SBA business update – part 3 (free webchats)

SBASBA Webchats

Many people don’t know that the SBA has experts on various small business topics make themselves available to talk and answer questions on the internet.  The next one is tomorrow and deals with how to reduce taxes for small business.  In addition, the transcripts of previous sessions are kept online.  Here the most recent:

Cash Flow Management” – 9/30/2010 – Julie Brander, Past Chapter Chair, SCORE New Haven
Health Care and Small Business” – 8/12/2010 – John Tuzynski, Chief of Employment Tax, IRS
Disaster Preparedness for Business Owners: An Inside View” – 6/24/2010 – Genma Holmes, Small Business Owner, Holmes Pest Control
Small Business Start-Up — Ask the Expert” – 4/22/2010 – Barry McKinley, SCORE Counselor
Orange County Chapter 114
Contracting Opportunities & Surety Bonds“- 3/4/2010 – Karen Hontz, Director of Government Contracting; Pam Swilling, Program Review Analyst, Office of Surety Guarantees at the U. S. Small Business Administration
Small Business Exports & Access to Credit” – 1/28/2010 – Richard Ginsburg and Patrick Tunison, Office of International Trade, U.S. Small Business Administration

Tomorrow’s Webchat – Year-End Tax Planning for Small Business Owners

SBA’s Web Chat to Focus on Year-End Tax Planning for Small Business Owners

Thursday, December 9, 2010, from 1:00 p.m. to 2:00 p.m., ET

WASHINGTON – It is not too late for business owners to reduce their 2010 tax bills and plan ahead for 2011.  The U.S. Small Business Administration’s December web chat will focus on tax preparation for small business owners.  Participants can get useful year-end tax tips and information, and learn more about tax deductions and credits that can help to reduce their taxes.

WHO: Edward S. Karl, vice president of Taxation for the American Institute of Certified Public Accountants (AICPA), will host the December web chat on “Year-end Tax Essentials for Small Business Owners.”  Chat participants can get valuable information on how to prepare now with useful tax savings tips and mistakes to avoid.  Karl will answer questions on how to get the most out of year-end tax planning.

WHAT:           SBA’s web chat series provides small business owners with an opportunity to discuss relevant business issues online with experts, industry leaders and successful entrepreneurs.  Chat participants have direct, real-time access to the web chats via questions they submit online in advance, and during the live session.

WHEN:           December 9, 2010, at 1:00 p.m. ET

Karl will answer questions for one hour.

HOW: Participants can join the live web chat by going online to www.sba.gov, and clicking “Online Business Chat.”  Web chat participants may also post questions before the December 9th chat by visiting http://web.sba.gov/livemeeting/chat.

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

SBA business programs update – part 2 (notes)

SBAThis is the second post in a series.  Will Bowdish, a Lending Officer with the US Small Business Administration, made a presentation to investors in Springfield and Clark County’s economic development (through the CIC) as well as the CIC board.

Here are some of the more interesting comments he made (read yesterday’s post and/or review the SBA programs to get more information on the programs):

• The 7a program can guarantee (starting on 1/1/2011) 85% up to $150,000 and 75% over that.

• Two of the “delegated” products of the SBA are the Preferred Lender and SBA Express programs.  With the Preferred Lender program, you have to use the SBA forms and follow the SBA rules, but you have the authority to approve the loan subject to final SBA approval.  With the SBA Express program, which came out about 10 years ago, you can use your own approval system (as long as you document it in the file).  For banks like Huntington and PNC, when encountering a business loan under $100,000, would include the ability to do the program through the credit card application.  The SBA Express is a 50% guarantee up to a maximum of $1 million, which will drop back to $350,000 next year unless the current policy is extended.

• The Community Express program is not likely to continue.

• The Patriot Express program is for vets and their families and can provide a guarantee of up to 85%, for up to $500,000.

• For the 504 program, the federal government requires that the deal cannot be done conventionally.  Oftentimes, though, there is a collateral shortfall that makes a private bank unwilling to do the deal without some help.

• Refinancing is now possible, if it is a total refinance.

• With an SBA 504, the bank participant has to be willing to do at least ten years on a term.  The upfront origination fee will start back again beginning the first of the year.  It is 50 basis points, and the lenders need to be cognizant of this.  Regarding equity requirements, ten percent is not a hard, fixed requirement.  There are cases where 100% might be possible – an existing profitable manufacturer looking to buy new equipment, where an equity injection would require them to go get additional working capital.

• With 504 job requirements, this is an area that has  some flexibility.  The standard rule is one job for every $65,000 lent, unless it’s a manufacturer, and then it’s one job per $100,000. One example of an exception is the rural rule, which says that if the deal is taking place in a rural area, then you don’t need to worry about job creation.

