago, Goodhue, Pine, St. Louis, Wabasha, Washington and Winona. Those counties are eligible because they're next to Wisconsin counties where the U.S. Department of Agriculture issued a disaster declaration.

The SBA says its federal economic injury disaster loans are available to small businesses, small agricultural cooperatives and most private nonprofits of all sizes.

Farmers and ranchers are not eligible to apply to the SBA, but nurseries are eligible for losses caused by drought.

The application deadline is May 25, 2010.

———

On the Net:

Loan applications can be downloaded from the SBA Web site:

http://www.sba.gov/services/disasterassistance

SBDC Client Featured in the Press

This SBDC client is featured in the local newspaper in the North Central MnSBDC Region. The client developed an infant support pillow to help support her child's head and neck. The Professional Business Consultant who assisted the client was Mr. Tom Willett (Thanks Tom!), and thanks also to Regional Director Greg Bergman for sharing this story.

Please consider contacting your local media to feature other successful SBDC clients in your region. Click on the link below to read the entire story.

Baby Elephant Ears

SBA Launches New Online Training Course: Winning Federal Contracts – A Guide for Women Entrepreneurs

WASHINGTON ─ Women who own small businesses will be able to use a new online U.S. Small Business Administration training course to learn how to identify and take advantage of federal contracting opportunities. The new training course, Winning Federal Contracts: A Guide for Women Entrepreneurs, is part of an ongoing government-wide initiative to promote opportunities for women-owned businesses in the area of government contracting.

This free online tutorial is a practical and easy to use guide that walks a woman-owned small business through the contracting process. SBA is committed to ensuring that women-owned businesses receive at least 5 percent of federal contracts and believes better training opportunities are central to meeting this government-wide goal.

Winning Federal Contracts course is designed to help women entrepreneurs learn about the federal procurement process and to prepare them to compete for contracting opportunities. The self-paced guide uses audio and script to provide information about contract rules, how to sell to the government and where to find contracts.

The Winning Federal Contracts course is available on SBA’s Web site at www.sba.gov or directly at www.sba.gov/fedcontractingtraining. It is indexed by subject matter, and includes direct links to additional contracting resources

Final Federal Fiscal Year SBA Guarantee Loan Results

Here are the final results for MN Lenders with SBA Guarantee Loans

Minnesota Lender Activity
FY 2009 As of September 30, 2009

SBA PRIME Grants to Assist Micro Entrepreneurs

The U. S. Small Business Administration announced today that 58 non-profit organizations from 32 states and the will receive grant funding under the Program for Investment in Microentrepreneurs Act (PRIME) to assist low-income and very low-income entrepreneurs with training and technical assistance to start, operate, and grow their businesses.

SBA’s PRIME grant funding is intended to establish management and technical assistance, access to capital and other forms of financial assistance, and business training and counseling through qualified organizations to small businesses with five or fewer employees that are economically disadvantaged, and to businesses owned by low-income individuals, including those residing on Indian reservations and tribal lands.

The grant funding received will be used to provide training and technical assistance to disadvantaged microentrepreneurs, to provide capacity building services to organizations that assist with microenterprise training and services, and to aid in researching and developing the best practices in the field of microenterprise development and technical assistance programs for disadvantaged microentrepreneurs.

In the state of MN, the following grant was awarded;

American Indian Econ. Development Fund - $50,000

ARC Loans in MN over 350!!

The latest count for ARC loans in MN is over 350. See link below for the latest information;

http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_recovery_arc_lenders.pdf

7(a) Fees and 504 Fees Effective On
October 1, 2009

Each year SBA reviews the fees payable to SBA by 7(a) participating lenders (Lenders), certified development companies (CDCs), and borrowers to determine if they are sufficient to cover the estimated costs of the 7(a) and 504 loan programs. The purpose of this notice is to announce the fees effective October 1, 2009, for both programs for loans approved during FY 2010.
7(a) Loan Program
For 7(a) loans approved on or after October 1, 2009, the “Yearly Fee” due from Lenders to SBA will be 0.55 percent (55 basis points) of the guaranteed portion of the outstanding balance on the 7(a) loan. This fee remains the same as for FY 2009. The 7(a) Yearly Fee is imposed under Section 7(a)(23) of the Small Business Act and is referred to as the “ongoing service fee” in the 7(a) Authorization Wizard.
All other fees in the 7(a) loan program will be the same as for FY 2009. A description of these fees may be found in SOP 50 10 5.
504 Loan Program
For 504 loans approved on or after October 1, 2009, the “Annual Fee” paid by borrowers on an ongoing basis to SBA will be increased from zero percent to 0.389 percent (38.9 basis points) of the outstanding balance of the 504 loan. The 504 Annual Fee is imposed under Section 503(b)(7) of the Small Business Investment Act.
All other fees in the 504 loan program will be the same as for FY 2009, including the one-time guaranty fee that SBA is authorized to charge under Section 503(d)(1) of the Small Business Investment Act (which remains at zero). A description of these fees may be found in SOP 50 10 5.
Recovery Act Loans
Fees for 7(a) and 504 loans made under the American Recovery and Reinvestment Act will continue to follow the policies in the Federal Register Notices of June 8, 2009 (Business Loan Program Temporary Eliminations/Reductions in Fees, 74 FR 27196)(Business Loan Program Temporary Increased Guaranty Percentage, 74 FR 27199).
Notification and Questions
These fee changes are effective for Fiscal Year 2010, unless superseded by another Information Notice. SBA field offices must notify Lenders and CDCs of these changes.

New IRS Rule Allows Commercial Loan Modifications Before Default
18-September-2009
David L. Kuosman and Peter J. Withoff

Earlier this week, the IRS issued several highly anticipated guidelines that will allow certain borrowers who are current on their commercial mortgage loan obligations to negotiate and modify their loans without triggering an adverse tax consequence to the holder of the loan. The guidance allows loan servicers to modify these loans regardless of when they mature and whether they are performing if the servicer believes there is a significant risk of future default under the loans.

More information is available from the article on the Faegre & Benson, LLP law firm website.

Click HERE to go to the article.

SBA Administrator and Local Officials Spotlight Economic Relief to Minnesota Small Business

Over $10 Million Dollars in ARC Loans Already Disbursed to Nearly 700 Businesses in the Twin Cities Through the U.S. Small Business Administration

SBA Administrator Karen Mills joined Venture Bank at a news conference on Wednesday, September 23 at Crystal Kitchen Center (3620 Winnetka Ave N, Crystal, MN) to recognize the positive impact the American Recovery and Reinvestment Act (ARRA) is having on local small businesses’ ability to secure financing.

