Wednesday, December 22, 2010
Friday, September 3, 2010
IRS Updates & News Releases
HIRE Act Archived Webinar Now Available
http://www.visualwebcaster.com/IRS/69705/event.html
This webinar was originally presented on July 8, 2010. The topic was the HIRE payroll tax exemption and retention income tax credit. The webinar covered who qualifies as an eligible individual for each benefit, what businesses may claim each benefit, and how businesses can claim the HIRE benefits.
IRS Removes Debt Indicator for 2011 Tax Filing Season
http://www.irs.gov/newsroom/article/0,,id=226310,00.html
Starting with next year’s tax filing season IRS will no longer provide tax preparers and associated financial institutions with the “debt indicator,” which is used to facilitate refund anticipation loans (RALs). The IRS has been reviewing refund settlement products, such as RALs and Refund Anticipation Checks (RACs), as part of the Return Preparer Review released in January. RALs are loans secured by a taxpayer’s anticipated tax refund. Currently, tax preparers who electronically submit a client’s tax return receive in the acknowledgment file an indication of whether an individual taxpayer will have any portion of the refund offset for delinquent tax or other debts, such as unpaid child support or delinquent federally funded student loans. This acknowledgment is known as the debt indicator, and is used as an underwriting tool for RALs.
“As we prepare for tax season every year, we look at past practices and consider whether they still make sense. We no longer see a need for the debt indicator in a world where we can process a tax return and deliver a refund in 10 days,” IRS Commissioner Doug Shulman said. “We encourage taxpayers to use e-file with direct deposit so they can get their refunds in just a few days. Refund Anticipation Loans are often targeted at lower-income taxpayers. With e-file and direct deposit, these taxpayers now have other ways to quickly access their cash.”
IRS Releases Proposed Regulations Related to Fees for Preparer Tax Identification Numbers
http://www.irs.gov/newsroom/article/0,,id=225875,00.html
The Internal Revenue Service today released proposed regulations that would establish a fee for individuals who apply for a preparer tax identification number (PTIN). Proposed regulations that were issued in March would require certain tax return preparers to obtain a PTIN. The IRS is working to finalize those proposed regulations, which are the first of a series of steps planned to increase oversight of federal tax return preparation.
The proposed regulations (REG-139343-08) would establish a fee of $50, payable to the IRS, to cover technology costs, as well as compliance and outreach efforts associated with the new PTIN program. The proposed regulations would also provide for an additional fee (expected to be substantially lower than $50) to be charged by the third-party vendor chosen to operate the new online system. That fee amount is expected to be announced soon, as well as additional details about the launch of a new online application system. These fees could change in future years as program costs are reevaluated.
IRS Offers One-Time Special Filing Relief Program for Small Charities; Oct. 15 Due Date to Preserve Tax-Exempt Status
http://www.irs.gov/newsroom/article/0,,id=225959,00.html
Small nonprofit organizations at risk of losing their tax-exempt status because they failed to file required returns for 2007, 2008 and 2009 can preserve their status by filing returns by Oct. 15, 2010, under a one-time relief program. The IRS posted on a special page of IRS.gov the names and last-known addresses of these at-risk organizations, along with guidance about how to come back into compliance. The organizations on the list have return due dates between May 17 and Oct. 15, 2010, but the IRS has no record that they filed the required returns for any of the past three years. Two types of relief are available for small exempt organizations — a filing extension for the smallest organizations required to file Form 990-N, Electronic Notice (e-Postcard) , and a voluntary compliance program (VCP) for small organizations eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.
Six Tax Tips for New Business Owners
http://www.irs.gov/newsroom/article/0,,id=172970,00.html
Are you opening a new business this summer? The IRS has many resources available for individuals that are opening a new business. See the article for six tax tips the IRS wants new business owners to know, such as tips on the different types of business entities, general types of business taxes, when an Employer Identification Number is needed, recordkeeping, and choosing an accounting period and method.
Seven Things to Know about the Taxpayer Advocate Service
ttp://www.irs.gov/newsroom/article/0,,id=226047,00.html
The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service. TAS helps taxpayers who are experiencing economic harm such as not being able to provide necessities like housing, transportation, or food, taxpayers who are seeking help in resolving problems with the IRS, and those who believe an IRS system or procedure is not working as it should.
Top 10 Things Every Taxpayer Should Know about Identity Theft
http://www.irs.gov/newsroom/article/0,,id=211493,00.html
Taxpayers need to be careful to protect their personal information. Identity thieves use many methods to steal personal information and then they use the information to file a tax return and get a refund. See the full article for 10 things the IRS wants you to know about identity theft so you can avoid becoming the victim of an identity thief.
Do You Need to Amend Your Return?
http://www.irs.gov/newsroom/article/0,,id=172656,00.html
If you forgot to include some income or to take a deduction on your tax return – you can correct it by amending your tax return. In some cases, you do not need to amend your tax return. The Internal Revenue Service usually corrects math errors or requests missing forms – such as W-2s or schedules – when processing an original return. In these instances, do not amend your return. See the article for situations where you should file an amended return.
Recent Articles from e-News for Small Businesses
National Taxpayer Advocate issues mid-year report to Congress
The National Taxpayer Advocate mid-year report to Congress expresses concern about the new information reporting burdens facing small businesses and certain IRS collection practices. IR-2010-83 has more information.
Resources for small businesses
The IRS.gov Small Business Resources section offers links to a broad range of information from federal and state agencies.
IRS.gov checklists for small businesses
Checklists provide the basic steps to follow when:
Starting a business
Closing a Business
Understanding an IRS notice or letter
The IRS Letters and Notices video provides an overview of how to respond to written contacts from the IRS.
Related link:
Understanding Your IRS Notice or Letter
Online payment agreement application
Paying taxes in full and on time avoids unnecessary penalties and interest. However, if you cannot pay your taxes in full you may request a payment agreement.
Individuals who owe $25,000 or less can use this online application to request a payment agreement.
Small Business Administration centers help small businesses
SBA Small Business Development Centers offer one-stop assistance to individuals and small businesses by providing a wide variety of information and guidance in branch locations.
Subscribe to e-News for Small Businesses
If you would like to receive e-News for Small Businesses, please visit this link to subscribe:
http://www.irs.gov/businesses/small/content/0,,id=154826,00.html
Recommend e-News for Small Businesses
If you already receive e-News for Small Businesses, you can share it with a business acquaintance, colleague or employee. Just forward this link to them to view a sample edition and subscribe.
http://www.visualwebcaster.com/IRS/69705/event.html
This webinar was originally presented on July 8, 2010. The topic was the HIRE payroll tax exemption and retention income tax credit. The webinar covered who qualifies as an eligible individual for each benefit, what businesses may claim each benefit, and how businesses can claim the HIRE benefits.
IRS Removes Debt Indicator for 2011 Tax Filing Season
http://www.irs.gov/newsroom/article/0,,id=226310,00.html
Starting with next year’s tax filing season IRS will no longer provide tax preparers and associated financial institutions with the “debt indicator,” which is used to facilitate refund anticipation loans (RALs). The IRS has been reviewing refund settlement products, such as RALs and Refund Anticipation Checks (RACs), as part of the Return Preparer Review released in January. RALs are loans secured by a taxpayer’s anticipated tax refund. Currently, tax preparers who electronically submit a client’s tax return receive in the acknowledgment file an indication of whether an individual taxpayer will have any portion of the refund offset for delinquent tax or other debts, such as unpaid child support or delinquent federally funded student loans. This acknowledgment is known as the debt indicator, and is used as an underwriting tool for RALs.
“As we prepare for tax season every year, we look at past practices and consider whether they still make sense. We no longer see a need for the debt indicator in a world where we can process a tax return and deliver a refund in 10 days,” IRS Commissioner Doug Shulman said. “We encourage taxpayers to use e-file with direct deposit so they can get their refunds in just a few days. Refund Anticipation Loans are often targeted at lower-income taxpayers. With e-file and direct deposit, these taxpayers now have other ways to quickly access their cash.”
IRS Releases Proposed Regulations Related to Fees for Preparer Tax Identification Numbers
http://www.irs.gov/newsroom/article/0,,id=225875,00.html
The Internal Revenue Service today released proposed regulations that would establish a fee for individuals who apply for a preparer tax identification number (PTIN). Proposed regulations that were issued in March would require certain tax return preparers to obtain a PTIN. The IRS is working to finalize those proposed regulations, which are the first of a series of steps planned to increase oversight of federal tax return preparation.
The proposed regulations (REG-139343-08) would establish a fee of $50, payable to the IRS, to cover technology costs, as well as compliance and outreach efforts associated with the new PTIN program. The proposed regulations would also provide for an additional fee (expected to be substantially lower than $50) to be charged by the third-party vendor chosen to operate the new online system. That fee amount is expected to be announced soon, as well as additional details about the launch of a new online application system. These fees could change in future years as program costs are reevaluated.
IRS Offers One-Time Special Filing Relief Program for Small Charities; Oct. 15 Due Date to Preserve Tax-Exempt Status
http://www.irs.gov/newsroom/article/0,,id=225959,00.html
Small nonprofit organizations at risk of losing their tax-exempt status because they failed to file required returns for 2007, 2008 and 2009 can preserve their status by filing returns by Oct. 15, 2010, under a one-time relief program. The IRS posted on a special page of IRS.gov the names and last-known addresses of these at-risk organizations, along with guidance about how to come back into compliance. The organizations on the list have return due dates between May 17 and Oct. 15, 2010, but the IRS has no record that they filed the required returns for any of the past three years. Two types of relief are available for small exempt organizations — a filing extension for the smallest organizations required to file Form 990-N, Electronic Notice (e-Postcard) , and a voluntary compliance program (VCP) for small organizations eligible to file Form 990-EZ, Short Form Return of Organization Exempt From Income Tax.
Six Tax Tips for New Business Owners
http://www.irs.gov/newsroom/article/0,,id=172970,00.html
Are you opening a new business this summer? The IRS has many resources available for individuals that are opening a new business. See the article for six tax tips the IRS wants new business owners to know, such as tips on the different types of business entities, general types of business taxes, when an Employer Identification Number is needed, recordkeeping, and choosing an accounting period and method.
Seven Things to Know about the Taxpayer Advocate Service
ttp://www.irs.gov/newsroom/article/0,,id=226047,00.html
The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service. TAS helps taxpayers who are experiencing economic harm such as not being able to provide necessities like housing, transportation, or food, taxpayers who are seeking help in resolving problems with the IRS, and those who believe an IRS system or procedure is not working as it should.
Top 10 Things Every Taxpayer Should Know about Identity Theft
http://www.irs.gov/newsroom/article/0,,id=211493,00.html
Taxpayers need to be careful to protect their personal information. Identity thieves use many methods to steal personal information and then they use the information to file a tax return and get a refund. See the full article for 10 things the IRS wants you to know about identity theft so you can avoid becoming the victim of an identity thief.
Do You Need to Amend Your Return?
http://www.irs.gov/newsroom/article/0,,id=172656,00.html
If you forgot to include some income or to take a deduction on your tax return – you can correct it by amending your tax return. In some cases, you do not need to amend your tax return. The Internal Revenue Service usually corrects math errors or requests missing forms – such as W-2s or schedules – when processing an original return. In these instances, do not amend your return. See the article for situations where you should file an amended return.
Recent Articles from e-News for Small Businesses
National Taxpayer Advocate issues mid-year report to Congress
The National Taxpayer Advocate mid-year report to Congress expresses concern about the new information reporting burdens facing small businesses and certain IRS collection practices. IR-2010-83 has more information.
Resources for small businesses
The IRS.gov Small Business Resources section offers links to a broad range of information from federal and state agencies.
IRS.gov checklists for small businesses
Checklists provide the basic steps to follow when:
Starting a business
Closing a Business
Understanding an IRS notice or letter
The IRS Letters and Notices video provides an overview of how to respond to written contacts from the IRS.
Related link:
Understanding Your IRS Notice or Letter
Online payment agreement application
Paying taxes in full and on time avoids unnecessary penalties and interest. However, if you cannot pay your taxes in full you may request a payment agreement.
Individuals who owe $25,000 or less can use this online application to request a payment agreement.
Small Business Administration centers help small businesses
SBA Small Business Development Centers offer one-stop assistance to individuals and small businesses by providing a wide variety of information and guidance in branch locations.