• With respect to signing personally, the rule is still that anyone with over 20% ownership has to sign personally.  There was some discussion about to what extent you go after getting mortgages on the house – psychological benefit versus not collecting the full amount of the loan on the back end.

• Information required is spelled out in their “Form 4.”

• It was also stressed that the SBA closes when  the business has obtained their occupancy permit.  In other words, a bank using the program may need to have temporary financing in place before this can take place, say a 120-day note.

SBA business programs update – part 1 (Jobs Act 2010)

SBAWill Bowdish, a Lending Officer with the US Small Business Administration, made a presentation to investors in Springfield and Clark County’s economic development (through the CIC) as well as the CIC board.  Below is a copy of his PowerPoint presentation.  It was very instructive.

Tomorrow, I’ll share my notes from the meeting.

>> SBA Home Page

Central Ohio Signature Food Contest

Great homemade recipes often remain a staple item enjoyed within close-knit groups of families and friends.  Often these cherished recipes are passed down generation-to-generation and enjoyed throughout the year.  But rarely does an item, such as a unique salad dressing or a delicious cookie, begin mass production for the general public to experience.  Few have the resources to make their creation a reality – until now.

The Center for Innovative Food Technology (CIFT), Ohio Department of Development, and Central Ohio Restaurant Association, are sponsoring the Central Ohio Signature Food Contest which showcases many local flavors and recipes ready for actual product development.  Contestants will submit a form outlining the basic details of their recipe, and food industry experts will judge each based on the viability of the product, commercialization potential, business strategy, marketability and overall appeal to the marketplace.  In mid-November, finalists will be invited to North Market in Columbus, OH, to present their business concept and food product to a panel of expert judges.

The contest winner will receive technical and business development assistance which is essential for the advancement of a product into the marketplace, as well as production of product to be used for consumer feedback.

Deadline to submit the completed application is Monday, November 1, 2010 (only one product per applicant).

Call 419-823-3099 for more information, or obtain an application form along with Central Ohio Signature Food Contest rules/regulations at www.cift.eisc.org.

>> View the flyer for more information

Funding in Ohio to support small business lending

Governor, Patt-McDaniel, U.S. Treasury Announce Funding for Ohio to Support $551 Million in Small Business Lending, Creating New Jobs

State Small Business Credit Initiative Critical Component of Small Business Jobs Act President Barack Obama Signed into Law Last Week; Funds Will Help Local Entrepreneurs Expand Their Businesses, Putting More Ohioans Back to Work

Ohio Governor Ted Strickland, Ohio Department of Development Director Lisa Patt-McDaniel and the U.S. Department of the Treasury today announced the allocation of State Small Business Credit Initiative funding for Ohio. The Funds will support $551 million in new small business lending in Ohio through innovative local programs that help entrepreneurs expand their businesses and create new jobs, and are a critical component of the Small Business Jobs Act President Barack Obama signed into law last week to help unlock credit and provide targeted tax cuts for small businesses.

“Small businesses account for more than two-thirds of all jobs in Ohio and more than anything else, what I hear from small business owners is that the greatest impediment to creating jobs is access to capital,” said Ohio Governor Ted Strickland. “We fought hard for federal passage of the Small Business Credit Initiative, and I want to thank the members of Ohio’s delegation, and particularly Senator Sherrod Brown, for their work in support of this legislation. Ohio’s share of the funds will support programs that will help Ohio’s small businesses expand and thrive, particularly manufacturers, those in the auto supply chain and minority businesses.”

“Innovative local initiatives that support small business lending are under extraordinary pressure because of state budget difficulties,” said U.S. Treasury Secretary Timothy Geithner. “These funds will provide vital support to successful state-level programs that help local entrepreneurs obtain the credit they need to put more Americans back to work. President Obama fought hard for the Small Business Jobs Act because it will help ensure that small businesses continue to strengthen our nation’s recovery and serve as critical engines for job creation.”

Under the State Small Business Credit Initiative, states are offered the opportunity to apply for federal funds for programs that partner with private lenders to extend greater credit to small businesses. States are required to demonstrate a minimum “bang for the buck” of $10 in new private lending for every $1 in federal funding. Accordingly, the $55.1 million funding commitment that the federal government will make in Ohio for this program is expected to support $551 million in additional private lending. Nationwide, the program is expected to support $15 billion in additional private lending.

“We are excited to use the more than $55 million in additional resources to reinforce and support the work we are already doing here in Ohio,” Patt-McDaniel said. “Small businesses are critical to Ohio’s economy and we will continue to support our entrepreneurs as they hire new employees and grow their businesses.”
The State Small Business Credit Initiative allows states to build upon existing, successful state-level small business lending programs, including examples such as collateral support programs, Capital Access Programs (CAPs), and loan guarantee programs.

