Minnesota Small Business Development Center Network

2010-09-28T12:16:00.000-07:00

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."

2010-09-16T11:40:00.000-07:00

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.

2010-09-10T12:19:00.000-07:00

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.

2010-09-03T08:45:00.000-07:00

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

2010-08-31T06:57:00.000-07:00

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

2010-08-05T05:43:00.000-07:00

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

2010-07-29T11:46:00.000-07:00

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

2010-07-15T11:31:00.000-07:00

DOE Releases funds for SBIT/STTR.

Washington, DC -- U.S. Energy Secretary Steven Chu announced yesterday that $30 million in funding from the Recovery Act and FY 2010 budget appropriations will be made available to qualified small businesses to support the commercialization of promising new technologies. Today's funding announcement builds on the Department's existing efforts under the Small Business Innovation Research program (SBIR) and the Small Business Technology Transfer program (STTR) to develop near-term clean energy technologies and support American small businesses that will play an important role in building the clean energy economy of the future. This is the first time DOE has offered Phase III awards under these small business programs.

Small companies previously awarded Phase II grants through DOE's Small Business Innovation Research program (SBIR) or the Small Business Technology Transfer program (STTR) are eligible. Projects that include developed technologies with a strong potential for commercialization and impact on U.S. manufacturing and job creation are encouraged to apply. Successful applicants may receive up to $3 million over three years to research, develop, and deploy new technologies.

Applications are currently being accepted for the following technology areas of interest:

Biomass Technologies
1.Harvesting/Dewatering Technology for Algal Biofuels Production.

Buildings Technologies
1. Transitional Technology for Organic Light Emitting Diodes (OLEDs)
2. SSL Products made from Organic Light Emitting Diodes (OLEDs)
3. “Core” Technology for Organic Light Emitting Diodes (OLEDs)

Fuel Cell Technologies
1. Advanced Materials for Fuel Cell Technologies
2. Bio-Fueled Solid Oxide Fuel Cells

Geothermal Technologies, High Temperature Tools and Sensors
1. High Temperature Downhole Tools
2. High-Temperature-High-Volume Lifting
3. High Temperature Downhole MWD Tools for Directional Drilling

Industrial Technologies
1. Sensors and Controls
2. Industrial Membrane Process Systems
3. Advanced Materials
4. Integrated Reaction-Separation using non-thermal processes
5. Mitigation of Heat Losses, Fouling, and Scaling in key Manufacturing Unit Operations.

Solar Technologies - Lowering the Cost of Photovoltaics through Innovative Augmentation
1. Lightweight, Flexible and Low Cost Multi-junction Solar Cells
2. Static Module PV Concentrators
3. New Methods of Crystallizing Silicon

Vehicle Technologies
1. Technologies to Address Internal Heating in DC Bus Capacitors
2. Improved Magnetic Materials for Motors
3. Advanced Materials for Lightweight Vehicles

Wind Technologies
1. Advanced Wind Power Technologies and Systems

Fossil Energy
1. Pollution control
2. Advanced power systems
3. Stationary power fuel cells
4. Clean fuels
5. Carbon sequestration
6. Recovery of oil, natural gas, and methane hydrates
7. Advances in materials, sensors, monitors, controls, biotechnology, and computational processes

Electricity Delivery and Energy Reliability
1. Smart Grid Technologies and Systems
2. Electric Transmission Technologies
3. Superconducting Technology for Power Equipment
4. Advanced Materials for Power Electronics and Energy Storage

Nuclear Energy
1. Advanced Instrumentation and Control, Radiation Resistant Sensors, and Wireless On-Line Monitoring Systems for Nuclear Power Plant Applications

The deadline for submission of applications is August 4, 2010, at 8pm EST.

Information regarding applications is available in the funding notice section at: http://www.er.doe.gov/sbir/.

For more information about the DOE FY 2010 Phase III Xlerator Program please visit http://www1.eere.energy.gov.
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2010-06-21T05:31:00.000-07:00

SBA Offers Free Webinar and Web Chat to Encourage Disaster Preparedness Planning for Business Owners
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WASHINGTON –No matter what time of year it is, or where you run your business, it’s a good idea to have a disaster preparedness plan in place. Recent disasters, such as the record-breaking flooding which occurred in Tennessee in April, serve as reminders to be proactive when it comes to building strategies to survive a disaster and recover quickly.

Toward this end, the U.S. Small Business Administration will offer two online disaster preparedness events next week. On Tuesday, June 22, Agility Recovery Solutions CEO Bob Boyd will discuss 10 Steps to Business Preparedness. Boyd will highlight key aspects of business continuity planning, including risk assessment, data back-up, crisis communications and insurance coverage.

On Thursday, June 24, SBA’s monthly Web Chat will be hosted by Nashville business owner Genma Holmes, CEO of Holmes Pest Control. Holmes will share her experience of how another business owner’s losses after Hurricane Katrina inspired her to develop her own preparedness plan. Because she was ready for the disaster, Holmes was able to resume operations just one day after cleaning up after a recent flood in Nashville.

TUESDAY, JUNE 22, 2010

WHO: Bob Boyd, CEO, Agility Recovery Solutions

WHAT: During the Tuesday Webinar, Agility CEO Bob Boyd will present 10 Tips to Business Preparedness, which will be followed by a question and answer session.

WHEN: 2:00 – 3:00 p.m. EDT

HOW: Register in Advance for 10 Tips to Business Preparedness by visiting Agility’s “Prepare My Business” Web site at www.preparemybusiness.org/education.

THURSDAY, JUNE 24, 2010

WHO: Genma Holmes, CEO, Holmes Pest Control

WHAT: Small business owner Genma Holmes will host the Thursday Web chat on “Disaster Preparedness for Business Owners: An Inside View,” and give her own account of how disaster preparedness planning helped keep her business running after Nashville’s recent record-breaking floods. Holmes will take questions and offer advice on disaster preparedness. Those participating in the Thursday Web chat may submit questions before or during the chat discussion.

WHEN: 1:00 – 2:00 p.m. EDT

HOW: Join the chat live by visiting www.sba.gov, and clicking “Online Business Chat.” Web chat participants may post questions prior to the chat by visiting: http://web.sba.gov/livemeeting/Jun10 .

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

# # #
Advisory Date: June 17, 2010 Contact: Cecelia Taylor (202) 401-3059
Advisory Number: MA10-10 Internet Address: http://www.sba.gov/news

2010-06-04T06:45:00.000-07:00

AG SECRETARY VILSACK AND SMALL BIZ ADMIN MILLS ANNOUNCE AGREEMENT TO STIMULATE RURAL BUSINESS CREATION AND EXPANSION

Partnership Will Increase Access to Capital in Rural Communities; Spur Business Growth, Job Creation

HILLSBORO, Mo., June 3, 2010 - Agriculture Secretary Tom Vilsack and U.S. Small Business (SBA) Administrator Karen G. Mills today announced that the two agencies have signed an agreement to encourage sustainable growth and development of rural small businesses. The announcement was made during the National Summit of Rural America, which gathered agricultural leaders, farmers, ranchers, community leaders, and residents of rural communities to share their vision and ideas that can help rebuild and revitalize rural America.