JoLynn Johnson of Crystal, Minnesota took advantage of SBA’s loan products by accessing an American Recovery Capital (ARC) loan which helped her meet day to day operating costs. The ARC loan provides no interest, deferred repayment loans of up to $35,000 used to pay down existing debt---providing a “bridge” for viable small businesses facing economic challenges.

“The ARC loans are another tool in the SBA toolkit which can provide critical support to small business owners like JoLynn Johnson to fulfill the American dream and keep their doors open,” said Administrator Karen G. Mills.

SBA’s instant capital infusion allowed JoLynn to get back on track. "Cutting costs, managing expenses and doing everything right doesn’t help when the customers aren’t buying due to uncertainty in the economy," says JoLynn Johnson, President of Crystal Kitchen Center, Inc. "The ARC loan is helping my business survive through these tough economic times."

Since 1975, Crystal Kitchen Center has earned a reputation in the upper Midwest for providing quality and leadership in kitchen and bath design. They work with new construction as well as renovations, providing services from design to complete "turn-key" remodeling. With their 8800 square foot showroom customers can find inspiration for their style. Crystal Kitchen Center prides themselves on designing and supplying cabinetry and counter tops for unique kitchens, bathrooms, entertainment centers, laundry rooms, home offices, lower levels, and outdoor kitchens. Their award-winning Certified Kitchen Designers are also versed in aging-in-place and green design, helping make their customer’s dreams come true.

"Now is the time for SBA loans. With 90% guarantees, temporary fee eliminations and the ARC loan program, Venture Bank is able to meet our goal of helping our customers grow their business and be successful. We are very strong supporters of the SBA loan programs," says Michael T. Zenk, President of Venture Bank. Venture Bank was founded in 2001. They currently maintain three locations in Bloomington, Golden Valley and Eagan. Venture Bank is one of Minnesota’s most active SBA lenders.

Since the signing of ARRA, SBA’s loan products have made a significant impact throughout the State with weekly increases in loan dollar volume. To date, SBA has supported $337.4 million dollars in small business lending to over 1,000 Minnesota small businesses.

DEED honors Cass County EDC

The Bemidji Pioneer notes that the Cass County Economic Development Corporation has been recognized by the Minnesota Department of Employment and Economic Development in its 2008 Annual Report for the Cass County EDC’s work on the Chase on the Lake redevelopment project.

Excellent recognition of the work of Ms. Gail Leverson, MnSBDC Professional Business Consultant and Executive Director of the Cass County EDC working with Chase on the Lake redevelopment project.

http://www.bemidjipioneer.com/event/article/id/100011419/

“Partnerships with county and regional economic development organizations like the Cass County Economic Development Corporation are key to the success of the Small Business Development Centers,” said Greg Bergman, regional director of the SBDC at Central Lakes College. “Having someone experienced and knowledgeable within the county adds a lot of value to the services we provide on a regional basis.”

The EDC is a satellite center of the North Central Minnesota SBDC in Brainerd. Through this partnership, the EDC offers counseling to relocating, expanding or new businesses in Cass County. The EDC is a local nonprofit corporation created to assist with job creation and capital investment throughout Cass County.

Sell the Business??
The Association of SBDC has a useful e-zine sent to all members every few weeks. One article from Harvard Business online in the current edition caught my eye. It asks the question; Should Business Owners consider selling their business in the current economy?
Here's a link to the article cached on the ASBDC website;

Should Entrepreneurs Sell in Today's Economy?

SBA "Standard Operating Procedures" (SOP) for Lenders and Certified Development Companies (CDC)

The SBA occassionally updates and modifies it's SOP for 7a and 504 loans. These are the rules and guidelines for how it operates, and this SOP gives critical information to lenders and CDCs on SBA loans. This SOP is effective from Oct 1, 2009.

Why is this important to MnSBDC Professional Business Consultants?

If you want to ensure your clients are 'eligible' for the loan, have the appropriate and acceptable 'collateral' for the loan, and understand the conditions of the loan - to ensure you are properly advising your client - this document is a good place to start.

SOP 50 10 5(B)

http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sops_50105b.pdf

SBA Administrator Mills Encourages Americans to Plan for Disasters During National Preparedness Month
WASHINGTON –Citing current wildfires in Southern California and several storms impacting coastal regions, the U.S. Small Business Administration is encouraging Americans to be prepared. In a message posted today on YouTube, Administrator Karen G. Mills reminds the public about National Preparedness Month and the devastating effects of disaster, encouraging everyone to develop and implement disaster preparedness plans.

“There’s a tendency to think that a large-scale disaster is not going to happen ‘where I live,’” said SBA Administrator Karen G. Mills. “We should all realize that storms, floods, earthquakes, fires and man-made disasters can strike at any time and anywhere. Taking responsibility for your own post-disaster recovery is a good step toward protecting your family, your business and your community.”

The U.S. Small Business Administration is one of many state and local government and private sector coalition partners participating in this September’s National Preparedness Month.
The Administrator’s video can be found at www.youtube.com/sba.

To prepare for disasters, SBA offers the following tips:
Develop a solid emergency response plan. Find evacuation routes from the home or business and establish meeting places. Make sure everyone understands the plan beforehand. Keep emergency phone numbers handy. Business owners should designate a contact person to communicate with other employees, customers and vendors. Homeowners, renters and business owners should ask an out-of-state friend, colleague or family member to be a “post-disaster” point of contact, supporting the flow of information about short-term relocations, recovery, additional sources of assistance, etc.
Make sure you have adequate insurance coverage. Disaster preparedness begins with having adequate insurance coverage—at least enough to rebuild your home or business. Homeowners and business owners should review their policies to see what is or isn’t covered. Companies should consider business interruption insurance, which helps cover operating costs during the post-disaster shutdown period. Flood insurance is essential. To find out more about the National Flood Insurance Program, visit the Web site at http://www.floodsmart.gov/.
Copy important records. It’s a good idea to back up vital records and information saved on computer hard drives, and store that information at a distant offsite location in fireproof safe deposit boxes. You should have copies/back ups of important documents ready to take with you if you have to evacuate
Create a “Disaster Survival Kit.” The kit should include a flashlight, a portable radio, extra batteries, first-aid supplies, non-perishable food, bottled water, a basic tool kit, plastic sheeting and garbage bags, cash, and a digital camera to take pictures of the property damage after the storm.

More preparedness tips for businesses, homeowners and renters are available on the SBA’s Web site at www.sba.gov/disasterassistance.

The Institute for Business and Home Safety (http://www.disastersafety.org/ ) also has information on protecting your home or business. To learn more about developing an emergency plan, visit the DHS’s Ready Campaign Web site at http://www.ready.gov/ or call 1-800-BE-READY to receive free materials.