Subscribe to e-News for Small Businesses
If you would like to receive e-News for Small Businesses, please visit this link to subscribe:
http://www.irs.gov/businesses/small/content/0,,id=154826,00.html
Recommend e-News for Small Businesses
If you already receive e-News for Small Businesses, you can share it with a business acquaintance, colleague or employee. Just forward this link to them to view a sample edition and subscribe.
Friday, August 20, 2010
Webinar on SBA Disaster Recovery Assistance For Business Owners
WASHINGTON – How do you apply for a U.S. Small Business Administration disaster loan? What are the loan limits? Can the SBA disaster loan help with those losses not covered by your insurance?
Get answers to those and other questions during a webinar on Understanding Disaster Assistance Funding with the SBA hosted by Agility Recovery Solutions on Tuesday, August 24 at 2 p.m., EDT. During the live, interactive webinar James Rivera, SBA’s associate administrator for the Office of Disaster Assistance will explain how the loan program works, how a disaster declaration is made, and the steps to take to apply for a loan.
SBA has partnered with Agility Recovery Solutions to offer business continuity strategies for small business owners via their “PrepareMyBusiness” website (http://www.preparemybusiness.org/). Visit the website to access previous webinars, and to learn more about disaster preparedness.
Since 1953, the SBA has provided more than $48 billion in disaster recovery assistance to 1.9 million homeowners, renters and businesses of all sizes in the form of long-term, low-interest loans.
WHO: James Rivera, SBA Associate Administrator, Office of Disaster Assistance
WHAT: The Understanding Disaster Assistance Funding with the SBA webinar will begin with a presentation by Rivera on SBA’s disaster assistance program, to be followed by an online question and answer session.
WHEN: 2:00—3:00 p.m. EDT
HOW: Register in advance for Understanding Disaster Assistance Funding with the SBA by visiting Agility’s “Prepare My Business” website at www.preparemybusiness.org/education.
Get answers to those and other questions during a webinar on Understanding Disaster Assistance Funding with the SBA hosted by Agility Recovery Solutions on Tuesday, August 24 at 2 p.m., EDT. During the live, interactive webinar James Rivera, SBA’s associate administrator for the Office of Disaster Assistance will explain how the loan program works, how a disaster declaration is made, and the steps to take to apply for a loan.
SBA has partnered with Agility Recovery Solutions to offer business continuity strategies for small business owners via their “PrepareMyBusiness” website (http://www.preparemybusiness.org/). Visit the website to access previous webinars, and to learn more about disaster preparedness.
Since 1953, the SBA has provided more than $48 billion in disaster recovery assistance to 1.9 million homeowners, renters and businesses of all sizes in the form of long-term, low-interest loans.
WHO: James Rivera, SBA Associate Administrator, Office of Disaster Assistance
WHAT: The Understanding Disaster Assistance Funding with the SBA webinar will begin with a presentation by Rivera on SBA’s disaster assistance program, to be followed by an online question and answer session.
WHEN: 2:00—3:00 p.m. EDT
HOW: Register in advance for Understanding Disaster Assistance Funding with the SBA by visiting Agility’s “Prepare My Business” website at www.preparemybusiness.org/education.
Monday, July 19, 2010
You're Invited to the Washington Small Business Fair 2010
One day, one place
Learn what you need to run a business
Come to the 14th annual Washington Small Business Fair – learn from the experts how to form and run a successful business. Biz Fair 2010 will take place on Saturday, September 25, 8:00 a.m. to 3:30 p.m. at Renton Technical College, 3000 NE 4th Street, in Renton. Connect with 30 federal, state and local government agencies, and business and trade associations to get the information you need. Sharpen your skills - attend seminars that cover important, up-to-date topics for all stages of business ownership. Savvy business experts share their knowledge and real-life experiences with you. The fair is free, with plenty of free parking and no advance registration. Spend the day or just a few hours – it’s well worth your time! Visit http://www.bizfair.org/ for more information and find us on Facebook.
2010 FREE BizFair Brochure is now available!
Wednesday, June 23, 2010
Disaster Assistance Available for Small Businesses
Sacramento, CA – Small, non-farm businesses in 11 Washington counties are now eligible to apply for low-interest disaster loans from the U. S. Small Business Administration (SBA). “These loans offset economic losses because of record low temperatures and freezing conditions that occurred in the following primary counties from October 10, 2009 through October 13, 2009,” announced Alfred E. Judd, Director of SBA’s Disaster Field Operations Center ‑ West.
Primary Washington counties: Chelan, Douglas and Okanogan;
Neighboring Washington counties: Ferry, Grant, King, Kittitas, Lincoln, Skagit, Snohomish and Whatcom
“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster,” Judd said.
Small, non-farm businesses, small agricultural cooperatives and most private, non-profit organizations of any size may qualify for Economic Injury Disaster Loans (EIDLs) of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred.
“Eligibility for these loans is based on the financial impact of the disaster only and not on any actual property damage. These loans have an interest rate of 4%, a maximum term of 30 years, and are available to small businesses and most private, non-profits without the financial ability to offset the adverse impact without hardship,” Judd said.
By law, SBA makes EIDLs available when the U. S. Secretary of Agriculture designates an agricultural disaster. Secretary Tom Vilsack declared this disaster at the request of Governor Christine Gregoire.
Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Services Agency (FSA) about the U. S. Department of Agriculture (USDA) assistance made available by the Secretary’s declaration.
Information and application forms are available from SBA’s Customer Service Center by calling (800) 659‑2955, emailing disastercustomerservice@sba.gov, or visiting SBA’s Web site at www.sba.gov/services/disasterassistance. Hearing impaired individuals may call (800) 877‑8339. Applicants may also apply online using the Electronic Loan Application (ELA) via SBA’s secure Web site at https://disasterloan.sba.gov/ela.
The deadline to apply for these loans is February 15, 2011.
For more information, visit SBA’s Web site at www.sba.gov/services/disasterassistance.
Primary Washington counties: Chelan, Douglas and Okanogan;
Neighboring Washington counties: Ferry, Grant, King, Kittitas, Lincoln, Skagit, Snohomish and Whatcom
“SBA eligibility covers both the economic impacts on businesses dependent on farmers and ranchers that have suffered agricultural production losses caused by the disaster and businesses directly impacted by the disaster,” Judd said.
Small, non-farm businesses, small agricultural cooperatives and most private, non-profit organizations of any size may qualify for Economic Injury Disaster Loans (EIDLs) of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred.
“Eligibility for these loans is based on the financial impact of the disaster only and not on any actual property damage. These loans have an interest rate of 4%, a maximum term of 30 years, and are available to small businesses and most private, non-profits without the financial ability to offset the adverse impact without hardship,” Judd said.
By law, SBA makes EIDLs available when the U. S. Secretary of Agriculture designates an agricultural disaster. Secretary Tom Vilsack declared this disaster at the request of Governor Christine Gregoire.
Businesses primarily engaged in farming or ranching are not eligible for SBA disaster assistance. Agricultural enterprises should contact the Farm Services Agency (FSA) about the U. S. Department of Agriculture (USDA) assistance made available by the Secretary’s declaration.
Information and application forms are available from SBA’s Customer Service Center by calling (800) 659‑2955, emailing disastercustomerservice@sba.gov, or visiting SBA’s Web site at www.sba.gov/services/disasterassistance. Hearing impaired individuals may call (800) 877‑8339. Applicants may also apply online using the Electronic Loan Application (ELA) via SBA’s secure Web site at https://disasterloan.sba.gov/ela.
The deadline to apply for these loans is February 15, 2011.
For more information, visit SBA’s Web site at www.sba.gov/services/disasterassistance.
SBA Field Operations Center - West, P.O. Box 419004, Sacramento, CA 95841
Release Date: June 22, 2010 Media Contact: Richard Jenkins
Release Number: WA 12209-01 Phone: (916) 735-1500
Wednesday, June 16, 2010
IRS News and Updates (June 2010)
Recent Legislation Offers Special Tax Incentives for Small Businesses to Provide Health Care, Hire New Workers
http://www.irs.gov/irs/article/0,,id=223909,00.html
The Internal Revenue Service encourages small businesses to take advantage of tax-saving opportunities included in recently enacted federal legislation. A variety of business tax deductions and credits were created, extended and expanded by the American Recovery and Reinvestment Act of 2009 (ARRA), this year’s Hiring Incentives to Restore Employment (HIRE) Act and the Affordable Care Act. Because some of these changes are only available this year, eligible businesses only have a few months to take action and save on their taxes. See the full article for a rundown of some of the key provisions.
IRS Offers Details on New Small Business Health Care Tax Credit http://www.irs.gov/newsroom/article/0,,id=223577,00.html
The Internal Revenue Service today issued new guidance to make it easier for small businesses to determine whether they are eligible for the new health care tax credit under the Affordable Care Act and how large a credit they will receive. The guidance makes clear that small businesses receiving state health care tax credits may still qualify for the full federal tax credit. Additionally, the guidance allows small businesses to receive the credit not only for regular health insurance but also for add-on dental and vision coverage.
Notice 2010-44 provides detailed guidelines, illustrated by more than a dozen examples, to help small employers determine whether they qualify for the credit and estimate the amount of the credit. The notice also requests public comment on issues that should be addressed in future guidance.
Included in the Affordable Care Act approved by Congress in March and signed into law by the President, the small business health care tax credit, which is in effect this year, is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.
In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees in 2010. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ moderate- and lower-income workers.
More information about the credit, including a step-by-step guide and answers to frequently asked questions, is available on the Affordable Care Act page.
Form to Claim Payroll Tax Exemption for Hiring New Workers Now Available
http://www.irs.gov/newsroom/article/0,,id=223606,00.html
The Internal Revenue Service has issued the newly revised payroll tax form that most eligible employers can use to claim the special payroll tax exemption that applies to many new workers hired during 2010. Designed to encourage employers to hire and retain new workers, the payroll tax exemption and the related new hire retention credit were created by the Hiring Incentives to Restore Employment (HIRE) Act signed by President Obama on March 18. Employers who hire unemployed workers this year (after Feb. 3, 2010, and before Jan. 1, 2011) may qualify for a 6.2-percent payroll tax incentive, in effect exempting them from the employer’s share of Social Security tax on wages paid to these workers after March 18. This reduction will have no effect on the employee’s future Social Security benefits. The employee’s 6.2 percent share of Social Security tax and the employer and employee’s shares of Medicare tax still apply to all wages.
In addition, for each qualified employee retained for at least a year whose wages did not significantly decrease in the second half of the year, businesses may claim a new hire retention credit of up to $1,000 per worker on their income tax return. Further details on both the tax credit and the payroll tax exemption can be found in a recently-expanded list of answers to frequently-asked questions about the new law now. Form 941, Employer’s QUARTERLY Federal Tax Return, revised for use beginning with the second calendar quarter of 2010, will be filed by most employers claiming the payroll tax exemption for wages paid to qualified employees. The HIRE Act does not allow employers to claim the exemption for wages paid in the first quarter but provides for a credit in the second quarter. The instructions for the new Form 941 explain how this credit for wages paid from March 19 through March 31 can be claimed on the second quarter return.
IRS Accepting Applications for Low Income Taxpayer Clinic Grants
http://www.irs.gov/newsroom/article/0,,id=224069,00.html
The Internal Revenue Service has announced the opening of the 2011 Low Income Taxpayer Clinic (LITC) grant application process. Applications must be submitted no later than July 16, 2010. The LITC grant program is a federal program administered by the Office of the Taxpayer Advocate at the IRS. The LITC program serves individuals who have problems with the IRS and whose incomes do not exceed 250 percent of the Federal Poverty Guidelines. The LITC program also provides outreach and education to taxpayers who speak English as a second language (ESL). LITCs are independent from the IRS. Most LITCs can provide representation before the IRS or in court on audits, tax collection disputes and other issues for free or for a nominal fee. Many clinics provide multilingual information about taxpayer rights and responsibilities. Under the LITC grant program, the IRS awards matching grants of up to $100,000 per year to qualifying organizations to develop, expand or maintain low income taxpayer clinics.
Recent Articles from e-News for Small Businesses
Income from fishing
The Fishing Tax Center provides links to the most common topics in the fishing industry including recordkeeping guidelines for fishermen.