The agreement between the SBA and USDA is designed to reach out to people and places in rural areas and small communities with underserved financial needs. Prospective small businesses owned by minorities, women and veterans also are expected to benefit from this joint effort to encourage sustainable growth and development. USDA Rural Development's Rural Business Service will provide loan guarantees, loans and grants; the Small Business Administration will provide loan guarantees.

The MOU will remain in effect for three years. Under the agreement, USDA Rural Development and SBA will use their respective resources to provide small businesses in rural areas with loan guarantees and technical assistance to help build diverse and sustainable economies, reverse population decline, create and sustain jobs, and improve quality of life. The agreement is expected to:

* Improve opportunities for small businesses to start and grow;
* Improve coordination in the delivery and development of programs; and
* Increase the number of small business loans guaranteed by USDA and SBA

Key goals of this partnership include strengthening marketing and outreach by enabling each Agency's field offices to advise potential small business borrowers of the other Agency's credit programs that may support all or a portion of the small business' financing needs. USDA Rural Development and SBA field offices will exchange promotional and reference materials, including brochures and training schedules, and will distribute the other Agency's information to its field network and its potential applicants when appropriate.

USDA and SBA will also encourage their networks of resource partners to refer rural businesses to the other Agency's resources, where appropriate. Rural Development's network includes National and State Rural Partnership Councils, State and sub-State Offices, and Appropriate Technology Transfer to Rural Areas. SBA's network includes Small Business Development Centers, SCORE Chapters, U.S. Export Assistance Centers, Veteran Business Outreach Centers and Women's Business Centers. By mutual agreement, USDA and SBA may identify pairings of State and district offices to explore mutual best practices available to serve clients.

The Small Business Administration works to assist and protect the interests of small business. SBA guarantees loans and provides business development assistance to small businesses. It administers its programs through district offices throughout the United States and provides additional services through its network of resource partners: the Small Business Development Centers (SBDC), SCORE, U.S. Export Assistance Centers (USEAC), Women's Business Centers (WBC), and Veterans Business Outreach Centers (VBOC).

USDA, through its Rural Development mission area, administers and manages more than 40 housing, business and community infrastructure and facility programs through a national network of 6,100 employees located in the nation's capital and in 500 national, state and local offices. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America. Rural Development has an existing portfolio of more than $134 billion in loans and loan guarantees.

Release No. 0300.10, Contact: USDA, Weldon Freeman, (202) 690-1384 SBA, Hayley Matz (202) 205-6948
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2010-05-24T08:34:00.000-07:00

US SBA Awards 2 MN Lenders during Small Business Week

The U.S. Small Business Administration in Washington, D.C. gave awards to nine lenders and two investment companies on May 24, 2010 for their commitment to delivering vital financial assistance to American small businesses, as part of National Small Business Week.

Two firms from Minnesota were recognized;

A new award was created this year to honor a Community/Rural Lender that has made a positive impact on its community. The winner of the Community/Rural Lender of the Year was American Bank of the North, of Nashwauk, Minnesota.

In keeping with the heightened importance exports are receiving in the nation’s economic recovery, SBA this year again recognized two banks for their role in lending to small business exporters, and one of those banks was Wells Fargo Bank, N.A., of Minneapolis, Minnesota who won the award for making the largest number of domestic loans to exporters.

FROM:
Release Date: May 24, 2010 Contact: David J. Hall (202) 205-6697
Release Number: 10-27 Internet Address: http://www.sba.gov/news

2010-05-24T07:15:00.000-07:00

2009 MnSBDC Annual Report is an AWARD WINNER!

On May 20, 2010, Minnesota's Department of Employment and Economic Development (DEED) Communications Office was recognized with four awards by the Minnesota Association of Government Communicators (MAGC) during its Northern Lights competition. (DEED hosts the MnSBDC program)

The Northern Lights competition provides awards of merit or excellence in numerous categories related to communications. Submissions are reviewed and scored by peers in the government communications community in Minnesota.

One of the four awards received by the Communications Office was;

Award of Merit – Annual Reports – Lasting Positive Impact (SBDC 2009 Annual Report)

Big Thanks to the DEED Communication's Office for producing a fantastic report that captures the achievements of the MnSBDC Program.

Here's the link to the 2009 MnSBDC Annual Report!

2010-05-18T08:48:00.000-07:00

Minnesota SBA Honors Financial Services Champion - Jenny Dougherty

INTERNATIONAL FALLS – Jenny M. Dougherty, Small Business Development Center (SBDC) Professional Business Consultant for Koochiching Economic Development Authority (KEDA) in International Falls, has been named Minnesota Financial Services Champion of the Year by the U.S. Small Business Administration.

The Financial Services Champion award is presented annually in each state to individuals who assist small businesses through advocacy efforts to increase the usefulness and availability of accounting or financial services. Elaine S. Hansen, Director of the University of Minnesota (Duluth) Center for Economic Development and the Northeast Minnesota Small Business Development Center, nominated Dougherty for this award.

Dougherty has served Koochiching County as a Professional Business Consultant for the SBDC since 2007 in a part-time capacity. Her job responsibilities include business planning, financial analysis as well as cash flow and profitability analysis, assistance with access to capital, loan packaging and market research. Dougherty also is a QuickBooks Pro Advisor and teaches QuickBooks and other business workshops in her community. Recently, because of her efforts and the need for her services, Dougherty’s position was changed to a full-time position.

Dougherty is a 1986 graduate of St. Cloud State University, with a Bachelors of Science, majoring in Finance. She earned her Master of Business Administration from the University of St. Thomas in St. Paul in 2002. Spending her career in the financial industry, Dougherty worked for banks and mortgage companies in the Twin cities area before moving to International Falls, Minnesota. Throughout her twenty-four years in the financial industry, her experiences in mortgage loan origination and processing, underwriting, customer service, bookkeeping and much more, gave Dougherty the expertise she uses now to assist small businesses in Koochiching and Northern St. Louis County.

Dougherty also teaches workshops in starting a business, QuickBooks and other business-related topics at Rainy River Community College. She has developed strong relationships with local banks within the county, joined several local committees and organizations in support for the business community.

She has helped create a Women’s Business network in International Falls, serves on several boards including the International Falls Visitors and Convention Board (2005 – Present), and has been a Girl Scout Leader, President of Scandia Preschool, and serves on the First Lutheran Church Budge Committee (2007 – Present).

Dougherty and her husband, Dan Herman, have six daughters and reside on Rainy Lake in International Falls. Her husband has been a small business owner for over thirty years and her parents and siblings are all owners of small businesses. This experience and family perspective provides a first-hand understanding of the challenges that small business owners face.