Following a disaster, the SBA makes low-interest loans to homeowners, renters and non-farm businesses of all sizes. Homeowners may borrow up to $200,000 to repair or replace damaged real estate. Individuals may borrow up to $40,000 to cover losses to personal property.
Non-farm businesses and non-profit organizations of any size may apply for up to $2 million to repair or replace disaster damaged business assets and real property. Small businesses that suffered economic losses as a direct result of the declared disaster may apply for a working capital loan up to $2 million, even if the property was not physically damaged.
To learn more about the SBA’s disaster assistance program, visit the Web site at www.sba.gov/disasterassistance.

Release Date: September 1, 2009 - - - Contact: Carol Chastang (202) 205-6987
Release Number: 09-64 - - - Internet Address: http://www.sba.gov/news
# # #

SBA Launches New Online Training Course:
‘How to Win Federal Contracts’
Online Course Part of Federal Government-wide Initiative

WASHINGTON ─ The U.S. Small Business Administration today launched a new online training course to help strengthen access to contracting opportunities for small businesses, including those owned by women, minorities, disadvantaged individuals and veterans.

The training course, “Recovery Act Opportunities: How to Win Federal Contracts,” is part of a federal government-wide initiative announced last month by President Obama and being led by SBA and the Department of Commerce. As part of the outreach to small businesses, the comprehensive online course uses both audio and script to provide information about the federal marketplace, contract rules and, most importantly, how to sell to the government and where to find contract and Recovery Act opportunities. The new training portal is a free online training course designed to assist entrepreneurs during this period of economic recovery. This self-paced, instructional guide provides an overview of the federal procurement process.

The Recovery Act Opportunities course is available on SBA’s Web site at www.sba.gov or directly at www.sba.gov/fedcontractingtraining. The course is indexed by subject matter to allow ease of use, and it includes multiple direct links to additional contracting resources.

The Recovery Act Opportunities course includes direct links that highlight the best contracting resources and engages small business owners in the contracting process. The course also includes practical and fundamental steps to engage business owners in the federal contracting arena.

It is one of more than 24 online tutorials offered by the SBA, and is available 24/7. For more information please visit www.sba.gov.

Release Date: Sept. 1, 2009 - - - Contact: Cecelia Taylor (202) 401-3059
Release Number: 09-63 - - - Internet Address: http://www.sba.gov/news
# # #

Updated SBA's ARC Loan Program Procedural Guide
Effective August 31, 2009

SBA's America's Recovery Capital (ARC) Loan Program was introduced in June 2009. SBA's ARC Loan Program Procedural Guide was issued June 8, 2009, as well as a new set of loan application forms and an authorization specific to SBA's ARC loans. Once the Guide and forms were published, SBA launched extensive training sessions with over 3,000 participants representing over 1,300 lending institutions across the country and has actively sought questions, clarifications and feedback on this program. SBA also published a detailed set of frequently asked questions (FAQs) to address many of the common questions that were raised after the initial roll-out.
In this continued commitment to being responsive to our lending partners, the SBA has now updated SBA's ARC Loan Program Procedural Guide to reflect some of these clarifications and provide even more specific guidance to help our lending partners in making this product accessible to small businesses.
On our website, we have published both a tracked-changes version and "clean" version (with all changes accepted) of this revised program guide to assist lenders in quickly identifying the areas that have been modified. The updated guide is located on SBA's website at www.sba.gov/aboutsba/sbaprograms/elending/RECOVERY_INFO_LENDERS.html The more important changes included in the procedural guide are summarized below:
Qualifying Small Business Loans (QSBLs). Provides additional guidance and information on what loans are QSBLs including notes payable to pay accounts payable and other business obligations that are more than 30 days delinquent; what constitutes a loan; what constitutes an "existing" loan; how to treat SBA loans pre and post February 17, 2009; and how to treat new non-SBA loans.
Credit Cards. For credit cards issued in the name of the business, the Guide replaces the requirement that the borrower submit to the lender supporting documentation for each credit card charge, with a borrower certification that all charges on the business credit card to be paid with the proceeds from an SBA ARC Loan were exclusively for business purposes. For credit cards issued in the name of an individual, the Guide maintains the documentation requirements except that for credit card purchases of $100.00 or less, the documentation requirement is eliminated. The Guide also specifically allows for monthly payments on credit cards in amounts in excess of the minimum monthly payment.
Eligible Passive Companies (EPC)/Operating Companies(OC). Many real estate transactions are structured with an EPC that owns the real estate and is obligated on the associated mortgage. The OC is the operating small business that is located in the real estate and provides the income necessary to amortize the mortgage by paying rent to the EPC. Generally, the two entities are affiliated. Normally, the EPC is the borrower and the OC is the guarantor of the mortgage loan. Under SBA's ARC Loan Program, the proceeds from an SBA ARC loan are not eligible for paying rent or other operational expenses. And, the EPC, by itself, is an ineligible passive business restricted by the regulations governing the program from receiving an SBA ARC Loan for the purpose of paying the mortgage on the property. The guide provides guidance on how to treat the EPC/OC structure for 504 Third Party Loans, 504 loans and 7(a) loans that permits the use of SBA ARC Loan proceeds to make the mortgage payments on those types of SBA loans. EPCs that have a non-SBA loan are still not able to obtain an SBA ARC Loan to make payments on the non-SBA mortgage held by the EPC unless the EPC and OC are co-borrowers on the non-SBA mortgage note (the OC may obtain an SBA ARC Loan to pay other business loan obligations it may have).
Collateral. The Guide is amended to clarify SBA's policy with regard to collateral requirements for SBA's ARC Loans. The Guide originally required lenders to follow the collateral policies they apply to their conventional commercial loans of a similar size. Many lenders require a first lien position for their conventional loans which typically cannot be obtained for an SBA ARC Loan. The Guide is amended to retain the requirement for a lender to follow its existing collateral policies as to whether the loan is secured or not but allows the lender to obtain the best available lien position.
Credit Criteria. The Guide corrects the financial statement requirement to allow for either financial statements or tax returns and reduces the requirement from 3 years of historical financial information to 2 years. The requirement for historical cash flow statements is eliminated. Also guidance on how to prepare the 2-year cash flow projection has been added.
Environmental Reviews. Eliminates any requirement for environmental reviews on collateral taken for SBA's ARC Loans.
Life Insurance. Eliminates any requirement for life insurance related to SBA's ARC Loans.
Interest Payable and 1502 Reporting. Incorporates additional information on the administration of interest payable by SBA to the lender and 1502 Reporting on SBA's ARC Loans that was not available at the time the Guide was initially issued.
Questions on SBA's ARC Loan Program may be directed to the Minnesota District Office at (612) 370-2324 or minneapolis.mn@sba.gov or e-mail SBA headquarters at ARCLoanEQ@SBA.gov.
8/31/2009

What has the SBA done for you lately?

