Watch the Winners of the SBA and Visa Export Video Contest

ngoriel — Thu, 16 May 2013 19:24:44 +0000

Did you know that the world’s population already surpasses 7 billion?

Did you know that more than 95 percent of the world’s consumers live outside the United States?

U.S. exports of goods and services accounted for 14 percent of the national GDP in 2008 and climbed to 14 percent in 2012. These numbers show the growing role exports are playing in our nation’s economic recovery.

The surprising fact about these numbers is that only less than one percent of the 30 million plus companies in the U.S. are engaged in exporting. Can you imagine the scenario if instead of one percent it were two percent?

Clearly, the potential of exports as a major economic engine cannot be overstated, that’s why, in his 2010 State of the Union address, President Obama announced the National Export Initiative as an effort and a challenge to promote American exports. Two years later, there is evidence that those efforts are paying off: In 2012, U.S. exports hit an all-time record of $2.2 trillion and supported 9.8 million jobs.

The core mission of the U.S. Small Business Administration is to help small businesses start, grow and create jobs; the foundation of an economy built to last. Helping small business exporters succeed in the global market is a critical part of that agenda, which SBA carries out through financial assistance, training, counseling and a wide array of export-support services in collaboration with other federal agencies and partners in the private sector.

One example of such collaboration is the annual export video contest that SBA and Visa, Inc., have been co-sponsoring since 2011. It is designed to encourage small business exporters to share, via a short video, their success stories and small practices as an inspiration for other small businesses to explore exporting as a viable, profitable option.

Five video entries are selected as winners based on the following criteria:

Inspirational nature of the message for potential exporters and effectiveness in promoting exporting
Creativity and uniqueness of video concept
Value of lessons learned/communicated
Use of U.S. Government program/service
Innovative means of delivering the message
Audio and visual quality of the video

The awards include monetary incentives that range from $2,000 for fifth place to $10,000 for first place. This year’s winners were:

First place: Bassets Ice Cream of Philadelphia, with an entry titled “Scooping Up International Sales”
Second place: REKLUSE of Boise, ID, with “Exporting Success"
Third place: Premier Choice Inc, DBA Perfect Bite of San Jose, Calif., with “‘Fruits' of Our Labor”
Fourth place: MMIC of Johnsbury, Vermont, with “MMIC What We Do”
Fifth place: CID Bio-Science of Camas, Wash., with “The World and Beyond”

The awards were presented on May 16 by SBA Associate Administrator for the Office of International Trade Dario Gomez at the World Trade Day conference in Denver, where SBA Deputy Administrator Marie Johns was a keynote speaker. Also recognized was the winner of SBA 2013 Exporter of the Year award, Zeigler Bros., Inc. (ZBI), like Bassett Ice Cream, another firm from Pennsylvania. ZBI is engaged in the research, development and production of nutritional solutions for the aquaculture, pet/zoo and lab/biomedical industries.

As Johns said, these firms are prime examples that “exporting is a profitable, rewarding path to success.”

As a business owner, you may feel that you’re doing pretty well so far but, let’s face it, if you can substantially increase your bottom line and in the process help the nation’s economy, wouldn’t you say that’s an enticing proposition?

Remember the numbers: 95 percent of the world’s consumers live outside the U.S … and that’s a huge market! Getting a piece of that pie doesn’t have to be a dream deferred; it’s as close as a click or phone call away through the SBA. To “borrow” a popular slogan: “Just Do It!”

For more information about SBA programs and services to help small business exporters, visit www.sba.gov/e xporting

Need Help Exporting? Join SBA’s Google+ Hangout for Tips to Get You Started

Stephen Morris — Tue, 14 May 2013 22:25:43 +0000

Thinking about exporting, but don’t know where to start? As part of World Trade Month, SBA will host a Google+ Hangout on May 22. The hangout will highlight ways that business can use federal government resources to increase exports.

When:

Wednesday, May 22 at 3pm ET

Who:

Dario Gomez, U.S. Small Business Administration, Associate Administrator for International Trade
Antwaun Griffin, U.S. Department of Commerce- International Trade Administration, Deputy Assistant Secretary for Domestic Operations
Dontai Smalls, UPS, Vice President for Public Affairs
Al Youngworth, CEO of Rekluse and SBA’s Exporter of the Year
Brian Kim, BBCN Bank Los Angeles and SBA’s Export Lender of the Year

Watch:

Watch the Hangout live at SBA's Google+ page or SBA's YouTube Channel

Join the Conversation:

Submit your questions via Twitter using the hashtag #TradeChat

Join the US Government for #TradeChat and Get Your Exporting Questions Answered

Stephen Morris — Mon, 29 Apr 2013 18:15:44 +0000

Export, trade and finance related agencies across the federal government are teaming up during World Trade Month - May 2013 - to host a series of Twitter Q&A’s for U.S. companies. Businesses can participate by tweeting their questions using the hashtag #TradeChat during the scheduled times.

This Twitter chat series will provide U.S. companies with exporting solutions, including information on the resources available to begin or expand exporting goods and services to overseas markets. The Twitter chats will also provide an opportunity for firms to ask questions and connect directly with the U.S. government agencies that support President Obama’s National Export Initiative (NEI) and BusinessUSA.gov – a new one-stop resource for small businesses and exporters.

Schedule and topics:

Thursday, May 9^th at 2:00pm EDT: Export Opportunities

Information about export assistance, international business partnership programs, match-making, and market research will be shared. U.S. companies will also learn about the new BusinessUSA.gov website and how this one-stop resource can help businesses begin exporting or increase their exports.

Thursday, May 16^th at 2:00pm EDT: Financing

Export financing is often a key factor in a successful sale. U.S. companies should be aware of the many financing options available from U.S. government agencies to assist them with the export and trade process. This Twitter chat will provide firms with more information about the available financing options, including buyer financing, insuring foreign receivables, and working capital loans and guarantees.

Thursday, May 23^rd at 2:00pm EDT: Training and Travel Opportunities

U.S. government agencies often host training, webinars, workshops, seminars, trade missions and trade fairs for U.S. companies interested in doing business overseas. This Twitter chat will provide firms with the knowledge they need to utilize these resources and events and connect directly with foreign buyers.

Joining the discussion

To participate, at the starting time, sign into your Twitter account and submit a question on the topic using hashtag #TradeChat. Agencies will respond to as many Tweets and questions on the topic as possible. Questions can also be submitted in advance using the online form on http://www.ustda.gov/TradeChat.

For information the Twitter chat series, visit http://www.ustda.gov/TradeChat . A live feed of the chats will be broadcasted and archived on USTDA’s website for individuals who are not connected to Twitter.

Highlights from the Twitter chat series will also be available on Storify at

http://storify.com/USTDA/2013-world-trade-month-twitter-chat-series

Participating Agencies and Organizations

The U.S. Trade and Development Agency
International Trade Administration
Small Business Administration
BusinessUSA
Overseas Private Investment Corporation
Export-Import Bank of the United States
The Office of the U.S. Trade Representative
D epartment of State

40th Annual World Trade Day Celebration, May 16, 2013, Denver, Colorado

Dario Gomez — Fri, 19 Apr 2013 21:10:41 +0000

Plug In to the Global Economy: How Technology Impacts Trade

How does technology impact international trade? And how can it help your small business? This year’s 40th Annual World Trade Day on Thursday, May 16, 2013 gives businesses the chance to ask just that and to discover how recent innovations in technology can facilitate their operations and bolster their bottom line. From supply-chain management to social media marketing and team collaboration, there are a multitude of new technology tools that allow small businesses to do more across the globe than ever before.

Also at this event, look out for:

An in-room valuable networking opportunity with nearly 500 international business professionals highlighting the value of technology tools for international trade and business;
Speeches from Michael Dreyer, Chief Information Officer of Visa and Yuri Aguiar, Chief Information Officer of Ogilvy & Mather Worldwide;
Engage in the day-long techXpo, where companies will demonstrate their tools for your learning and benefit;
SBA’s Exporter of the Year will be announced to recognize the country’s most outstanding small business exporter;
SBA’s Export Video Contest Winner, presented in partnership with Visa and the National Export Initiative, will award monetary prizes to five successful small business exporters representing a variety of industries.