For more information:

Jenny M. Dougherty
SBDC Professional Business Consultant
Koochiching Economic Development Authority (KEDA)
PO Box 138
405 3rd Street
International Falls, MN 56649
218-283-8585
jenny.keda@northwinds.net

Release Date: March 29, 2010 Contact: Sherree Stratton (612) 370-2325
Release Number: 2010-04 Internet Address: www.sba.gov/mn

2010-05-18T08:45:00.000-07:00

Google and SBA Launch “Tools for Online Success” Partnership to Boost Small Businesses

On May 5, 2010 the U.S. Small Business Administration (SBA) and Google announced a new partnership and unveiled “Tools for Online Success,” an array of online resources and training designed to help small business owners harness technology to grow their businesses. The “Tools for Online Success” site (http://www.google.com/help/sba) features tutorials, video testimonials, and tips from savvy small business people who have leveraged the web to become more efficient, more cost-effective, and more successful.

Visit the “Tools for Online Success” website for a full run-down, but here are a few easy tips all small business owners should be using:

• Establish your online presence. One out of five searches on Google are related to location. Most local online listings such as Google Places are free, and if your business doesn’t have a website, there are ready-made site templates and free hosting services that make establishing an online presence easy.

• Use free marketing to reach customers. You can build a fan base with free services like YouTube, Facebook and Twitter that keep your customers in-the-know about new products or specials and aware of promotions. These services are great "word of mouth" platforms - where a customer following you might tell their friends about your business.

• Know your customers. Easy to use web analytics tools can tell you a lot about your customers by analyzing what search term brought them to your website or what they look at while they are there. This information can help you make smart decisions about what you feature and what search terms you should run search ads on.

• Keep an eye on the latest trends. The growing popularity of smartphones means that more and more customers are searching for local information on the go. This makes it all the more important that a business’s online presence be accurate and up-to-date. You can link to your menu, give users driving directions, and even post digital coupons.

Release Date: May 5, 2010 Contact: Hayley Matz (202) 205-6948
Release Number: 10-20 Internet Address: http://www.sba.gov/news

2010-05-18T08:35:00.000-07:00

SBA Offers Tools to Help Exporters Succeed as Part of World Trade Week

The U. S. Small Business Administration is offering new, free tools for new and established small business exporters to help them grow and succeed in international trade. Small businesses will now have access to six-part podcast series, an introduction to exporting Youtube video and an online training course.

The podcast series is available online at http://www.sba.gov/tools/audiovideo/Podcasts/INTL_TRADE.html and focuses on Growing Your Business Through Exporting; Developing an Export Strategy; Preparing for Global Markets; Conducting Market Research; SBA Exporting Loan Program; and a Small Business Success Story.

The introduction to exporting video is available at http://www.youtube.com/user/sba#p/u/0/UFQIAszJWn4, and the free, online exporting course, “Take Your Business Global,” is available at http://web.sba.gov/sbtn/registration/index.cfm?CourseId=72.

In addition to the new online tools, SBA Resource Partners – Small Business Development Centers (SBDC), Womens Business Centers and SCORE – are available to assist small businesses in every U.S. State and Territory who are interested in exporting. These resource partners can help entrepreneurs identify potential export markets, facilitate export transactions, develop linkages between United States small business and prescreened foreign buyers, advise on participation in international trade shows, assist in obtaining export financing and in facilitating the development or reorientation of marketing and production strategies. In addition to counseling resources in every state and territory there are export specialists available at the 8 SBDC International Trade Export Assistance Centers and SCORE online international trade advisors. To find your local counseling resources please visit www.sba.gov.

Release Date: May 18, 2010 Contact: David J. Hall (202) 205-6697
Release Number: 10-22 Internet Address: http://www.sba.gov/news

2010-05-17T06:23:00.000-07:00

CleanTech Open Business Competition

Are You an Ecopreneur with an Early Stage Clean Technology Company?

The Cleantech Open Business Competition can accelerate your business launch and growth. Just by entering you'll immediately start receiving resources and support to grow your company into a successful, sustainable business.

Register your interest in competing in the 2010 competition here. You'll get a head start on developing your network and learning the skills you'll need to win.

Key Dates and Entry Fees:

May 22, 2010 - Final Entry Deadline
$249 professionals
$199 students

**There is a $249 participation fee for each team member of each semifinalist team. Semifinalist teams will be announced June 15 and the payment will be accepted after that date.

Benefits for All Contestants Include:

* Executive Summary Webinar — Watch the recorded webinar from May 4th here.
* One-on-one mentoring by industry leaders — Get expert help with your executive summary
* Judges' feedback on your executive summary
* Cleantech National Conference — Showcase your technologies and meet cleantech enthusiasts on July 22, subject to space availability

For more information, click here for the CleanTech Open Website.

For a PDF File with more information, click here.

The MnSBDC will participate as a Judge for the NorthCentral Region for the contest, and is pleased to support this contest.

2010-05-10T06:35:00.000-07:00

Renewable Energy Grants? For Rural Minnesota?

HERE'S THE GRANT!

The USDA is implementing the Rural Energy for America Program (REAP) for Fiscal Year 2010. This is for the purchase of renewable energy systems and the making of energy efficiency improvements for agriculture producers and rural small businesses in eligible rural areas.

CLICK HERE for the link to FULL details and information on the grant.

DEADLINE: 4:30 local time June 30, 2010.

Application materials may be obtained by contacting the Rural Development’s Energy Coordinators or by downloading through http://www.grants.gov. Submit electronic applications at http://www.grants.gov, following the instructions found on this Web site.

Rural Development Energy Coordinator for MN
Lisa L. Noty, USDA Rural Development, 1400 West Main Street, Albert Lea, MN 56007, (507) 373–7960 Ext. 120, lisa.noty@mn.usda.gov

2010-04-27T07:33:00.001-07:00

Doing Business in India? Why would I do that?

How about considering that India is the second-most populous country IN THE WORLD with about 1.18 billion people. Talk about 'market potential'. The other reason to consider this is that they speak English there! Finally - how would you like to learn about this market and how to do business there from the comfort and privacy of your own home?

If you have an Internet connection, and for a modest $35 registration fee, you can!

Details below;

This webinar will present the following topics:

Due diligence when selecting a reseller or
other business partner in India.
Getting paid by an Indian customer
Setting up an R&D operation in India:
dos and don’ts of alternative approaches
Setting up your own operation in India: legal and accounting issues, audits, tax breaks, and more.

Presented by Dr. Shan Nair, Co-founder, Nair & Co.

Date, Time & Location:
Webinar - April 28th, 2010 from 10:00 am to 11:30 am CST

Price & Registration: $35
Register online at www.texastrade.org

This opportunity is brought to you by the INTERNATIONAL TRADE CENTER located at the University of Texas, San Antonio and part of the Southwest Texas Border Region SBDC Network.