The SBA received $730 million in the American Recovery and Reinvestment Act (Recovery Act) to help unlock the small business lending market and get capital flowing again to America’s small businesses.

SBA Recovery Efforts Impact to Date:
Loan Volume Has Increased More than 50 Percent: As of August 21, SBA has supported over $9 billion in small business lending1 with the approval of $6.6 billion2 in loans since Feb. 17. Since the signing of ARRA, weekly loan dollar volume has risen more than 50 percent in the 7(a) and 504 programs, compared to the weekly average before passage3.
More Lenders Making Loans: From Feb. 17 to August 21, more than 970 lenders that had not made a loan since Oct. 2008 made 7(a) or ARC loans. Of those, over half had not made a loan since at least 2007.
Broad Support to Small Businesses: A significant share of loans supported by Recovery Act funding has gone to rural (26 percent), minority-owned (20 percent), women-owned (19 percent), and veteran-owned (9 percent) businesses4.
Secondary Markets Uptick with 7(a) Loans: After months of reduced activity and lower premiums, the SBA 7(a) secondary market is picking up and premiums are beginning to recover. Over the past three months, the average monthly loan volume settled from lenders to broker-dealers in the 7(a) secondary market has been $335 million, providing lenders with additional liquidity to increase lending.
ARC Loans Reaching Small Businesses: As of August 21, SBA has approved nearly 1,600 ARC loans totaling over $50 million.

SBA Recovery Programs:
To date, SBA has implemented programs for nearly all of the $730 million in SBA Recovery Act funding, including:
Eliminating and reducing fees for borrowers on 7(a) loans and for borrowers and lenders on 504 loans.5
Raising to 90 percent the guarantee on 7(a) loans from 75 percent and 85 percent depending on the size of loan.5
Doubling the surety bond guarantee from $2 million to $5 million, providing small businesses with another tool to help them compete for federal construction and service contracts.5
Assisting struggling small businesses with the new ARC loan program, which provides no-interest, deferred repayment loans of up to $35,000 to viable businesses to help them make debt payments.5
Providing refinancing opportunities for certain eligible loans into SBA-backed 504 loans for expansion and job creation.
Expanding access to investment capital for small businesses by increasing funding levels for SBA-licensed Small Business Investment Companies.

The SBA has also implemented two new programs that complement the Recovery Act measures and increase access to capital for small businesses by:
Expanding 7(a) loan eligibility to more than 70,000 small businesses through a temporary alternate size standard.
Offering inventory financing for eligible auto, RV, boat and other dealerships under the new Dealer Floor Plan Financing pilot program.
1 Gross loan approval value. Typically, due to cancellations and loan amount reductions, 15–20% of gross approvals are not disbursed.
2 Includes estimate of 504 third-party first mortgages (calculated as 125% of SBA 504 debenture portion due to the typical "50/40" split between the third-party and SBA portions of a 504 loan)
3 Comparison of average weekly gross approvals in the 7 weeks before ARRA signing to average weekly gross approvals since then, normalized for market holidays and the system disruption caused by a Washington, DC water outage (August 7, 2009)
4 Demographic data is self-reported on loan applications; categories are not mutually exclusive.
5 Temporary authorization under the Recovery Act.

What can a client expect from the MnSBDC?

Your business is being pressed by the economy. . . Your banker explains his hands are tied in the current situation. . . You think back over the years it took you to get this far. . .

I sat in the meeting and heard two of our Professional Business Consultants discuss client situations they were currently working on - maintaining confidentiality by NOT mentioning the business name or product/service, only the situation. They bounced ideas and approaches off the Business Development Officer from the SBA who was also in the meeting, and the Regional Director of the MnSBDC center.

While I have consulted with hundreds of client as an SBDC Consultant and in my own consulting business, I was in awe. These two professionals were bringing everything they had to the table to help these businesses suceed despite the tremdous issues they faced.

The Professional Business Consultants that bring their skills to the MnSBDC program, work with small business clients every day to help them succeed. Their clients trust and rely on them for results. Year after year we have tracked our successes by working "with" clients. We achieve our best success with clients who are determined and willing to work in partnership with our Professional Business Consultants in trusting relationships.

Can we help you to succeed?

What does the MnSBDC do????

Quite simply - we help small business owners turn dreams into reality.

We do that by consulting, training and through the specialized services we offer.

Even the greatest athlete uses a coach to help them move to higher levels. We are the "business coach" for small business, and our best results are achieved by determined, focused small business owners who are willing to roll-up-their-sleeves and get to work.

Need more information?

Click here for our Service Brochure that lists the nine Regional Centers that blanket the state and describes our services in detail. (PDF file format)

New FAX number for lenders to use to reach the SBA 'Citrus Heights' center.

Reminder that the Citrus Heights center is phasing in a new FAX number and closing out the old one. If your lender calls and can't get through, please alert them to the new number now in use;

New Fax Number: 916-735-1975

"Shine a Light" campaign focuses on local businesses

Here's a great opportunity for local businesses, sponsored by two corporate titans. The winning business will receive $100,000 in grant and marketing support, and the winner will be chosen by a vote of the public with results to be announced on Oct. 19.

The overarching message: The efforts of local entrepreneurs represent a path out of the recession.

Here's a news story - share with your favorite local small businesss.

Obama Administration Announces Efforts to Increase Access to Contracting Opportunities for Minority-Owned, Small Businesses
Release Date: August 18, 2009 - - Contact: Tiffani Clements (202) 401-0035
Release Number: 09-58 - - Internet Address: http://www.sba.gov/news

Secretary Locke, Administrator Mills will lead government-wide initiative; federal officials to participate in more than 200 procurement events across the country

WASHINGTON – The Obama Administration today reaffirmed its commitment to ensuring that minority-owned and small businesses, including women- and veteran-owned businesses, have greater access to federal government contracting opportunities.

Commerce Secretary Gary Locke and Small Business Administrator Karen Mills announced a government-wide plan that includes federal agency procurement officials holding or participating in more than 200 events over the next 90 days to share information on government contracting opportunities, including those available under the American Recovery and Reinvestment Act.

“Small and minority-owned businesses must play a significant role in our efforts to restore economic growth. Small businesses employ half of the nation’s private sector workforce; create a large share of the Nation’s new jobs; and introduce many groundbreaking ideas into the marketplace,” President Barack Obama said. “It is essential that we provide our Nation’s small businesses with maximum practicable opportunity to participate in Federal Government contracting.

“In order for the Federal Government to better meet or exceed the goal of 23 percent of prime contracts for small businesses, Vice President Biden and I have tasked Small Business Administrator Karen Mills and Commerce Secretary Gary Locke with leading a federal government-wide initiative to increase outreach,” Obama continued. “Over the course of the next ninety days agency officials will take an important step forward by holding or participating in more than two-hundred events focused on sharing information on government contracting opportunities.”

