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*UPDATE* New Recovery Act Funding Extension for SBA Loans; What it Means for Your Small Business
Caron Beesley
Post date: 03/16/2010 - 07:52

Note: The ARRA (Recovery Act) initiatives and/or programs referenced in this article will expire on September 30, 2010. Any statements about qualifying time periods, or extensions of these dates, as they pertain to the availability of ARRA programs are over-ridden by the expiration of the Act on September 30, 2010.


On March 26, President Obama once again signed legislation extending the availability of Recovery Act funds for certain Small Business Administration (SBA)-guaranteed loan programs.

This is the third time (and the second time this month) that the U.S. Senate has approved additional funding for economic stimulus provisions related to SBA-guaranteed loans and is good news for small businesses seeking start-up and growth financing.

What the Funding Means


You can read more at the SBA's press center, but essentially the SBA estimates that the additional funding will support about $1.4 billion in lending by extending its ability to guarantee loans enhanced by Recovery Act provisions. These include higher guarantees on SBA 7(a) loans (90 percent compared with the normal 70 percent through April 30) and a waiver of 7(a) and 504 loan fees normally paid by borrowers (through Sept or when funds are exhausted, whichever comes first). (Note that the ARRA expires September 30, 2010, and will over-right any of these time periods or extensions).

These provisions have already proved successful in stimulating small business lending as SBA Administrator, Karen Mills reports:;The increased guarantee and reduced fees on SBA loans helped put almost $23 billion into the hands of small business owner-As a result, average weekly loan approvals by SBA have climbed by 86 percent compared to the weekly average before passage of the Recovery Act-

Read'The Recovery Act: SBA Loans and Your Small Business

Managing the Back-Log' The Recovery Funding Queue


Small business owners who have already applied for Recovery Act loan programs will likely find themselves in the Queue. This was instituted by the SBA in February 2010 to better manage the application process for these high demand and quickly depleting funds.

With the announcement of the availability of additional funds, the SBA will prioritize loan approvals for borrowers who are already in its Recovery Loan Queue, followed by new loan applications.

If you already have conditional loan approval you should have received a loan application number which you can use to track your position in the queue here.

The Future for Small Business Lending


The SBA remains confident that it will continue to see buoyancy in small business borrowing:'Through ARRA we brought nearly 1,100 lending institutions back to the SB's programs that had not made an SBA loan since at least 2007' said Administrator Karen Mills.

And with the newly announced funding extension, Mills re-stated the agenc's pledge to provide small businesses with the tools needed to drive economic growth and grow jobs:'We will continue working with the President and with Congress to move forward with proposals for a longer extension for these important program enhancements, as well as higher loan limits, refinancing for commercial property loans and other significant ongoing support for small businesses.

Additional Resources


Latinos in Business; Government Resources for Hispanic Entrepreneurs
Caron Beesley
Post date: 03/09/2010 - 09:13

According to the most recent U.S. Census Bureau data, Hispanics are opening businesses at a rate three times faster than the national average. And, what was once regarded as a minority group now represents the fastest-growing segment of the natio;s economy.

This is a fact that is not lost on the government.

Speaking to Hispanic News*, Ying Lowrey, senior economist at the Small Business Administration's advocacy office, has this to say:-the contribution of minorities to the economy is tremendou'.

The corollary of this is that more and more government resources dedicated to helping Hispanic entrepreneurs start-up, operate and grow, are becoming more widely available both in local communities and on the Internet' if you know where to find them.

Her's a breakdown of some of the best government and non-profit resources and programs, which specifically support Hispanic business growth.

Get Local, Expert Start-Up Advice en Español


If you are thinking of starting a business or are already engaged in the early stages of business ownership, get valuable in-person advice as well as networking opportunities from numerous local organizations who specialize in promoting the growth of Hispanic businesses through training, advice, and loan assistance, and more.

Here are a few to consider:

Funding for Hispanic-Owned Businesses


Getting financing can be the most challenging part of starting a business - the easiest route may be to consider a loan from a bank that is guaranteed by the Small Business Administration (SBA). Although, be aware that the SBA doesn't give any special consideration to Hispanic entrepreneurs in its programs or during the approval process.

To help you understand more and find the right loan for your business, the SBA offers a version of its Web site in Spanish where you can get facts and information about these loans as well as other resources: http://www.sba.gov/espanol/.

An alternative to the SBA-guaranteed loan option is to talk to your local U.S. Hispanic Chamber of Commerce*, many of these chapters work with banks and lenders to administer loan programs for Hispanics.

For additional guidance on small-business loans, visit Business.gov at http://business.gov/start/minority-owned/ or en Español: http://business.gov/espanol/.

Online Government Resources for Hispanic Empresarios


From the IRS en Español (check out their resources and forms for businesses) to information from Business.gov (Recursos para Empresas en Español) there are many government resources now available in Spanish that help Hispanic-owned businesses grow their businesses while also helping them navigate the maze of regulations that accompanies business-ownership.

Another government-sponsored resource to check out is SCORE* (part-funded by the SBA). SCORE offers online small business workshops in Spanish, register for these here.