2010-04-27T06:16:00.000-07:00

Senator Snowe calls for funding for job-creating programs

Apr 23, 2010 (Congressional Documents and Publications/ContentWorks via COMTEX) --

Washington, D.C. -

At a Senate Committee on Small Business and Entrepreneurship hearing yesterday afternoon regarding the Small Business Administration's (SBA) Fiscal Year 2011 budget, Ranking Member Olympia J. Snowe (R-Maine) expressed her concern that the SBA's core, job-creating programs are slated for flat-funding under President Obama's Fiscal Year 2011 budget. At the same time, Senator Snowe pledged to work with SBA Administrator Karen Mills to ensure that her agency has the tools necessary to help America's nearly 30 million small businesses, including passage of a broad small business jobs package.

"A strong and well-funded SBA represents a prudent investment in America's economic future," said Ranking Member Snowe. "I am very concerned that although the Administration's proposal would provide a 15 percent increase to the SBA's budget, none of the additional funds have been directed to the SBA's core, non-credit programs, including Women's Business Centers, Veterans Business Centers, Small Business Development Centers, SCORE, and the HUBZone program."

Senator Snowe continued, "At a time when small businesses are struggling to create jobs, it is more crucial than ever that the SBA invest any additional taxpayer dollars in the programs that have proven time and again to create jobs and help entrepreneurs succeed."

At the same hearing, Senator Snowe also reiterated her call for Senate Majority Leader Harry Reid to bring a small business jobs bill to the Senate Floor without delay, as he had promised prior to the Easter recess. She urged the Leader to include provisions from the Small Business Job Creation Act of 2010 (S. 3103), which Senator Snowe introduced on March 10, 2010, is based in large part on several bipartisan bills that have already been approved by the Senate Committee on Small Business and Entrepreneurship.

Specifically, that legislation includes critical enhancements to the SBA's lending programs, such as an increase in the loan limits for the SBA's 7(a) and 504 loans from $2 million to $5 million and for the SBA's microloans from $35,000 to $50,000, as well as an expansion and enhancement of export financing and assistance for small businesses. The bill also contains a five-year extension of small business expensing; a complete exclusion on capital gains attributable to small business stock held for five years; a Job Impact Statement for every major piece of legislation; and critical funding for the Small Business Development Centers.

2010-04-16T06:05:00.000-07:00

Start-Up Business Advice Provided for Entrepreneurs
---
Thursday, April 22, 2010, from 1:00 p.m. to 2:00 p.m., ET

WASHINGTON – The SBA’s Web Chat will highlight assistance to entrepreneurs who want to start a business, and need to know the right strategies to have in place to achieve success. Participants can learn what it takes to start a business, where to go for information and assistance, why they need a business plan, how to get funding and the truth about the “free money” myth.

WHO: Barry McKinley, an experienced SCORE Counselor at Orange County California SCORE will host the April Web chat on “Small Business Start-Up -- Ask the Expert.” McKinley will answer questions about what first steps to take to start a business, and how and when to get a small business idea off the ground.
In addition, participants can learn about the resources available to help set up a business.

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: April 22, 2010, 1 p.m. ET
McKinley 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 April 22nd chat by visiting http://web.sba.gov/livemeeting/Apr10 and posting their questions online.

Contact: Cecelia Taylor (202)401-3059
SBA Advisory Number: MA10-05
# # #

2010-04-06T04:26:00.000-07:00

SBA Offers Free Webinar Series to Help Small Business Owners Get Fiscally Fit
---
Recognizes National Financial Literacy Month
April 2010

WHAT: The U.S. Small Business Administration will host a Webinar series in recognition of National Financial Literacy Month. Topics will highlight the importance of financial education and the opportunity to learn practical money skills and financial wellness. Participants will learn basic money management and financial skills for today's business world.

WHEN: April 7, 2010

WHO: Learn to build wealth and not debt from some of the industry leaders on financial education and entrepreneurship. Webinar presenters and topics include:

Topic: The Importance of Financial Education in the Workplace
Wednesday, April 7 at 11:00 a.m.

Becky MacDicken, Financial Education Specialist
Pennsylvania Office of Financial Education

Topic: Basic Banking/Financial Tips for Small Business
Wednesday, April 7 at 3:00 p.m.

Luke Reynolds, Chief of the Outreach & Program Development Section
Division of Supervision and Consumer Protection Community Affairs
Branch, Federal Deposit Insurance Corporation (FDIC)

HOW: For free visual and audio access to the Webinar go to

www.ReadyTalk.com
Click "join a meeting" and enter access code 3761101
Then dial 866-740-1260 and enter access code 3761101 (plus the #
key).

System Requirements:

Windows, Mac, Linux and Solaris operating systems
Internet Explorer, Safari and Firefox Web browsers
Separate telephone line needed for the audio portion

2010-04-04T10:21:00.000-07:00

Veterans Business Outreach Center - Position Opportunity

The new Region III Veterans Business Outreach Center (administered by the Pennsylvania SBDC and serving Pennsylvania; Delaware; Washington, DC; Maryland; Virginia; and West Virginia) is seeking a seasoned business consultant for the Program Director's position. Application reviews will begin April 19. The Pennsylvania SBDC is asking for your assistance to fill this important position by publicizing it far and wide. Please click here for the position announcement.

The Veterans' Business Outreach Center, Region III, is located in the heart of Pittsburgh at Robert Morris University's downtown campus in the Adult and Continuing Education Building at 600 Fifth Avenue.

One of only five VBOCs in the nation, it offers one-to-one business counseling, mentoring, workshops, discussion groups, networking opportunities, and entrepreneurial courses to all veterans, current military personnel and spouses, and pre- and post-deployed members of the National Guard and Reserve Forces who are interested in entrepreneurship.

This program is funded in part by the Small Business Administration to serve as a clearinghouse of business and technical assistance for those interested in starting or growing a business. Utilizing Small Business Administration resource partners such as the Small Business Development Centers (SBDC), Service Corps of Retired Executives (SCORE), and others throughout the region, the VBOC is able to assist individuals through each phase of their business development.

All counseling is free.

2010-04-04T10:00:00.000-07:00

Calling All Inventors!!

A Message from Deb Hess, Executive Director of the Minnesota Inventor's Congress;

Greetings from the Minnesota Inventors Congress. If you aren't ready to test market your idea this year, there are still many other great reasons to attend the expo:

Inventing Success Workshops
Custom Invention Plans
networking
3M Visiting Wizards
USPTO presentation
the Minnesota Student Inventors Congress exhibit, and many, many more.

CLICK HERE for the Registration and information booklet, including schedule of events.

If you are unable to open the attachment please visit our website at:
www.minnesotainventorscongress.org
and click on the "Invention & Idea Show" banner that is front and center of our home page.

Please take a few minutes to enjoy a special segment created by Our Story Productions about the MIC: http://bit.ly/micourstory

We are excited to announce a new competition for inventor exhibitors this year. Along with our traditional judging we will also be offering, to the first 75 exhibitors who are registered by May 14, 2010, the opportunity to participate in the MIC Jump$tart Competition.

