State launches $1.6 million Export Washington program for small businesses

Companies already benefitting from new State Trade and Export Promotion (STEP) grant program expected to aid over 100 small businesses and generate $58 million in new export sales

December 6, 2011— The Washington State Department of Commerce has launched the Export Washington program, moving another step forward toward the goal of increasing the number of Washington state businesses actively exporting by 30% and growing export sales to $100 billion by 2015 as called for in Governor Gregoire’s Washington Export Initiative.

The new Export Washington program represents a $1.6 million investment in Washington’s small businesses, making it possible for them to expand into high-potential overseas markets. It is funded by the U.S. Small Business Administration’s State Trade and Export Promotion (STEP) grant program.

Washington earned the third largest state grant from SBA under the federal Small Business Jobs Act. The newly funded programs will run for 12 months. The Washington State Legislature previously allocated $3 million over three years for export training and other assistance to support the Washington Export Initiative.

“With 95 percent of the world’s consumers outside of the United States, exporting represents one of our greatest opportunities to generate economic growth and jobs,” said Commerce Director Rogers Weed. “But it takes time and effort to develop export opportunities. These new programs enabled by the STEP grant, will help more of our state’s promising businesses and entrepreneurs open up international markets for their products and services.” Through the slow recovery from recession, companies engaged in exporting showed a pattern of growth in the past one to two years, while non-trading companies generally declined in the same period according to Commerce analysis.

Small businesses make up about 95 percent of Washington businesses, and only 4 percent of Washington businesses currently export. Commerce officials estimate that 100 companies will benefit from the new Export Washington program. The program has three main components:

1. International, Rural and Agricultural Accelerator programs—Washington State representatives in Europe and China provide direct sales, marketing and distribution assistance for state small businesses , effectively giving them “boots on the ground” in those high-potential markets. Rural Washington businesses will be able to leverage expertise from community economic development partners as well as training, mentorship and networking programs. Agriculturally-focused businesses will have direct access to trade representatives from key target markets including China, Japan, Mexico and Taiwan, along with training on food and beverage-specific requirements for exports to these target markets. They’ll also receive help with developing export marketing plans.

2. Export Finance Assistance—The Export Finance Assistance Center of Washington will focus an aggressive series of training activities aimed at increasing the number of banks that participate in export finance programs from the Export-Import Bank and Small Business Administration.

3. Export Vouchers—As a direct investment in the growth of Washington small businesses, a voucher program will help them “go global” by paying for training and marketing activities including trade shows, language translations, international product certifications, and other activities.

“For a business poised to expand into a promising new market, an export voucher can provide the incentive needed for them to ‘make the leap’ without having to cut elsewhere,” Weed said.

One example is Enprecis, a Seattle-based technology company with a focus on the automotive industry serving eight global markets including China and Russia, and 12 car-maker brands. Enprecis’ global expansion going forward will use the China Accelerator program which will enable the company to open a Shanghai office.

Richard Counihan, Enprecis CEO, notes that "Without the assistance and programs from the Washington State Department of Commerce, we would have been unable to get access to the key decision makers at important global manufacturers in markets such as China. As a result, we accomplished swift decisions to move forward and received assistance to get up and running."

Several companies will be using the Export Washington vouchers to participate in upcoming trade shows, including those targeted by Commerce such as the Mobile World Congress in Barcelona, Spain in February and the Aerospace and Defense Supplier Summit in Seattle in March. There are still vouchers available to attend these and other shows, for more information see the Export Voucher Program website.

CAPLines Program: Reengineered to Help Meet Working Capital Needs

The new CAPLines program gives small businesses more flexibility to finance the contracts, subcontracts, and purchase orders they compete for and win – both in the public and private sector.  By addressing the short-term and cyclical working capital needs of small businesses, the revolving line of credit will help small businesses manage their cash cycle, scale up and create jobs.

Background

The CAPLines program was reworked to help more small businesses finance contracts through an SBA revolving line of credit.

Today, small businesses often compete for contracts to help them scale up and create jobs.  One of the biggest “growing pains” associated with winning a new contract is the business often does not have the necessary cash on-hand to hire workers and buy materials to help fulfill the order.  CAPLines provides a path for these small businesses to finance contracts while avoiding high-interest rates.

Formerly, CAPLines was an underutilized SBA working capital program.  This year, the SBA engaged over 150 community lenders in all 50 states to uncover ways the program could work more effectively for both SBA lending partners and small businesses themselves. 

Key benefits of the new CAPLines program:

ü  Small businesses can pledge accounts receivable, inventory, contracts, and purchase orders in order to secure an SBA revolving line of credit.  For example, when fulfilling a purchase order request, that same order can be used as collateral to obtain an SBA-guaranteed line of credit to hire more workers and buy more materials.

ü  Small business subcontractors can now obtain an SBA-guaranteed line of credit to finance their work on a contract with a federal prime contractor. 

ü  The SBA will no longer require small business owners without buildings or equipment to use their personal assets as collateral to secure working capital. 

ü  Small businesses working on a contract that requires surety bonding can obtain an SBA-guaranteed line of credit.