Hispanic Business Associations


In addition to government agencies, there are many trade associations and non-profits who are committed to helping Hispanics in business succeed. These include:

Additional Resources


*Note: Hyperlink directs reader to non-government Web site.

Home-Based Business Smarts;Tips for Finding Opportunity, Starting-Up, and (oh yes) Thriving
Caron Beesley
Post date: 03/04/2010 - 10:42

Often misperceived as nothing more than hobbyists and part-timers, home-based business owners represent one of the most educated, successful and growing sectors of the small business economy.

And home-based businesses are on the up!

According to the SBA Office of Advocacy, home-based businesses account for an estimated 52% of the 29.6 million small businesses in the U.S.

And, her;s another fact that might surprise you, according to a recent Network Solutions Small Business Success Index (SBSI) survey, home-based businesses are not only growing they have staying power- with nearly half of those surveyed reporting that they had been in business for more than 15 years! (Read more facts from the SBSI survey in *this article by Small Business Trends.)

The relatively high survivability rate perhaps attests to several other facts about home-based business owners- they are highly educated, committed, and savvy business owners who leverage shifts in the economy, demographic changes and advances in technology to sustain smart business growth.

Finding the Right Home-Business Opportunity for You


Home-based businesses are no longer limited in scope to consultants and freelancers. Where there is opportunity, there is money to be made from the home.

In this article from Allbusiness.com''*The Top 25 Home-Based Business Ideastried-and-true home-based business ideas that have growth potential, now and in the future.

And while there may be no sure-fire winners, matching the opportunity to a passion and willingness to execute on your part is critical. Most successful home-based businesses were made that way by their owners being willing to put forth the required effort to get the business off the ground while balancing the ever-demands of home and family life!

Getting Started as a Home-Based Business


If you are interested in starting a business from home, it can be a low-cost, low-risk door-opener into self-employment. But i's always a good idea to test the waters first. Consider starting your business on a part-time basis, while you still have full-employment or an occupation elsewhere.

Most importantly - asses your readiness and do your research. Here are some resources and tips to get you started.

  • Plan your Start-Up - Offering a uniquely 360 degree view on the steps involved in planning and operating a home-based, take a look at this Home-Based Business Guide from Business.gov. The guide includes resources that will help you learn more about working out of your house, starting a home-based business, and managing your business within the law.

  • Due Your Due Diligence: Zoning Laws and Permits Govern Home Businesses Too - While the choice of home-based business type can appear limitless, there are some restrictions on what kind of work can be performed out of your home. For example, some states forbid the use of residential kitchens for commercial food production. Check what restrictions apply in your locality by reviewing these Zoning Laws for Home-Based Businesses.


You'll also need to obtain the right license and permits. This is an area often overlooked by home-based business owners. Licenses can range from a basic operating license to very specific permits - read Licensing Requirements for Home-Based Businesses for more information on what you might need. The government has also created a very handy tool - Permit Me - that lets business owners easily identify the licenses and permits required for their business.


  • What about your Home Owners Association? - If you live in a planned residential neighborhood or complex, your business activities may be restricted to your Homeowners' Association (HOA), Covenants Conditions, and Restrictions rules. This article - Can a Homeowners' Association Ban Your Home-Based Business? - offers some quick facts about the law and your rights.

Additional Resources

*Note: Hyperlink directs reader to non-government Web site.

Small Business Survival: Last Chance Lifelines for Keeping your Business Afloat
Caron Beesley
Post date: 02/16/2010 - 08:35

There are many reasons why businesses fall on hard times; and i-s not always the fault of the broader economy.


Poor management, a bad location, over-expansion, insufficient capital, or a lack of planning- many of these factors, if not avoided, can certainly weigh down a business or even sink it.


If your business is experiencing financial difficulty and is struggling to survive, here are some steps you can take to keep the creditors and the IRS from your door, as well as some potential lifelines and'refres' business strategies that can help you stay afloat.


Managing Cash Flow


Getting a grip on cash flow is the first essential step towards positioning your business for survival and future growth.


Start with an assessment of your short-term cash flow and develop a plan for your immediate needs. This includes taking stock of all outflows' including credit card bills, utility and commercial lease commitments, bank loans, employee payroll, taxes, etc.' together with an assessment of your incoming cash flow and a plan for prompt collection of payments owed.


If you need to delay payment of other bills, try working with your suppliers to reduce rates, or implement a payment plan that gives you time to get back on your feet.


But, however severe your cash flow issues are, try to be meticulous about paying taxes, particularly those associated with employee payroll. The IRS holds business owners liable for unpaid employment taxes, whether you are incorporated or not.


Below are some excellent resources to help you manage your business cash flow and take control of your business finances before they take control of you.


  • Bookkeeping Basics for Small Business - Proper bookkeeping practices are important to the operation and survival of any business. Without them, your business is susceptible to not only cash flow issues, but potential legal problems as well. To help business owners have a better understanding of smart bookkeeping practices, read this quick 101 in bookkeeping basics.