1st Stage - you will have the opportunity to pitch your product, first in a written format.
2nd Stage - the top 25 will be selected to present a live pitch on stage, Saturday, June 12th at the expo, to a panel of 3 judges.
3rd Stage - the top 5 will compete in the final round.

The first place winner will receive $1,000.00 in services that will advance your invention through the product development process. The second place winner will receive $500.00 in services that will advance your invention through the product development process.

Complete details will be provided to each of the qualified inventor exhibitors.
Sponsored by: Malco Design and Deliver Group. Website: www.malcod2group.com Additional sponsorship packages are available for this event. Call or email Deb Hess for details.

Here's to Inventing Success - The most important investment an inventor can make is to learn how successful inventors develop marketable products!
Best regards,
Deb Hess
Executive Director
deb@minnesotainventorscongress.org
www.minnesotainventorscongress.org
Minnesota Inventors Congress
235 S Mill Street, P O Box 71
Redwood Falls MN 56283
507.627.2344 Office * 800.468.3681 Toll Free * 507.637.4082 Fax

2010-04-02T06:38:00.000-07:00

Health Care Reform Web Chat

The Web Chat occurred on Wed. March 31st at 7pm, and some MnSBDC clients have asked if there is a taped copy they can review since they couldn't make the event work with their schedule.

The event is currently (as of April 2, 2010) archived on the Health, Human Services website at this location;

www.hhs.gov/live

By clicking on the above link, it should take you directly to the taped copy of the Web Chat.

2010-04-02T06:35:00.000-07:00

SBA 2010 SOPs

The SBA has a rolling list of SOPs they issue for their programs. Check it out to stay up-to-date with all the SBA program changes.

Click Here to go to the SBA 2010 SOP webpage.

Here's a shortened URL address to take you there;

http://bit.ly/SBA_2010_SOPs

2010-03-31T04:55:00.000-07:00

Health Care Reform Webcast
March 31, 7pm

Secretary of Health and Human Services Kathleen Sebelius and Small Business Administrator Karen Mills will host a webcast on Wednesday, March 31 at 7pm at www.HealthReform.gov to discuss the recent health care reforms and their impact on the small business community.

Participants can email their questions in advance to HealthReform@hhs.gov.

See the invitation from SBA Administrator Karen Mills below.

---

Please join Health and Human Services Secretary Kathleen Sebelius and me tomorrow, Wednesday, March 31, from 7-7:30 PM EST on www.HealthReform.gov for a live Q&A session on understanding the new health insurance reform law and its benefits for small businesses. This is the first of several regular webcasts that will cover the overall benefits and implementation of the new law, and I'm happy that this first session will have a focus on small business.

Already, I've received countless questions from small business owners about the new law and its benefits. In fact, this new law offers many tools to help small business owners access more affordable health insurance options for their employees. These tools include the creation of 50 state exchanges that will allow small business owners to access affordable health insurance plans for their employees, as well as new tax credits to help pay for this coverage.

I know you want to know what's in health insurance reform for your small business and your employees. I hope you'll join Secretary Sebelius and me to find out what's in it for you.

Warm regards,
Karen Mills

2010-03-31T04:50:00.000-07:00

SBA Recovery Lending Extended Through April 30

WASHINGTON – President Barack Obama signed on Friday legislation extending through April the U.S. Small Business Administration’s ability to provide enhancements in its two largest small business loan programs. The enhancements, first made available under the American Recovery and Reinvestment Act, include a higher guarantee on some SBA-backed loans and fee relief.

The SBA estimates the $40 million extension will support about $1.4 billion in small business lending.

As part of the Recovery Act enacted on Feb. 17, 2009, SBA received $730 million to help small businesses, including $375 million to increase the SBA guarantee on 7(a) loans to 90 percent and to waive borrower fees on most 7(a) and 504 loans. The funds for these programs were exhausted on Nov. 23, 2009, and an additional $125 million was provided in December. Those funds were exhausted in late February, 2010, and an additional $60 million was provided subsequently. That funding was exhausted late Friday.

Under the new extension SBA may continue to waive loan fees and provide higher guarantee levels on 7(a) loans through April, 30, 2010, or until the funds provided under the bill are exhausted.

When the funds provided for March were exhausted, SBA reactivated the Recovery Loan Queue, as occurred in November and again in February, to cover the brief period of time before the funds from the extension become available, which should be within a few days.

Eligible small business loan applicants, in consultation with their lenders, may choose to be placed in the queue for possible approval of a Recovery Act loan when funding becomes available.

For non-Recovery Act 7(a) or 504 loans already funded during the Recovery Loan Queue period, this extension does not provide a retroactive guarantee or fee relief. Loans that were funded under non-Recovery Act terms cannot be canceled and resubmitted to take advantage of the Recovery Act extension provisions.

This extension does not affect other SBA Recovery Act programs, including the America’s Recovery Capital (ARC) loan program or the agency’s microloans. Recovery Act funding still remains available for both of those programs.
# # #
From SBA PR Number: 10-08, March 29, 2010 Contact: Hayley Matz (202) 205-6948

2010-03-11T14:51:00.001-08:00

Minnesota Lender SBA Activity as of 2/28/2010

The latest report of lenders who originate SBA Backed loans is available by clicking here. Wells Fargo leads with the total dollar amount and with the total number of loans (i.e. volume).

The Minnesota SBA District Office ranks first in the nation in the number of loan guarantees and seventh in the nation in dollars of loan guarantees out of 68 district offices nationwide.

2010-03-11T14:18:00.000-08:00

New Maximum Rates for SBA 7(a) Loans

Here is a sheet listing the maximum interest rates that may be charged for SBA 7(a) loans depending on the amount and the maturity of the loan. Click here for the information.

2010-03-10T06:46:00.000-08:00

Using Retirement Funds to fund a business start-up??

With the current difficulty in obtaining start-up funding to launch a new business venture, some budding entrepreneurs are looking at every option and alternative they can find. One potential option may be to use retirement funds you have built up over time to fund the venture. I stress this is absolutely NOT a recommendation to follow this course of action, only one of many potentials to consider and decide based on your own analysis and evaluation of the risks involved.

I found a good list of points to consider when you are considering this option from a financial services group. (Again, NOT a recommendation for or against this firm, only a useful list they have on their website). Please click here to review this list.

There is also a firm that claims it was the first one to use this tactic and has a track record in this process. You can review additional information on the process and this firm by clicking here. (Again, NOT a recommendation for or against this firm, only a useful listing of how the process works on their website)

Finally, the MnSBDC stands ready to help serious entrepreneurs to start and grow their businesses and any of our 9 regional offices can serve small business clients in the state of Minnesota. Find the location of the center nearest you by clicking here. If you are outside the state of Minnesota, please seek out your local SBDC network for assistance.

2010-03-08T07:16:00.000-08:00

Extension of SBA Recovery Lending Programs Will Support $1.8 Billion in Small Business Lending

As noted earlier on this blog, the SBA Recovery Lending Programs were extended. For full details you can click here for the full Press Release (in PDF format) issued by the SBA on this item.