In addition, small businesses that use CAPLines will benefit from the new increased SBA 7(a) loan limit of $5 million, which went into effect with the Small Business Jobs Act of 2010.  These larger loan sizes will help small businesses that are poised to win bigger contracts and create a significant number of jobs.

If you think that the new CAPLines program might be helpful to you – contact an SBA office near you and ask for a Lender Relations Specialist.

Small Businesses Find Support at Sno-Isle Libraries

Marysville, Wash. — Some of us don’t take technology for granted. Bill Church, owner of Bow Wow Bill’s Dog Services, lives in an area of Arlington that isn’t wired for Internet access. This hasn’t stopped Bow Wow Bill from growing his dog walking and dog training business. He often visits the Arlington Library to use their business resources.

"I can always gain access to research or get in and do the nitty-gritty that needs to be done with my business: invoicing customers, maintaining a social media marketing campaign, setting up my domain name and website, emails," commented Bill. "Sno-Isle Libraries has been instrumental in helping me do all of these things."

Communities thrive when local companies succeed. Whether you’re pursuing a dream of starting a business or you’re an experienced business owner, you can find business services and online tools at Sno-Isle Libraries to help you succeed.

Sno-Isle Libraries is a partner to small businesses by providing access to information that helps make smart business decisions. Sno-Isle’s business services include: public computers and printers, free Wi-Fi, fax machines, computer classes, SCORE counselor sessions, online business databases, and the expertise of librarians to guide research.

Sno-Isle Libraries offers access to many free online databases crucial to business development. Business Plans eBookshelf gives examples of real business plans by entrepreneurs seeking funding. The Business Decision database creates reports on consumer or competitor demographics. For research on gathering client or vendor lists, the ReferenceUSdatabase provides quality information. These online resources, along with how-to videos, are available at www.sno-isle.org/explore/business.

For those who need personalized help, Sno-Isle offers the Book a Librarian service. Librarians will meet one-on-one with a patron for 30 to 60 minutes of instruction on using online resources or finding information.

The Lynnwood Library is Sno-Isle’s regional reference center for business and law and offers free one-on-one consulting sessions with SCORE, counselors to America’s small business. Self-service fax machines are available at five libraries: Darrington, Granite Falls, Lynnwood, Mukilteo and Oak Harbor. All 21 Sno-Isle community libraries have free Wi-Fi, public computers that can be reserved in advance, and friendly librarians eager to help.

For the last two years, Bow Wow Bill has been working hard to expand his business to include the publication of Dog Coach Magazine, expected to launch this fall. All of his online work was done using the library’s free Wi-Fi.

Being a partner in the economic growth of this region and helping local businesses succeed are important parts of Sno-Isle Libraries’ mission. Just ask Bow Wow Bill; with the support of Sno-Isle Libraries, there’s no telling how far he’ll take his puppy empire.

For more information on business services and online resources, visit www.sno-isle.org/business or ask a Sno-Isle Libraries staff member.

About Sno-Isle LibrariesSno-Isle Libraries serves 671,000 residents in Snohomish and Island counties. Sno-Isle has community libraries in Arlington, Brier, Camano Island, Clinton, Coupeville, Darrington, Edmonds, Freeland, Granite Falls, Lake Stevens, Langley, Lynnwood, Marysville, Mill Creek, Monroe, Mountlake Terrace, Mukilteo, Oak Harbor, Snohomish, Stanwood, and Sultan, as well as bookmobile stops in communities and at senior centers. Services and materials include more than 1.3 million items, reference services, electronic databases and computer equipment, Internet access, outreach programs for the homebound and local daycares, and story times for children. For more information on library services in your area, please call the Sno-Isle Libraries

Service Center at 360-651-7000 or 1-877-SNO-ISLE (1-877-766-4753), or visit the website at www.sno-isle.org.

For more information, contact: For immediate release
Ken Harvey, Communications Director September 1, 2011
360.651.7030 email: kharvey@sno-isle.org

Financing Seminar for businesses presented by the San Juan County EDC

Learn about a variety of business financing options available from traditional and alternative agencies and lenders, during a Business Financing Seminar presented by the San Juan County Economic Development Council. The event will be held at the Mullis Street Fire Hall, 1011 Mullis Street, Friday Harbor, on Monday, November 7, from 9-11 a.m.

Attendees will meet representatives from financing agencies, including the SBA, the USDA, EFACWA, the Northwest Women’s Business Center, local lenders, and more – over eight representatives will attend. Participants will leave the seminar knowing which program will best suit their businesses’ needs.

Topics will include local, state and federal loan and grant sources, loan requirements, the recent expansion of federal funding through federal and state agencies, export financing assistance, alternative financing options, hiring incentives and other services available to assist businesses.

The EDC thanks San Juan County, the Town of Friday Harbor and the Ports of Friday Harbor and Lopez for supporting our Business Financing Seminar.

The San Juan County Economic Development Council’s Business Education Series was created by the EDC in response to concerns from local business owners and overall increased demand from new businesses. This series presents a variety of business topics designed for both those opening a new business or those wanting to take their business to the next level. The Business Education Series was funded in part by San Juan County government.

The San Juan County Economic Development Council (EDC) strives to strengthen and diversify the economy of San Juan County. We believe a strong economy builds a strong community. The EDC works to build an environment that helps business owners create jobs. We serve business: linking organizations and resources, providing valuable information, rendering assistance and advocating for an improved island business environment.