To attend or register for the event, go to: www.wtcdenver.org. For more information, write to: Jordan.Valdes@sba.gov.

Date: May 16, 2013
Time: 8 a.m.- 6:30 p.m.
Location: Infinity Park Event Center, Glendale, Colorado

6 Legal Factors to Consider When Hiring Global Employees

Caron_Beesley — Wed, 03 Apr 2013 11:47:33 +0000

Are you thinking of hiring overseas-based employees? Whether you are operating an overseas branch of your own business or looking for specific skill sets that aren’t readily available here at home – there can be benefits to hiring overseas employees, but there are also challenges.

How do you make sure your staff turns up for work on time? How do you hold them accountable and keep them motivated? What about communication across different languages, cultures and time zones? These are all concerns and challenges that many business owners have faced and their suggestions for tackling them are discussed in this guide from The New York Times: Running a Business With Staff Scattered Around the World.

But what about the legal and regulatory side of managing employees in other countries? Labor laws will likely differ from those in the U.S., so it’s important to understand those laws before you make your first overseas hire. For example, U.S. “at-will” employment laws don’t apply overseas. Most countries demand that employers have a concrete reason to fire someone (whereas most U.S. states permit employers to terminate any employee at any time, for any reason, or for no reason at all).

What other factors of foreign labor law should you consider?

Ben Macaluso, writing for the Denver Business Journal, suggests that U.S. employers watch out for the following:

Time Off Laws – Foreign companies, most notably Europe and Australia, are very generous in their vacation, sick and maternity leave policies. Certain countries also extend leave policies to encompass other activities such as building homes or career development.
The Power of Unions – Unions carry a lot of weight overseas and employee benefits and work conditions are strongly controlled by these. For example, you might not be able to change existing policy or conditions without union approval.
Non-Compete Agreements – Many U.S. businesses write non-compete agreements into employee contracts. Foreign countries generally prohibit these.
Notice – How much notice you are required to give in the event of a lay off or firing also varies overseas.

Some U.S. laws also apply when it comes to hiring employees in other countries, for example:

Bribes – U.S. federal law prohibits corruption in the form of payments to foreign officials for business favors.
Employee Privacy – Other countries may have strict laws that govern what employee information you can share publicly (even apparently harmless records such as an employee directory could run the risk of violating privacy laws).

To ensure you are complying with local labor and tax laws, consult in-country experts who are familiar with business and regulatory matters in the country you intend to base employees out of.

Additional Resources

Buying a Small Business Overseas – 5 Tips for a Smooth Transaction

US Global Business Solutions: US Government Solutions for Small Business Exporters

Dennis Chrisbaum — Tue, 02 Apr 2013 18:00:43 +0000

When the President challenged the nation to double exports in five years, U.S. government agencies started working more closely together to make it easier for businesses to access foreign market opportunities and for lenders to provide the financing that exporters need.

Under a new, multi-agency initiative, several federal agencies are collaborating to combine their trade financing programs and export marketing services into a one-stop platform: U.S. Global Business Solutions, a new approach for assessing and meeting the business needs of small business exporters. US-GBS will be launched at the 6^th Annual SBA Export Lenders’ Roundtable, April 3, in Washington, D.C.

This new initiative will:

Reduce complexity for both exporters and lenders by packaging trade financing and marketing options that seamlessly meet exporter needs;
Simplify marketing materials, while increasing lender training to meet the needs of financial institutions; and,
Streamline access to international experts, financial products, and business services for exporters.

As businesses of all sizes increasingly recognize the opportunities for selling products and services abroad, lenders will be remain a critical partner in their expansion plans. Now is a great time to learn how to continue to support your customers as they expand their sales into global markets, while mitigating some of the real, and perceived, risk with US government guarantees and insurance.

If you are unable to attend the SBA’s Export Lenders Roundtable, please contact the SBA representative in your local U.S. Export Assistance Center. For a directory, go to: http://www.sba.gov/content/us-exports-assistance-centers. This program is open to lenders only. Please send inquires and RSVPs to: Danielle.Wilsey@sba.gov.

Date: Wednesday, April 3, 2013

Time: 8:30-1:00 p.m.

Location: Ronald Reagan Building and International Trade Center

13th St. and Pennsylvania Ave., NW

Washington, D.C.

(Federal Triangle Metro Station)

Need Exporting Assistance? Small Business Development Centers Can Help

Stephen Sullivan — Fri, 29 Mar 2013 17:25:36 +0000

Have you considered the potential for selling your products or services outside the U.S.? Your local Small Business Development Center (SBDC), an SBA resource partner, can help you get started.

The many international trade services offered by individual SBDCs vary, but most often include:

Product/Service Readiness: Determine if your products or services are suitable for export, and what product adaptations may be required.
Export Readiness: Learn if your company meets the key export readiness factors or, what you need to do to become ready.
Market Research: Review possible trade barriers, political and economic risks and competitors, in order to identify and rank the best foreign market opportunities.
Documentation/Compliance: Learn how to comply with export regulations, product classification, in-country governmental requirements and the effective use of freight forwarders.
Trade Finance: Learn how the trade finance programs of the SBA, the Export-Import Bank of the U.S. and the Overseas Private Investment Corporation may help you.
Partner Identification: Get connected to potential sales with U.S. Commercial Service services such as Gold Key or International Partner Search. SBDCs can also advise you of individual state trade assistance programs and incentives.
Specialized Areas: Some SBDCs offer assistance in specialized areas such as product certification (i.e. CE Mark, CCC, etc.).

If you think you have a product or service with foreign trade potential, or are already exporting and want to grow those sales, contact your local SBDC for assistance.

How to Finance Your Export Sales

Dennis Chrisbaum — Thu, 28 Mar 2013 23:42:08 +0000

As I covered in my pervious blog, How to Get Paid for Your Export Sales, each of the four international methods of payments which include cash-in-advance, letter-of-credit, documentary collections and open account can have an impact on your company’s financing needs when filling overseas orders. Those needs can be broken down into either pre-shipment or post-shipment working capital.

Pre-Shipment: If you receive a purchase order from a foreign buyer, you will have a pre-shipment working capital need (the funds to hire labor, buy supplies and materials, etc., to produce the order):

unless you require cash-in-advance before you start production; and/or
you receive progress payments throughout the production cycle.

If your payment terms are simply cash-in-advance prior to shipment, or even a letter-of-credit that is payable upon shipment, you will still need to fund the entire pre-shipment production cycle. Will your order be produced in 15 or 30 days, or is it a customized piece of equipment that takes nine months to build? The pre-shipment working capital need could be substantial depending on the size of the order and the production cycle.

Post-Shipment: If you don’t get paid upon shipment, you will need to carry accounts receivable on your books. Maybe you have enough working capital to produce a short production cycle order, but you have to offer 90-day terms to the buyer in order to secure the contract. You will need to keep your business moving during that time, which will require working capital to support the foreign A/R.

You might be able to factor the accounts receivable, or you could insure them through a private insurance company or the Export-Import Bank of the U.S. which will move the risk from what may be an unknown foreign buyer to the U.S. government or larger insurer, allowing you to borrow against the insured overseas A/R.

How can you finance your pre-shipment and/or post-shipment export working capital needs? The SBA has three loan programs that may work for you:

Export Express has a $500,000 maximum and is ideal for new exporters or those with relatively small orders;
Export Working Capital Program has a $5,000,000 maximum which may only be used to finance export transactions—from purchase order to collections; and
CAPlines has a $5,000,000 maximum which is a revolving line of credit that can support both domestic A/R and insured foreign A/R.