2010-03-08T06:27:00.000-08:00

House Small Business Committee weighs in on SBA 2011 Budget

Rep. Nydia M. Velázquez (D-NY), the Chairwoman of the House Committee on Small Business, comments on the 2011 budget for the US Small Business Administration (SBA). This is the government entity most directly involved with helping small businesses to succeed, and small businesses are often touted as being the economic driver of the economy and the major job creator.

Here's what she noted about the budget for the SBDC;

“Entrepreneurial Development programs have a track record of solid returns. In fact, every $1 spent on these efforts puts another $2.87 back into the Treasury. Most of these programs--such as Small Business Development Centers-- are catalysts for job creation. Unfortunately, the FY2011 budget would flat fund virtually all of them. It instead invests in unproven efforts like the Emerging Leaders program, which does essentially the same thing as SBDC’s, only at twice the cost. The end result is spending $6,000 on each job created when we could be spending $3,000."

Here in Minnesota, the Minnesota Small Business Development Centers program has beat the national average listed above with a program cost per job of only $382, generating a ROI (Return on Investment) in the program of $13.14.

The full statement by Rep. Nydia M. Velázquez can be found by clicking here.

To view the 2008 Annual Report for the MnSBDC (in PDF format), please click here. (The 2009 report will be available shortly)

As always, the MnSBDC program stands ready to assist small businesses in the state of Mn to succeed, and nationwide, there is an SBDC program in each state, ready to spring to action to help small businesses succeed.

2010-03-04T08:27:00.000-08:00

BBB calling for nominations for its 11th annual Integrity Awards

The Better Business Bureau of Minnesota and North Dakota (BBB) is calling for nominations for its eleventh annual Integrity Awards. The BBB Integrity Award recognizes companies that display outstanding ethics in dealings with customers, employees, vendors and the community. All for-profit businesses of any size, owned or operated in Minnesota or North Dakota, are eligible. Nominees must have a satisfactory rating with the BBB; however membership is not a requirement to compete for the award. The nomination deadline is April 30th, 2010.

Companies can be nominated by visiting www.thefirstbbb.org, or by sending the company name, contact name, address and phone number, along with the nominator’s name and phone number to BBB, Attn: Integrity Awards, 2706 Gannon Rd., St. Paul, MN 55116; or faxing the information to 651-699-7665.

Entrants are judged on four areas of their business:

management practices;
customer/vendor/supplier/shareholder relations;
marketing/advertising/communications/sales practices;
and reputation within their industry/community.

Once nominated, the nominee will receive an official entry form from the BBB. An independent panel of judges will decide the award finalists and recipients. Winners will be announced live at the BBB's 2010 Integrity Awards in October (details to follow). Winners will also be recognized in Integrity Awards publicity and will be eligible to compete for the National BBB Torch Award for Marketplace Ethics.

For more information on the Better Business Bureau, visit the Bureau’s Web site at www.thefirstbbb.org or call 651-699-1111, toll-free 800-646-6222.

2010-03-04T07:46:00.000-08:00

SBA Stimulus Loans Reauthorized

The President signed a bill on 3/2/2010 that reauthorizes the expired 90-percent guarantee on the S.B.A.’s general business loans through March 28th. The $60 million appropriation funds this higher guarantee and eliminates borrower fees for both the 7(a) and the 504 loan program.

2010-02-26T11:37:00.000-08:00

State of Manufacturing in MN

Enterprise Minnesota, the premier service provider that works with manufacturing organizations in the State of Minnesota, has issued their Second Annual "State of Manufacturing" survey.

The good news is that the survey turned up a more optimistic outlook by this industry sector compared to a year ago. The less than good news is that some obstacles remain to be addressed, including access to credit, the general business environment, and health care costs among others.

For the full results, you can click here to go to the Enterprise Minnesota website.

In addition, a hard copy is available for sale through Amazon by clicking here.

2010-02-25T05:57:00.001-08:00

Get in Line! (for the SBA Backed Small Business Loans)

The funding for the enhanced SBA guaranteed small business loans ran out Friday, February 19, 2010 and its time to get in line and hope they will restart with additional funding from Congress.

Similar to what happened in November 2009 when the SBA Recovery Loan program ran out of its original allotment of $375 million, there is an additional appropriation awaiting congressional approval - it passed the House and is stalled in the Senate.

The last time this happened the extra $175 million lasted until last Friday, February 19. The SBA has seen a dramatic increase in the average weekly loan volume, increasing by nearly 90% since February 2009, so the lending is helping the small business market to get back on their feet.

The advantage of getting in line for the enhanced loans is the higher guarantee amount (attractive to the lending institution), and in some cases waived fees.

After you get in line, you can watch the loan que here on the SBA website.

2010-02-25T05:13:00.000-08:00

Social Media Toolkit

The MnSBDC Professional Business Consultant team often gets requests from small business clients on how to enter the world of 'Social Media', such as blogging and social networking. Inc online has a great toolkit to introduce you to this world with a range of articles, all gathered in one toolkit.

Please click here to go to that resource.

2010-02-22T11:54:00.000-08:00

*FREE* Webinar for Youth Entreprenures

SBA Offers Free Youthpreneur Webinar Series to Promote Entrepreneurship and Financial Literacy
---
Recognizes National Entrepreneurship Week & America Saves Week
February 20-28, 2010

WHAT: The U.S. Small Business Administration will host a series of Youthpreneur Webinars in recognition of National Entrepreneurship Week and America Saves Week. The topics will emphasis youth entrepreneurship and engage the next generation of small business owners in skills building and financial empowerment. They will be able to learn the basics of entrepreneurship, strategies for today’s business world, and using social networking to advance business ideas.

WHEN: February 23-25, 2010
Daily, 11:00 a.m. and 3:00 p.m. (ET)

WHO: Be inspired and learn from some of the best in business and entrepreneurship.
Webinar presenters and topics include:

Jennifer Matthews, President and CEO
Creating Financial Literacy, LLC
Topic: Why My Credit Score Matters NOW
Tuesday, February 23 at 11:00 a.m.

Vince Shorb, President, The National Youth Financial Educator’s Council (NYFEC)
Topic: Financial Education/Entrepreneurship
Tuesday, February 23 at 3:00 p.m.

Steven Harris, President
JS Investment Group
Topic: Youth Entrepreneurship and Financial Literacy
Wednesday, February 24 at 11:00 a.m.

Michael Simmons, Co-Founder & CEO, Extreme Entrepreneurship Tour
Topic: Why Every Student Should Be an Entrepreneur
Wednesday, February 24 at 3:00 p.m.

Shonika Proctor, CEO, Renegade CEO’s
Topic: Me…Myself...and Why? A Business Roadmap for Determined Teens Who are Making Their Way
Thursday, February 25 at 11:00 a.m.