“In these tough economic times, the Recovery Act is providing billions of dollars in opportunity and incentives to help businesses grow – and the President and I are committed to ensuring that small and minority-owned businesses are part of our economic recovery every step of the way,” said Vice President Joe Biden. “By taking advantage of the expertise of an array of companies, we are going to be able to build a stronger, more secure foundation for long-term economic growth.”
“It has been a priority from day one of this administration to ensure that small and minority-owned businesses are aware of and have access to federal contracts and funding opportunities,” Locke said. “Over the past 40 years, minority-owned businesses have grown from 300,000 to nearly 4 million today. Their success and the success of small American businesses are vital to our economic recovery.”
“Government contracts can play a key role in helping small businesses turn the corner in terms of expansion and job creation,” Mills said. “But make no mistake, the benefits the government receives are equally as impressive – working with small businesses allows the federal government to work with some of the most innovative companies in America – with direct line to CEO”

As part of the Commerce-SBA initiative, over the next 90 days:

· Federal agency procurement officials will hold or participate in more than 200 events to share information on government contracting opportunities, including those available under the American Recovery and Reinvestment Act.
· SBA and Commerce will expand their outreach to fellow contracting officials across the federal government, passing along best practices for outreach and education to every agency to ensure they have the tools they need to meet their annual contracting goals.
· Locke and Mills will promote small business contracting opportunities in remarks, events and discussions with small business groups across the country, including minority, women and veteran groups.

Beyond the next 90 days, Commerce and SBA will support, monitor and track the impact of these efforts going forward to help ensure the Administration is maximizing opportunities for small businesses.

Small business owners can find out about federal contracting opportunities by visiting www.fedbizopps.gov. Local Commerce and SBA officials are also available in local offices across the country to assist small businesses interested in contracting opportunities. Contact information for local offices can be found www.commerce.gov and www.sba.gov.

# # #

ATTENTION INVENTORS!

For Immediate Release - - Contact: Inventor’s Network - - 651-602-3175

THE BEST ADVICE FROM IDEA TO PAYOFF

Everybody—from students to bankers to stay-at-home parents—has a great idea with the potential to change the way we live, work or play. The problem is that most people never follow through on making their idea a marketable reality. And in today’s economic climate many may feel too intimidated to invest their time and resources into creating something new.

Louis Foreman, the executive producer of the Emmy award–winning PBS show Everyday Edisons and the co-author of The Independent Inventor’s Handbook (Workman; $14.95; July 2009) aims to dispel those fears. According to Mr. Foreman, there has never been a better time in recent history for innovation: “It has been innovation that has led this country out of recessions in the past, and it will be innovation that creates new opportunities in the future.”

The Independent Inventor’s Handbook is the guide for those young (and not-so-young) innovators. Every step of the invention process is clearly explained, from prototype to finished product. Louis has met thousands of “ordinary people who have extraordinary ideas” through the casting calls of his television show, so he’s got plenty of real-life stories to share and is available to comment on the areas that are ripest for innovation today.

Mr. Foreman will be speaking at this month’s Inventors’ Network meeting. The above mentioned book will be available for sale at this event. Please join us to purchase your book and meet Louis Foreman.
Inventor’s Network

Date: September 15th, 2009
Time: 7:00PM, - 9:00 PM
Doors open for registration: 6:30PM
Fee: Non-members $15.00

Place: Dunwoody College of Technology
Holden Center Meeting Room
818 Dunwoody Blvd
Minneapolis, MN 55403

MnSBDC - 2008 Annual Report

This link will take you to the Minnesota SBDC Annual Report for 2008. (PDF file size is approximately 2.75Mb)

http://mnsbdc.com/PDFs/SBDC_AnnualReport2008.pdf

QUICK SNAPSHOT OF CLIENT RESULTS:
Obtained Financing 71.3%
Started a Business 70.0%
Improved Productivity 68.6%
Increased Sales 66.2%
Increased Cash Flow 65.0%
Added Employees 54.5%

Return on Investment (ROI) = = = = = > $13.14

The "3/50 Project" to save local, independent small businesses - originating from Minneapolis!

Did you ever consider your personal impact on the community you live in by how you spend your consumer dollars?

Retail consultant Cinda Baxter has, and she came up with a simple way to have an immediate, personal economic impact on your community;

http://www.the350project.net/home.html

The idea is to commit $50 each month to locally owned businesses. Since the MnSBDC works primarily with locally owned businesses, this program is a great way to support the same businesses that are clients of the MnSBDC.

MN leads the nation with ARC loans = 181

Here's the latest listing of MN banks that generated an ARC loan;

http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_recovery_arc_lenders.pdf

SBA Funding for Loan Guarantees may run out by year end.

A great status report by the SBA (including the graphic above) can be found here;

http://sba.gov/idc/groups/public/documents/sba_homepage/recov_perform_reports_07_2009.pdf

From the report; "Approximately 45.1% of total FY2009 and FY2010 funds available for loan approvals in the 7(a) Loan Program, the 504 Loan Program, and the ARC Loan Program have been approved as of July 31, 2009."

A year end re-examination process most likely will result in additional funds allocated to the program based on need and the success of the SBA Loan Guarantee program.

SBA Announces Appointment of Marianne O’Brien Markowitz
As Regional Administrator for Region V

Release Date: August 10, 2009 - - Contact: Carol Wilkerson (312) 353-7327
Release Number: 09-53 - - Internet Address: http://www.sba.gov/news

WASHINGTON – Today, the U.S. Small Business Administration announced the appointment of Marianne O’Brien Markowitz, as the regional administrator in Region V, to oversee the SBA’s programs and services in Minnesota, Ohio, Indiana, Illinois, Michigan and Wisconsin.

“Both the SBA and small businesses of Region V will benefit greatly from Marianne’s financial background,” said SBA Administrator Karen G. Mills in welcoming Markowitz. “With her business experiences, as well as her commitment to serving the community, Marianne will be a tremendous asset and advocate for small businesses and entrepreneurs across the region, especially at this critical time when so many are facing tough challenges as a result of the recession.”

“I am honored to serve the Obama Administration as Regional Administrator of Region V,” said Markowitz. “I am deeply committed to helping Midwestern small businesses compete and succeed by helping them access the expansive services and programs offered by the U.S. Small Business Administration. The economic health of the country relies on small business' ability to create jobs in our communities and I feel very privileged to serve and support the small business community.”

The Region V office, headquartered in Chicago, oversees the SBA’s district offices in Minneapolis, MN; Chicago and Springfield, IL; Indianapolis, IN; Cleveland, Columbus and a satellite office in Cincinnati, OH; Detroit, MI; and Madison and Milwaukee, WI.