Applying for an EIN requires identification of responsible party
All applications for an Employer Identification Number must clearly identify the applicant’s true owner.
New Headliner Volume 297 provides a detailed explanation of who is considered a responsible party when applying for an EIN.
Should you be making estimated tax payments?
Taxpayers with income that is not subject to withholding may have to make estimated tax payments four times a year.
You generally have to make estimated tax payments if you expect to owe tax, including self-employment tax, of $1,000 or more when you file your return.
Therapeutic Discovery Project Program
This new program created by the Affordable Care Act will provide tax credits and grants to small firms that show significant potential to produce new and cost-saving therapies, support jobs and increase U.S. competitiveness. Companies may submit applications for certification June 21-July 21.
Related links:
IRC Section 179 increase extended
A qualifying taxpayer can choose to treat the cost of certain property as an expense instead of depreciating it over several years.
Recent legislation extends the dates for expensing depreciable business assets.
IR-2010-65 Interest Rates Remain the Same for the Third Quarter of 2010
Tax relief in disaster situations
With the severe storms and flooding this spring some victims may qualify for tax relief that includes postponed filing dates and penalty waivers.
Good planning can help small businesses recover from a disaster
Audio presentations offer tips to stay in business after a major disaster:
If you would like to receive e-News for Small Businesses, please visit this link to subscribe: http://www.irs.gov/businesses/small/content/0,,id=154826,00.html
http://www.irs.gov/irs/article/0,,id=223909,00.html
The Internal Revenue Service encourages small businesses to take advantage of tax-saving opportunities included in recently enacted federal legislation. A variety of business tax deductions and credits were created, extended and expanded by the American Recovery and Reinvestment Act of 2009 (ARRA), this year’s Hiring Incentives to Restore Employment (HIRE) Act and the Affordable Care Act. Because some of these changes are only available this year, eligible businesses only have a few months to take action and save on their taxes. See the full article for a rundown of some of the key provisions.
IRS Offers Details on New Small Business Health Care Tax Credit http://www.irs.gov/newsroom/article/0,,id=223577,00.html
The Internal Revenue Service today issued new guidance to make it easier for small businesses to determine whether they are eligible for the new health care tax credit under the Affordable Care Act and how large a credit they will receive. The guidance makes clear that small businesses receiving state health care tax credits may still qualify for the full federal tax credit. Additionally, the guidance allows small businesses to receive the credit not only for regular health insurance but also for add-on dental and vision coverage.
Notice 2010-44 provides detailed guidelines, illustrated by more than a dozen examples, to help small employers determine whether they qualify for the credit and estimate the amount of the credit. The notice also requests public comment on issues that should be addressed in future guidance.
Included in the Affordable Care Act approved by Congress in March and signed into law by the President, the small business health care tax credit, which is in effect this year, is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.
In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees in 2010. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ moderate- and lower-income workers.
More information about the credit, including a step-by-step guide and answers to frequently asked questions, is available on the Affordable Care Act page.
Form to Claim Payroll Tax Exemption for Hiring New Workers Now Available
http://www.irs.gov/newsroom/article/0,,id=223606,00.html
The Internal Revenue Service has issued the newly revised payroll tax form that most eligible employers can use to claim the special payroll tax exemption that applies to many new workers hired during 2010. Designed to encourage employers to hire and retain new workers, the payroll tax exemption and the related new hire retention credit were created by the Hiring Incentives to Restore Employment (HIRE) Act signed by President Obama on March 18. Employers who hire unemployed workers this year (after Feb. 3, 2010, and before Jan. 1, 2011) may qualify for a 6.2-percent payroll tax incentive, in effect exempting them from the employer’s share of Social Security tax on wages paid to these workers after March 18. This reduction will have no effect on the employee’s future Social Security benefits. The employee’s 6.2 percent share of Social Security tax and the employer and employee’s shares of Medicare tax still apply to all wages.
In addition, for each qualified employee retained for at least a year whose wages did not significantly decrease in the second half of the year, businesses may claim a new hire retention credit of up to $1,000 per worker on their income tax return. Further details on both the tax credit and the payroll tax exemption can be found in a recently-expanded list of answers to frequently-asked questions about the new law now. Form 941, Employer’s QUARTERLY Federal Tax Return, revised for use beginning with the second calendar quarter of 2010, will be filed by most employers claiming the payroll tax exemption for wages paid to qualified employees. The HIRE Act does not allow employers to claim the exemption for wages paid in the first quarter but provides for a credit in the second quarter. The instructions for the new Form 941 explain how this credit for wages paid from March 19 through March 31 can be claimed on the second quarter return.
IRS Accepting Applications for Low Income Taxpayer Clinic Grants
http://www.irs.gov/newsroom/article/0,,id=224069,00.html
The Internal Revenue Service has announced the opening of the 2011 Low Income Taxpayer Clinic (LITC) grant application process. Applications must be submitted no later than July 16, 2010. The LITC grant program is a federal program administered by the Office of the Taxpayer Advocate at the IRS. The LITC program serves individuals who have problems with the IRS and whose incomes do not exceed 250 percent of the Federal Poverty Guidelines. The LITC program also provides outreach and education to taxpayers who speak English as a second language (ESL). LITCs are independent from the IRS. Most LITCs can provide representation before the IRS or in court on audits, tax collection disputes and other issues for free or for a nominal fee. Many clinics provide multilingual information about taxpayer rights and responsibilities. Under the LITC grant program, the IRS awards matching grants of up to $100,000 per year to qualifying organizations to develop, expand or maintain low income taxpayer clinics.
Recent Articles from e-News for Small Businesses
Income from fishing
The Fishing Tax Center provides links to the most common topics in the fishing industry including recordkeeping guidelines for fishermen.
Applying for an EIN requires identification of responsible party
All applications for an Employer Identification Number must clearly identify the applicant’s true owner.
New Headliner Volume 297 provides a detailed explanation of who is considered a responsible party when applying for an EIN.
Should you be making estimated tax payments?
Taxpayers with income that is not subject to withholding may have to make estimated tax payments four times a year.
You generally have to make estimated tax payments if you expect to owe tax, including self-employment tax, of $1,000 or more when you file your return.
Therapeutic Discovery Project Program
This new program created by the Affordable Care Act will provide tax credits and grants to small firms that show significant potential to produce new and cost-saving therapies, support jobs and increase U.S. competitiveness. Companies may submit applications for certification June 21-July 21.
Related links:
IRC Section 179 increase extended
A qualifying taxpayer can choose to treat the cost of certain property as an expense instead of depreciating it over several years.
Recent legislation extends the dates for expensing depreciable business assets.
IR-2010-65 Interest Rates Remain the Same for the Third Quarter of 2010
Tax relief in disaster situations
With the severe storms and flooding this spring some victims may qualify for tax relief that includes postponed filing dates and penalty waivers.
Good planning can help small businesses recover from a disaster
Audio presentations offer tips to stay in business after a major disaster:
- Continuity Planning and Other Tips to Stay in Business after a Major Disaster
- Insurance Coverage and Other Emergency Planning Tips to Help Your Business Survive a Major Disaster
- Recordkeeping and Reconstructing Business Records to Help Your Business Survive a Major Disaster
If you would like to receive e-News for Small Businesses, please visit this link to subscribe: http://www.irs.gov/businesses/small/content/0,,id=154826,00.html
Wednesday, June 2, 2010
An Open Letter from the SBA Administrator Karen Mills regarding the Affordable Care Act
Dear Small Business Owner,
For decades, access to affordable health insurance has been the number-one concern of small business owners. To help you address that concern and provide quality, affordable coverage for your employees, the new Affordable Care Act gives you a number of new tools and benefits.
The most immediate benefit you should know about is the tax credit to help you pay for up to 35 percent of your employee premiums starting this tax year. An estimated 4 million small businesses may qualify for these tax credits, totaling about $40 billion over the next 10 years. Go here to learn more about the tax credit, including new information that explains how this federal credit is in addition to state-level credits you might receive and how dental and vision coverage are also eligible for the federal credit.
The Affordable Care Act also included reporting requirements if you pay another business $600 or more starting with 2013 filings. Small business groups have voiced concerns about the possible burden this places on people like you. That’s why the IRS is already planning to exempt from this requirement your transactions that use credit and debit cards. Also, the IRS, SBA and others in the Administration are looking for additional ways to minimize burdens and avoid duplicative reporting. We welcome your comments and input as we move forward together to address implementation issues under the new law.
Over the last 16 months, this Administration has taken steps to provide tax relief that put more money in the hands of small business owners like you – including write-offs for new equipment, credits for hiring unemployed workers and capital gains exclusions for small business investors. We know that sensible tax relief like this will help you grow your business, create new jobs, and continue drive America’s economic recovery.
With warm regards,
Karen Mills
http://www.sba.gov/acaletter/
Wednesday, May 26, 2010
The Best Industries for Starting a Business In 2010
This year's burgeoning industries include interactive technology (from mobile app design to tech-savvy translation), wellness (healthy beverages), and little luxuries, such as baked goods.
By Christine Lagorio, Tamara Schweitzer and Josh Spiro
Congratulations: You have survived the recession. Now what? If you have ever had the urge to start your own business, now may be a good time to make a move.
To help identify the most promising industries for start-ups, a team of Inc. reporters hit the phones and scoured the data – from the Bureau of Labor Statistics and from private research groups such as Sageworks, IBISWorld, and AnythingResearch.com. Some of the industries we have identified may surprise you. Start-ups that provide a measure of reassuring comfort in our newly cost-conscious era are doing particularly well. Call it the cupcake factor. In addition to bakeries, these sectors include hobby and craft shops, businesses that sell musical instruments and online vintage clothing boutiques. Then there are the ever-expanding storage businesses that supply the space where a lot of that stuff tends to end up. Or, if you are in the mood for more adventure, how about launching a passenger ferry service? Following are 10 of the best industries in which to start a business in 2010.
Environmental Consulting
Helping homes and businesses go green is a $17.75 billion-and-growing industry. Environmental consulting is expected to grow 9 percent a year over the next five years, according to IBISWorld, a publisher of U.S. industry research. This industry is well suited to independent contractors with the skills to install environmentally friendly gear such as wind turbines, solar panels, and green roofs. (Read More)
Mobile Application Design
Sure, iPhones have been around for a while. But with the advent of the iPad, Android phones, and a growing market for mobile apps that work on any Web-enabled phone, there is plenty of fresh territory for programmers, developers, and designers. A particularly hot area for new companies is location-based apps (Loopt and Foursquare are the big ones right now) that work with smartphones' GPS capabilities. This sector has the potential to grow at the same scorching rate at which social media websites such as Twitter and Facebook have grown in recent years. (Read More)
Ferryboats
As highways in and around urban centers become more congested, the old-fashioned ferryboat is making a comeback. Privately run ferry services, as well as tourist excursions, are thriving along the Pacific Northwest coast and on the Great Lakes. Given that new federal spending for building ferryboats and terminals is part of the 2009 economic recovery act, opportunities are expanding. The industry grew 17 percent last year, according to AnythingResearch.com. Barriers to entry, though, are steep. A new Coast Guard-certified ferryboat that carries 150 passengers costs about $6 million. (Read More)
Fun and Games
Craft and hobby supply shops, as well as stores that sell toys and games, have been outperforming the overall retail industry, growing at an annual rate of 9 percent, according to AnythingResearch.com. Musical instruments and sporting goods are also selling briskly. (Read More)
Bakeries
Bakeries, pastry shops, and bagel stores are growing at 5 percent a year, according to AnythingResearch.com. Small indulgences, it seems, are picking up, whereas big purchases such as vacations are not. People are also willing to pay more for gourmet baked goods, says blogger and baked-goods expert Nichelle Stephens. High-end bakeries are "focused on small batches, local suppliers, seasonal ingredients, and lots of creativity when it comes to flavors and combinations," she says. (Read More)
Tea and Healthy Beverages
The top four teamakers control 88 percent of industry revenue, according to IBISWorld. But the remaining 12 percent represents a $264 million market for small, independent manufacturers. The industry averaged annual growth of about 5 percent over the past five years. Healthy beverages with promising growth prospects include antioxidant-rich juices and vitamin-enhanced waters. (Read More)
Crafts and Vintage Clothes Online
Anyone with something to sell – especially in the thriving areas of handmade jewelry and vintage clothing – and a PayPal account can break into this business. Online sales of independent merchants – mostly via sites such as Etsy, eBay, RubyLane, and Supermarket – grew at an annual 6.6. percent over the past five years, according to IBISWorld. (Read More)
Exam Prep and Tutoring
Parents always want their kids to do better on tests. A large number of adults returning to school are also looking for an edge. Given the low barrier to entry, this field is competitive. But if you carve out the right niche, it could be lucrative. The industry, which includes tutoring in such subjects as special education, language, and music, grew about 7 percent last year, according to AnythingResearch.com. (Read More)
Translation Services
The U.S. military, the health care system, and businesses that are expanding overseas are the industry's best customers. Overall, the market grew some 18 percent last year. There are also related tech opportunities in the burgeoning market for mobile on-demand translation via SMS. (Read More)
Self-Storage Leasing
There are already 2.2 billion square feet of self-storage in this country, according to the Self Storage Association. That translates to more than 7 square feet of storage per U.S. resident. But the industry is far from saturated, thanks to the insatiable appetite of American families for acquiring stuff. The $22 billion industry also has low barriers to entry, which helps explain why independent business people own 90 percent of self-storage companies. (Read More)
What Street Vendors Can Teach Us About Bootstrapping and Entrepreneurship
Vincent Fernando, CFA
Note: This article was originally published on OPEN Forum.