Jason Duff, Founder and CEO, Community Storage & Properties, LTD and COMSTOR Outdoor, LTD
Topic: How to Leverage Top Internet Tools to Grow and Market Your Business
at No Cost
Thursday, February 25 at 3:00 p.m.

HOW: For free visual and audio access to the Webinar go to www.ReadyTalk.com
Click “join a meeting” and enter access code 3761101
Then dial 866.740.1260 and enter access code 3761101 (plus the #key)
System Requirements:
- Windows, Mac, Linux and Solaris operating systems
- Internet Explorer, Safari and Firefox Web browsers
- Separate telephone line needed for the audio portion

For more information Contact: Cecelia Taylor (202) 401-3059 Advisory Number: MA10-02 Internet Address: http://www.sba.gov/news

2010-02-22T11:21:00.000-08:00

Calling all Inventors!

The Minnesota Inventors Congress (MIC) is involved in 3 major events taking place during the month of March for inventors.

1. Global Inventors Conference. A one day workshop designed for the inventor who wants to learn how to develop a marketable product. Attend in person or online.
www.minnesotainventorscongress.org
Saturday, March 6, 2010
9 - 5 (Online attendees - time will vary depending on your time zone) Oahu Veterans Center Honolulu Hawaii Registration deadline:
In Person: Walk ins welcome
Online registration deadline is Monday, March 1, 2010, at 5:00 p.m.

2. Lake Superior Business to Business Expo http://www.duluthbusinessexpo.com Wednesday, March 17, 2010
9 - 5
Duluth Entertainment Convention Center
Duluth MN
Stop by their booth and say hello

3. MN Marketplace for Entrepreneurs
www.mnmarketplace.org
Tuesday, March 30, 2010
12:30 - 7
Verizon Wireless Center
Mankato MN
Free exhibitor booths for entrepreneurs.
4 Inventing Success Workshops:
Inventors most important investment – Deb Hess, MN Inventors Congress Patent Law: A Business Perspective – Roger Belfay, patent attorney How I Became the “Needle Lady” - Pam Turner, Inventor Best Practices for New Product Development – David Clark of Malco Design and Deliver Group Register today.

For more information, please contact;
Deb Hess, Executive Director
deb@minnesotainventorscongress.org
www.minnesotainventorscongress.org
Minnesota Inventors Congress
235 S Mill Street, P O Box 71
Redwood Falls MN 56283
507.627.2344 Office * 800.468.3681 Toll Free * 507.637.4082 Fax

Don't forget the premier event for Inventors - 53rd Annual event: Invention & Idea Show - June 11 & 12, 2010 in Redwood Falls, MN.

2010-02-18T06:32:00.000-08:00

SBA To Honor the Nation’s Small Businesses During National Small Business Week; May 23-25, 2010
--
WASHINGTON – The nation’s top entrepreneurs will be honored at the U.S. Small Business Administration’s National Small Business Week events to be held May 23-25, in Washington, D.C. A series of events and educational forums will mark the 57th anniversary of the agency and the 47th annual proclamation of National Small Business Week.

Men and women also will be recognized for their involvement in disaster recovery, government contracting, and their support for small businesses and entrepreneurship. Awards also will be presented to SBA partners in financial and entrepreneurial development, including best SCORE Chapter, Small Business Development Center and Women’s Business Center during 2009.

The State Small Business Award Winners and recipients of the Champion and other Entrepreneurial awards are nominated by local trade associations, chambers of commerce, other business organizations and government agencies. Co-Sponsors include: SCORE – Counselors to America’s Small Business; VISA; Ford; Administaff; Google; eBay; Raytheon; Cbeyond; Intuit; Northrop Grumman; Lockheed Martin; Verio; NADCO and NAGGL.

Additional information on the Small Business Week 2010 events is available at www.nationalsmallbusinessweek.com.

# # #

Summarized from SBA Release Number: 10-02 Contact: Dennis Byrne (202) 205-6567

2010-02-08T12:01:00.000-08:00

Latest in a Series of New Small Business Proposals by President Obama

1. Expand SBA’s existing 504 program to temporarily support refinancing for owner-occupied commercial real estate loans:

The Administration is proposing legislation to temporarily allow for the refinancing of owner-occupied commercial real estate (CRE) loans under the SBA’s 504 program, which provides guarantees on loans for the development of real estate and other fixed assets. Currently, 504 loans cannot be used for the refinancing of maturing debt. This change would respond to the difficulties many current, solvent borrowers face in refinancing existing commercial real estate loans.

Businesses with a loan maturing in the next year who are current on all loan payments will be eligible. Lenders that are refinancing mortgages for existing customers will make a loan for up to 70 percent of the current property value; and SBA will help finance the remaining 20 percent. For new lenders taking on a refinancing project, SBA will take on a greater share of financing, up to 40 percent.

2. Temporarily increase the cap on SBA Express loans from $350,000 to $1 million:

The President is proposing to temporarily increase the maximum SBA Express loan size to $1 million, which would expand the program’s ability to help a broad range of small businesses through a streamlined approval process. Unlike traditional 7(a) loans, lenders can use their own paperwork for SBA Express loans, which can be structured as revolving lines of credit. Currently, these Express loans are capped at $350,000 and carry a 50 percent guarantee. Fees would cover virtually all of the added costs of this proposal.

These proposals complement the President’s broader small business agenda - a key part of his overall jobs plan. The other elements of the small business agenda include:

• Extending small business expensing and bonus depreciation for 2010. Eliminating capital gains taxes for small businesses in 2010.

• A Small Business Jobs and Wages Tax Credit that would cut taxes for more than 1 million small businesses by paying up to $5,000 for every net new job and covers payroll taxes on overall wage increases in excess of inflation.

• A proposal to transfer, through legislation, $30 billion to a new Small Business Lending Fund that will support lending by community and smaller banks.

• Additional SBA lending proposals, including an extension of the Recovery Act programs that eliminate fees and raise guarantees on SBA’s two largest loan programs and permanent increases in the maximum loan sizes for major SBA programs.

2010-02-04T10:58:00.000-08:00

Economic Clusters as a means to growth

One idea that is firmly entrenched in current economic development thinking is the idea of 'economic clusters' - related firms that build on and leverage a specific skill set or market segment. One definition (there are many) comes from the Harvard Business School's Institute for Strategy and Competitiveness; "Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, and associated institutions in a particular field that are present in a nation or region. Clusters arise because they increase the productivity with which companies can compete."

In the 2011 budget request, the concept of economic clusters is seeded throughout various agencies. This has potential to blossom into new jobs, and only time will tell if the concept passes the budget review process and is successfully implemented by the agencies. The New Republic provides a useful summary of the agencies and the amounts, along with hyperlinks to the specific agency budgets. Here is the link to that article.

2010-02-04T05:29:00.000-08:00

Minnesota District Office ranks first in the nation in number of loan guarantees and seventh in the nation in dollars of loan guarantees out of 68 district offices nationwide.