2012 Washington State Small Business Award Competition Begins

SBA Seeks Nominations - deadline November 28th

                                                                                

It’s no secret small businesses make significant contributions to the state's economy and they bring innovative products and services to the marketplace. They are an important source of employment and opportunity throughout the state. Seattle District SBA Office wants to recognize these entrepreneurs and those who support and champion small businesses. Help us by nominating candidates for our upcoming awards program. Last year, two of our local winners received National awards and represented Washington state during National Small Business Week ceremonies in Washington DC.

“The determination and ingenuity of America’s workers and entrepreneurs are major contributors to the strength of the American economy” says Nancy Porzio, Seattle District Director. “Over 99% of all employer firms are small businesses, employ 51% of all people and have generated over two-thirds of new jobs in the past decade. Washington State is home to approximately 550,000 small businesses and make up 98% of the state’s employers. Small business is BIG in Washington State”, she adds. 

Any individual or organization may submit nominations. A company, owner, or business advocate can also self-nominate. Award categories include:

·Small Business Person of the Year

·Small Business Exporter of the Year

·SBA Young Entrepreneur of the Year

·Jeffrey Butland Family-Owned Business of the Year

·Entrepreneurial Success Award

Small Business Champion Award recipients are individuals or organizations who have dedicated their professional skills or personal talents to supporting small businesses through advocacy and volunteer efforts. Nominees may or may not be small business owners. Categories include:

·Financial Services Champion of the Year

·Home-Based Business Champion of the Year

·Minority Small Business Champion of the Year

·Veteran Small Business Champion of the Year

·Women in Business Champion of the Year

The winner of the Washington State Small Business Person of the Year, along with other state winners will be honored locally at the Washington State Awards Gala in the Spring 2012 and continue on to compete for national honors.

All nominations must be received no later than Monday, November 28, 2011. For a copy of the full nomination criteria, contact Carol Andersen, SBA, at 206-553-7315, carol.andersen@sba.gov. Downloadable nomination forms are also available electronically. Go to http://www.sba.gov/about-offices-content/2/3157/resources/6635 # #

VA Announces PSA About Women Veterans: Nationwide Release Encourages Public to Join VA Culture Change

WASHINGTON – The Department of Veterans Affairs is taking its internal culture-change message to the public with a new video about the vital role women play in the military and the importance of providing women Veterans with high quality health care.

VA’s Women Veterans Health Strategic Health Care Group recently completed a 60-second public service announcement (PSA) that challenges viewers to rethink pre-conceived notions about women Veterans. This dynamic video features images of women in service to our country: they drive supply trucks, participate in reconnaissance missions, walk safety patrols, and operate helicopter machine guns.

“When these brave women complete their service and become Veterans, we want them to know that VA is there to meet their health care needs,” said Dr. Patricia Hayes, Chief Consultant of the VA’s Women Veterans Health Strategic Health Care Group. “At the same time, we want the public to recognize the contributions of women Veterans and the benefits they have earned through their service to the Nation.”

The PSA is available for viewing on YouTube: http://www.youtube.com/watch?feature=player_profilepage&v=BOP5DCgjxPE and www.va.gov. Broadcast organizations interested in obtaining a broadcast-quality version of the PSA should contact VA’s Office of Public Affairs (202-461-7600).

The number of women using VA has doubled in the past decade, and that increase is expected to continue into the next decade.

More than half of the women using VA health care have a service-connected disability. These range from combat PTSD to missing limbs. The PSA gives a sampling of the service-connected disabilities women Veterans must cope with on a daily basis.

The PSA was developed for nationwide release from a new employee orientation video—available at www.womenshealth.va.gov—created as part of VA’s ongoing efforts to change its culture to be more understanding and accommodating of women Veterans and honor the important service they have given our country.

“VA’s goal is to provide the highest quality care for every Veteran, regardless of gender.  Part of this initiative has been educating staff so they understand and appreciate that it is their job to make sure women Veterans receive the best care anywhere,” said Hayes.

In addition to new employee orientation, VA is spreading its culture-of-change message to current employees through posters, conferences, and e-mail messaging. VA health care providers are all given the opportunity to participate in a ground-breaking mini-residency program in Women’s Health for Veterans. This program has already educated more than 1,100 VA providers on the latest knowledge in gender-specific health care.

For more information about VA programs and services for women Veterans, please visit: www.va.gov/womenvet and www.womenshealth.va.gov. 

The Videos Are In – Tell Us Your Favorite Small Business Exporting Story

Voting Period for SBA’s Export Video Contest is NOW OPEN
In August, we announced the Export Video Contest, asking small businesses to submit their exporting stories through YouTube videos for a chance to win cash prizes and a monetary award towards a future export event. The contest, presented in partnership with Visa and the President’s National Export Initiative, recognizes successful small exporters and helps get the word out about federal tools available to help U.S. exporters expand into new markets, grow their companies and spur job creation.

You responded. We received entries from companies doing business around the globe, representing diverse industries from personal care products to healthcare innovations and residential water solutions.

The videos are in, and a panel of judges has selected the finalists in each of five categories. Now it’s your turn to vote for the best video on our YouTube channel and Facebook page!