Some people are born wealthy enough to take the massive risk which funding a new business entails. Others get seed money from brilliant pitches, luck or connections.
And then, there's the rest of us.
Funding a business, or more precisely, risking losing money when starting a business, is the single largest obstacle for most entrepreneurs. Even good ideas can take time to fine-tune or pan out.
That's why I have the most respect for the 'street-stall entrepreneur' one finds in developing countries. This is the individual who starts out with absolutely nothing, and shamelessly sells any product they can from the street to make his living.
Every day people pass this individual on their way to work, seeing them as nothing more than a poor and desperate punter.
But, there are many cases where the street-stall entrepreneur doesn't let it end here. Over time, this individual rigorously ramps up their business, with no resources but motivation and determination, into a larger, more successful enterprise.
These kinds of people conduct the most raw, basic form of entrepreneurship – struggling to make money while their finances hang by a thread. And I think a lot can be learned from them.
Here are six points every entrepreneur can learn about bootstrapping from these self-made street-stall entrepreneurs.
1. As a micro-entrepreneur, it's crucial to first establish a core cash flow. Don't even think you're 'in business' until you're cash flow positive, even if you have some savings. So, whatever the revolutionary product or service you one day wish to sell, in the beginning it's alright to make extra money by going out and doing something else. This could include taking a part-time job that some might find insulting, or selling products for a third-party marketing firm.
2. But it's okay to avoid getting tied up by a long-term full-time job position if it's going to prevent you from devoting your all to your business. This one is tricky: you need cash flow, but you also need freedom and spare time to invest in your own project. The street-stall entrepreneur knows he could go and find financial security as someone's driver , janitor, or security guard. But he doesn't do it unless it's just a short-term stint; he'll do anything before he signs away his freedom.
This restriction should, in fact, make you work harder and succeed faster, by forcing you to hone your sales skills and make you think extremely hard about how to create near-term cash flow for your business. Remember: you can always look for short-term opportunities based on output of cash, rather than full-time employment.
3. Don't be afraid to sell your products before you even have them in stock – or just sell the exact same thing as other established companies, and do it better. When you're starting out, one of the largest unknowns is whether a product or service will even sell. Answer this question by pitching your product or service to people from day one, even if it seems commonplace, or 'isn't in stock'. The worst that can occur is that people say yes, and then you get to rush to make it all happen.
4. Entrepreneurship is all about simply not paying upfront for anything – through revenue share and partnership agreements, generally. It's rare that you would ever want to hire someone expensive or buy an expensive service early on. Either find a way to agree to a revenue-share model of payment, bring them in as a business partner, or learn to do without them until you have sufficient cash flow coming in the door to cover the cost. Remember: cash flow negative means 'out of business' for you. That's the mind set you need in order to survive when you don't have deep pockets.
Bootstrapping is a way of life for these individuals, and we could stand to learn a lot from them. Most importantly, of course: they teach us that, with the right focus and determination, you're never too poor to start a business.
Flickr Creative Commons photo attribution: JimReeves
Note: This article was originally published on OPEN Forum.
And then, there's the rest of us.
Funding a business, or more precisely, risking losing money when starting a business, is the single largest obstacle for most entrepreneurs. Even good ideas can take time to fine-tune or pan out.
That's why I have the most respect for the 'street-stall entrepreneur' one finds in developing countries. This is the individual who starts out with absolutely nothing, and shamelessly sells any product they can from the street to make his living.
Every day people pass this individual on their way to work, seeing them as nothing more than a poor and desperate punter.
But, there are many cases where the street-stall entrepreneur doesn't let it end here. Over time, this individual rigorously ramps up their business, with no resources but motivation and determination, into a larger, more successful enterprise.
These kinds of people conduct the most raw, basic form of entrepreneurship – struggling to make money while their finances hang by a thread. And I think a lot can be learned from them.
Here are six points every entrepreneur can learn about bootstrapping from these self-made street-stall entrepreneurs.
1. As a micro-entrepreneur, it's crucial to first establish a core cash flow. Don't even think you're 'in business' until you're cash flow positive, even if you have some savings. So, whatever the revolutionary product or service you one day wish to sell, in the beginning it's alright to make extra money by going out and doing something else. This could include taking a part-time job that some might find insulting, or selling products for a third-party marketing firm.
2. But it's okay to avoid getting tied up by a long-term full-time job position if it's going to prevent you from devoting your all to your business. This one is tricky: you need cash flow, but you also need freedom and spare time to invest in your own project. The street-stall entrepreneur knows he could go and find financial security as someone's driver , janitor, or security guard. But he doesn't do it unless it's just a short-term stint; he'll do anything before he signs away his freedom.
This restriction should, in fact, make you work harder and succeed faster, by forcing you to hone your sales skills and make you think extremely hard about how to create near-term cash flow for your business. Remember: you can always look for short-term opportunities based on output of cash, rather than full-time employment.
3. Don't be afraid to sell your products before you even have them in stock – or just sell the exact same thing as other established companies, and do it better. When you're starting out, one of the largest unknowns is whether a product or service will even sell. Answer this question by pitching your product or service to people from day one, even if it seems commonplace, or 'isn't in stock'. The worst that can occur is that people say yes, and then you get to rush to make it all happen.
4. Entrepreneurship is all about simply not paying upfront for anything – through revenue share and partnership agreements, generally. It's rare that you would ever want to hire someone expensive or buy an expensive service early on. Either find a way to agree to a revenue-share model of payment, bring them in as a business partner, or learn to do without them until you have sufficient cash flow coming in the door to cover the cost. Remember: cash flow negative means 'out of business' for you. That's the mind set you need in order to survive when you don't have deep pockets.
Bootstrapping is a way of life for these individuals, and we could stand to learn a lot from them. Most importantly, of course: they teach us that, with the right focus and determination, you're never too poor to start a business.
Flickr Creative Commons photo attribution: JimReeves
Monday, May 3, 2010
IRS Will Host A Special Nationwide Open House on Saturday May 15 To Help Small Businesses And Individuals Solve Tax Problems
WASHINGTON — The Internal Revenue Service will host a special nationwide Open House on Saturday May 15 to help small businesses and individuals solve tax problems.
Approximately 200 IRS offices, at least one in every state, will be open May 15 from 9 a.m. to 2 p.m. local time. IRS staff will be available on site or by telephone to help taxpayers work through their problems and walk out with solutions.
“Our goal is to resolve issues on the spot so small businesses and individuals can put any issues they have with the IRS behind them,” IRS Commissioner Doug Shulman said. “If you have a problem filing or paying your taxes or resolving a tough tax issue, we encourage you to come in and work with us.”
IRS locations will be equipped to handle issues involving notices and payments, return preparation, audits and a variety of other issues. At a previous IRS Open House on March 27, approximately two-thirds of taxpayers requested and received assistance with payments and notices.
So, for example, a taxpayer who cannot pay a tax balance due can discuss with an IRS professional whether an installment agreement is appropriate and, if so, fill out the paperwork then and there. Assistance with offers-in-compromise will also be available. Likewise, a taxpayer struggling to complete a certain IRS form or schedule can work directly with IRS staff to get the job done.
At the March 27 Open House, 88 percent of the taxpayers who came in for help had their issues resolved the same day.
For the State of Washington, the following are the locations for the May 15 Open House:
Each office will be open from 9:00 a.m. until 2:00 p.m. local time.
Everett: 3020 Rucker Ave.
Everett, WA 98201
Seattle: 915 Second Ave.
Seattle, WA 98174
Spokane: 920 W. Riverside
Spokane, WA 99201
Tacoma: 1201 Pacific Ave.
Tacoma, WA 98402
Yakima: 107 S. 7th Street
Yakima, WA 98902
The Open House on May 15 is the first of three events scheduled through the end of June. The next two are planned for Saturday June 5 and Saturday June 26. Details regarding those events will be available soon.
Issue Number: IR-2010-055
Approximately 200 IRS offices, at least one in every state, will be open May 15 from 9 a.m. to 2 p.m. local time. IRS staff will be available on site or by telephone to help taxpayers work through their problems and walk out with solutions.
“Our goal is to resolve issues on the spot so small businesses and individuals can put any issues they have with the IRS behind them,” IRS Commissioner Doug Shulman said. “If you have a problem filing or paying your taxes or resolving a tough tax issue, we encourage you to come in and work with us.”
IRS locations will be equipped to handle issues involving notices and payments, return preparation, audits and a variety of other issues. At a previous IRS Open House on March 27, approximately two-thirds of taxpayers requested and received assistance with payments and notices.
So, for example, a taxpayer who cannot pay a tax balance due can discuss with an IRS professional whether an installment agreement is appropriate and, if so, fill out the paperwork then and there. Assistance with offers-in-compromise will also be available. Likewise, a taxpayer struggling to complete a certain IRS form or schedule can work directly with IRS staff to get the job done.
At the March 27 Open House, 88 percent of the taxpayers who came in for help had their issues resolved the same day.
For the State of Washington, the following are the locations for the May 15 Open House:
Each office will be open from 9:00 a.m. until 2:00 p.m. local time.
Everett: 3020 Rucker Ave.
Everett, WA 98201
Seattle: 915 Second Ave.
Seattle, WA 98174
Spokane: 920 W. Riverside
Spokane, WA 99201
Tacoma: 1201 Pacific Ave.
Tacoma, WA 98402
Yakima: 107 S. 7th Street
Yakima, WA 98902
The Open House on May 15 is the first of three events scheduled through the end of June. The next two are planned for Saturday June 5 and Saturday June 26. Details regarding those events will be available soon.
Issue Number: IR-2010-055
Tuesday, April 27, 2010
U.S. SMALL BUSINESS ADMINISTRATION Offers Government Contracting Briefings For Small Business Owners
Learn how the SBA helps small businesses compete in the government procurement marketplace.
SEATTLE- The Seattle District Office of the SBA is offering monthly briefings at the downtown Seattle District Office. Briefings will help small business owners who are interested in gaining access to federal and private procurement markets and prepare small firms for procurement and other business opportunities. The focus of the program is to provide information on federal government certifications, such as; 8(a), Hubzone, Veteran/service disabled, Veteran, and women-owned. Information on management and technical assistance resources available to assist small business owners with selling to the government will also be discussed.
The sessions will be conducted by our Business Development Specialists, Seattle District Office. Topics covered:
§ What are the steps in getting ready to sell to the government
§ How does the SBA 8(a) program work
§ What are the other certification programs
§ Who are the technical assistance providers
§ Q & A
Where and When
4th Thursday of each month
April 22, May 27, June 24, July 22, August 26
8:30 – 9:30 am
SBA Seattle District
Education and Training Center
2401 4th Avenue, Suite 450
Seattle, 98121
Call 206-553-7310 to register
The SBA is a federal agency providing financial and business development assistance to startup and existing small businesses. Space is limited; register early to reserve a spot. For more information call 206-553-7310.