Leverage Financial Lifelines


There are several financing lifelines that can help small businesses overcome short-term cash flow problems or help alleviate existing debt. These include:


  • Revolving Lines of Credit (RLC) - A revolving line of credit (RLC) is a flexible method of borrowing cash for your small business. It is very similar to a credit card in the sense that an RLC has an established credit limit that you can borrow up to, only without a plastic card. Although do note that to receive an RLC you must be operating profitably. Read'The Basics of Revolving Lines of Creditto learn more about how you can apply for and take advantage of revolving lines of credit.
  • The ARC Loan Program - Interest Free Loan for Debt Repayment - Backed by the SBA, the ARC Loan program was introduced in 2009 to help small business owners who are struggling to pay the interest on existing loans and debts such as credit card bills, capital leases and other loans made without an SBA guaranty. The program provides interest free loans of up to $35,000 for up to six months. Read Managing Small Business Debt' Government Loans and Refinancing Lifelines for more information about this and other programs from the U.S. government.

Learn from other Small Business Owners


If there is one thing that the current economic uncertainty has demonstrated, it's that entrepreneurs are fighters. From customer service to marketing; from creative uses of technology to tighter financial controls - small businesses are fighting back with a toolbox of resources that challenges conventional business models, introduces greater efficiencies, and opens doors to new opportunities.


Read Surviving the Recession and Planning for a Rebound - How Small Businesses are Doing It! for some insights and tips drawn from across the Business.gov Community of experts and small business owners.


Additional Resources


The State of the Union for Small Business; Pointers for Renewing the Entrepreneurial Imperative
Caron Beesley
Post date: 02/02/2010 - 10:24

Note: The ARRA (Recovery Act) initiatives and/or programs referenced in this article will expire on September 30, 2010. Any statements about qualifying time periods, or extensions of these dates, as they pertain to the availability of ARRA programs are over-ridden by the expiration of the Act on September 30, 2010.


Watched by approximately 48 million people on TV and another 1.3 million via the White House's online feed, President Obama's first State of the Union address stressed the importance of collective responsibility.

In the President's words:

'I campaigned on the promise of change, change we can believe in, the slogan went. And right now, I know there are many Americans who aren't sure if they still believe we can change, or that I can deliver it. But remember this: I never suggested that change would be easy or that I could do it alone. Democracy in a nation of 300 million people can be noisy and messy and complicated. And when you try to do big things and make big changes, it stirs passions and controversy. That's just how it is.'

This message of collective action and responsibility was not lost on the small business community.

In this article, published by Allbusiness.com - '*Attack, Don't Wait for Uncle Sam's Helping Hand' - small business expert and fellow Business.gov blogger, Rieva Lesonsky outlined the President's proposals for small business', she also called for a renewed entrepreneurial imperative:

'...we entrepreneurs cannot sit around hoping the government will make good on its promises...General George Patton once advised,;Opportunities do not come to those who wait. They are captured by those who attack'....and, if you are the owner of the business...that proverbial buck stops with you.'

Planning for Growth: Equip and Arm Yourself Now

So what can small business owners do to plan for recovery and growth?

Touching on the key points of President Obama's address, I've compiled a snapshot of some of the existing government programs, resources and tools that you can put to work for your business today!

1) Small Business Finance and Lending

Recognizing that small business is key to economic recovery, the President pledged to'... take $30 billion of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat.'

Keep an eye on this one in the coming weeks as more details about this and other pledges, such as the proposed $5,000 tax credit for small business who hire new employees are unveiled.

In the meantime, take the time to assess the state of your business and take a look at these business planning guides from Business.gov to determine what you can do to give your business a boost in the short-term.

From a financial perspective, many of the Recovery Act loan programs introduced last year are still available for small business owners struggling with debt, read 'Managing Small Business Debt - Government Loans and Refinancing Lifelines' for more information.

Planning for the future? Take a look at these small business loans and grants resources, including this loans and grants search tool which can help match your business needs to available government loan programs as well as prepare your loan application.

2) We Need to Export More

Pre-empting an upcoming announcement about a 'National Export Initiative' that will help farmers and small businesses increase exports and expand into new markets, the President has pledged to '... double our exports over the next five years.'

If you see exporting in your future, take a look at this 'Get Started in Exporting Guide' from Business.gov - it includes videos from experienced 'exporting entrepreneurs' as well as information on export basics, finding opportunities and navigating trade regulations.

3) A Clean Energy Economy

'...to create more...clean energy jobs, we need more production, more efficiency, and more incentives.' How does small business fit into the President's vision of a clean energy economy?

The imperative isn't just on oil companies and energy giants, small business can participate in a number of ways.

This is just the tip of the iceberg, read more from the government on how your business can adopt green business practices.

ADDITIONAL RESOURCES

President Obama's State of the Union Address - Read key points from the President's address in this abbreviated version from The White House blog.

Recession-Beating Strategies:

Financing:

Exporting:

Green Business:

*Note: Hyperlink directs reader to non-government Web site.

Message Edited by CaronBeesley on 02-02-2010 09:30 AM