Voting Instructions
There are two different ways to vote:
1.)     You can "Like" your favorite contestant's video on the SBA Facebook page (www.facebook.com/sbagov), via the links provided under the "Videos" tab.
2.)     You can "Like"(thumbs-up) your favorite contestant's video on the SBA YouTube channel (www.youtube.com/sba).

You may vote once per video per voting method, but you may vote for as many of the finalists’ videos as you wish. Voting closes at 12 Noon (Eastern Time) on Friday, October 28, 2011. Only votes cast through one of the official voting methods will count. "Likes" on videos posted on non-SBA YouTube channels, personal Facebook profiles, or any other website will NOT count toward the final tally. To find the videos, check out our Facebook and YouTube pages or click on the links below by business category:

Agribusiness category
Building Beyond Our Borders
http://www.youtube.com/watch?v=sLbFRRHnUzg
Consumer Products category
Grow Your Business One Country At A Time
http://www.youtube.com/watch?v=4sIRpVXepuA
Manufacturing category
Exporting: Success Beyond Borders
http://www.youtube.com/watch?v=V4_s6fo1hYM
Professional Services category
From Small to International Business
http://www.youtube.com/watch?v=CngHp1qerQ0
Technology category
Exported from Detroit
http://www.youtube.com/watch?v=EO7uVnRsVaw
Please see our full Contest Rules for complete contest policies.

Co-sponsorship Authorization #11-7080-11SBA

SBA’s participation in this cosponsored activity is not an endorsement of the views, opinions, products or services of any cosponsor or other person or entity. All SBA programs and service are extended to the public on a non-discriminatory basis.

IRS News Releases and Headliners - October 2011

Free Webinar: Reporting of Employer Provided Healthcare Coverage on Form W-2
http://www.irs.gov/businesses/small/article/0,,id=158856,00.html#2
Oct 31 -- 11:00 a.m. (PT)
This webinar will explain the Affordable Care Act provision that requires some employers to report health care coverage on Form W-2.
Learn about:
What changes employees will see in their Form W-2 due to the coverage reporting
When employers must begin reporting the cost of coverage on the Form W-2
Transitional relief for certain employers, plans, and situations
Which employers need to report the cost of coverage on the Form W-2
How employers will report the cost of coverage on the Form W-2
What valuation methods employers can use to determine the amounts to report on the Form W-2
CPE credit is not being offered for this webinar. To register for this event, visit the Internal Revenue Service Webinar Registration Web Site.

Related links:
IR-2011-31, IRS Issues Interim Guidance on Informational Reporting of Employer-Sponsored Health Coverage
Employer-Provided Health Coverage Informational Reporting Requirements: Frequently Asked Questions

BBB Secure Your ID Day: Gather Unwanted Documents for Fall Shred Event
http://alaskaoregonwesternwashington.bbb.org/secure-your-id
The Better Business Bureau is partnering with America's Credit Union and Cintas Document Management to bring free bulk shredding services to South Sound residents. BBB's goal is to help consumers securely shred personal documents to prevent identity theft.
Saturday, Oct. 22 -- 9 a.m. – 1 p.m.
1495 Wilmington Drive, DuPont, WA 98327
Drive up and drop off up to three bags or boxes of unwanted documents per person. No cardboard or three-ring binders please. Items will be securely shredded on-the-spot by Cintas for free. Donate old cell phones: ACU and BBB are collecting for Cell Phones for Soldiers. Donated phones help raise the funds needed to purchase international calling cards for deployed soldiers. For more information, please contact BBB serving Alaska, Oregon and Western Washington at 206-431-2222 or events@thebbb.org.

Business Tax Requirements – Offered in Spanish – Yakima & Sunnyside
http://www.rcdr.biz/default.htm
October 18 – Sunnyside -- Work Source Office, 1925 Morgan Road
6:00-8:30 pm
or
October 20 – Yakima -- Rural Community Development Resources, 22 S 3rd Ave
6:00-8:30 pm
Rural Community Development Resources, in partnership with the IRS, and the Washington State Departments of Labor & Industries and Employment Security will be providing educational workshops for limited English speaking Latino entrepreneurs and start up businesses on employment taxes, and state and federal business tax filing and reporting, including IRS Form 1040 Sch C, Sch SE and credits. Call (509) 453-5133 for more information or to register.
THIS SEMINAR IS IN SPANISH.

Small Business Taxes & Bookkeeping for the Small Business Owner – Seattle SBA Education and Training Center
2nd & 4th Thursday of each month - 10:00 am to 11:00 am
Upcoming workshop dates: Oct 27, Nov 10
4th & Battery Building - 2401 Fourth Avenue, Suite 450, Seattle
Learn about important information regarding your tax responsibilities as a small business owner, find out what taxes to pay and when they are due. Please pre-register by calling 206-553-2664 or e-mail workshops@sba.gov
SBA and SCORE also offer a variety of other workshops for small business owners – find out more here: http://www.sba.gov/about-offices-content/2/3157