Visit www.sba.gov/oit for a list of lenders active in these programs. You also will find a listing for SBA’s trade finance specialists located in 19 U.S. Export Assistance Centers across the country who can provide additional information on export financing questions.

How to Get Paid for Your Export Sales

Dennis Chrisbaum — Wed, 27 Mar 2013 23:57:46 +0000

Ultimately, any sale is a gift until you get paid. However, understanding how to get paid for an export sale is especially important, since your buyer could be 10,000 miles away. There are four common ways to get paid for an international order. From the most, to the least, secure method of payment for the exporter, these are:

1. Cash-in-advance- New exporters frequently request this method. Their attitude typically is, “I don’t know you very well, but if you send me the money I’ll send you the goods.”

Advantage: The exporter gets paid before the shipment leaves the U.S.
Buyer’s Perspective: It is high risk. The money is gone with only the exporter’s promise to deliver.
Drawback: It limits the exporter’s sales potential; is non-competitive; and ties up the importer’s cash.

2. Letter-of-credit- Letters of credit (L/C) substitute the creditworthiness of the importer and exporter with that of their respective banks.

Advantage: The exporter will be paid if the terms and conditions of the L/C are met.
Buyer’s Perspective: The funds won’t be released until shipment is made and terms are met.
Drawback: There are fees associated with opening and amending L/C; the importer’s cash is tied-up.

3. Documentary collections- This method uses the banking system to send documents to the importer.

Advantage: The goods are not released until importer pays or agrees to pay.
Buyer’s perspective: Payment is delayed until goods are close to being delivered.
Drawback: No guaranty of payment; banks only act as intermediaries.

4. Open account- Open account terms for international sales are similar to domestic open account sales. The buyer agrees to pay in a set number of days—typically 30, 60, or 90—from the invoice, shipment or delivery date.

Advantage: More competitive terms which can help secure larger orders.
Buyer’s perspective: May allow the buyer time to sell the goods prior to payment; does not tie up importer’s cash.
Drawback: The goods are gone and the buyer might not pay. This risk can be greatly reduced by obtaining credit insurance from the Export-Import Bank of the U.S. on the foreign accounts receivable. Cost can be minimal, viz. about 65 cents per $100 of the invoiced amount for a policy that provides 95% coverage. Visit www.exim.gov for details.

Buying a Small Business Overseas – 5 Tips for a Smooth Transaction

Caron_Beesley — Mon, 04 Mar 2013 12:42:51 +0000

Interested in buying a business overseas? Whether you’re looking to expand into new markets or are just planning on funding your retirement plans outside the U.S., there are a number of steps you should take to ensure your new venture goes smoothly. Everything from business practices; legal and regulatory requirements; navigating an international sale deal; and language and cultural differences will come into play.

Here are some considerations and issues to bear in mind as you go about buying a business in a foreign country.

Language

If English isn’t the first language in the country where you intend to buy a business, then learning the local language should be your first priority. If you can’t do this, then you will need to think long and hard about your motivation and determination for going the distance in this new territory.

Measure the Risks to Your Capital Investment

No matter how much capital you have, to lessen the risk, be sure to factor in the many variables that come from buying and running a business. Factor in cost overruns, delays getting started and unforeseen expenses. For example, don’t always assume that cheap labor is always going to be quality labor—you get what you pay for. You’ll also incur many of the employment expenses you incur in the U.S. such as benefits, taxes, sick leave, and social security.

Work with an Expert

As with any overseas venture, one of the most important things you can do when buying a business abroad is to consult an expert. Accountants, lawyers, tax attorneys, and real estate brokers, can all help you succeed with your cross-border purchase. To ensure the best representation, work with experts who have experience in the location and industry in which you are buying a business. But you’ll also need to find in-country experts who are familiar with business and regulatory matters in the country you intend to buy a business.

Do Your Research About Cross-Border Deals

It goes without saying that any business venture requires research, so here are some issues you should bear in mind:

Laws and Regulations – Legal and tax regulations overseas can be even more complicated than in the U.S. for business owners. Licenses and permits, for example, can take several months if not years to be granted. You’ll also need to understand how the country handles expatriation of taxes on profits on foreign business owners. Much of this information can be found online, but for more information, reach out to local in-country small business organizations, business leaders and chambers of commerce.
Understand the Buying Process – As you seek advice, be sure to ask about the negotiation and valuation process involved in buying a business. What’s included in the sale? You don’t want to be left with a hollow shell of a business when you thought you were getting furniture and fixtures too.
Pay Heed to the Competition – As an outsider, it can take a tough skin to make a success of a small business in a foreign location. Be ready for that—look for ways to test the waters of the community before you take the plunge. Also look to the competition to understand your market potential—is there a gap or untapped need that you think your business can serve?
Determine How You Intend to Manage Your Business – Will you re-locate yourself (that brings with it a raft of immigration factors), or will you manage it from the U.S. with on-site staff? Could you keep the current owner and hire him or her as an employee? Know your options before you hit the negotiation stage, and weigh the benefits of each.

Be Prepared to Connect and be Agile

Last but not least, buying and running a business—let alone an overseas business—requires tenacity, agility, and deep personal connections. So do your research, weigh the pros and cons, have a plan and heed laws and regulations. But above all, be true to your ambition and drive. Some of the best small business owners succeed not because they stick to the rulebook, but because they look for ways to take the initiative and forge a path for themselves.

Calling Small Business Exporters- Tell Us Your Story for a Chance to Win Cash Prizes

Dario Gomez — Mon, 25 Feb 2013 16:51:19 +0000

NOTE: The video submission deadline has been extended to April 22. Contest rules have also been updated.

Are you a small business exporter? Do you sell bowling balls to Bangladesh? Or dish towels to Delhi? Maybe you send laser technology to Lisbon? If you have a success story to tell about the goods or services you sell around the world and have used a federal government program or assistance to get there, the U.S. Small Business Administration and Visa Inc. (NYSE: V) are cosponsoring the “2013 SBA-Visa Export Video Contest” where your company will have the chance to win up to $10,000 just by sharing your story with other small business exporters on http://exportvideo.challenge.gov/.

Participating in the contest is easy and free: Among other requirements, the company must be a small business as determined by SBA’s size standards, have successfully completed at least one export transaction and used at least one federal program or service to support such transaction. In order to participate, contestants must register and create an account with www.challenge.gov, the contest portal that also will serve as repository for the video entries. For information on SBA size standards for small businesses, visit http://www.sba.gov/content/summary-size-standards-industry.

The videos must meet several criteria that include duration no longer than three minutes and a high-resolution format. Content must be educational, not promotional. A panel of judges chosen by SBA will select five videos to be awarded cash prizes directly by Visa, Inc.

The prizes are:

First place - $10,000
Second place - $8,000
Third place - $6,000
Fourth place - $4,000
Fifth place - $2,000

The contest is open from Feb. 25 to April 22 to small businesses in the U.S. and its territories, including the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and Guam. Winners will be announced no later than May 31, 2013.

For more information, submission procedures and requirements please visit http://exportvideo.challenge.gov/.

Selling into the U.S. as a Foreign Business: Should You Incorporate Your Business Here?

Caron_Beesley — Wed, 06 Feb 2013 11:36:53 +0000

Do you run an overseas business? Thinking of expanding and selling into the U.S. market?

Because U.S. residency or citizenship is not required, non-U.S. citizens can readily sell into the U.S. However, many overseas business owners aren’t clear on whether they are required to incorporate in the U.S. and the associated tax implications.

Here’s what you need to know:

Should I Incorporate My Business in the U.S.?

This is a question that comes up frequently on the SBA Community Discussion Boards and there’s not a clear cut answer for all businesses.

Essentially, if your intent is to sell goods into the U.S.—whether online or through U.S. partners such as a wholesaler—you may not have to file for incorporation in the U.S. However, if you plan to have a physical presence in the U.S. (such as an office or employees), then incorporation, whether as a corporation or limited liability corporation (LLC), is worth considering. Likewise, for online businesses in particular, remember that many U.S. consumers feel more confident buying from a registered U.S. business, so that’s another important factor to weigh up.