Markowitz recently served as the Chief Financial Officer for Obama for America and was previously a financial operations consultant for the campaign. She was an international treasury/financial operations consultant for Syngenta, Inc. from 2000 – 2002 and prior to that served as a treasury and risk manager for Express Scripts, Inc. for two years. Markowitz has an extensive history as a treasury and risk analyst for Midwestern based companies.

Markowitz received her B.S. in business administration from the University of Missouri and her MBA from DePaul University. She and her husband Jeffrey are the proud parents Maura, 7.

# # #

What happens when an SBA guarantee loan goes into default?

When I was a Professional Business Consultant with the Missouri SBDC program, I worked hard with a client to obtain an SBA guaranteed loan that eventually went into default. I was very disappointed, as was the bank President. During our conversation, he explained to me the process of working with the SBA to make good on the guarantee. It was the first time I had a glimpse into that part of the process from the banker's perspective.

To better understand that process, here is a 'flowchart' of the process from Ethan Smith, Partner at Starfield & Smith, P.C. and provided by the Coleman SBA Daily Lender website.

http://www.colemanpublishing.com/public/GuarantyPurchaseProcessFlow.jpg

When I was the Regional Director of the UC Merced CA-SBDC, I arranged for a tour of the Commercial Loan Service Center in Fresno graciously provided by Mr. Joel Stiner the Director of the center. He runs a great operation there and explained the metrics and the incredible volume of loans that goes through there with a dedicated, relatively small number of staff. He also showed me the hugh file area where all of the inevitable paperwork trails each and every loan made. It was a very impressive operation, and Mr. Stiner's cheerful enthusiam for the center and the people that support it was contagious.

USDA will loan up to $1.7 billion to fund projects that help spur business activity and economic growth in rural communities

WASHINGTON, July 29, 2009 – Agriculture Secretary Tom Vilsack today announced that USDA is now accepting applications for up to $1.7 billion to fund projects that help spur business activity and economic growth in rural communities. This infusion of money from the American Recovery and Reinvestment Act into rural business is designed to create and save jobs and help rural communities grow and prosper.

“The Recovery Act funds announced today will help businesses get access to the capital they need to launch and expand their businesses and help bring additional jobs to America’s small cities and towns,” said Vilsack. “President Obama and I are committed to building strong rural communities by helping businesses grow so we can put people back to work.”

The funding announced today will be made available through USDA Rural Development’s Business and Industry Guaranteed Loan program, which supports the development of private businesses. Eligible applicants include cooperative organizations, corporations, partnerships, nonprofit groups; federally recognized Indian tribes, public bodies and individuals. The funds will be targeted to creating and retaining quality jobs and serving difficult to reach populations, and areas hardest hit by the current economic downturn.

USDA will accept applications for this Business and Industry Guaranteed Loan program until Sept. 15, 2010, or until all funds are expended. Recovery Act funding will be available through Sept. 30, 2010. For information on eligibility criteria and for application assistance, please contact your state Rural Development office, or visit www.rurdev.usda.gov for a listing of all state offices.

Past examples of USDA Business and Industry Guaranteed Loans include:

A&C Sawdust in Crivitz, Wisc., received a $3.48 million guaranteed loan to refinance the costs to make real estate improvements and buy a wood grinder and wood dryer to expand business operations. A&C Sawdust was formed 40 years ago as a trucking business. The family-owned company also has a division, L&M Sawdust, that converts green sawdust into livestock bedding that is sold to local farmers. A third unit of the company, L&M Custom Drying, LLC, converts green sawdust into biomass pellets, a renewable fuel source. The funding provided by USDA Rural Development is expected to save or create 23 jobs in an area of the state that has lost jobs due to the closing of several paper mills.

Pennsylvania-based Keystone Potato Products, LLC, used a $4.9 million USDA Business and Industry Guaranteed Loan to develop an 86-acre site, construct a potato processing facility, purchase new machinery and equipment, and finance start-up costs. More than $2.8 million was private investment. This facility, which turns off-grade potatoes into flakes and other products, has reduced transport costs for potato suppliers and also created a new market for potato products. More than 40 jobs were created as a result of funding from this project.

More information about USDA’s Recovery Act efforts is available at www.usda.gov/recovery. More information about the Federal government’s efforts on the Recovery Act is available at www.recovery.gov.

USDA Rural Development’s mission is to increase economic opportunity and improve the quality of life for rural residents. Rural Development fosters growth in homeownership, finances business development, and supports the creation of critical community and technology infrastructure. Further information on rural programs is available at a local USDA Rural Development office or by visiting USDA Rural Development’s web site at www.rurdev.usda.gov.
###

Listing of MN Banks making SBA ARC Loans

Below is the URL to the listing of banks making ARC loans.

For your Convenience, I have extracted and pasted all the MN Banks below in alpha order. Check the weblink, since it will be updated weekly.

http://www.sba.gov/idc/groups/public/documents/sba_homepage/sba_recovery_arc_lenders.pdf



Lender // States Where Loans Made// Website
Access Bank MN www.accessbank.com

Alliance Bank MN www.alb.kz

American Heritage National Bank MN www.logbank.com

BankCherokee MN www.bankcherokee.com

BankVista MN www.bankvista.com
BANKWEST MN www.bankwestmn.com

Central Bank MN, WI www.centralbankar.com

Citizens Bank & Trust Co MN www.cbhutch.com

Citizens State Bank IA, MN, WI #N/A

Citizens State Bank of Waverly (Incorporated) MN www.bankwaverly.com

Community Bank Mankato MN www.cbfg.net

Community Bank of the Red River Valley MN www.cbrrv.com
Community Bank, Austin MN #N/A

Falcon National Bank MN www.falconnational.com
Farmers and Merchants State Bank of Blooming Prairie MN www.fmbankmn.com

Farmers State Bank of Madelia, Inc. MN www.madelia.com

First Minnetonka City Bank MN #N/A

First National Bank of the Lakes MN www.fnblonline.com

First National Bank of the North MN www.fnbns.com

First State Bank of Grove City MN #N/A
First State Bank of St. Joseph MN www.fsbstjoseph.com

Flagship Bank Minnesota MN www.flagshipbanks.com

Frandsen Bank & Trust MN www.frandsenbank.com

Freeport State Bank MN #N/A

Kanabec State Bank MN www.kanabecstatebank.com

Lake Elmo Bank MN www.lakeelmobank.com

Mid-Minnesota FCU MN #N/A

Minnesota National Bank MN www.mn‐bank.com

North American Banking Company MN www.nabankco.com

Northern National Bank MN www.northernnationalbank.com

Peoples National Bank of Mora MN www.pnbmora.com

Premier Bank MN www.premier‐bk.com
Prior Lake State Bank MN www.priorlake.com

Republic Bank, Inc. MN www.bankrepublic.com

Security Bank and Trust Company MN www.security‐banks.com
Security Bank USA MN www.securitybankusa.com