Payroll Workshop – Seattle SBA Education and Training Center
2nd Thursday of each month -- 8:30 am to 9:30 am
Upcoming workshop dates: Nov 10
4th & Battery Building - 2401 Fourth Avenue, Suite 450, Seattle
Have you been in business for a while? Are you ready to incorporate? Hire employees? Want to know more about payroll, benefits, and human resources? If you need to make informed decisions about growing your business, this workshop is for you. Key information covered: 1) Contractor versus employee; 2) Keeping current on ever changing tax rules; 3) Payroll software and business owner options; 4) Strategies to empower yourself as an entrepreneur.
Please pre-register by calling 206-553-2664 or e-mail workshops@sba.gov
SBA and SCORE also offer a variety of other workshops for small business owners – find out more here: http://www.sba.gov/about-offices-content/2/3157

Explore Self-Employment and Learn How to Start Your Own Business!
http://nwwbc.seattleccd.com/node/81
Self Employment may not be for everyone, but if you think that you have the experience, interest, and motivation, these workshops can be an important first step towards a successful new beginning. This workshop will give you an opportunity to assess your skills in order to determine if self employment is a realistic option for you.
3rd Monday of each month
Where: Worksource – Oak Harbor
Cost: FREE!
For more information or to register, contact the Northwest Washington Business Center at (425) 423-9090 or infonwwbc@seattleccd.com.

Seattle SCORE Workshops
http://seattle.score.org/events
SCORE offers workshops designed to give you the skills necessary to start your own successful business.
Nov 2, Dec 7 -- Starting a New Business
4th & Battery Building - 2401 Fourth Avenue, Suite 450, Seattle

Starting Your Own Business -- Spokane SBDC
http://wsbdc.org/class-detail?classid=371
The Spokane SBDC is now offering a Starting Your Own Business Seminar in Spokane the 3rd Wednesday of each month, starting September 21. If you have considered starting your own business, or are ready to jump start a small business you already have, you may want to attend this one evening seminar. Please register on the SBDC website training calendar http://wsbdc.org/training-calendar or use the direct link in the class title. If you have difficulty with on line registration or have other registration questions contact Cindy Doyl at cdoyl@wsu.edu or 509-358-7890.
Oct 19 – 6:00 – 8:30 pm
(Every Third Wednesday from 6 - 8:30 pm)
Cost: $36
Held at the Spokane Small Business Development Center
665 N Riverpoint Blvd., Suite 201, Spokane WA 99202

Spokane SCORE Workshops
http://www.scorespokane.org/workshops.php
Spokane Regional Business Center (SRBC), 801 W. Riverside Avenue, Suite 444, Spokane
Financial Record Keeping – Oct 26
How to Start a New Business – Nov 2
Cost: $40 if registered in advance
Check website for current listings and registration information.

Employer's Introduction to L&I Workshops
http://www.lni.wa.gov/Safety/TrainTools/Workshops/Available/EmpOrien/default.asp
This workshop is designed for new businesses or businesses that plan to hire workers for the first time. It explains an employer’s rights and responsibilities and provides an overview of the services and resources available at Labor and Industries.
Nov 9 – Mt. Vernon – 9am – 12 pm
Nov 17 -- Tacoma – 1:00 – 3:30 pm

IRS Updates & News Releases:
Did you know? One of the best ways to get information is by visiting the IRS Small Business Tax Center where you can learn everything from how to get an Employer Identification Number (EIN) online to how to best navigate an audit.

Tax Extension Reminder: Don't Overlook Special Individual and Small Business Tax Benefits; Choose e-file, e-pay
http://www.irs.gov/newsroom/article/0,,id=247198,00.html
The Internal Revenue Service urges taxpayers whose tax-filing extensions run out soon to double check their returns for expanded individual and business tax benefits, and then file their returns electronically using IRS e-file or the Free File system. Many of the nearly 10.1 million taxpayers who requested an automatic six-month extension this year have yet to file. IRS e-file is fast, accurate and secure, making it an ideal option for those rushing to meet the Oct. 17 deadline that applies to most people who requested extensions, or the special Oct. 31 deadline that applies to many taxpayers affected by recent natural disasters.

Most taxpayers qualify for e-file regardless of whether they prepare their returns themselves or use a paid preparer and regardless of whether they live in the United States or abroad. In addition, those with incomes at or below $58,000 can file their returns for free using the Free File link on IRS.gov. Taxpayers who file electronically can also e-pay by authorizing an electronic funds withdrawal or making a credit card payment.

IRS Announces New Voluntary Worker Classification Settlement Program; Past Payroll Tax Relief Provided to Employers Who Reclassify Their Workers
http://www.irs.gov/newsroom/article/0,,id=246203,00.html
The Internal Revenue Service has launched a new program that will enable many employers to resolve past worker classification issues and achieve certainty under the tax law at a low cost by voluntarily reclassifying their workers. This new program will allow employers the opportunity to get into compliance by making a minimal payment covering past payroll tax obligations rather than waiting for an IRS audit. This is part of a larger “Fresh Start” initiative at the IRS to help taxpayers and businesses address their tax responsibilities.

“This settlement program provides certainty and relief to employers in an important area,” said IRS Commissioner Doug Shulman. “This is part of a wider effort to help taxpayers and businesses to help give them a fresh start with their tax obligations.”