Each business is different and it’s important to look at incorporation in the context of your overall business goals, state incorporation laws, taxation considerations, as well as your ability to scale and manage that legal entity from overseas.

To understand the factors that might impact your decision, book some time with a good U.S. business attorney who understands both international and U.S. law.

How to Incorporate a Foreign Business in the U.S.

Once you’ve made the decision to incorporate, you’ll need to understand the process.

In the U.S., business incorporation occurs at the state level for all business owners, regardless of whether you are a citizen or a foreign national.

The process will vary from state-to-state, but generally involves two steps: applying to register in that particular state, and establishing a registered agent with a valid address in that state (no P.O. Box numbers). A registered agent can be either the business owner or another person who is authorized to receive legal papers on behalf of the business, such as an attorney or secretary.

What Business Structure Should I Choose?

The most popular choice of business structure for non-U.S. citizens is to form an LLC, although you can also legally form and own shares in a C corporation. Non-U.S. citizens cannot retain shares in an S corporation because business income is reported on personal U.S. income tax returns.

To learn more about choosing the right business structure and how to file for incorporation, check out SBA’s Choose your Business Structure guide. This blog offers more insight: Top 10 Questions About Small Business Incorporation Answered.

Which State Should I Incorporate In?

If most of your clients are concentrated in a specific state or you have an office or physical presence in a state, it may make sense to incorporate there. If you don’t plan on having a physical presence in the U.S., you can form a corporation or LLC in states such as Nevada and Delaware, both of which are considered friendly to foreign companies.

If you operate in more than one state, you can elect to incorporate in any of these states. However, you are required to register your business in the other states in which you operate; this process is called foreign qualification and you can apply for it with the help of a lawyer or online incorporation service. Again, for the best advice, consult a U.S. business attorney who has expertise in both U.S. and international law.

Do I Need to Pay U.S. Taxes?

If you are a non-resident business owner, the U.S. Internal Revenue Service (IRS) will tax you on income that is sourced in the U.S. If your business is incorporated in the U.S., you may also be required to pay an annual fee to the state where your business is incorporated.

The IRS offers a guide specifically on International Business, but if you are still left with more questions, it is always good to check with a qualified attorney or accountant.

U.S. citizens will likely need an Employment Identification Number to start up, a process that requires their social security number (SSN). In the case of foreign businesses, an Individual Taxpayer Identification Number (ITIN) will suffice. The IRS issues these 9-digit tax processing numbers to individuals who are required to pay US taxes but who are ineligible for a SSN, including resident and non-resident aliens and foreign nationals.

6th Annual SBA Export Lenders’ Roundtable, April 3, 2013, Washington, D. C.

Dario Gomez — Wed, 30 Jan 2013 22:17:36 +0000

Lenders: Help take your customers to the next level as they expand their sales overseas!

Today 96% of the world’s population is outside the United States, 76% of global GDP is outside the United States and those markets continue growing at twice pace as our domestic market. Small businesses increasingly are discovering that the greatest opportunity for growth is selling into global markets. Already some 268,000 small businesses currently are exporting, helping to set record U.S. export volume last year at $2.2 trillion, with small businesses accounting for up to 24% of that total.

So as a lender, now is a great time to offer SBA’s export loan programs to your business community. By doing so, you can:

help your current customers grow with their expansion into overseas markets;
expand your portfolio of high growth, competitive customers—ones that are finding compelling sales opportunities overseas;
attract new customers and expand your market share by becoming a full-service lender offering export financing products;
reduce your risk, and capital reserve requirements, with a 90% government guaranty on a suite of SBA export loan products up to $5 million;
meet CRA credit requirements.

Come and learn how easy it is to participate in SBA’s Preferred Lender Program for Export Working Capital Loans up to $5 million with a full 90% guarantee. In addition, learn how:

SBA 7(a) term loans up to 25 years can now obtain a 90% guaranty under the International Trade Loan program if the company is expanding because of exports;
The Export Express programs offers a 90% guaranty to loans up to $350k and a 75% guaranty on loans up to $500k;
The SBA CapLine program can be used to support a blend of domestic and international A/R.

And, be among the first to hear about a new interagency initiative to bundle Global Business Solutions for lenders and exporters in a collaborative, customer-focused and cost-effective manner, combining SBA, Ex-Im Bank and Department of Commerce programs and services. This program is open to lenders only. Please send inquires and RSVPs to: Danielle.Wilsey@sba.gov.

Date: Wednesday, April 3, 2013
Time: 8:30-1:00 p.m.
Location: Ronald Reagan Building and International Trade Center
13th St. and Pennsylvania Ave., NW
Washington, D.C.
(Federal Triangle Metro Station)

Celebrating Global Entrepreneurship Week by Encouraging Small Business Exporting

Dario Gomez — Fri, 16 Nov 2012 04:33:58 +0000

This week marks the 5^th Annual Global Entrepreneurship Week. In our increasingly interconnected global economy, it’s important for American small businesses to have the tools to compete on the world stage. Ninety six percent of the world’s population lives outside of the United States, which represents a huge portion of the world’s buying power. That’s why President Obama set a goal to double exports by 2015. Here at the SBA, and across the Administration, we’ve made it a top priority to achieve this goal.

With demand for high quality American-made products on the rise, we’re focused on making sure small businesses have the tools they need to take advantage of growth opportunities in foreign markets. The SBA’s Office of International Trade has taken a number of steps to ensure that our programs provide the right type of support for small businesses in a changing world market so they can meet that growing demand.

Our export loan programs help small businesses and manufacturers export by funding their short-term export trade cycles; providing long-term financing for manufacturing expansion to meet export orders; and providing short-term financing to help companies connect with international buyers. Working together with the U.S. Department of Commerce, the Export-Import Bank, 19 trade finance specialist in U.S. Export Assistance Centers, and many additional private partners we are ready, willing and able to assist global entrepreneurs at every stage of growth.

We know that some small business owners have an interest in exporting, but they don’t know where to start. And that’s why we’ve made international counseling more accessible. We’ve certified 130 counselors throughout the SBA bone structure- the Small Business Development Center network- with the Certified Global Business Professional (CGBP) accreditation, considered the “gold standard” of training in international trade. Another 281 counselors have achieved mid-level certification in trade counseling. We encourage you to visit your local SBDC if you’re ready to take your business global.

Further, to increase access and opportunity for more small exporters, we hosted a matchmaking trade fair and conference in St. Louis, MO in October. The event gave small business owners the chance to connect with Export Trading Companies and Export Management Companies to market their products internationally.

The Obama Administration stands ready to support America’s innovators and entrepreneurs so they can out-innovate, out-educate and out-build the rest of the world and compete in a 21^st century global economy. Here at the SBA, we’re doing our part to help more Americans enter the middle class through entrepreneurship and foster an economy ripe with strong, growing small businesses meeting their potential to succeed.

6 Steps to Assess Your Small Business’ Readiness to Export

Caron_Beesley — Thu, 01 Nov 2012 11:31:36 +0000

Between 2009 and 2011, U.S. exports grew by 40 percent and the federal government is pressing to provide programs and resources that help U.S. companies succeed internationally.

Making the decision to export, however, is significant. Is your product marketable overseas? Can your business tolerate the benefits versus the trade-offs of exporting?

To help you assess your exporting readiness, take a look at SBA’s Export Business Planner. This invaluable, hands-on exporting guide provides a roadmap for creating an export business plan, discovering foreign markets, developing a marketing plan, exploring financing, costing your product and more.

Here’s what the Export Business Planner has to say about assessing your business’ readiness to export – backed by a series of useful worksheets to help you work through this important exercise.