Security State Bank of Fergus Falls MN www.ssbfergus.com
Security State Bank of Hibbing MN www.ssbhibbing.com

SouthPoint FCU MN #N/A

The Bank of Elk River MN www.thebankofelkriver.com

The First National Bank of Cokato MN #N/A

The First National Bank of Plainview MN www.fnbplainview.com
The First National Bank of River Falls MN, WI www.fnbrf.com

The Lake Bank MN www.thelakebank.com

The RiverBank MN, WI #N/A

United Community Bank MN www.ucbi.com

United Minnesota Bank MN www.unitedminnesotabank.com
United Prairie Bank MN www.unitedprairiebank.com

Voyager Bank MN www.voyagerbank.com

Western National Bank MN www.wbduluth.com

Western National Bank of Cass Lake MN www.wbcasslake.com

Woodland Bank MN www.woodlandbank.com
Woodlands National Bank MN #N/A

Everyone’s at Risk – Combating the Increasing Threat of Online Fraud and Identity Theft

A National Phone Forum presented by the IRS Stakeholder Liaison

Date: August 19, 2009
Cost: FREE
Location: The convenience of your home or office
This IRS phone forum is for:

• Tax professionals
• Attorneys
• Payroll professionals
• Industry partners
• Small business organizations
• Small business owners
• State and local governments

Learn about:

IRS identity protection efforts
Process for reporting tax-related identity theft
Victim assistance
IRS efforts to combat online fraud targeted at taxpayers
How to report phishing schemes targeted at taxpayers

Earn Continuing Professional Education credit

• Enrolled agents receive one CPE credit for a minimum 50-minute participation from the start of the forum.
• Other Tax professionals may receive credit if the phone forum meets your organization’s or state’s CPE requirements.
• To receive credit, register individually and use your PIN.
• Call in using your individual phone line so your attendance can be verified
• Look for your Certificate of Completion by e-mail approximately one week after the forum. If you have met all requirements, you will receive your certificate automatically; there’s no need to follow up.
• If you and others in your office do not require a CPE certificate, please have only one person register on the group’s behalf and use your speaker phone to dial in. This will maximize the number of lines available for other participants and help reduce costs.

Sign up now for the event of your choice

• Select the time that works best for you
Note: Time zones shown are Daylight Saving Time.

CONFERENCE ACCESS CODE
760853 - 10am Eastern, 9am Central, 8am Mountain, 7am Pacific
648527 - 1pm Eastern, NOON Central, 11am Mountain, 10am Pacific
353052 - 4pm Eastern, 3pm Central, 2pm Mountain, 1pm Pacific

• Register at www.attevent.com. Reservations are limited, so register early.
• You will receive a Personal Identification Number to join the conference.
• If you have never registered with AT&T for a prior phone forum, you will first need to click on create a profile.
• If you require special accommodations, (for example, Braille, large print or interpreter services) please contact Brian Finn at nationalphoneforum@irs.gov.
• You will receive presentation materials by e-mail on the day before the forum. If you do not receive this e-mail by noon the day before the event, please e-mail us at nationalphoneforum@irs.gov to request the materials.

Dial in on August 19, 2009

Toll free: 1-800-683-4564
Toll: 1-913-312-2904

Dial in at least five to ten minutes before the scheduled time. Those who are first to arrive will be assured participation. Once all available lines are taken, no additional participants will be able to join the session.
Enter your access code, then the pound (#) sign.
Enter your PIN, then the pound (#) sign.
Your line will be placed on hold until the conference begins.

A question and answer period will follow the presentation. However, due to the public nature of the call, we will not be able to address specific client issues.

Questions? E-mail nationalphoneforum@irs.gov

Ten Minority Small Businesses Compete to be Named MED Week 2009 National Minority Small Business of the Year

Release Date: July 31, 2009 Contact: Tiffani Clements (202) 401‑0035
Release Number: 09-51 Internet Address: http://www.sba.gov/news

SBA Hosts Government Contracting & Strategic Alliance Workshops at MED Week

WASHINGTON – One of 10 minority small businesses from across the nation will be named the National Minority Small Business Person of the Year by the U.S. Small Business Administration during the 27th National Minority Enterprise Development (MED) Week conference in Washington, D.C. on Aug. 26-28.
This year’s MED Week event, “Energizing the American Economy with Minority Business Enterprises,” will focus on helping minority small businesses navigate the current economic climate and tap into the financial resources and contracting opportunities that are available as a result of the President’s American Recovery and Reinvestment Act.
The conference will feature two workshops hosted by SBA: “Win Government Contracts for Your Small Business,” conducted by authors John DiGiacomo and James Kleckner on Aug. 26 and “Strategic Alliances for Winning Business,” to educate small businesses on how to develop strategic alliances and successful mentor-protégé relationships with graduates of SBA’s 8(a) Business Development program on Aug. 27. Small businesses must register to attend these workshops at http://www.medweek.gov/. Registration is free. MED Week 2009 will be held at the Omni Shoreham Hotel, and is co-hosted by the Minority Business Development Agency of the U.S. Department of Commerce and the SBA.
“This year’s MED Week event celebrates the people who are making significant contributions to their communities by creating jobs with their innovative products and services and stimulating the nation’s economy,” said SBA Administrator Karen G. Mills. “The SBA is working diligently to ensure the small business community’s access to capital and contracting opportunities during these difficult times. In fact, with the passage of the American Recovery and Reinvestment Act of 2009, 20 percent of Recovery Act loans have gone to minority-owned businesses and 12.4 percent of Recovery Act contracts have gone to minority-owned firms.”
The national winner is selected from among 10 regional winners this year representing Massachusetts, New York, Virginia, South Carolina, Minnesota, Texas, Missouri, Colorado, California, and Idaho. The regional award winners have businesses that offer services ranging from construction and health care to environmental remediation and staffing.
Held annually since 1983, MED Week recognizes minority businesses’ contributions to the nation’s economy.
Besides announcing the national minority small business award winner, SBA will present other awards including the SBA Administrator’s Leadership award and the 8(a) Graduate Firm of the Year award.
(more)
Other features of the conference include:

· White House Reception for award winners (Invitation Only);
· MED Week Welcome Reception;
· Meet Your White House breakfast with keynote address by senior White House official;
· Business-to-Business Linkage Forum where small businesses are paired with government agencies and private sector companies to discuss potential contracting opportunities (pre-registration required and invitation only from 2:00-5:00 p.m. on Aug.28);
· MED Week Business Expo and Trade Show to provide opportunities to network from 9:15am-5:00p.m. on Aug. 28 and;
· Award ceremonies to honor minority entrepreneurs, minority business advocates and leaders in the corporate community, including a closing MED Week awards gala.