  • Collateral Support Programs for Small Manufacturers: Collateral support programs help viable businesses that are struggling to get credit because the value of the collateral they hold has fallen, often due to the decline in commercial real estate values. These programs – which set aside funds to augment collateral the borrower already holds – provide banks greater confidence in extending credit to these borrowers, particularly in some of the communities hardest hit by the economic downturn.
  • Capital Access Programs (CAPs): CAPs, which are already up and running in more than 20 states, are loan portfolio insurance programs in which states provide a matching contribution to bank loan loss reserves when lenders extend credit to qualified small businesses. These reserve enhancements allow lenders to expand credit to new borrowers at a time when many of these lenders might otherwise pull back.
  • Loan Guarantee Programs: Under loan guarantee programs, states provide partial guarantees on certain small business loans to give lenders greater confidence to extend credit.

If a state does not have an existing small business lending program, officials can establish one in order to access this funding. States must provide plans for utilizing their funding allocations to U.S. Treasury for review and approval.

The amount of SSBCI funds a state is eligible to apply for is determined based upon formulas in the Small Business Jobs Act that take into account each state’s respective unemployment rate and decline in employment relative to other states.

In addition to the State Small Business Credit Initiative, the Small Business Jobs Act includes a number of important provisions to support small business job creation. The Act includes eight new small business tax cuts that went into effect immediately upon becoming law last week; creates a $30 billion Small Business Lending Fund to help small and community banks provide new loans to small businesses; extends and expands existing Small Business Administration loan programs; and delivers other important benefits for small businesses.

>> Ohio Department of Development website

>>For more information on the Small Business Jobs Act, please visit link.

>> Governor Ted Strickland website

Ohio Department of Agriculture offers $2 million to agriculture businesses that support rural Ohio

Ohio Department of Agriculture Offers $2 Million in Revolving Loan Funds Loans Made Available to Agriculture Businesses that Support Rural Ohio

Business owners can now apply for their share of $2 million in low-interest loans funded by the Ohio Department of Agriculture through a newly created Agriculture Revolving Loan Fund. The department will partner with the Ohio State University South Centers and Buckeye Hills-Hocking Valley Regional Development District to facilitate the loan process, which will use state funds made available through the U.S. Department of Agriculture.

The Agriculture Revolving Loan Fund will make loans available for the creation and expansion of businesses and industries that support agriculture and rural Ohio that focus on aquaculture, food processing and biofuels in Ohio. Other projects will also be considered.

“The aquaculture, food processing and biofuels industries show great promise for Ohio, and the Ohio Department of Agriculture is pleased to offer these low-interest loans for these types of projects and others to assist with start-up and expansion costs,” said Ohio Agriculture Director Robert Boggs. “Supporting rural Ohio businesses and industries will help keep Ohio’s economy growing, create jobs and maintain Ohio’s strong $98 billion food and agriculture industry.”

Loans will range from $10,000 – $100,000, and the revolving loan fund will finance up to 90 percent of the total project cost. Funds could be used for activities such as acquisition and improvement of land, buildings, plant facilities and equipment as well as new construction or renovation of existing facilities, modernization, demolition and site preparation.

Eligible applicants include private, for-profit businesses and industries. Applicants must be U.S. citizens and 18 years of age.

>> For more information about the Agriculture Revolving Loan Fund, visit www.agri.ohio.gov<http://www.agri.ohio.gov/ under Promotional Programs.

U.S. EPA Brownfields Grant Applications Available

$92.9 Million to Distribute October 15 Deadline

U.S. EPA just released guidance and applications for its Brownfields assessment, cleanup and revolving loan fund (RLF) grant programs. U.S. EPA estimates that it will have $92.9 million to distribute and anticipates awarding 185 assessment grants for $52.4 million, 147 cleanup grants for $29.5 million, and 11 revolving loan fund grants nationwide for $11 million. The application deadline is October 15, 2010.

Hull & Associates, Inc. provided this information.  They claim to have significant experience with preparing and implementing these grants. According to the company, Hull helped prepare 27 successful U.S. EPA brownfields assessment, cleanup and RLF grant applications worth $6.9 million and is currently implementing a number of these grants in Indiana, Kentucky, Ohio and Pennsylvania. They indicate that they would be pleased to talk with any organization to consider their brownfield challenges and help determine whether a U.S. EPA grant could be useful to address those challenges.  Hull will provide pro bono grant writing consultation for this round of U.S. EPA grant applications if they are contacted by September 15.

U.S. EPA Region 5 is holding webinars to discuss these grants and the application components on September 7 & 9.

>> For guidelines that include eligible applicants and eligible properties, as well as the application and submittal requirements, please visit: www.epa.gov/brownfields/applicat.htm.

>> More details are available at: www.clu-in.org/conf/tio/r5bforientation/

>> Application information