1. Determine the Benefits and Trade-Offs of International Market Expansion

Start by brainstorming a list of benefits and trade-offs for expanding your market internationally. For instance, one benefit might be a reduced dependence on domestic markets. Trade-offs? You may need additional financing, or be willing to use short-term profits to ensure long-term goals, or hire additional staff.

Your list of benefits and trade-offs should be based on your current assumptions about 1) your company, 2) your company’s products and 3) market knowledge.

2. Perform a Business/Company Analysis

Next, you’ll need to perform an in-depth analysis of your existing business to determine the feasibility of growth. This entails evaluating your company and its attributes. Check out page 32 of the planner for a worksheet that can help you with this exercise.

3. Conduct an Industry Analysis

Once you have examined the status of your own company, the next area for consideration is your overall industry. How is it currently involved in the global marketplace? This review will help you to capture key aspects of your industry that will affect your exporting decisions. Again, check out the worksheet for this exercise on page 34 of the planner.

4. Identify Products With Export Potential

Part of the overall analysis of your current business involves identifying products that may have export potential. These have sold successfully domestically or maybe have had marginal success in the U.S. but potential for high demand overseas. Many small businesses make 100 percent of their sales in foreign markets.

Start by listing the strengths and weaknesses of products/services you believe might have export potential. Then, select the most exportable products/services to be offered and evaluate them. The worksheet on page 36 can really help you narrow down your product focus.

5. Marketability: Match Your Product/Service with a Global Trend or Need

Once you’ve identified products/services with export potential, the next step is to identify the most profitable foreign markets for those products. This means gathering foreign market research. Work through the worksheet that starts on page 39 to narrow your choices to the three most-penetrable markets. Ask yourself:

Which countries are best-suited for your product?
Which foreign markets will be easiest to penetrate?
How does the quality of your product compare with competing in-market goods?
Is your price competitive?
Who could your major customers be?

To help you with this exercise and to continue to explore these top three markets in-depth, pages 25-27 of the planner provide links to essential resources that can help you determine your product’s marketability overseas. There is also information about regulatory and political considerations that can affect your exporting decisions.

6. Define Which Markets to Pursue

Once your research has revealed the largest, fastest-growing and simplest markets to penetrate for your product or service, the next step is to define which markets to pursue. Here are some tips to bear in mind (and refer to the worksheet on page 42 of the planner for guidance):

It’s best to test one market and then move on to secondary markets as your expertise develops. SBA data shows that new-to-export businesses often tend to choose too many markets at first. For most small businesses, choosing one to three foreign markets initially is recommended.
Focusing on regional, geographic clusters of countries is more cost effective than choosing markets scattered around the globe, especially when you undertake trips or marketing events.

What’s next? Once you’ve determined your export readiness and investigated foreign market options, refer to the SBA’s Export Planning Guide for more tips and worksheets to help you plan, finance and execute your small business exporting strategy.

Additional Resources

U.S. Small Manufacturers get SBA Help to Go Global

Dario Gomez — Mon, 22 Oct 2012 16:55:39 +0000

Did you know 95 percent of the world’s population lives outside the US? Are you a small business manufacturer? Have you considered exporting your goods? The “Made in the USA” brand is strong and there’s a huge market out there for your products.

All that is great, but how can you break into the global market, grow and be successful? The Small Business Administration can help you.

SBA’s mission is to help business start, grow and succeed – this includes helping small business exporters and companies that want to export.

Capital

SBA has several loan programs to finance exports and export-related business activities.

This past year, SBA supported $923 million in loans to small business exporters, which supported $1.7 billion in export sales.

A major factor in this strong loan performance was an increase in the use of the International Trade Loan (ITL), which allows small manufacturers and businesses to expand their facilities or purchase equipment to manufacture goods that will be sold in the international market. The ITL grew by 106 percent in number of loans and 207 percent in dollar value from FY2011 to FY 2012.

SBA has several programs to provide small business exporters with the capital they need.

Indirectly Exporting

In fact, you don’t even have to be an exporter to benefit from the ITL. Are you a small business that’s part of a larger supply chain? If you sell to an Export Trading Company or an Export Management Company – and they do export – then you may qualify.

Indirect exporting is a great way for small businesses to get their foot in the exporting door.

Foot in the Door

SBA regularly hosts trade seminars and export matchmaking events to help small business exporters, and those interested in exporting, get acquainted with everything SBA has to offer in terms of export assistance. The most recent export matchmaking event was held in St. Louis. More than 150 people from 16 states and four countries registered to participate. Similar events have been held in Jersey City, N.J., and Tampa., Fla.

These seminars, as well as other training and counseling resources, are some of the ways SBA is actively helping small business exporters –or business that want to export- break into the global market and be successful. SBA’s Office of International Trade website offers a great deal of information online on how to begin exporting, how to finance your exports and foreign investment projects and much more. One of the best resources for export training and guidance are the US Export Assistance Centers. USEACs are located in major metropolitan areas throughout the United States and are staffed by professionals from the SBA, the U.S. Department of Commerce, the U.S. Export-Import Bank, and other public and private organizations. Together, their mission is to provide the help you need to compete in today's global marketplace.

For more information about SBA export loans and services as well as on future Export Trade Matchmaking events, visit the Office of International Trade site.

Un país forjado sobre la diversidad brinda una economía perdurable

ana.harvey — Tue, 18 Sep 2012 16:15:10 +0000

Desde su fundación, millones de personas han arribado a los Estados Unidos con la visión de alcanzar un futuro mejor para ellas y sus familias. La historia de los Estados Unidos tiene sus raíces en la travesía de todas esas personas. El Mes Nacional de la Herencia Hispana nos brinda la oportunidad de no sólo reconocer las enormes aportaciones que los hispanoamericanos han hecho a este país, sino también de cerciorarnos de que existan políticas y programas adecuados que aseguren que dichas aportaciones continúen.

Los negocios propiedad de minorías constituyen uno de los segmentos de la economía de mayor crecimiento en el país, y las empresas pequeñas propiedad de hispanos encabezan a las de todos los demás grupos demográficos. De hecho, según la Fundación Kaufmann, en el 2010, los hispanos crearon casi el doble de negocios mensualmente que el promedio nacional. A medida que continuamos forjando los cimientos de una economía perdurable, la SBA y la administración del Presidente Obama han establecido como prioridad el apoyo a los negocios pequeños en comunidades económicamente desfavorecidas, brindándoles las herramientas necesarias para facilitar su crecimiento y éxito.

Por ejemplo, en los últimos tres años, la SBA ha apoyado préstamos de más de $4,400 millones de dólares a negocios pequeños propiedad de hispanos y tan sólo en el 2012 el monto de los préstamos ascendió a casi mil millones de dólares. Desde que comenzó el mandato del Presidente Obama, la SBA ha apoyado más de $100,200 millones de dólares en contratos federales a pequeños negocios con desventaja económica, muchos de los cuales son propiedad de hispanos. Esto ha permitido que los propietarios de pequeñas empresas cuenten con la liquidez necesaria para cubrir sus obligaciones y obtener más contratos.

Aunque hemos mejorado la situación a pasos agigantados, sabemos que todavía hay mucho más por hacer. Por esto hemos buscado formas de aumentar nuestra presencia en comunidades económicamente desfavorecidas. Hemos establecido una colaboración con la Cámara de Comercio Hispana de Estados Unidos (USHCC) para ayudar a apoyar a emprendedores y pequeños negocios propiedad de hispanos. Pondremos en marcha un programa piloto de esta colaboración con ocho cámaras de comercio hispanas en las siguientes ciudades y estados del país: Austin, TX; El Paso, TX; Nashville, TN; Filadelfia, PA; California, Florida, Ohio y Utah. Mediante esta colaboración, la SBA y USHCC trabajarán juntas para aumentar la participación de la pequeña empresa hispana en los programas de la SBA, entre los que se incluyen:

Programas de préstamos e iniciativas de acceso a capital;
Programas de contratación con el gobierno federal como el llamado 8(a) y el programa de pequeños negocios propiedad de mujeres;
Información actualizada y acceso a la extensa red de organizaciones asociadas que ofrecen asistencia técnica; y
Oportunidades para brindar acceso al comercio internacional a fin de alcanzar las metas establecidas por la Iniciativa Nacional de Exportación del Presidente.

