SBA To Honor the Nation’s Small Businesses During National Small Business Week; May 23-25, 2010
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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.
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Summarized from SBA Release Number: 10-02 Contact: Dennis Byrne (202) 205-6567
Thursday, February 18, 2010
Monday, February 8, 2010
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.
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.
Thursday, February 4, 2010
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.
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.
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.
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.
Tuesday, February 2, 2010
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?
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?
Sunday, January 31, 2010
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.
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.
Tuesday, January 12, 2010
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:
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
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
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