Monday, April 19, 2010
SBA Recovery Lending Extended Through May
Administrator Mills presses for longer-term extension for successful programs
WASHINGTON – President Barack Obama signed legislation yesterday providing $80 million in additional funding to continue important enhancements in the U.S. Small Business Administration’s two key small business loan programs. The enhancements, first made available under the American Recovery and Reinvestment Act, include a higher guarantee on some SBA-backed loans and small business fee relief.
The SBA estimates the $80 million will support about $2.8 billion in small business lending under the 7(a) and 504 programs.
“Small businesses across the country have been able to secure critical financing as a result of the Recovery Act loan provisions and the continued interim funding we’ve received for the program,” said SBA Administrator Karen Mills. “The increased guarantees and reduced fees on SBA loans have generated more than $25 billion in new loans to small business owners and brought more than 1,200 lenders back to SBA loan programs. In fact, the first two quarters of the current fiscal year have been our best two opening quarters ever for the 7(a) program, with more than $7 billion in guaranteed loans. These programs have been successful in helping jump-start our economy, which is why we will continue to work with Congress on a longer term extension of the increased guarantee and reduced fees.
“We also know that small businesses could greatly benefit from the additional tools the President has proposed, including higher SBA loan limits and refinancing for commercial property mortgages, which could help thousands of small businesses avoid potential foreclosure. Small businesses need these improvements to ensure their access to the capital they need to drive economic growth and create jobs in communities all across the country.”
As part of the Recovery Act enacted on Feb. 17, 2009, SBA received $730 million to help small businesses, including $375 million to increase the SBA guarantee on 7(a) loans to 90 percent and to reduce borrower fees on most 7(a) and 504 loans. The funds for these programs were exhausted on Nov. 23, 2009, and an additional $125 million was provided in December. Those funds were exhausted in late February, 2010, and an additional $60 million was provided subsequently. SBA was authorized for an additional $40 million in late March.
Under the new extension SBA may continue to reduce loan fees in its 7(a) and 504 programs and to provide higher guarantee levels on 7(a) loans through May 2010, or until the funds provided under the bill are exhausted.
This extension has no effect on the continued availability of financing under other SBA Recovery Act programs, including SBA’s America’s Recovery Capital (ARC) loan program and the agency’s Microloan program. Recovery Act funding still remains available for both of those programs.
Release Date: April 16, 2010 Contact: Hayley Matz (202) 205-6948
Release Number: 10-15 Internet Address: http://www.sba.gov/news
Wednesday, April 14, 2010
U.S. SBA and Small Business Development Center (SBDC) Bellingham Offer Lender Roundtable
Roundtable for small business lenders or technical assistance providers.
BELLINGHAM – Does your lending institution provide small business financing? Are you a technical service provider for small business owners? Has your bank or credit union provided SBA assistance in the past and is interested in starting up again? If so, you are encouraged to attend this free event. Our roundtables cover the following:
SBA 7(a) loan program updates and developments
American Recovery and Reinvestment Act Updates
SBA 504 Program updates and developments
USDA Lending Program updates
Technical assistance resources and opportunities
Plenty of Q & A
Roundtable facilitated by Jennifer Shelton, Certified Business Advisor, SBDC, Bellingham. Featured speakers include; Kim Willis, Ameritrust; Pat Rogers, Evergreen Business Capital; and Elizabeth Rusnak, Northwest Business Development; Tuana Jones, USDA, and Mark Costello, SBA.
Where and When
Thursday, April 15th
10:30 am – 12:00 noon
SBDC Bellingham
115 Unity Street, Suite 101
Bellingham
For more information and RSVP
Linda Laws, SBA
linda.laws@sba.gov
206-553-7065
Mark Costello, SBA
206-553-7312
Tuesday, April 13, 2010
Monday, April 12, 2010
You are invited to join the VPanel - Women Entrepreneurs' Toolkit for Success
Wednesday, April 14, 2010: 2:00 pm ET / 11:00 am PT OR
View at your convenience “on demand” after the show
Women start businesses at twice the rate of men, according to an Ernst & Young report. However, according to that same report, women-owned businesses “historically do not reach the size and scale of businesses owned by men.”
Still, a lot is expected from women entrepreneurs, according to a 2010 Forbes story: “female-owned small businesses, now just 16% of total U.S. employment, will be responsible for creating one-third of the 15.3 million new jobs anticipated by the Bureau of Labor Statistics by 2018.”
It’s clear that a lot of women have the entrepreneurial spirit – but why aren’t more succeeding?
Please join Shift Worldwide for a detailed, interactive, virtual panel discussion into how more women can be successful in starting and leading their business – no matter what industry they are in. After this 90-minute vPanel, attendees will come away with ideas and how-to information they can put into action.
Range of Topics:•Specific tips for business development, operations and other areas that can be implemented immediately
•Challenges that business women face, and how to overcome them
•Characteristics typically unique to men and women that assist and hurt them as entrepreneurs
•Funding advantages women have over men, and how to take advantage of them
•Legal aspects of starting or buying a company that women need to understand
Our Distinguished vPanelists:
•Michele DeKinder-Smith, Founder, CEO Jane Out of the Box, Tampa, FL
◦Michele is a seasoned researcher who has specialized in marketing, consumer and business research for more than 20 years. An entrepreneur, she has interviewed thousands of business owners, and understands the needs of large corporations, government agencies and the female entrepreneur.
•Steven Glaser, Shareholder at The Schroeder Group S.C., Waukesha, WI
◦Steven has more than 15 years experience helping businesses solve legal problems, and providing practical business solutions. He has worked with Fortune 500 companies on complicated and cutting edge matters, and has counseled privately-held businesses, start-ups, limited liability companies on joint ventures, business contract negotiations and related topics.
•Kelly Hoey, President, 85 Broads, NYC Chapter, New York, NY
◦An experienced strategist, networker and mentor, Kelly is responsible business advice and organizing workshops for the Chapter of 85 Broads. She is a sought-after speaker, with recent appearances including a Legal Marketing Association, NYS Bar Association Career Development Conference and the Ms JD Third Annual Conference.
•Esther Jeles, Founder/CEO, Aylet Inc., Chicago, IL
◦Esther is a personal coach, workshop leader, professional speaker and author. She has worked with companies such as Oprah Winfrey’s production company HARPO, Twentieth Century Fox, Chevrolet, YWCA Metropolitan Chicago and others to transform corporate environments into collaborative, inspirational, honorable businesses that produce exciting bottom line results.
vModerator:
•Jennifer Johnson, Member of Executive Management Team of Shift Worldwide, New York, NY
Who Should Attend:
This will be a wide-ranging vPanel that will be of interest to:
•Any woman who wants to start her own business
•Female CEOs, Presidents, COO and VPs
•All female students in MBA programs
•Business and career coaches, consultants and trainers
•VCs, Angel Investors and any investor who wants to indentify successful traits for women entrepreneurs
Schedule (all times in ET):
•1:45pm – 2:00pm: Log on to vPanel (link is provided once you register)
•2:00pm – 2:05pm: Introduction of vPanelists
•2:05pm – 2:45pm: vPanel Discussion
•2:45pm – 3:00pm: Interactive Q&A Session
OR
•View at your convenience “on demand” after the show
**You do not need a Web cam nor will you be required to download special software to participate in this vPanel.
View at your convenience “on demand” after the show
Women start businesses at twice the rate of men, according to an Ernst & Young report. However, according to that same report, women-owned businesses “historically do not reach the size and scale of businesses owned by men.”
Still, a lot is expected from women entrepreneurs, according to a 2010 Forbes story: “female-owned small businesses, now just 16% of total U.S. employment, will be responsible for creating one-third of the 15.3 million new jobs anticipated by the Bureau of Labor Statistics by 2018.”
It’s clear that a lot of women have the entrepreneurial spirit – but why aren’t more succeeding?
Please join Shift Worldwide for a detailed, interactive, virtual panel discussion into how more women can be successful in starting and leading their business – no matter what industry they are in. After this 90-minute vPanel, attendees will come away with ideas and how-to information they can put into action.
Range of Topics:•Specific tips for business development, operations and other areas that can be implemented immediately
•Challenges that business women face, and how to overcome them
•Characteristics typically unique to men and women that assist and hurt them as entrepreneurs
•Funding advantages women have over men, and how to take advantage of them
•Legal aspects of starting or buying a company that women need to understand
Our Distinguished vPanelists:
•Michele DeKinder-Smith, Founder, CEO Jane Out of the Box, Tampa, FL
◦Michele is a seasoned researcher who has specialized in marketing, consumer and business research for more than 20 years. An entrepreneur, she has interviewed thousands of business owners, and understands the needs of large corporations, government agencies and the female entrepreneur.
•Steven Glaser, Shareholder at The Schroeder Group S.C., Waukesha, WI
◦Steven has more than 15 years experience helping businesses solve legal problems, and providing practical business solutions. He has worked with Fortune 500 companies on complicated and cutting edge matters, and has counseled privately-held businesses, start-ups, limited liability companies on joint ventures, business contract negotiations and related topics.
•Kelly Hoey, President, 85 Broads, NYC Chapter, New York, NY
◦An experienced strategist, networker and mentor, Kelly is responsible business advice and organizing workshops for the Chapter of 85 Broads. She is a sought-after speaker, with recent appearances including a Legal Marketing Association, NYS Bar Association Career Development Conference and the Ms JD Third Annual Conference.
•Esther Jeles, Founder/CEO, Aylet Inc., Chicago, IL
◦Esther is a personal coach, workshop leader, professional speaker and author. She has worked with companies such as Oprah Winfrey’s production company HARPO, Twentieth Century Fox, Chevrolet, YWCA Metropolitan Chicago and others to transform corporate environments into collaborative, inspirational, honorable businesses that produce exciting bottom line results.
vModerator:
•Jennifer Johnson, Member of Executive Management Team of Shift Worldwide, New York, NY
Who Should Attend:
This will be a wide-ranging vPanel that will be of interest to:
•Any woman who wants to start her own business
•Female CEOs, Presidents, COO and VPs
•All female students in MBA programs
•Business and career coaches, consultants and trainers
•VCs, Angel Investors and any investor who wants to indentify successful traits for women entrepreneurs
Schedule (all times in ET):
•1:45pm – 2:00pm: Log on to vPanel (link is provided once you register)
•2:00pm – 2:05pm: Introduction of vPanelists
•2:05pm – 2:45pm: vPanel Discussion
•2:45pm – 3:00pm: Interactive Q&A Session
OR
•View at your convenience “on demand” after the show
**You do not need a Web cam nor will you be required to download special software to participate in this vPanel.
Wednesday, April 7, 2010
Congratulations to Ms. Carole Butkus, WBC Director, as Washington State Women-In-Business of the Year
Release Date: April 1, 2010 Media Contact: Carol Andersen (206) 553-7315
Release Number: SDOPR-10-16 Internet Address: www.sba.gov/wa
Carole Ann Butkus
SEATTLE – The U.S. Small Business Administration’s 2010 Women-in-Business Champion boosts the prospects of the fastest-growing segment of entrepreneurs. “Women entrepreneurs start businesses at twice the national average, so by providing access to counseling, training and financial resources, Carole Butkus tears down barriers commonly faced by this vital group. She knows what it takes to be a successful entrepreneur,” said Calvin Goings Regional Administrator. Carole has worked for early-stage technology companies and a medical practice. She has an MBA from Washington State University. With her husband Pete, she owns two small businesses. She is actively engaged in Belltown Records, an independent record label; and takes an administrative role in the company run primarily by her husband, Butkus Consulting.
Butkus directs the Washington Business Center (WBC) hosted by Community Capital Development (CCD) in Seattle. She and her team are responsible for delivering sensitive and appropriate business assistance and training to clients to support the development of low-income, women-owned and minority business enterprises. To expand outreach, Butkus promotes entrepreneurship at local Chambers of Commerce, business and trade association events, and with government representatives. She lends her insights to suggest solutions to a problem that plagues small businesses and their employees, she recently was appointed to the Washington State Insurance Commissioner's Health Care Reform Realization Committee.