Todos en la SBA trabajamos arduamente para facilitar el acceso de pequeños empresarios como John Fernández a todos nuestros programas. En 2009, John recibió un préstamo 504 garantizado por la SBA para expandir su empresa; desde entonces, su compañía Dystar Desserts ha crecido enormemente y pasó de atender a clientes en 6 estados, a atender a clientes en 38 estados actualmente. Asimismo, sus ventas aumentaron 62% y añadió 42 empleos. Otro ejemplo es Zeferino Banda, quien utilizó su certificación 8(a) para obtener un contrato de cinco años con la NASA para su empresa Banda Group International, LLC. Su negocio ha gozado de un éxito formidable que lo ha llevado a que se le incluya en la lista de las 500 compañías hispanas más grandes de Estados Unidos según ingresos, de acuerdo con la revista Hispanic Business.

Nuestra colaboración con la USHCC nos permitirá generar más éxitos como los de John Fernández y Zeferino Banda y asegurar que nuestra economía emerja como el líder económico mundial en el siglo XXI. Este mes celebramos las aportaciones de los hispanos en nuestro país y continuaremos asegurando que más hispanos propietarios de empresas pequeñas obtengan las oportunidades y el acceso que necesitan para crear negocios exitosos y generar buenos empleos en nuestras comunidades.

A Country Built On Diversity Leads To An Economy Built To Last

ana.harvey — Tue, 18 Sep 2012 15:09:35 +0000

From our founding, people have come to America’s shores with a vision for a better future for themselves and their families. America’s story is rooted in the journey of these individuals. And National Hispanic Heritage month is an opportunity to not only recognize the enormous contributions of Hispanic Americans but to ensure that programs and policies are in place to ensure those contributions continue.

Minority-owned businesses are some of the fastest growing segments of the economy, with Hispanic-owned small businesses leading all other demographics. In fact, according to the Kaufmann Foundation, monthly Hispanic business creation in 2010 was almost twice the national average. As we continue lay to the foundation for an economy built to last, the SBA and the Obama Administration have made supporting small businesses in underserved communities a priority, giving them the tools they need to thrive and be successful.

For example, SBA has supported more than $4.4 billion in SBA loans to Hispanic-owned small businesses over the last three years with almost a billion dollars in lending in 2012 alone. Since President Obama took office, the SBA has supported over $100.2 billion in Federal government contracting dollars to small disadvantaged businesses, many of which are Hispanic-owned, giving small business owners the cash flow they to meet their bottom lines and secure more contracts.

Although we have made significant progress, we know there is more work to do. That’s why we’ve looked for ways to increase our footprint in underserved communities. We’ve joined forces with the U.S. Hispanic Chamber of Commerce (USHCC) to help support thousands of Hispanic small businesses and entrepreneurs. We will pilot the partnership with eight city and state Hispanic Chambers in the following areas: Austin, Texas; California; El Paso, Texas; Florida; Nashville, Tenn.; Ohio; Philadelphia, Pa.; and Utah. Through this collaboration, the SBA and USHCC will work to increase Hispanic-owned small business participation in SBA programs, including:

Loan programs and access to capital initiatives;
Government contracting programs like the 8(a) program and the Women-Owned Small Business Program;
Up-to-date information and access to SBA’s extensive resource partner network; and
International trade opportunities to achieve the goals of the President’s National Export Initiative.

At the SBA, we’re working hard to help small business owners like John Fernandez gain access to our programs. He received a SBA-backed 504 loan to expand his business in 2009. Since receiving the loan his company Dystar Desserts now serves customers in 38 states- up from six. He has also increased sales by 62% and added 42 jobs. Another example is Zeferino Banda. He used his 8(a) certification to get a five year contract with NASA for his company, Banda Group International, LLC. His business has experienced tremendous success, ranking among the top 500 largest Hispanic-owned firms by revenue, according to Hispanic Business Magazine.

Working with USHCC, we’ll create more success stories like John Fernandez and Zeferino Banda and ensure our economy emerges as a global economic leader in the 21^st century. This month, we celebrate the contributions of Hispanic Americans and we will continue to ensure that more Hispanic small business owners get the access and opportunity they need to build successful businesses and create good jobs in our communities.

Selling Global? – 8 Reasons Why Your Small Business Should Get to Know Export.gov

Caron_Beesley — Thu, 23 Aug 2012 11:43:21 +0000

Thinking of exporting your products or services? Want to expand your existing exporting business? The U.S. government can help.

The SBA, for example, is making it a priority to help small business owners develop or expand their exporting activities through initiatives such as its Export Loan Programs and free online informational videos.

What else does Uncle Sam offer? Well, did you know the U.S. government can help target and facilitate meetings with potential international partners and buyers? Or that it provides U.S. exporters with international marketing and promotion opportunities?

Let me introduce you to Export.gov.

Operated by the U.S. Department of Commerce as a collaborative effort with 19 other agencies, Export.gov is a goldmine of information, tools and programs for anyone looking to succeed in the global marketplace.

Here’s a quick summary of what aspiring and expanding exporters can learn and leverage:

1. Are you export ready?

If you think you’re ready to start exporting, take a look at this Export Basics guide. Assess your exporting readiness with this quick questionnaire and learn about the fundamentals of exporting through a variety of resources (including this Export University 101 webinar).

2. Find your export market with free research tools

Get free trade statistics and market research reports, plus a step-by-step guide for doing your research, in Export.gov’s Market Research guide.

3. Get appointments with pre-screened in-market contacts

The government has U.S. Commercial Service staff in over 80 countries to help you find international partners and distributors. How? Specialists will contact a large group of pre-screened potential overseas business partners on your behalf, and then identify the companies that are interested and capable of becoming a viable representative for you in that market. They will also screen them and arrange meetings. Learn more about this service here.

4. Trade Events – get advice and meet foreign buyers

The government organizes a variety of trade events to help U.S. exporters. These include everything from webinars and seminars on exporting basics such as financing and licensing, counseling and support at international trade shows, and recruitment for meetings with you of foreign buyer delegations to U.S. trade shows. Learn more and search for events here.

5. The government can support your international sales and marketing

In addition to trade fairs, the government offers several ways for exporters to market and sell their products overseas, including:

Market Planning – Get help creating an international business plan and conducting market research and due diligence.
International Promotion – Place an ad in the U.S. Commerce Department's official export promotion magazine Commercial News USA. Get listed on FUSE, an online directory of U.S. products on government websites around the world, as well as the Export Yellow Pages.
Organize a Promotional Event With the Support of Uncle Sam – If you want to host your own export trade event, your local Export Assistance Center can help you get organized.
Overcome Trade Barriers and Resolve Disputes – Learn more about how the government can help.

Read more about how the government can be “your international business partner” in Export.gov's Marketing Guide.

6. Get logistical support

Find out how to get your products from point A to point B, including how to gather the right documentation, prepare products for shipment, and speak to a specialist here.

7. Learn how to conduct international e-commerce

To help you “internationalize” your e-commerce site as well as navigate the complexities of payment options, custom duties, etc., visit Export.gov's guide to Conducting International Business Online.

8. Get exporting help in your town

Many of the services offered by Export.gov are backed by local export assistance centers in more than 100 cities nationwide. Each center is staffed by trade professionals who can provide local businesses with exporting support, including trade counseling and more information on many of the tools and services mentioned in this article.

Related Resources

Export.gov and its partners also have a significant blogging and social media presence. Get the links here.
SBA Export - Import Guide
Idea Exchange: Small Business Owner's Exporting Experiences
US-Korea Trade Agreement Opens Big Market for Small Businesses

Importing Goods into the U.S. – An Introductory Guide for Small Business Owners

Caron_Beesley — Tue, 03 Jul 2012 11:48:44 +0000

Whether you’re looking to diversify your product line or leverage cheaper-made merchandise, selling imported goods in the U.S. can be an important ingredient in small business success.

