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  • Submitted on 17 April 2014

    Created on April 17, 2014
     

    SBA LogoU.S. small businesses will gain improved access to two major government-guaranteed loan programs once a final rule to that effect issued by the U.S. Small Business Administration becomes effective April 21, 2014.

  • Submitted on 17 March 2014

    Created on March 17, 2014
     

    The following is an excerpt from Frequently Asked Questions about Small Business Finance

    Dollars bills and question markWhat is the lending picture for ventures owned by women, veteran, minorities, and immigrants?

    Women-owned businesses (just like their male counterparts) largely depend on personal finances; but women-and minority-owned firms are more likely to use credit cards for startups and expansion. Women are 30 percent more likely than males to start businesses without seeking financing, and only half as likely to obtain business loans from banks. Hispanic- and African-American owned firms are more likely than other business owners to rely on owner equity at startup. Veteran-owned businesses’ use of credit for startup and expansion was similar to other businesses. For example 11 percent of veterans used credit cards and 8 percent used bank loans for expansions, while the figures were 13 percent and 9 percent, respectively, for all firms.

    The sources of startup capital used by immigrant businesses do not differ substantially from those used by non-immigrant firms. However, their heavier-than-average reliance on credit cards negatively affects a business by displacing a personal relationship with a bank, which is often the source of less costly financing that is tailored to a business’s needs.

  • Submitted on 14 February 2014

    Created on February 14, 2014
     

    Global Connect: Arizona Trade Finance SeminarThis post originally appeared on International Trade Administration Tradeology blog.

    Yuki Fujiyama is a trade finance specialist with the Office of Finance and Insurance Industries in the International Trade Administration.

    The U.S. Department of Commerce is partnering with a number of local organizations and federal agencies in offering The Global Connect: Arizona Trade Finance Seminar at the Thunderbird School of Global Management on February 21 in Glendale, Ariz.

    This seminar will be available in person and via teleconference, covering a series of important export finance subjects:

    • How to get paid from export sales;

    • Ways to approach and work with banks to enter and grow in global markets;

    • Steps to access export working capital and trade credit;

    • How to increase export sales and reduce the risk of nonpayment by foreign buyers;

    • Methods of receiving payment in foreign currencies;

    • U.S. government export assistance resources; and

    • Global business development resources for minority-owned businesses.

    Global Connect: Arizona will bring together experts from both the public and private sectors to discuss resources available to U.S. exporters. This applies to businesses of any size for their financing needs.

  • Submitted on 05 February 2014

    Created on February 5, 2014
     

    This post originally appeared on SBA.

    SBIC InvestingSBA’s loan-guaranty programs are among the best-known ways we fulfill our mission of helping small businesses start, grow, and succeed.  In FY13, for example, together with our lending partners we facilitated over $29 billion dollars in loans to new and existing small businesses.

    But for some small businesses, equity financing is a better option – and SBA has great tools to help those businesses too.  One of my priorities as Regional Administrator is spreading the word that our Small Business Investment Company (SBIC) Program provides additional capital to private fund managers for investment in high-potential small businesses.

    Greater capital access for our fastest-growing businesses

    Costco, Amgen, Apple, FedEx, Staples, Intel – these are just a few of the well-known companies supported by SBIC investments in the past.  Five decades since its creation, the SBIC program continues to be among our most innovative examples of public-private partnership, successfully channeling billions of dollars in growth capital to small businesses across the United States.

  • Submitted on 27 January 2014

    Created on January 27, 2014
     

    Military with US Flag in BackgroundSmall businesses that suffered economic losses when the owner or a key employee was called up to active duty are eligible to apply for a low interest loan of up to $2 million from the U.S. Small Business Administration.

    Small businesses can apply for a Military Reservist Economic Injury Disaster Loan (MREIDL) any time from the date of notice of expected call-up and ending one year after the date of discharge or release. The program was created to enable eligible small businesses to pay operating expenses it could have covered if the owner or key employee hadn’t been called to active duty.

    “The absence of just one employee whose expertise is critical to the success of the company can pose significant challenges for a small business,” said SBA Acting Administrator Jeanne Hulit.

    “These Military Reservist Economic Injury Disaster Loans provide funds that will help these small businesses cover operating expenses.  This way our brave men and women in uniform don’t have to choose between serving their country and growing their businesses.”