The Washington Business Center is one of three SBA Women’s Business Centers (WBCs) located in Washington State. Women comprise over 60 percent of its client base. Last year, the Center counseled over 400 clients and trained over 3,000 people directly or with the help of resource partners. Through Community Capital Development, WBC clients received loans for over $900,000 with nearly a half million dollars going to woman-owned companies in 2009.
“The WBC has just begun its 12th year of service to women entrepreneurs. Carole proceeds with infectious energy, determination and conviction,” says Nancy Porzio, SBA Seattle District Director. She personally seeks out ways to expand services to businesses in King County, by doing one-on-one counseling in her clients’ offices or in coffee shops. It is commonplace to catch Butkus working long days in order to complete commitments to women's organizations or small business groups. In 2008, Carole implemented a new seven-week training curriculum called "Launch and Grow Your Business.” Since its inception, 163 small business owners - about seventy percent of whom were women - have completed this training. The WBC also offers "Brown Bag" lunch-and-learn seminars free of charge. They are scheduled "ad hoc" when interesting speakers or topics present themselves but occur almost monthly with attendance ranging from 15 to 50 people. Last year the WBC added a computer lab to its toolkit, courtesy of a grant from the Washington State Microenterprise Association.
When the SBA approached the WBC requesting that it partner with the Redmond WorkSource to provide entrepreneurial training to unemployed persons who are looking at starting microenterprises as a form of self employment, Butkus made it happen. WorkSource workshops commenced in 2008 and by January 2009, they had to be moved to a larger classroom and offered twice monthly to meet increased demand.
Butkus has initiated two Business Strategic Growth Teams. The Rainier team consists of all woman-owned businesses and meets in Seattle. The Cascade team consists of over 60% women and meets in a King County eastside suburb. Hand-selected business owners from noncompeting industries operate under non-disclosure agreements due to the sharing of proprietary information at team meetings. The team members serve as an advisory board to each other. Each meeting includes time for training on business-related topics that have included using social media in business; cash flow projections and financial statements; SWOT analysis (business evaluation and matching strengths with opportunities); business valuation; and pricing of products and services.
With commitment and passion, Butkus dedicates her days to advocating on behalf of women in business, going beyond the realm of her professional responsibilities. When it comes to volunteer outreach and marketing efforts, the word “No” is not is her vocabulary. If an organization asks her to speak about women in business, she is there. She will put together a presentation on short notice, working late into the evening or getting up early to make it happen. Butkus maintains open contacts with the Washington State Congressional Delegation and they keep her informed on the pending initiatives affecting women in business. She participates in community outreach activities to ensure that women in business are supported and recognized for their contributions. On a personal level, she works tirelessly to create fair and equal opportunities for women to access counseling, training and capital. This is why she is named 2010 SBA Washington State Women-in-Business Champion.
Release Number: SDOPR-10-16 Internet Address: www.sba.gov/wa
Carole Ann Butkus
Director, Washington Business Center, Seattle Named Washington State Women-In-Business Champion of the Year
Celebration honoring winners on April 8th, Marion Oliver McCaw Hall, Seattle Center
SEATTLE – The U.S. Small Business Administration’s 2010 Women-in-Business Champion boosts the prospects of the fastest-growing segment of entrepreneurs. “Women entrepreneurs start businesses at twice the national average, so by providing access to counseling, training and financial resources, Carole Butkus tears down barriers commonly faced by this vital group. She knows what it takes to be a successful entrepreneur,” said Calvin Goings Regional Administrator. Carole has worked for early-stage technology companies and a medical practice. She has an MBA from Washington State University. With her husband Pete, she owns two small businesses. She is actively engaged in Belltown Records, an independent record label; and takes an administrative role in the company run primarily by her husband, Butkus Consulting.
Butkus directs the Washington Business Center (WBC) hosted by Community Capital Development (CCD) in Seattle. She and her team are responsible for delivering sensitive and appropriate business assistance and training to clients to support the development of low-income, women-owned and minority business enterprises. To expand outreach, Butkus promotes entrepreneurship at local Chambers of Commerce, business and trade association events, and with government representatives. She lends her insights to suggest solutions to a problem that plagues small businesses and their employees, she recently was appointed to the Washington State Insurance Commissioner's Health Care Reform Realization Committee.
The Washington Business Center is one of three SBA Women’s Business Centers (WBCs) located in Washington State. Women comprise over 60 percent of its client base. Last year, the Center counseled over 400 clients and trained over 3,000 people directly or with the help of resource partners. Through Community Capital Development, WBC clients received loans for over $900,000 with nearly a half million dollars going to woman-owned companies in 2009.
“The WBC has just begun its 12th year of service to women entrepreneurs. Carole proceeds with infectious energy, determination and conviction,” says Nancy Porzio, SBA Seattle District Director. She personally seeks out ways to expand services to businesses in King County, by doing one-on-one counseling in her clients’ offices or in coffee shops. It is commonplace to catch Butkus working long days in order to complete commitments to women's organizations or small business groups. In 2008, Carole implemented a new seven-week training curriculum called "Launch and Grow Your Business.” Since its inception, 163 small business owners - about seventy percent of whom were women - have completed this training. The WBC also offers "Brown Bag" lunch-and-learn seminars free of charge. They are scheduled "ad hoc" when interesting speakers or topics present themselves but occur almost monthly with attendance ranging from 15 to 50 people. Last year the WBC added a computer lab to its toolkit, courtesy of a grant from the Washington State Microenterprise Association.
When the SBA approached the WBC requesting that it partner with the Redmond WorkSource to provide entrepreneurial training to unemployed persons who are looking at starting microenterprises as a form of self employment, Butkus made it happen. WorkSource workshops commenced in 2008 and by January 2009, they had to be moved to a larger classroom and offered twice monthly to meet increased demand.
Butkus has initiated two Business Strategic Growth Teams. The Rainier team consists of all woman-owned businesses and meets in Seattle. The Cascade team consists of over 60% women and meets in a King County eastside suburb. Hand-selected business owners from noncompeting industries operate under non-disclosure agreements due to the sharing of proprietary information at team meetings. The team members serve as an advisory board to each other. Each meeting includes time for training on business-related topics that have included using social media in business; cash flow projections and financial statements; SWOT analysis (business evaluation and matching strengths with opportunities); business valuation; and pricing of products and services.
With commitment and passion, Butkus dedicates her days to advocating on behalf of women in business, going beyond the realm of her professional responsibilities. When it comes to volunteer outreach and marketing efforts, the word “No” is not is her vocabulary. If an organization asks her to speak about women in business, she is there. She will put together a presentation on short notice, working late into the evening or getting up early to make it happen. Butkus maintains open contacts with the Washington State Congressional Delegation and they keep her informed on the pending initiatives affecting women in business. She participates in community outreach activities to ensure that women in business are supported and recognized for their contributions. On a personal level, she works tirelessly to create fair and equal opportunities for women to access counseling, training and capital. This is why she is named 2010 SBA Washington State Women-in-Business Champion.
Tuesday, March 30, 2010
Our Open House was a Success!!!
We could not have done it without you -
To Our Guest Speakers:
Rick Cooper
CEO, The Everett Clinic and
Board President, Snohomish County EDC
Nancy Porzio
Regional Director
U.S. Small Business Administration
Joe Marine
Mayor
City of Mukilteo
And, to our
Community Capital Development Family
THANK YOU!!!
To Our Guest Speakers:
Rick Cooper
CEO, The Everett Clinic and
Board President, Snohomish County EDC
Nancy Porzio
Regional Director
U.S. Small Business Administration
Joe Marine
Mayor
City of Mukilteo
And, to our
Community Capital Development Family
THANK YOU!!!
Special thank you to the following who have shared their resources to make it more meaningful....
Friday, March 19, 2010
Thursday, March 4, 2010
Extension of SBA Recovery Lending Programs Will Support $1.8 Billion in Small Business Lending
Agency plans to restart Recovery loan approvals on March 10
WASHINGTON – President Barack Obama signed legislation Tuesday extending until March 28 the U.S. Small Business Administration’s ability to provide small business loans that are enhanced with special provisions of the American Recovery and Reinvestment Act (ARRA), including a higher guarantee of SBA-backed loans and a waiver of loan fees normally paid by borrowers.
SBA estimates the additional funding will support about $1.8 billion in small business lending.
New approvals of eligible loans with the higher guarantee and reduced fees made possible by the Recovery Act are expected to resume on March 10. Loan applications from borrowers in SBA’s Recovery Loan Queue will be funded first, followed by new loan applications.
“These key loan programs have been successful in helping jump-start the economic recovery for America’s small businesses,” said SBA Administrator Karen Mills. “The increased guarantee and reduced fees on SBA loans helped put almost $22 billion into the hands of small business owners and brought more than 1,100 lenders back to SBA loan programs. As a result, average weekly loan approvals by SBA have climbed by 87 percent compared to the weekly average before passage of the Recovery Act.
“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. Small businesses need the changes the President has called for to ensure that they have the tools they need to drive economic growth and create jobs in communities all across the country.”
As part of the Recovery Act, SBA received $730 million, which included $375 million to increase the SBA guarantee on 7(a) loans to 90 percent and to waive borrower fees on most 7(a) and 504 loans. The funds for these programs were exhausted on Nov. 23, and an additional $125 million was provided in December. Those funds were exhausted in late February.
SBA has implemented the Recovery Loan Queue twice before as part of its temporary transitions back to pre-Recovery Act lending. Eligible small businesses, in consultation with their lender, could choose to be placed in the queue for possible approval of a Recovery Act loan if funding became available from loans canceled for a variety of reasons. Currently there are 652 loan requests totaling $230 million in the Recovery Loan Queue.
The extension signed by President Obama authorizes the higher guarantee levels through March 28, 2010, for 7(a) loans. The fee relief is available until the additional funding is exhausted or the end of the fiscal year on Sept. 30, whichever comes first. As was the case in November and again in February, SBA is prepared to transition into a queue system as the funds start to wind down in order to ensure the maximum simulative effect of the programs and disbursement of funds.
For non-Recovery Act 7(a) or 504 loans already funded during the transition period, this extension does not provide a retroactive guarantee or waived fees. Loans that were funded under non-Recovery Act terms cannot be canceled and resubmitted to take advantage of the Recovery Act extension provisions.
This extension does not affect other SBA Recovery Act programs, including the America’s Recovery Capital (ARC) loan program or the agency’s microloans. Recovery Act funding still remains available for both of those programs.
Release Date: March 4, 2010 Contact: Hayley Matz (202) 205-6948
Release Number: 10-06 Internet Address: http://www.sba.gov/news
Northwest Economic Council’s 3rd Annual Alternative Financing
Business financing starts with your commercial lender... but what if that isn't enough? If you want to find out more about alternative financing options that are available in Whatcom County, come join the 3rd Annual Alternative Financing Seminar.
This is a FREE event, however registration is required.
To register: http://www.nwecon.org/news-a-events/events/upcoming-events
This is a FREE event, however registration is required.
To register: http://www.nwecon.org/news-a-events/events/upcoming-events
SBA Emerging 200 Program Targets Native American
Release Date: February 25, 2010
Contact: Darlene Robbins at darlene.robbins@sba.gov
Seattle – SBA Seattle announced today that it will expand the Emerging 200 (e200) Initiative, an executive-level training program for small business owners, to include Native American business owners. Classes commence in April 2010. For information and/or application contact Darlene Robbins at darlene.robbins@sba.gov.
“The e200 initiative will enable top Native American executives to participate in an intensive and comprehensive curriculum. The focus will be on developing growth strategies (3-5 year plans, new markets), accessing new capital to fuel growth, mentoring and other training to target potential contracts in the local and federal government arena. This initiative is designed to accelerate the growth of companies that are poised for sustained expansion,” said SBA Seattle District Director Nancy Porzio.
“Over the last few years e200 has been a catalyst for expanding opportunities for many promising small businesses in underserved communities – in particular those who have been most impacted by these tough economic times,” said Regional Administrator Calvin Goings. SBA Administrator Karen Mills said, “Graduates of the program have increased their revenue, created jobs and helped drive local economic growth in their communities. SBA’s commitment to not only continue, but expand the program, will build on this success and provide even more entrepreneurs in underserved communities with the support, resources and skills to succeed.”
