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Financial Education


  • Submitted on 15 September 2011

    Small businesses borrow for four principal reasons: starting a business, purchasing inventory, expanding, and strengthening the firm’s financials.

     “Small business owners across the country tell me that access to capital remains one of their central concerns,” said Chief Counsel for Advocacy Winslow Sargeant. “The research we are releasing today will add to the understanding of small business financing needs and sources, and will inform policymakers seeking to strengthen the productive small business sector.”

    The Finance FAQ is replete with data about where small businesses obtain their financing, including 15 graphs showing types of startup and expansion financing, as well as trends in bank lending, interest rates, venture capital, initial public offerings, SBIC funding, and SBA loans.
     

  • Submitted on 15 September 2011

    President Obama and Joint SessionPresident Obama explained his proposal for putting creating jobs now and putting Americans back to work before Congress. In addition to giving the economy a shot in the arm with more money in the pockets of working Americans, his proposed American Jobs Act has several new ideas, backed by both Democrats AND Republicans, which are a win for businesses and employers. The President is focused on rebuilding the economy the American way, through the ingenuity and hard work of the American people.

    Businesses and employers stand to win under the President’s American Jobs Act in various ways.

    It offers tax relief:

    • A payroll tax cut for 98 percent of small businesses
    • A complete payroll tax holiday for added workers or increased wages
    • Extending 100 percent capital expensing into 2012
    • Reforms and regulatory reductions to help entrepreneurs and small businesses access capital
  • Submitted on 15 September 2011

    As Tax Filing Extension Deadlines Near, IRS and HHS Announce New Round of Outreach to Small Businesses and Practitioners

    As the upcoming filing extension tax deadlines approach, the Internal Revenue Service, in partnership with the Department of Health and Human Services, is announcing a new round of outreach to small employers and the professional service providers they rely on to encourage them to review the new Small Business Health Care Tax Credit to see if they are eligible.

    "As the filing deadlines approach, we want to make sure that small business owners don't leave any money on the table,” said IRS Commissioner Doug Shulman. “Small businesses that offer health insurance should learn about this credit and claim it if they are eligible."

    The small business health care tax credit was included in the Affordable Care Act enacted last year. Small employers that pay at least half of the premiums for employee health insurance coverage under a qualifying arrangement may be eligible for the small business health care tax credit. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ 25 or fewer workers with average income of $50,000 or less.

  • Submitted on 15 September 2011

    The Treasury Department and Internal Revenue Service today requested public comment on a proposed affordability safe harbor for employers under the shared responsibility provisions included in the Affordable Care Act that will apply to certain employers starting in 2014.

    Under the Affordable Care Act, employers with 50 or more full-time employees that do not offer affordable health coverage to their full-time employees may be required to make a shared responsibility payment. Notice 2011-73, posted today on IRS.gov, solicits public input and comment on a proposed safe harbor, designed to make it easier for employers to determine whether the health coverage they offer is affordable. To that end, Treasury and IRS expect to propose a safe harbor permitting employers that offer coverage to their employees to measure the affordability of that coverage by using wages that the employer paid to an employee, instead of the employee’s household income. This contemplated safe harbor would only apply for purposes of the employer shared responsibility provision, and would not affect employees’ eligibility for health insurance premium tax credits.

  • Submitted on 15 September 2011

    One hundred nonprofit organizations from 44 states and the District of Columbia received grants under the Program for Investment in Microentrepreneurs Act (PRIME), the U. S. Small Business Administration announced today. 

    Grants will be used to provide business-based training and technical assistance to low-income and very low-income entrepreneurs to help them start, operate, or grow a small business.  Grants will also be used to better equip community-based nonprofit organizations to provide training. 

  • Submitted on 08 August 2011

    Startups, newly established and growing small businesses now have a new source of financing backed by the U.S. Small Business Administration as 20 community organizations have been funded by SBA to start making loans up to $200,000 to qualifying small businesses.

    Authorized under the Small Business Jobs Act of 2010, the new Intermediary Lending Pilot Program will provide direct loans up to $1 million to 20 community organizations or intermediaries in fiscal year 2011, which in turn will use those funds to help finance small businesses, mostly in underserved markets.

  • Submitted on 02 May 2011

    The U.S. Small Business Administration has approved an initial group of six community-based, mission-focused lenders to start accepting and processing Community Advantage loan applications from small business borrowers immediately, the agency announced today.

  • Submitted on 11 April 2011

    Beyond Bankruptcy ReportSmall businesses that have previously filed for bankruptcy are no more burdened than other small firms by poor cash flow, high health insurance costs, or excessive taxes, and they attain similar firm sizes, according to a study released today by the U.S. Small Business Administration’s Office of Advocacy. However, they have about a 24 percent higher likelihood of being denied a loan and are charged interest rates at least 1 percent higher than other firms. The report finds that firms owned by African and Latino Americans are even more likely to be denied loans and charged higher interest rates.
     
    “Small businesses filing for bankruptcy have an opportunity for a new start. This new start is hampered by the challenges of obtaining new loans. This can impede innovation and job creation,” said Chief Counsel for Advocacy Winslow Sargeant.
     

  • Submitted on 18 March 2011

    MBDA offers a list of resources to assist minority businesses during tax season.

    Extension of Time To File Your Tax Return
    Need more time to prepare your federal income tax return? This page will direct you to information on how to apply for an extension. Learn More

    1040 Tax HelpFiling Late and/or Paying Late
    Avoid penalties and interest, paying your taxes in full saves you money. Whether paying with a timely filed tax return or filing late and paying late after receiving a correct IRS bill, taxpayers are encouraged to pay the taxes they owe in full. Lean More

    Electronic Payment Options
    Electronic payment options are convenient, safe, and secure methods for paying taxes or user fees. Taxpayers can authorize an electronic funds withdrawal, use a credit or debit card or enroll in the U.S. Treasury’s Electronic Federal Tax Payment System (EFTPS)®. Electronic payment options give taxpayers an alternative to paying taxes or user fees by check or money order. Payments can be made 24/7. The electronic funds withdrawal and EFTPS options are free! Learn More

     

    Tax Information for Specific Business Types
    Have you considered that your business might have specific taxes for its industry? Some industries, in fact do. The U.S. Internal Revenue Service (IRS) has published guides for businesses that have special tax considerations. Learn More

  • Submitted on 03 March 2011

    On Tuesday, March 29, 2011, the Internal Revenue Service is presenting a FREE webinar for tax professionals, small businesses, self-employed persons and independent contractors: Business Taxes for the Self-Employed: The Basics.

    The webinar will cover:

    • Reporting profit or loss from a business or profession

    • Self-employment tax and estimated tax payments

    • Schedule C and C-EZ

    • Deducting business expenses

    • Husband and wife businesses

    • Recordkeeping

    The webinar starts at 2 p.m. Eastern, 1 p.m. Central, noon Mountain and 11 a.m. Pacific.

Did you know...

Between 2002 and 2007, minority-owned firms outpaced the growth of non-minority firms in gross receipts, employment, and number of firms. Minority firms are an engine of job creation.
Graph for MBE Growth

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