Interestingly enough, importing doesn’t always necessarily cannibalize the economy here at home. Research from the Federal Reserve Bank of San Francisco (cited in this USA Today article) suggests that for every dollar spent on a Chinese-made item, 55 cents goes to U.S. businesses for services such as marketing and sales. So Americans are getting more than just cheap prices and unique products from overseas markets.

Many small businesses also support high-demand imported products that can’t be found or manufactured here: artisan crafts, furniture, shoes and clothing, and food and beverage products. These represent a lucrative market with margins that can reach up to 700 percent.

If you are interested in importing and selling overseas goods to the U.S. market – whether or not you’re actually based in the U.S. – you’ll need to do your research regarding both the country of export and the country of import (the United States).

Here are some business and regulatory tips to guide you through the process of selling imported goods in the U.S.

Review Import Rejection Laws and Trade Barriers

First, be sure to check U.S. trade barriers and local in-country laws to be certain you can actually export your chosen goods out of the country of origin into the U.S.

While the U.S. is very import-friendly, it does have safety and quality controls that are more stringent than other countries. Likewise, foreign nations sometimes restrict or ban the export of religious ornaments, rare or protected goods, animal by-products (such as furs and ivory), as well as pirated designer goods. There are several guides and links to information about import trade on SBA.gov’s Importing Goods page.

If you want to import or sell agricultural products into the U.S., the Food Safety and Inspection Service provides a checklist and other information to help you comply with laws that govern import of meat, poultry and egg products.

Build Relationships and Network on the Ground in the Export Country

As with all wholesale procurement, you will want to meet and greet the producer or distributor of the product(s) you will be selling. Try to establish whether the company you’re dealing with has export experience. Ask for references. SBA’s Doing Business Abroad guide can help you plan your trip.

Hire a Customs Broker

A licensed customs broker can help you navigate laws and regulations that apply to the transactions your planning, including licenses, calculation of taxes, duty fees, etc. A customs broker prepares all the documentation needed to import goods, just as a freight forwarder does for exporters. Customs brokers also facilitate communication between the importer and the government. Licensed brokers must have expertise in the entry procedures, admissibility requirements, classification, valuation, and the rates of duty, applicable taxes and fees for imported merchandise. The customs broker charges the importer a fee for this advice.

You can search for certified customs brokers at the National Customs Brokers and Forwarders Association of America. For international brokers visit the International Federation of Customs Brokers Associations.

Check License or Permit Requirements for Importing Certain Goods

Many imported and exported products are regulated by federal agencies and are listed in SBA’s Exporting/Importing Specific Goods page. If you import or export any of the products listed, you may need to obtain specific licenses and permits or complete additional paperwork. The page also provides information on how to get the appropriate licenses and permits. A customs broker can also help with this aspect of importing goods.

Get Assistance and Training

The federal government provides advice and seminars to small businesses interested in importing.

Small Business Development Centers (SBDC) – Provide assistance for import businesses and fee-based seminars. Use the map to find a branch near you.
SCORE – Provides online workshops and in-person advice from over 12,400 volunteer counselors across the nation. Use the search tool to find help near you.
U.S. Customs and Border Protection (CBP) Contacts – Contact information to find assistance from any of CBP's offices in international trade, trade relations, and brokers.
International Trade Administration (ITA) Services – ITA's import services, including counseling and a program/partner search.

Social Media, Exporting and Other Free Educational Sessions – Streamed Live from National Small Business Week

Caron_Beesley — Thu, 17 May 2012 12:43:54 +0000

Next week is National Small Business Week and for the 49^th year, entrepreneurs, SBA and other members of the small business community will gather in Washington, D.C., for the highlight of the week – the National Small Business Week Conference.

Aside from the awards and numerous networking opportunities presented by the event (running from May 20-22 at the Mandarin Oriental Hotel), the conference also includes a schedule of educational seminars and forums offering a variety of learning opportunities across many topics for business owners. If you are in the Metro D.C. area, there’s still time to sign up. Many sessions are free. Check out the registration page and look for sessions marked $0.

Can’t make it to D.C.? Educational sessions will be streamed live.

Many of the sessions from the event will be streamed live. Here are a few you don’t want to miss:

How Small Businesses Can Win Big With Large Companies (Sun, May 20, 3-5 PM) – Got a great product, but no idea how to get it noticed by a large company? Ever wondered how to get your merchandise on the shelves of a major retailer? This panel offers solutions from all sides of the equation that add up to achievement.
Small Businesses Creating an Economy Built to Last (Mon, May 21, 10-11.15 AM) – SBA Administrator Karen Mills will host this town hall that features last year's National Small Business of the Year winner along with other panelists to discuss how small businesses are good for the long-term health of any economy.
Export Forum: Take Your Business Global (Mon, May 21, 11.30 AM-12.45 PM) – Includes strategies and resources for taking your small business global (a growing market, U.S. exports grew 15 percent in 2011). This forum's special guest is Nihat Ergun, Turkish Minister of Science, Industry and Technology.
Federal Contracting Educational Sessions (Tues, May 22, 10 AM-12.45 PM) – Three free sessions offering insights into how small business can better position themselves to win federal government business (over $100 billion of which goes to small business each year!).
Improving Your Business Through Sub-Contracting Opportunities (Tues, May 22, 11.30 AM-12:45 PM) – Learn how to take advantage of prime and sub-contracting opportunities with insights from panelists who will share their insights on mastering the challenges of getting into the supply chains of large primes.
Social Media (Tues, May 22, 3-4.30 PM) – This panel includes insights on ever-changing advancements in social media and how small business can take advantage of them. Speakers include experts: SBA guest blogger and GrowBiz Media CEO Rieva Lesonsky, Wall Street Journal’s Brian Moran, and business leaders from Yelp.com, Constant Contact, Twitter and Google. Special guest Sarah Bernard, Deptuy Director for the White House Office of Digital Strategy, will also join the forum.

For more information on how to watch these live webcasts, visit the National Small Business Week website. You can also follow SBA on Twitter and Facebook for more details nearer the time.

US-Colombia Trade Agreement Expands Exporting For Small Business in South America

Karen Mills — Tue, 15 May 2012 20:30:45 +0000

Exporting goods to South America just got easier for America’s small businesses. Today, the U.S. – Colombia Trade Agreement goes into effect, opening yet another fast-growing market to goods made in America. This exciting agreement marks a significant development in the Obama Administration’s efforts to expand access to American goods in emerging markets around the world.

Colombia is home to the third largest economy in South America and this agreement builds on the significant potential for U.S. small businesses to grow in that market. In 2009, there was a 34 percent increase in the volume of exports to Colombia. In 2010, it’s estimated that small business exporters represented 88% of all exporters to Colombia and the volume of trade was approximately $4.8 billion or 40%- well above the 33% average among all exporters.

Further, the tariff reductions in the agreement are estimated to expand exports of U.S. goods by $1.1 billion alone- creating opportunities for thousands of American jobs here at home. Among its many benefits, the agreement removes barriers to U.S. goods entering the Colombian market, increases access to Colombia’s $180 billion services market and provides greater protection of intellectual property like music and movies.

SBA’s many programs and initiatives help small business owners take advantage of opportunities in new emerging markets so they can grow and create jobs. Our International Trade Loan Program, Export Express and Export Working Capital programs support small businesses looking to export the capital they need to take the next step in growth. And our State Trade Export Promotion pilot program coordinates the activities of state export offices with those of the federal government through efforts such as training to get small businesses “export ready” and small business oriented trade missions.

The Obama Administration believes that supporting small businesses who are exporting to foreign markets is essential to continuing the recovery. By opening new markets to American goods, more small businesses can compete and win in our increasingly connected 21^st century world economy. The U.S. –Colombia Trade agreement will help small businesses across the country grow and create jobs building an American economy built to last.