The expansion of e200 to Native American communities coincides with the President’s appearance before Tribal Leaders on November 5th, 2009 in Washington, DC, during which he promised that the Administration would work with the Native American community to build economic prosperity. As the President acknowledged that some of the reservations face unemployment of up to 80 percent and roughly a quarter of all Native Americans live in poverty, he stated his commitment to being “full partners in the American economy … so [their] children and … grandchildren can have an equal shot at pursuing the American Dream.” The expansion of e200 is part of the Administration’s pledge to achieve these goals.
Since its inception, the e200 initiative has identified business owners across the country who show a high potential for growth in underserved markets and provided them with the training, networking, resources and motivation required to expand operations and create jobs.
To date, more than half of the businesses that participated in e200 have seen an increase in revenue, and nearly two-thirds have created new jobs. Entrepreneurs who have completed the training have secured over $9 million in new financing for their businesses. Increased confidence in applying for government contracts among trainees has resulted in over $1.3 million awarded to participating small businesses.
The nine-month training includes approximately 100 hours of classroom time per participant and provides the opportunity for small business owners to work with experienced mentors, attend workshops and develop connections with their peers, city leaders, and financial community.
For a full list of cities hosting the e200 initiative in 2010 please see below:
Urban Markets
· Jacksonville, Fla.
· Dallas, Texas
· Atlanta, Ga.
· Des Moines, Iowa
· Boston, Mass.
· Baltimore, Md.
· Detroit, Mich.
· Philadelphia, Pa.
· Memphis, Tenn.
· Chicago, Ill.
Native American Communities
· Denver, Colo.
· Albuquerque, N.M.
· Gallup, N.M.
· Portland, Ore.
· Milwaukee, Wis.
· Tucson, Ariz.
· Phoenix, Ariz.
· Oklahoma City, Okla.
· Tulsa, Okla.
· Santa Ana, Calif.
· Seattle, Wash.
· New Orleans, La.
Contact: Darlene Robbins at darlene.robbins@sba.gov
Seattle – SBA Seattle announced today that it will expand the Emerging 200 (e200) Initiative, an executive-level training program for small business owners, to include Native American business owners. Classes commence in April 2010. For information and/or application contact Darlene Robbins at darlene.robbins@sba.gov.
“The e200 initiative will enable top Native American executives to participate in an intensive and comprehensive curriculum. The focus will be on developing growth strategies (3-5 year plans, new markets), accessing new capital to fuel growth, mentoring and other training to target potential contracts in the local and federal government arena. This initiative is designed to accelerate the growth of companies that are poised for sustained expansion,” said SBA Seattle District Director Nancy Porzio.
“Over the last few years e200 has been a catalyst for expanding opportunities for many promising small businesses in underserved communities – in particular those who have been most impacted by these tough economic times,” said Regional Administrator Calvin Goings. SBA Administrator Karen Mills said, “Graduates of the program have increased their revenue, created jobs and helped drive local economic growth in their communities. SBA’s commitment to not only continue, but expand the program, will build on this success and provide even more entrepreneurs in underserved communities with the support, resources and skills to succeed.”
The expansion of e200 to Native American communities coincides with the President’s appearance before Tribal Leaders on November 5th, 2009 in Washington, DC, during which he promised that the Administration would work with the Native American community to build economic prosperity. As the President acknowledged that some of the reservations face unemployment of up to 80 percent and roughly a quarter of all Native Americans live in poverty, he stated his commitment to being “full partners in the American economy … so [their] children and … grandchildren can have an equal shot at pursuing the American Dream.” The expansion of e200 is part of the Administration’s pledge to achieve these goals.
Since its inception, the e200 initiative has identified business owners across the country who show a high potential for growth in underserved markets and provided them with the training, networking, resources and motivation required to expand operations and create jobs.
- more -
To date, more than half of the businesses that participated in e200 have seen an increase in revenue, and nearly two-thirds have created new jobs. Entrepreneurs who have completed the training have secured over $9 million in new financing for their businesses. Increased confidence in applying for government contracts among trainees has resulted in over $1.3 million awarded to participating small businesses.
The nine-month training includes approximately 100 hours of classroom time per participant and provides the opportunity for small business owners to work with experienced mentors, attend workshops and develop connections with their peers, city leaders, and financial community.
For a full list of cities hosting the e200 initiative in 2010 please see below:
Urban Markets
· Jacksonville, Fla.
· Dallas, Texas
· Atlanta, Ga.
· Des Moines, Iowa
· Boston, Mass.
· Baltimore, Md.
· Detroit, Mich.
· Philadelphia, Pa.
· Memphis, Tenn.
· Chicago, Ill.
Native American Communities
· Denver, Colo.
· Albuquerque, N.M.
· Gallup, N.M.
· Portland, Ore.
· Milwaukee, Wis.
· Tucson, Ariz.
· Phoenix, Ariz.
· Oklahoma City, Okla.
· Tulsa, Okla.
· Santa Ana, Calif.
· Seattle, Wash.
· New Orleans, La.
IRS UPDATES
Free File: Spread the Word with Widgets
http://www.efile.irs.gov/
The Free File program provides free federal income tax preparation and electronic filing for eligible taxpayers through a partnership between the Internal Revenue Service and the Free File Alliance LLC, a group of private sector tax software companies. Many companies offer free or paid state tax preparation and e-filing services. Some companies may not offer state tax preparation and e-file services for all states. Explore which Free File service -- offered exclusively at IRS.gov/freefile — fits your situation: easy-to-use, step-by-step tax preparation software or fillable forms. All taxpayers can use this service.
We have an excellent electronic tool we think you’ll enjoy seeing on your organization’s Web site – and it’s easy to place there. It’s a “Web widget,” a portable, on-screen ad for Free File with a countdown clock that changes daily to let your Web site visitors know how many days are left in the filing season. It also links to more information about Free File on IRS.gov/.
To place the widget on your Web site, just visit http://www.efile.irs.gov, look for the “Tax Season Countdown” ad with the green banner at the top. Click “Get & Share” at the bottom, then “copy code” from the box at the bottom-right. Paste this computer code to your Web site, and let the countdown begin. You can also share the widget on a social networking site, such as Facebook, if you prefer. Just follow the “Get & Share” instructions.
Reminder: Haiti Relief Donations Made Before March 1 Qualify for 2009 Deduction
http://www.irs.gov/newsroom/article/0,,id=218678,00.html
People who give to charities providing earthquake relief in Haiti can claim these donations on the tax return they are completing this season. Taxpayers who itemize deductions on their 2009 return qualify for this special tax relief provision, enacted Jan. 22. Only cash contributions made to these charities after Jan. 11, 2010, and before March 1, 2010, are eligible. This includes contributions made by text message, check, credit card or debit card. The new law only applies to cash (as opposed to property) contributions. The contributions must be made specifically for the relief of victims in areas affected by the Jan. 12 earthquake in Haiti. Taxpayers have the option of deducting these contributions on either their 2009 or 2010 returns, but not both.
Additional Information Regarding Signature Requirements for First-Time Homebuyer Credit Documentation
http://www.irs.gov/newsroom/article/0,,id=219241,00.html
The IRS has provided additional clarification regarding documentation requirements on the First-Time Homebuyer Credit. The IRS encourages buyers seeking the homebuyer credit to sign the settlement statement when they file their tax return -- even in cases where the settlement form does not include a signature line. The IRS recognizes that elements of the settlement document, often a Form HUD-1, may vary from jurisdiction to jurisdiction and may not reflect the signatures of both the buyer and seller. While the Form 5405 instructions indicate that a properly executed settlement statement should show the signatures of all parties, the IRS has clarified that it will accept a settlement statement if it is complete and valid according to local law. In areas where signatures are not required on the settlement document, the IRS encourages the buyer to sign the settlement statement prior to attaching it to the tax return. In situations where the signature of the seller is not on the settlement document, the IRS advises the buyer to still sign the document.
Link: Information on the First-Time Homebuyer Credit
IRS Debunks Frivolous Tax Arguments
http://www.irs.gov/newsroom/article/0,,id=219104,00.html
The Internal Revenue Service today released the 2010 version of its discussion and rebuttal of many of the more common frivolous arguments made by individuals and groups that oppose compliance with federal tax laws. Anyone who contemplates arguing on legal grounds against paying their fair share of taxes should first read the 80-page document, The Truth about Frivolous Tax Arguments. The document explains many of the common frivolous arguments made in recent years and it describes the legal responses that refute these claims. It will help taxpayers avoid wasting their time and money with frivolous arguments and incurring penalties.
COBRA Subsidy Eligibility Period Extended Through February; 15-Months Subsidy Now Available to Those Who Qualify
http://www.irs.gov/newsroom/article/0,,id=218522,00.html
Workers who lose their jobs during January and February may qualify for a 65-percent subsidy on their COBRA health insurance premiums, and these newly-eligible individuals, along with those already receiving the subsidy, can now receive it for up to 15 months, according to the Internal Revenue Service. Created by the American Recovery and Reinvestment Act of 2009, the COBRA subsidy eligibility period was originally scheduled to expire at the end of 2009, and eligible individuals only qualified for the subsidy for nine months. But the Department of Defense Appropriations Act, 2010, enacted on Dec. 19, extended the eligibility period and the maximum duration of COBRA premium assistance.
As a result, workers who are involuntarily terminated from employment between Sept. 1, 2008, and Feb. 28, 2010, may be eligible for a 65-percent subsidy of their COBRA premiums for a period of up to 15 months. Involuntarily terminated employees who meet certain other requirements, and certain family members of those individuals, are referred to as “assistance-eligible individuals.”
Reminder: 2009 Economic Recovery Payment Must Be Verified Through Other Agencies
http://www.irs.gov/newsroom/article/0,,id=204468,00.html
A one-time payment of $250 was made in 2009 to recipients receiving benefits from the Social Security Administration, disabled veterans receiving benefits from the U.S. Department of Veterans Affairs, and Railroad Retirement beneficiaries. Taxpayers who need verification about receipt of the 2009 economic recovery payment should personally contact their respective agency for confirmation, not the IRS, before completing and filing their 2009 tax return in 2010.
http://www.efile.irs.gov/
The Free File program provides free federal income tax preparation and electronic filing for eligible taxpayers through a partnership between the Internal Revenue Service and the Free File Alliance LLC, a group of private sector tax software companies. Many companies offer free or paid state tax preparation and e-filing services. Some companies may not offer state tax preparation and e-file services for all states. Explore which Free File service -- offered exclusively at IRS.gov/freefile — fits your situation: easy-to-use, step-by-step tax preparation software or fillable forms. All taxpayers can use this service.
We have an excellent electronic tool we think you’ll enjoy seeing on your organization’s Web site – and it’s easy to place there. It’s a “Web widget,” a portable, on-screen ad for Free File with a countdown clock that changes daily to let your Web site visitors know how many days are left in the filing season. It also links to more information about Free File on IRS.gov/.
To place the widget on your Web site, just visit http://www.efile.irs.gov, look for the “Tax Season Countdown” ad with the green banner at the top. Click “Get & Share” at the bottom, then “copy code” from the box at the bottom-right. Paste this computer code to your Web site, and let the countdown begin. You can also share the widget on a social networking site, such as Facebook, if you prefer. Just follow the “Get & Share” instructions.
Reminder: Haiti Relief Donations Made Before March 1 Qualify for 2009 Deduction
http://www.irs.gov/newsroom/article/0,,id=218678,00.html
People who give to charities providing earthquake relief in Haiti can claim these donations on the tax return they are completing this season. Taxpayers who itemize deductions on their 2009 return qualify for this special tax relief provision, enacted Jan. 22. Only cash contributions made to these charities after Jan. 11, 2010, and before March 1, 2010, are eligible. This includes contributions made by text message, check, credit card or debit card. The new law only applies to cash (as opposed to property) contributions. The contributions must be made specifically for the relief of victims in areas affected by the Jan. 12 earthquake in Haiti. Taxpayers have the option of deducting these contributions on either their 2009 or 2010 returns, but not both.