    The MREIDL is a direct working capital loan, managed by SBA’s Office of Disaster Assistance.  The interest rate on these working capital loans is 4 percent, with terms up to a maximum of 30 years.   In general, no collateral is required to secure an MREIDL of $50,000 or less.  The loan cannot be used to replace lost income or profits, refinance long-term debt or to expand the business.

  • Submitted on 22 January 2014

    Created on January 22, 2014
     

    CrowdFundingOn October 23, 2013 the Securities and Exchange Commission (SEC) voted unanimously to propose rules under the JOBS Act to permit companies to offer and sell securities through crowdfunding.

    Crowdfunding describes an evolving method of raising capital that has been used outside of the securities arena to raise funds through the Internet for a variety of projects ranging from innovative product ideas to artistic endeavors like movies or music.  Title III of the JOBS Act created an exemption under the securities laws so that this type of funding method can be easily used to offer and sell securities as well.  The JOBS Act also established the foundation for a regulatory structure for this funding method. 

    SEC Chair Mary Jo White noted that the intent of the JOBS Act is to make it easier for startups and small businesses to raise capital from a wide range of potential investors and provide additional investment opportunities for investors. 

  • Submitted on 03 January 2014

    Created on January 3, 2014
     

    Planning ChecklistStart 2014 off right. Here are some actions to take now or in early January that will help you optimize your tax and financial results for the coming year.

    1.  Revisit your recordkeeping practices

    Records are vital for both business and tax purposes. They help know whether or not you’re profitable and provide key information to help you take business actions, such as adjusting prices, cutting expenses, or raising money.

    What’s more, in order to take all the deductions and credits to which your business is entitled in 2014, you’ll need good books and records. Often business owners fail to pay attention to this detail until it’s too late and the IRS is questioning write-offs claimed on a return.

    Set up a recordkeeping system that satisfies tax law requirements, and make sure that employees know what to do. Check IRS Publication 583 [pdf] for details on recordkeeping rules for tax purposes. Consider using apps that can help with recordkeeping, such as those for capturing receipts for travel and entertainment expenses. Some may be available for use with, or provided by, your current bookkeeping software or cloud solution.

  • Submitted on 18 November 2013

    Created on November 18, 2013

     

    I am pleased to invite you to the U.S. Securities and Exchange Commission’s (SEC) 2013 Government-Business Forum on Small Business Capital Formation to be held on Thursday, November 21, 2013, from 9:00 a.m. to 5:15 p.m., at our headquarters at 100 F Street, N.E., Washington, D.C. 20549.

    Similar to last year, the focus of this year’s forum will be The Jumpstart Our Business Startups (JOBS) Act, which was legislation enacted last year to encourage small business growth and startup funding by increasing the ability of small businesses to raise capital and by lessening certain regulatory requirements for individual investments in new businesses.  Under Title VII of the JOBS Act, the SEC is required to conduct outreach to inform several business communities, including minority-owned businesses and women-owned businesses, of the changes made by the Act.

  • Submitted on 10 July 2013

    Created on July 10, 2013
     

    Loan ApplicationMany small businesses think they are too small to compete in the world market. In fact, 97 percent of all exporters are small businesses. The U.S. Government has loans, insurance and grant programs to help you become an exporter or expand your exporting business. Here are four different types of financing programs:

    Export Development and Working Capital Financing

    Enables U.S. businesses to obtain loans that facilitate the export of goods or services by providing the liquidity needed to accept new business, grow international sales and compete more effectively in the international marketplace.

  • Submitted on 04 June 2013

    Created on June 4, 2013
     

    Trade Guide SpanishOn May 8, the U.S. Department of Commerce’s International Trade Administration unveiled the first Spanish language version of the Trade Finance Guide: A Quick Reference for U.S. Exporters.

    The Guide is a simple and effective tool designed to help U.S. small and medium-sized enterprises (SMEs) learn the best ways to get paid from export sales. Now that the Guide is also available in Spanish, it can better help U.S.-based Hispanic and Latino companies compete in global markets.

    What is the Trade Finance Guide?

    The Trade Finance Guide covers 14 subject areas in easy-to-understand two-page chapters that are written in plain language. The Guide is:

    • A “60-minute” self-learning tool for new-to-export SMEs that wish to learn how to benefit from export sales.

    • A user-friendly tool for international credit, banking and trade finance professionals, as well as export counselors for client assistance.

    • A flexible educational tool for professionals teaching international business.

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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