The 10 Regional Minority Small Business Persons of the Year are:
REGION I
Janice P. Guy, CEO
P3I, Incorporated
Hopkinton, MA

REGION II
Lenny Johnson, President
L&D Johnson Plumbing & Heating Inc.
Buffalo, NY

REGION III
Gloria LaVern Jackson, President & CEO
Joint Logistics Managers, Inc.
Prince George, VA

REGION IV
Cyrus D. Sinor, President & CEO
& Lawrence Kai-Yun Yeh
International Public Works, LLC
North Charleston, SC

REGION V
Akhtar Chaudhri, President
Virtelligence, Inc.
Eden Praire, MN

REGION VI
Mary Ellen Trevino, CEO
P3S Corporation
San Antonio, TX

REGION VII
Samuel P. Mudumala, P.E., CEO
Prudent Technologies, Inc.
Kansas City, MO

REGION VIII
Jerome Gonzales, President
JG Management
Grand Junction, CO

REGION IX
Gita Murthy, Ph.D., President
RORE, Inc.
San Diego, CA

REGION X
Randy Smith, President
NORTHCON, Inc.
Coeur D’ Alene, ID

For more details on this year’s MED Week conference, please visit http://www.medweek.gov/ or www.sba.gov/medweek2009/index.html.

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SUMMARY - The Surety Bond Guarantee program under the Recovery Act allowed the SBA to increase the maximum size for bonds from $2 million to $5 million. The SBA can provide surety bond guarantees on federal contracts valued at up to $10 million when the contracting officer certifies that the guarantee is in the best interests of the government.

Release Date: July 23, 2009 Contact: Dennis Byrne (202) 205-6567
Release Number: 09-48 Internet Address: http://www.sba.gov/news

SBA Offers $10 Million Surety Bond Guarantee
Aids Recovery in Construction and Service Sectors

WASHINGTON – Building on Recovery Act provisions implemented earlier this year, the U.S. Small Business Administration announced today it can now provide surety bond guarantees on federal contracts valued at up to $10 million, if the contracting officer certifies that the guarantee is in the best interests of the government. An Interim Final Rule is available for public inspection at The Federal Register.

Currently, under a related provision of the Recovery Act that was implemented in March, SBA can provide bond guarantees up to $5 million through September 2010 on all public and private contracts and subcontracts. SBA partners with the surety industry to help small businesses that would otherwise be unable to obtain bonding in the traditional commercial marketplace. Under the partnership, SBA provides a guarantee to the participating surety company of between 70 and 90 percent of the bond amount.

“Raising the surety bond limit is a critical step in making sure small businesses in the construction and service sector have access to federal contracting opportunities that will help drive economic recovery,” SBA Administrator Karen Mills said. “These changes support small and emerging businesses nationwide, particularly construction contractors who have seen their markets hurt by a poor economy and lagging construction.”

Additional program enhancements published in the rule include:
· a new small business size standard for this program;
· authorization for SBA to exercise discretion in deciding bond liability issues; and,
· a definition of “Order” issued under an Indefinite Delivery Contract.

The new size standard (which will be in effect until Sept. 30, 2010) temporarily replaces the current size standard for the surety bond guarantee program. It states that a business is small if the business, combined with its affiliates, does not exceed the size standard designated for the primary industry of the business combined with its affiliates. The North American Industry Classification System (NAICS) Codes contained in 13 CFR Part 121 establishes size standards for all industries http://www.sba.gov/contractingopportunities/owners/basics/GC_SMALL_BUSINESS.html.

Through its Bond Guarantee program, SBA will also help by guaranteeing bid, payment and performance bonds to protect the project owner against financial loss if a contractor defaults or fails to perform.

Finally, the rule adds a definition for an “Order” issued under an Indefinite Delivery Contract to clarify that SBA bond guarantees apply to individual orders, as well as contracts.

SBA assistance in locating a participating surety company or agent, and completing application forms, is available online. For more information on SBA’s Surety Bond Guarantee Program, including Surety Office contacts, go online to http://www.sba.gov/osg/ , or call 1-800-U ASK SBA.

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News From theCommittee on Small Business
Nydia M. Velázquez, Chairwoman
CONTACT: Alex Haurek; Duncan Neasham July 16, 2009 202-226-3636

House Passes Funding Boost for Small Business Administration
After years of Bush-era budget cuts, lawmakers begin rebuilding agency

WASHINGTON, D.C. —The U.S. House of Representatives today passed H.R. 3170, the “Financial Services and General Government Appropriations Act,” legislation which contains funding for the Small Business Administration (SBA) for Fiscal Year (FY) 2010. Rep. Nydia M. Velázquez (D-NY), the Chairwoman of the House Committee on Small Business, said the bill will increase funding for the SBA’s core missions of facilitating small business lending and providing counseling and technical assistance to small firms.

“After eight years of neglect and budget cuts, we need a revitalized SBA with the resources to foster small business growth,” Velázquez said. “This legislation is a step in the right direction to put the agency back on track and provide entrepreneurs resources they need to create jobs and lead our nation out of this downturn.”

The bill provides a total of $848 million for the SBA, $236 million more than was enacted for Fiscal year 2009. With Americans everywhere struggling to respond to the recession, Velázquez highlighted provisions in the bill that would provide $3 million in microloan subsidies to support $25 million worth of microlending. Microloans traditionally assist low income individuals looking to start their own businesses or unemployed Americans that turn to entrepreneurship as a new source of income.

“Microloans have a proven record of providing a pathway out of poverty for many Americans,” said Velázquez. “By adequately funding the SBA’s microloan program, this legislation will further spur entrepreneurship.”

Velázquez also praised the bill for expanding technical counseling and assistance programs that help prospective entrepreneurs and established businessmen and businesswomen. The legislation provides $110 million for Small Business Development Centers (SBDCs). The SBA’s nationwide network of SBDCs offers assistance to individuals and small businesses by providing a wide variety of information and guidance in central and easily accessible branch locations. The funding provided in the bill is $13 million above what was requested in the President’s budget this year and exceeds the previous Administration’s budget request by over 26%.

“When the economy is in a slump, more Americans turn to entrepreneurship as a way of supporting themselves,” Velázquez noted. “By increasing funding for entrepreneurial development services at SBA, we can provide prospective small business owners with knowledge and guidance that will help them launch new enterprises and create new jobs.”

If enacted, the FY 2010 funding in H.R. 3170, combined with funding for the SBA in the American Recovery and Reinvestment Act, would come close to returning the agency to its funding levels before 2000. The House passed the legislation by a vote of 219 to 208. The measure must now be considered in the Senate before it is sent to the President to be signed into law.
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