Let’s Celebrate National Small Business Week – Together, Online and in your Community!

Caron_Beesley — Thu, 05 Apr 2012 11:47:08 +0000

Next month our nation’s entrepreneurs will come together in Washington, D.C., and virtually via the Internet for a three-day celebration of National Small Business Week – the 49^th straight year.

The centerpiece of a variety of week-long celebrations is the annual National Small Business Week Conference, May 20-22 at the Mandarin Oriental Hotel. Hosted by SBA, the event includes educational forums, networking sessions, and an awards ceremony recognizing the impact made by outstanding American entrepreneurs and small business owners in 2012.

Each year, awards are presented in a variety of categories, such as Home-Based Business Champion of the Year and Small Business Exporter of the Year, and culminate in the announcement of the National Small Business Person of the Year. (Check out last year’s winners).

Dynamic Educational Events - from Industry Experts and the SBA!

With a strong focus on how small businesses can take advantage of economic opportunities and new marketing trends, topics of for the educational forums this year include:

Strategies and resources for taking your small business global through exporting (a growing market that saw U.S. exports increase 15 percent in 2011).
Tips and best practices for putting social media to work for your business (don’t miss guest panelist and SBA guest blogger, Rieva Lesonsky).
An open discussion on how small business can better position themselves to win federal government business (over $100 billion of which goes to small business each year!).

Check out the full conference schedule here.

How Can you get Involved?

If you can make it to Washington, D.C. for the event, registration for the conference is now open. If you can't travel, you can still take part by joining live streaming webcasts of key sessions as they happen (keep an eye on the event website and follow SBA on Twitter and Facebook for more details nearer the time).

You can also get involved in your own community. Let your customers know about National Small Business Week by offering a celebratory special promotion or use email marketing and social media to spread the word and thank them for their business.

See you in May!

Related Resources

SBA Guide to Exporting
Government Contracting 101 – Online course that help small businesses learn how to sell to the government
Ultimate Guide to Social Media Marketing for Small Business

How to Protect and Enforce Your Intellectual Property Rights in Foreign Markets – Part 2

Caron_Beesley — Wed, 05 Oct 2011 12:10:32 +0000

This article is part two in a two-part series in which Susan Wilson, director of the Office of Intellectual Property Rights of the U.S. Department of Commerce’s International Trade Administration shares tips and tools for protecting and enforcing your intellectual property rights in foreign markets (read Part 1 here).

You’ve worked hard to develop your products and services and to grow your small business, and you feel the time may be right to enter the international marketplace. But now you realize there is another step before you jump into exporting: how will you protect your intellectual property rights in these foreign markets, and who can help you?

How the Department of Commerce Can Help

Small businesses are particularly vulnerable when it comes to piracy and counterfeiting, but there are numerous tools and resources developed by the U.S. Department of Commerce that can help small businesses protect and enforce their intellectual property rights in the U.S. and abroad.

As Susan Wilson explains, “We like to focus on a couple of stages. First, of course, you have to understand intellectual property rights are private rights. They are privately owned… so it is really up to the owner of the… rights to make sure their rights are registered and that they are making smart business decision … and are picking smart, trustworthy distributors, and manufacturers.”

So, when it comes to protecting your intellectual property, the first line of defense is you. There are, however, many government-sponsored tools and resources that can help small business owners learn how to protect your intellectual property at home and in foreign markets:

1. Educate Yourself about Intellectual Property with Online Training – This online training program – Understanding Intellectual Property Rights – helps small business owners understand what intellectual property is, what it can do for you, and how to go about obtaining protection for your trademarks, patents, and copyrights. The training, hosted at Stopfakes.gov, is completely free of charge and is available in English, Spanish, and French.

2. Get Specific Information for Small Businesses – Visit www.stopfakes.gov/smallbusiness operated by the U.S. Patent and Trademark Office for information on what type of intellectual property protection to apply for, as well as when, where, and how to apply.

3. Educate Yourself about intellectual property in Your Target Market with “Country Toolkits” –Once you understand intellectual property, you next need to consider which markets your want to go into and what challenges you might face in those markets. How do you secure your rights in those markets? To answer these questions, the Department of Commerce has developed “Country Toolkits.” Once again, these are hosted on Stopfakes.gov (see the left hand navigation bar) and provide links to U.S. government resources hosted on various embassy websites and explain the process is for obtaining protection in that market.

4. How to File a Complaint – If you wish to file a complaint about intellectual property protection abroad, visit http://www.stopfakes.gov/contactus.asp. If your small business is presented with an issue overseas and is struggling in a particular market due to trademark or copyright infringement, the Office of Intellectual Property Rights will assemble a team of trade specialists and intellectual property experts to investigate and help.

For more information about whether your intellectual property rights apply globally and what to consider when expanding into global trade, read part one in this blog series: How to Protect and Enforce Your Intellectual Property Rights in Foreign Markets – Part 1.

Useful Links

Listen to the SBA Podcast Interview with Susan Wilson in Full Here: Empowering Small Businesses to Secure and Enforce Their Intellectual Property Rights
SBA Small Business Guide to Intellectual Property
SBA Small Business Importing and Exporting Guide
Selling Internationally? 8 Reasons Why Export.gov Might Just Be Your New Best Friend
Understanding Intellectual Property Law and How it Can Protect Your Online Business
How to Legally Protect Your Business Name on a Local, State, National, and International Level

Starting a Business in the U.S. as a Foreign National

NicoleD — Mon, 08 Jun 2009 21:53:39 +0000

Breaking into the U.S. market can be a rewarding venture for many foreign businesses. Because U.S. citizenship and residency are not required, foreign nationals are able to start or expand on U.S. soil without experiencing much more red-tape than an American-born business owner would.

Steps to Starting Up a Foreign Business in the U.S.:

Foreign business entities are incorporated at the state level in the U.S. The process will vary from state-to-state, but generally involves two steps: applying to register in that particular state, and establishing a registered agent with a valid address in that state (no PO Box numbers). A registered agent can be either the business owner or another person who is authorized to receive legal papers on behalf of the business, such as an attorney or secretary.
The rest of the steps to starting up are similar to those that an American citizen would take. The breakdown of 10 Steps to Starting a Business includes information on naming your business, requirement licenses and permits, and tax matters.
Establishing an online retail presence in the U.S. is a popular choice for many foreign business owners. You can read more about general resources for online businesses, including privacy and advertising regulations here, along with specific information on international sales.

Importing Goods into the U.S.:

The Department of Commerce's Trade Information Center provides information and web links to importation procedures.
Working with a licensed customs broker could be a valuable asset to your import plan. A customs broker prepares all the documentation required for importing goods. To learn about laws and regulations applying to custom brokers, including licensing requirements and importing procedures, visit the Transportation and Logistics Guide.
Many imported and exported products are regulated by federal agencies and may require specific licenses and permits. Check here to see if you need to obtain additional paperwork.

U.S. Tax information for Foreign Businesses:

The U.S. tax code can be confusing even to life-long citizens. Violation of any tax—sales, payroll, income, etc.—can incur fees and penalties. The IRS offers a guide specifically on International Business, but if you are still left with more questions, it is always safe to check with a qualified attorney or accountant.
U.S. citizens will likely need an Employment Identification Number to start up, a process that requires their social security number (SSN). In the case of foreign businesses, an Individual Taxpayer Identification Number (ITIN) will suffice. The IRS issues these 9-digit tax processing numbers to individuals who are required to pay US taxes but who are ineligible for a SSN, including resident and non-resident aliens and foreign nationals.
You may be required to file IRS Form 5472, which applies to US corporations with at least one foreign owner who owns 25% of shares, to account for the nature of monetary transactions.
There are also special tax credits and incentives available to businesses, including foreign tax treaties. The IRS offers a tax treaty overview and resources here.

Edited for formatting issues.