The new Voluntary Classification Settlement Program (VCSP) is designed to increase tax compliance and reduce burden for employers by providing greater certainty for employers, workers and the government. Under the program, eligible employers can obtain substantial relief from federal payroll taxes they may have owed for the past, if they prospectively treat workers as employees. The VCSP is available to many businesses, tax-exempt organizations and government entities that currently erroneously treat their workers or a class or group of workers as nonemployees or independent contractors, and now want to correctly treat these workers as employees. See the full article for details on which employers are eligible to participate.

What Employers Need to Know About Claiming the Small Business Health Care Tax Credit
http://www.irs.gov/newsroom/article/0,,id=246605,00.html
Many small employers that pay at least half of the premiums for employee health insurance coverage under a qualifying arrangement may be eligible for the small business health care tax credit. This credit can enable small businesses and small tax-exempt organizations to offer health insurance coverage for the first time. It also helps those already offering health insurance coverage to maintain the coverage they already have. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ 25 or fewer workers with average income of $50,000 or less. See the full article for what small employers need to know so they don’t miss out on the credit for tax year 2010.

IRS Issues Guidance to Further Implement Return Preparer Oversight
http://www.irs.gov/newsroom/article/0,,id=246227,00.html
The Internal Revenue Service has provided additional clarification for tax return preparers about when to renew their preparer tax identification numbers (PTINs), how suitability testing will be conducted, and when the continuing education requirement will begin. Notice 2011-80 provides that PTINs must now be renewed on a calendar year basis. All PTIN holders must renew their numbers using the online PTIN application or paper Form W-12 and pay the required fee ($64.25 for 2012) after Oct. 15 and before Jan. 1 annually. The return preparer initiative requires anyone who is paid to prepare all or substantially all of any federal tax return or claim for refund to register with the IRS and obtain a PTIN. Certain preparers also must pass a competency examination, undergo a suitability check and complete continuing education courses annually. The IRS will designate individuals who meet these requirements as a Registered Tax Return Preparer. Individuals designated as a Registered Tax Return Preparer will be authorized to prepare federal tax returns and claims for refunds and to represent their clients during an IRS examination of a tax return or claim for refund that the individual signed as the paid tax return preparer. The notice also clarifies a number of other issues.

Recent Articles from e-News for Small Businesses

Update on heavy highway vehicle use tax
A new video outlines recent changes for filing Form 2290, Heavy Highway Vehicle Use Tax return.

Reminder: Federal Payroll Tax Deposits must be made electronically
As of Jan. 31, 2011, using Federal Payroll Tax Deposit coupons F8109 or F8109B is no longer a deposit option. Federal tax deposits must be made electronically. Payments mailed to the Federal Tax Deposit mailbox in St. Louis are being returned.

Notice 2011-81 provides the 2011-2012 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home.

IR-2011-94, IRS Shows Continued Progress on International Tax Evasion

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Congratulations Roland!

SBA Names Roland Chaiton

Community Capital Development, Seattle

2011 Washington State and Region 10 Financial Services Champion of the Year

Celebration honoring winners on April 21st – The Museum of Flight, Boeing Field, Seattle

SEATTLE – “If anyone can do this, you can.” These words are frequently spoken to Roland Chaiton, the U.S. Small Business Administration Region 10 (WA, OR, ID, AK) Financial Services Champion.  Roland Chaiton is a Loan Officer and Vice President of Community Capital Development (also known as CCD).  CCD is a leading technical assistance provider, U.S. Treasury Department designated Community Development Financial Institution, and a non-profit lender to microenterprises and small businesses, including start-ups, throughout Washington.   

Roland Chaiton understands entrepreneurs.  He managed a family-owned business while in college and had ownership in several small businesses during his career, including an export management business he operated for ten years.  His entrepreneurship and management experience provide an excellent platform in becoming a loan officer who helped build CCD into an alternative lending powerhouse.

“Roland is a trail blazer, one who has pioneered many “firsts.”  He was the first to move CCD beyond the realm of standard 7(a) loans d into LowDoc and SBA Express loans.  He submitted the first Patriot Express loan for approval in SBA’s Region 10,” said Nancy Porzio, SBA Seattle District Director.  He was instrumental in CCD’s expansion of their loan offerings to include USDA’s Business & Industry loans and USDA’s microloans. His successful facilitation made it possible for CCD to offer SBA Export Express loans to which contributed to the Presidential initiative designed to help companies expand exporting.  With a nearly two decade career, Chaiton is the first lender whose loan portfolio has a near-zero default ratio.

Roland has become the “go-to” person for troubled companies with difficult loan situations. Virtually all his clients were originally declined by conventional banks before connecting with him. Chaiton’s clients range from mom-and-pop shops and aerospace companies to bio-fuel producers and a “man-skirt” (kilt) manufacturer.  “No matter the situation, whether to help someone bridge a period of unemployment, change their life permanently by moving in a different career direction, or pursuing the dream of being one’s own boss, Roland’s teaching, guidance and direction has made the difference in their lives,” said Regional Administrator Calvin W. Goings.  “The business, financial skills and services that Chaiton has provided over the years through classes or by one-on-one meetings has imparted critical information entrepreneurs have needed to establish successful businesses. 