Additional Information Regarding Signature Requirements for First-Time Homebuyer Credit Documentation
http://www.irs.gov/newsroom/article/0,,id=219241,00.html
The IRS has provided additional clarification regarding documentation requirements on the First-Time Homebuyer Credit. The IRS encourages buyers seeking the homebuyer credit to sign the settlement statement when they file their tax return -- even in cases where the settlement form does not include a signature line. The IRS recognizes that elements of the settlement document, often a Form HUD-1, may vary from jurisdiction to jurisdiction and may not reflect the signatures of both the buyer and seller. While the Form 5405 instructions indicate that a properly executed settlement statement should show the signatures of all parties, the IRS has clarified that it will accept a settlement statement if it is complete and valid according to local law. In areas where signatures are not required on the settlement document, the IRS encourages the buyer to sign the settlement statement prior to attaching it to the tax return. In situations where the signature of the seller is not on the settlement document, the IRS advises the buyer to still sign the document.
Link: Information on the First-Time Homebuyer Credit
IRS Debunks Frivolous Tax Arguments
http://www.irs.gov/newsroom/article/0,,id=219104,00.html
The Internal Revenue Service today released the 2010 version of its discussion and rebuttal of many of the more common frivolous arguments made by individuals and groups that oppose compliance with federal tax laws. Anyone who contemplates arguing on legal grounds against paying their fair share of taxes should first read the 80-page document, The Truth about Frivolous Tax Arguments. The document explains many of the common frivolous arguments made in recent years and it describes the legal responses that refute these claims. It will help taxpayers avoid wasting their time and money with frivolous arguments and incurring penalties.
COBRA Subsidy Eligibility Period Extended Through February; 15-Months Subsidy Now Available to Those Who Qualify
http://www.irs.gov/newsroom/article/0,,id=218522,00.html
Workers who lose their jobs during January and February may qualify for a 65-percent subsidy on their COBRA health insurance premiums, and these newly-eligible individuals, along with those already receiving the subsidy, can now receive it for up to 15 months, according to the Internal Revenue Service. Created by the American Recovery and Reinvestment Act of 2009, the COBRA subsidy eligibility period was originally scheduled to expire at the end of 2009, and eligible individuals only qualified for the subsidy for nine months. But the Department of Defense Appropriations Act, 2010, enacted on Dec. 19, extended the eligibility period and the maximum duration of COBRA premium assistance.
As a result, workers who are involuntarily terminated from employment between Sept. 1, 2008, and Feb. 28, 2010, may be eligible for a 65-percent subsidy of their COBRA premiums for a period of up to 15 months. Involuntarily terminated employees who meet certain other requirements, and certain family members of those individuals, are referred to as “assistance-eligible individuals.”
Reminder: 2009 Economic Recovery Payment Must Be Verified Through Other Agencies
http://www.irs.gov/newsroom/article/0,,id=204468,00.html
A one-time payment of $250 was made in 2009 to recipients receiving benefits from the Social Security Administration, disabled veterans receiving benefits from the U.S. Department of Veterans Affairs, and Railroad Retirement beneficiaries. Taxpayers who need verification about receipt of the 2009 economic recovery payment should personally contact their respective agency for confirmation, not the IRS, before completing and filing their 2009 tax return in 2010.
AARP FOUNDATION ANNOUNCES 4th ANNUAL WOMEN’S SCHOLARSHIP PROGRAM
Low-Income 40+ Women in Washington Are Eligible for Scholarships
Applications Being Accepted February 1 through March 31, 2010
Washington - The AARP Foundation has announced a call for entries to its fourth annual Women’s Scholarship Program. The scholarships will provide funds to women 40+ who are seeking new job skills, training and educational opportunities to support themselves and their families. Up to 100 scholarships ranging from $500 to $5,000 will be awarded, depending on financial need and the cost of the education or training program.
“The AARP Foundation is committed to elevating opportunities for women,” said AARP State Director Doug Shadel. “Since its beginning, the program has provided valuable resources that have enabled more than 350 deserving women to have access to the educational tools to advance their professional goals. We are thrilled to be offering the program again this year.”
While many individuals benefit from the work of the AARP Foundation, research shows that women are disproportionately at risk of having insufficient funds in the second half of their lives due to lower earning and different work patterns. The AARP Foundation created the Women’s Scholarship Program in August 2007 to help women 40+ overcome financial and employment barriers by allowing them to participate in education and training opportunities they could otherwise not afford. In 2009, 108 women from all across the country were awarded more than $345,000 in educational scholarships.
Interested applicants can submit their application online beginning February 1, 2010 at www.aarp.org/womensscholarship. The application process closes on March 31, 2010. Scholarships will be awarded in early summer 2010.
Scholarships are available to eligible individuals with moderate to lower incomes and limited financial resources. To be eligible for the scholarships, applicants must:
- Be female age 40 or older (as of March 31, 2010);
- Be a U.S. Citizen
- Be able to demonstrate financial need; and
- Be enrolled in an accredited school or technical training program within 6 months of the scholarship award date.
Scholarship winners will be chosen by an independent selection committee established by the AARP Foundation. They will be chosen on the basis of financial need, personal circumstances and achievements, educational goals, and the likely impact of the scholarship on their lives and their families and communities.
The scholarship program is made possible by the AARP Foundation with generous support from Wal-Mart Foundation and the AARP Foundation Women’s Leadership Circle cabinet.
AARP Foundation
The AARP Foundation is AARP’s affiliated charity. Foundation programs provide security protection and empowerment for older persons in need. Low-income older workers receive the job training and placement they need to re-join the workforce. Free tax preparation is provided for low- and moderate-income individuals, with special attention to those 60 and older. The Foundation’s litigation staff protects the legal rights of older Americans in critical health, long-term care, consumer and employment situations. Additional programs provide information, education and services to ensure that people over 50 lead lives of independence, dignity and purpose. Foundation programs are funded by grants, tax-deductible contributions and AARP. For more information about the AARP Foundation, please log on to www.aarp.org/foundation.
Monday, February 1, 2010
Haiti Relief Donations Qualify for Immediate Tax Relief
People who give to charities providing earthquake relief in Haiti can claim these donations on the tax return they are completing this season. Taxpayers who itemize deductions on their 2009 return qualify for this special tax relief provision, enacted Jan. 22. Only cash contributions made to these charities after Jan. 11, 2010, and before March 1, 2010, are eligible. This includes contributions made by text message, check, credit card or debit card. The new law only applies to cash (as opposed to property) contributions. The contributions must be made specifically for the relief of victims in areas affected by the Jan. 12 earthquake in Haiti. Taxpayers have the option of deducting these contributions on either their 2009 or 2010 returns, but not both.
For more information:
http://www.irs.gov/newsroom/article/0,,id=218678,00.html
For more information:
http://www.irs.gov/newsroom/article/0,,id=218678,00.html
Thursday, January 7, 2010
NWWBC host Community Job Forum
Community Forum on Job Creation & Economic Growth Questions
Due to lack of media coverage of the 12/3 event, some were not able to add comments to this question. Of those that did, some reported not seeing anything relevant – just good intentions and nothing substantial since then. The restaurant industry has had a 30% drop in revenues in the past two years, and are no longer hiring additional personnel. It seems as though most advertising is now being done through social networking, such as Twitter and Facebook, which affects other service-related companies. Construction, land development and environmental review are impacted and affect all parts of land development, with the cutback in employees. Microsoft has been affected, and The Boeing Company will be moving a major assembly line to an entirely different state, which severely hurts us. There is a race to the top in education, and high School graduation rates are drastically down in Washington State. We have concerns with the educational workforce and the “No Child Left Behind” Act. We are appreciative of the effort, but there is a much larger issue. As a county, we can be proud of the school districts. They are working with a total of 9 school districts to reduce the dropout rate, including online graduation opportunities.
As a whole, we like the variety of attendees at these forums and feel that although each community faces its own unique obstacles and needs, the issues seem universal. Bottom line: we are interested in relevancy, and what is especially relevant to our county is job creation.
What parts of your local economy are working or thriving? What businesses and sectors are expanding and hiring?
Manufacturing in NW Washington is working. The government has given money to schools to educate students and women. Healthcare is strong, and will always be needed. The military has a strong presence in the state, and outside businesses are being attracted to Snohomish County. Aerospace is still strong even with Boeing’s relocation of the 787 line to South Carolina. High tech and technical service jobs are still here, although they do have some funding challenges. We have a variety of resources for companies wishing to go “green,” but technology needs to catch up with green concepts. Attorneys, bankruptcy and appraisers are all thriving. WSDOT is hiring mechanics, as well as police and government agencies. There is also an increased interest in the Bio Med industry, although funding has substantially decreased. We have solid worker retraining programs through Worksource and Employment Security Department, though some highly specialized individuals are struggling to get interviews. Some are seeing an increase in age discrimination playing a role in the hiring process. Retail and hospitality should increase with the 2010 Olympics; and public (i.e. State) construction and agriculture are also faring well. There is still a strong entrepreneurial spirit in this State.
What parts of your local economy are not working or thriving? What businesses and sectors have been hit the hardest? What are people struggling with the most?
Areas hit the hardest are real estate, the restaurant industry and higher education institutions. Retail and newspapers are also struggling. Youth jobs are not there because they are lacking education and experience, and many are being taken by the older, less skilled workforce. Mature workers and college graduates are hurting for jobs. Individuals have to volunteer just to get adequate work experience and/or upgrade their skill levels. Many job seekers are overqualified for fewer available jobs. Employers don’t like to higher overqualified staff for fear of fast turn-over. Private construction companies (commercial and residential) and financial institution jobs are taking a hard hit. There seems to be no “living wage jobs.” Other areas being affected are veterinary services, dental, the cosmetics industry, the Vision field of the healthcare industry and auto dealerships. In addition to that, the timber, maritime (boating), and the private capital/liquidity industries are also taking a major hit. Smaller businesses that compete against the larger chain stores are struggling as well.
What people seem to be struggling with the most is financial fear and uncertainty, unemployment, training funds, disposable income, depression, personal credit issues, skill gaps and public service systems and how exactly to access them for assistance.
What are the opportunities for growth in your community? What businesses and sectors seem poised to rebound? What do you see as the “jobs of the future”?
Businesses that are poised to rebound are the service industries, remodeling contractors and sub-contracting, financial education and healthcare (specifically nursing). Information Technology and other high tech jobs, green companies and recycling will also do well. Alternative energy and Bio Tech jobs, as well as aerospace, manufacturing, engineering are also strong possibilities for rebound opportunities. Composites and material science jobs seem to be on the increase for the future.
Opportunities for growth in our community include adding commercial flights to Paine Field, water quality testing and new, low-impact development techniques. There are several bio fuel companies that are interested in Snohomish County. The Rapid Transit Expansion is another solid opportunity for growth and expansion in our community.
What are the obstacles to job creation in your community? What could make local businesses more likely to start hiring?
Financing needs to be freed up, and tax credits need to be offered. Banks are to begin more lending, but the governmental restrictions are preventing loans from being streamlined. Retraining is needed and should be provided free of charge for those doing low-impact development, green construction and coming up with energy efficiency ideas. The Washington State constitution limits companies from coming to Washington State, the tax rates are too high, and there are limits on investments. Our state and local governments are significantly underfunded, there is no liquidity, and no tax incentives offered. We need education for hiring employees and understanding human resource and labor laws. There are economic changes and environmental regulations and no demand for goods and services.
What might assist in making local businesses begin hiring comes down to 1) an upswing in the economy, and 2) a skilled workforce that is flexible to meet the needs of changing business in America.
What other issues and ideas should the President consider?
We would like the President to look at mandatory furloughs, tax breaks/tax incentives, offering funding for Green ideas that help our environment, and the fact that there are too many restrictions on services provided (i.e. money for the homeless). The idea of hosting a Banking forum, where business owners could talk and ask questions of the banks would be helpful and informative. A Green conference is needed to bring together all aspects of a nation going “green.” The restrictions on the money given from the ARC Loan program through the SBA need to be minimized. It was great in theory, but in practice many businesses were not able to receive the funding. The documentation alone is difficult to read, and businesses often feel they need training just to read through it.
The higher educational system needs to be revamped. We are trying to compete within a more technology savvy and higher educated workforce globally, and retraining for students needs to be addressed. Our children cannot afford college, and the concept of performing some type of community service in lieu of tuition (not burdensome student loans) needs to be explored. If our children do take out loans to pay for college, they come out of school buried in debt, with little jobs open and have to take whatever they can to repay tuition. We cannot compete globally, like this.
In addition to this, the government should reconsider bailing out businesses with bad practices that are doomed to fail.
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