The Small Business Administration (SBA) should be commended for their help in sustaining the small business sector with their microloans. However, a recent report by the Government Accountability Office (GAO) shows that the funds which should be distributed to businesses that need it, actually go to ineligible ones. The HUBZone certification which businesses need to qualify for a loan is a program which spans 13 years and is meant to help small business owners build companies in economically distressed areas. When investigators submitted applications which should be denied or disapproved because of obvious reasons; those applications got the federal contracts instead.…
POST CATEGORY : Finance
Bank of America Announces New Program to Help Spur Small Business Lending Nationwide
Bank of America (BOA), one of the world’s largest financial institutions, has announced it will provide $10 million in grants to nonprofit lenders, such as Community Development Financial Institutions (CDFIs), to leverage funds from the U.S. Small Business Administration (SBA) and the U.S. Department of Agriculture (USDA) for lending to small and rural businesses.
The grants to nonprofits will help up to 8,000 businesses obtain new loans over the next 12 Months.
The CDFI’s will use the grant money as loan loss reserves, which BOA hopes will unlock millions in low-cost capital for small business microloans program nationwide.
SBA and USDA microloans are made through local nonprofit lenders, which also provide business training and technical assistance.…
Continue readingCost Cutting Your Business Expenses
Expenses can be a burden for any particular company. This is something that a business owner cannot avoid. Of course, the prerequisite for a business to operate is start up capital. You can’t manage and operate a business from an empty pocket. You need to shell out money in order to start your business operation.
Since expenses cannot be eliminated, entrepreneurs must find a way to at least lessen the cost required for business operation. A successful business knows how to control the costs. Manage your business in such a way that every small detail of your expenses will be recorded and you’re spending at the smallest possible cost.…
Continue readingTop Ways SMBS Can Save on Energy Costs Now
As the 40th Anniversary of Earth Day approaches, consumers and businesses everywhere are thinking about ways to reduce energy consumption and lower their energy bills. Affordable alternative energy sources are years away and utility-driven conservation measures like the Smart Grid won’t help SMBs in the short term, if at all.
While we await advances in energy creation and conservation, consumers and businesses are faced with skyrocketing energy costs. Businesses are particularly hard hit as they are forced to pay higher rates due to their higher peak energy usage.
SMBs looking to reduce energy use and costs quickly and affordably would be wise to look at the following biggest energy wasters and tips for controlling energy use and costs for each:…
Continue readingRunning a Global Business on a Shoestring
Businesses today need to look beyond geographical borders in order to expand. There is a whole world of consumers, customers and clients out there waiting to buy your service or product. Opportunities aplenty await the astute businessman willing to take the risk and go global.
“Going Global“ does not need to be expensive. It’s relatively straightforward and cost-effective to target foreign markets if you are astute enough and cost conscious enough. Neil Payne set up his business on a laptop in a studio flat in 2004. He now oversees a company with offices in the UK, USA, Argentina, South Africa, Germany and the UAE.…
Continue readingSmall Business Payroll Taxes
There is no escaping the wrath of the IRS when it comes to unpaid taxes. There are several differences between running a small business versus a large corporation, but at the end of the day, payroll taxes are something that all business owners must pay close attention to in order to avoid problems with the IRS.
Owing the IRS is not the same as owing a lender or creditor. In the latter situation, you can often negotiate or work out payment arrangements that will allow you to avoid legal ramifications and get your accounts in order without losing your business. The IRS is not a lender nor creditor and will take aggressive action with collection efforts.…
Continue readingGuarding Your Balance Sheet – Tips for Survival in Today’s Volatile Market
As the recession continues to extend into 2010, we continue to be inundated by news about the challenges that face the small business community.
While we are not completely out of the woods in terms of the economy, there are several things that small business owners can do to protect their businesses during these challenging times:
Manage Collections: Outstanding invoices should be aggressively followed up on round-the-clock. Having unpaid invoices will create instability. Be aggressive and assume the worst.
Collect Upfront: Make sure that all of your contracts stipulate payment upfront. Net 30 can stretch into Net 60, then you are stuck doing work for 2-3 months without being paid.…
Continue readingSearching For A New Bank To Suit Your Business Needs
There aren’t many good news stories about banks these days so if you’re looking for a new bank you may be facing the quagmire of what to look for and who to turn to when searching for a new bank. The answer may rest upon what your personal and or business banking needs are.
For business owners, entrepreneurs and consumers seeking personal guidance, it is important to recognize that your relationship with your bank is extremely important. This is one relationship that requires serious time and examination.
I believe the examination process is twofold. On one side of the equation you’ll want to look at the financial stability and business model of the bank to ensure it can provide the financial strength and safety needed to stay in business and serve your needs in a favorable manner to you.…
Continue readingWhy Outsourcing Your Finance Department Makes Smart Business Sense
For many smaller and mid-size companies, the hiring CFO-level talent can be too costly and completely unfeasible. In addition to searching for the right candidate, you have to offer a highly competitive package – even in today’s economy – to attract the top-level finance talent you need for business success.
In addition to requiring C-level finance talent, smaller- and medium-sized businesses require a dedicated finance department that can handle the entire spectrum of financial support services – from strategic financial business planning to day-to-day accounting.
So, the challenge is posed for any entrepreneur…how can I have a viable finance team without the dedicated resources for hiring talent?…
Continue readingProtecting Your Business from Bankrupt Customers
Many small businesses don’t have the time or resources to adequately monitor their own financial status, no less the ability to screen the finances of their partners, vendors, suppliers or customers. However, if SMB CEOs take away one thing from the current recession – it should be a clear understanding of how important it is to have a transparent view of their customers’ financial situation.
But with so many CEOs plagued with time, money and employee restrictions, how can they effectively implement the strategies to do so? Here are a few tips to help small businesses get started:
1. Evaluate Your Businesses’ Current Financial Standing – You can’t monitor your customer until you monitor your own business.…
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