Chaiton lends his expertise to formal and informal education efforts; providing entrepreneurial training at CCD, designing award winning curricula at local colleges, and serving as a volunteer presenter of loan information at SBA loan briefings and the annual Renton Small Business Fair.  He has served as a liaison for clients to Congressional representatives, so they could testify on how they have been adversely affected by mortgage industry abuses, lack of access to credit, as well as the end of the bio-diesel tax credit.  He advocates for programs that can result in small businesses having increased access to finance options that foster economic growth and job creation.

For the life-changing positive impact on scores of small business owners and impressive results from years of contributions and advocacy efforts, we are proud to name Roland Chaiton as the SBA Region 10 Financial Services Champion. 

For information about the Washington State Awards Gala, contact carol.andersen@sba.gov

An independent panel of judges selected the winner based on several criteria, including assistance given small businesses to obtain financing, advocacy for changes in the financial services industry, encouragement of the flow of investment capital to small businesses, active support for legislative or regulatory action, and significant contributions through the advocacy efforts of the financial services industries to advance small business interests. 

Small Business Champion Award winners will be selected at the state, regional and national levels.  Information on SBA’s National Small Business Week 2011 celebrations in Washington, D.C. can be found at www.sba.gov

SBA News Release

           

SBA Names Anne-Marie Faiola

CEO, Bramble Berry, Inc., Bellingham

2011 Washington Small Business Person of the Year

Celebration honoring winners on April 21st – The Museum of Flight, Boeing Field, Seattle

SEATTLE – The U.S. Small Business Administration’s 2011 Washington State Small Business Person of the Year epitomizes the hobbyist’s dream come true.  Anne-Marie Faiola turned a soap-making hobby into a multimillion-dollar business called Bramble Berry.  From shea butter to lavender essential oil to palm oil, Bramble Berry now sells raw materials to soap and toiletry artisans worldwide.

Faiola practices what she preaches. “A good business comes from finding something that works and capitalizing on it…Success doesn’t happen overnight…It’s about replicating small victories every day.”

In 1998 when Anne-Marie Faiola was 20 years old and still in college, she pursued entrepreneurship-- her soap making hobby-turned-into-business quickly bubbled beyond her living room.  A driving force for Anne-Marie and the company is her sincere love of the craft coupled with a desire to help others.  Her mission statement is to “provide creative empowerment with LOVE – changing Lives, creating Opportunities, delivering high Value, and encouraging creative Expression through the five senses.”

With over 2500 products, Bramble Berry enables artisans to create everything from soaps to lotions to lip balms to mineral-based makeup and candles.  Expanding beyond Bramble Berry’s niche, Anne-Marie also operates Otion (lotion without the “L”) - a retail store where she also offers workshops to teach customers the soap making techniques, and ELF Industrial - a soap mold manufacturing company.

Harnessing social media has strengthened customer relationships leading to increased sales because “people buy from people they like.”  Anne-Marie blogs on her website, SoapQueen.com; has launched a YouTube channel called Soap Queen TV to share free instructional videos; tweets for @BrambleBerry with small business advice and soapy musings; and has a Facebook site with over 4,600 fans and loyal customers.

“An SBA 504 loan from People’s Bank and Northwest Business Development Association enabled Faiola to acquire her own 13,000 square foot office and warehouse building in Bellingham, and later to expand it by 3,500 square feet,” conveys Nancy Porzio, SBA Seattle District Director.  “Bramble Berry has been profitable for all 13 years of the company’s existence. The sustained financial performance is a testament to her business acumen” added Porzio.  “Dynamic, double-digit growth in sales from multiple income streams now generates annual revenue of about $3 million.  Faiola has 32 employees, serves on numerous boards, and annually gives back about 8% of profits to charitable causes.  These are key reasons why she was selected for the Washington state Small Business Person of the Year,” said SBA Regional Administrator Calvin W. Goings.

With her high-energy work style, integrity, desire to connect with the business community, and passion for the soap business, Anne-Marie Faiola is likely to clean up in the soap industry for years to come!  “We enthusiastically select her as Washington State Small Business Person of the Year.  Anne-Marie reminds us that the entrepreneurial spirit is alive and well in Washington state, and we look forward to honoring her success at the Awards Gala on April 21^st,” said Porzio.

For information about the Washington State Awards Gala, contact carol.andersen@sba.gov

An independent panel of judges selected the winner based on several criteria, including staying power, business growth, increase in employees, response to adversity, innovation, leadership and contributions to the small business community, and evidence of community-oriented projects.  As the state winner, Faiola will be traveling to Washington DC in May to compete with 53 other winners from across the country for the National Small Business Person of the Year Award.  Information on SBA’s National Small Business Week 2011 celebrations in Washington, D.C. can be found at www.sba.gov  

SBA Announces Washington 2011 Small Business Awards

SBA Announces Washington 2011 Small Business Awards

Honoring winners on April 21st - Museum of Flight, Boeing Field, Seattle

SEATTLE – The U.S. Small Business Administration’s Seattle District Office has named Anne-Marie Faiola, CEO, Bramble Berry, Inc. of Bellingham, Washington as 2011 Washington Small Business Person of the Year. Bramble Berry sells raw materials to soap and toiletry artisans all over the world. From shea butter, to lavender essential oil, to palm oil, Bramble Berry has everything you may need to make a great bar of soap for yourself and family. Bramble Berry was started by Faiola in 1998 with $15,000 on a credit card and has since then grown into multiple income streams and 3.1 million in profitable revenue. With a popular blog, a separate retail store, and separate manufacturing facility, Bramble Berry continues to expand its reach into the soap and toiletry market.