While small business lending by large banks is down, SBA backed small business loans continue to help the small business community to survive. This Wall Street Journal article notes that; "The top 22 largest lenders under the government's Troubled Asset Relief Program approved $6.9 billion in loans in November, down 7.4% from April."

The Minnesota District Office continues to turn in an impressive record, and note that in MN the two top spots on the list are held by large banks; Wells Fargo and US Bank. Here's the full details.

2010-02-02T05:28:00.001-08:00

What Trends will impact Small Business this year?

Predicting the future is a favorite past-time, especially at the start of a year. Understanding trends is a bit more useful for trying to figure out where the small businesses that the MnSBDC serve may be impacted.

Here's an interesting article from US News and World report that lists "21 Things We're Learning to Live Without". By studying this list, you may be able to better prepare for the potential impact on small businesses. There are also interesting 'hyperlinks' scattered throughout the article that lead to additional stories on selected topics.

So - ready to predict the future?

2010-01-31T14:45:00.000-08:00

Purchase Order Financing

Since the 'Big Banks' have reduced lending to small businesses, they have turned to alternative means to raise funds. In addition to credit cards (credit lines reduced by the same Big Banks), pawnshops and 'payday' lenders, small business owners are discovering 'purchase order financing'. Similar to 'factoring' where a firm sells its invoice (at a discount) to raise quick cash, purchase order financing are guarantees, written by the buyer, that they are committed to purchase a product. Useful especially with off-shore manufacturing, the business owner would typically pay the factory to manufacture the goods, but in purchase order financing, the money firm instead pays to have the finished products shipped from the factory. Once the money firm is paid, they take their cut and gives the balance to the small business owner.

Why has this form of expensive financing gained popularity? The inability of small businesses to borrow from the lending institutions they use to reliably borrow from, prior to the current economic downturn.

Here's the latest report by the US Treasury that tracks this downturn in lending.

Here's a news story from the New York Times that lists this trend in more detail.

2010-01-12T11:34:00.000-08:00

SBA, Dell Launch New Educational Video Series to Help Small Businesses Grow, Create Jobs

WASHINGTON – Highlighting the experiences of successful entrepreneurs, the U.S. Small Business Administration and Dell today launched an online video series offering tools and strategies to help small business owners rebound from the economic recession and put themselves in a position to expand and create jobs.

Strategies for Growth: Advice for Expanding Your Business includes real-world insight, solutions and advice from small business owners who’ve succeeded, in good and bad economic times. Additionally, the series draws on the expertise of counselors, policy makers and others for accessing resources and tools available to small business owners.

The Strategies for Growth video series highlights key topics that engage small business owners in issues critical to small business growth. These areas include Planning for Growth, Government Contracting, Team Building, Marketing, Technology, Exporting Opportunities, and Disaster Recovery. Also featured is a Profiles of Success segment that spotlights two successful entrepreneurs.

The Strategies for Growth video series features a range of growing small businesses from across the country, including a design firm, a vegetarian restaurant and bakery, and a green construction company. They are:

Grace Dittmar, Trusted Mission Solutions of McLean, Va.
Warren Brown, CakeLove of Washington, D.C.
Don Matzkin and Anthony Bracali, Friday Architects of Philadelphia, Pa.
Juan and Luis Yépez, Mainstream Global of Lawrence, Mass.
Ann-Marie Harrington, Embolden of Pawtucket, R.I.
Laurie Benson, Inacom of Madison, Wis.
Bryan Vulcan, FourFront Design of Rapid City, S.D.
Avinash Rachmale, Lakeshore Engineering of Detroit, Mich.
Jenna Sellmeyer and Jennifer Fogg, ASSET Group of Oklahoma City, Okla.
Jesus & Luisa Mendoza, Mr. Natural of Austin, Texas
Andrew Kruse, Southwest Windpower of Flagstaff, Ariz.
Mary Tappouni, Breaking Ground Construction of Jacksonville, Fla.

Strategies for Growth is available on the SBA’s Web site at www.sba.gov/StrategiesForSuccess and at the SBA’s YouTube channel at www.YouTube.com/sba. Each topic is indexed by subject and includes additional resources for entrepreneurs.

SBA Release Number: 09-82

2009-12-18T06:48:00.000-08:00

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.

2009-12-11T08:11:00.000-08:00

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.

2009-12-10T12:07:00.000-08:00

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

2009-12-09T06:01:00.001-08:00

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

2009-12-07T09:27:00.000-08:00

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

2009-12-03T07:02:00.000-08:00

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.

2009-12-02T05:54:00.000-08:00

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.

2009-11-30T07:54:00.000-08:00

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.

2009-11-18T09:50:00.000-08:00

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.

2009-11-18T05:50:00.000-08:00

$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.

2009-11-17T11:05:00.000-08:00

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.

2009-11-17T05:25:00.000-08:00

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.

2009-11-17T05:22:00.000-08:00

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.

2009-11-10T06:17:00.001-08:00

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.

2009-11-04T05:41:00.000-08:00

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)

2009-10-27T16:28:00.000-07:00

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.

2009-10-26T05:08:00.000-07:00

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.

2009-10-22T11:33:00.000-07:00

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

# # #

2009-10-22T09:18:00.000-07:00

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

2009-10-19T13:03:00.000-07:00

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

2009-10-15T06:10:00.000-07:00

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

2009-10-14T15:12:00.000-07:00

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

2009-10-05T06:32:00.000-07:00

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

2009-09-30T14:16:00.000-07:00

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

2009-09-30T06:33:00.000-07:00

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.

2009-09-29T11:52:00.000-07:00

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.

2009-09-29T10:58:00.000-07:00

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.

2009-09-08T12:39:00.000-07:00

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.

2009-09-08T11:22:00.000-07:00

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?

2009-09-03T05:26:00.000-07:00

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

2009-09-01T14:08:00.000-07:00

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
# # #

2009-09-01T07:36:00.000-07:00

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
# # #

2009-08-31T14:04:00.000-07:00

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

2009-08-28T13:38:00.000-07:00

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.

2009-08-28T08:48:00.000-07:00

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?

2009-08-25T08:41:00.000-07:00

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)

2009-08-20T13:17:00.000-07:00

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

2009-08-19T12:41:00.000-07:00

"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.

2009-08-19T05:17:00.000-07:00

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.

# # #

2009-08-17T09:16:00.000-07:00

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

2009-08-14T10:35:00.000-07:00

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

2009-08-14T06:52:00.000-07:00

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.

2009-08-14T05:54:00.000-07:00

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

2009-08-14T05:38:00.000-07:00

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.

2009-08-11T05:58:00.000-07:00

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.

# # #

2009-08-06T05:21:00.000-07:00

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.

2009-08-04T10:21:00.000-07:00

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.
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2009-08-03T15:15:00.000-07:00

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

2009-08-03T14:42:00.000-07:00

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

2009-07-31T12:37:00.000-07:00

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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2009-07-31T09:29:00.000-07:00

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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2009-07-31T07:07:00.000-07:00

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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