  “Anne-Marie demonstrates the passion and drive needed for successful entrepreneurs. She self-funded her start-up company in her living room and has since then expanded the company to over 3 million in annual revenue. The company is currently debt free (except a warehouse mortgage obtained through the SBA 504 loan program) and has been profitable for 13 straight years,” said SBA Seattle District Director Nancy Porzio.

An independent panel of judges selected the winners based on several criteria, including: staying power; business growth; increase in employees; response to adversity; innovation; leadership and contributions to the small business community; and evidence of community-oriented projects. “Anne-Marie exhibited strength in all areas,” said SBA Regional Administrator Calvin W. Goings. “As the state winner, Anne-Marie Faiola will compete with 53 other winners from across the country for the National Small Business Person of the Year Award in Washington D.C. I know she will represent the State of Washington well.”

The Washington state SBA Small Business Awards’ Event – A Big Night for Small Business - will be held in Seattle on April 21st at the Museum of Flight, Boeing Field, Seattle WA. In addition to celebrating Faiola’s outstanding accomplishments, the award ceremony will honor the following state and regional winners (regional winners competed against state winners in AK, ID, and OR):

 × WA state & Region 10 – Financial Services Champion – Roland Chaiton, Community Capital Development, Seattle;

× WA state & Region 10 - Veteran Small Business Champion – Darrel Bowman, mynetworkcompany.com, Tacoma;
× WA state & Region 10 – Women in Business Champion– Laurie Simon, Ombrella, Inc., Kirkland;

Also featured will be state SBA Champion award winners who support and advocate on behalf of small businesses and entrepreneurship.

× WA state – Small Business Exporters of the Year – Robert Haberman & Bradley Haberman, No. 9 Hay LLC, Ellensburg;
× WA state - Family-Owned Small Business of the Year – Andrew J. Olson, A-1 Mobile Lock & Key, Inc., Burlington;
× WA state – Home-Based Business Champion – Cosette Gibson-Pfaff, South Sound Regional Business Incubator, Federal Way;
× WA state – Minority Small Business Champion – Mike Skinner, StartZone – Highline Community College, DesMoines;

“Our winners remind us that the entrepreneurial spirit is alive and well in Washington state,” said Porzio, “and we look forward to honoring their success at The Museum of Flight in April”.

For information about the Washington State Awards Gala, contact carol.andersen@sba.gov. Information on SBA’s National Small Business Week 2011 celebrations in Washington, D.C. can be found at www.sba.gov

Women Entrepreneurs Summit

SBA HOLDS A WOMEN ENTREPRENEURS SUMMIT

TO ADDRESS CRITICAL CHALLENGES FACING WOMEN IN BUSINESS

SEATTLE, March 5, 2011 – Anna Harvey, SBA Associate Administrator for the Office of Women’s Business Ownership, will speak with small business owners from the Pacific Northwest to address the critical challenges facing women in business. Women Entrepreneurs in Oregon and Washington State make significant contributions to their economies. Oregon and Washington have 88,317 and 137,394 women-owned firms respectively. The last U.S. Census showed women-owned firms contribute $2.8 trillion dollars annually and employ 23 million people directly and indirectly. Women business owners are major contributors and players in the overall economy.

WHAT: SBA will host a Women’s Entrepreneurial Summit for women business owners, leaders and government experts to address the critical challenges, opportunities and public policy measures needed to move the women’s business agenda to the next level.

The summit serves:
* Set priorities and explore business challenges facing women Entrepreneurs
* Promote dialogue among the women’s business community.
* Guide national policy recommendations for Congress and the Executive Branch
* Provide networking opportunities for women business owners

WHO: Anna Harvey, Associate Administrator Office of Women’s Business Ownership

WHERE: Renton Technical College
3000 NE 4th Street
Renton, Washington

WHEN: March 5, 2011 from 12:00 to 5:00 PM

Registration is required for this free event:
http://events.sba.gov/eventmanagement/eventlisting.aspx?state=WA.

For more information contact: Sherry Mina by phone or e-mail at 206-553-7316 or
sherry.mina@sba.gov



Small Business Jobs Act of 2010 Tax Provisions

The Small Business Jobs Act of 2010 was enacted on September 27, 2010. The SBJA contains some tax provisions that take effect this year. Other tax provisions will be implemented during the next several years. Several of the provisions are designed to encourage investment and provide access to capital for businesses. The following is a list of those specific tax provisions now in effect; additional information will be added to this page as it becomes available.


Sect. 2011: Temporary exclusion of 100% of gain on certain small business stock
Sect. 2012: General business credits of eligible small businesses for 2010 carried back 5 years
Sect. 2013: General business credits of eligible small businesses in 2010 not subject to alternative minimum tax
Sect. 2014: Temporary reduction in S-Corporation built-in gain recognition period
Sect. 2021: Increased expensing limitations for 2010 and 2011; certain real property treated as Code section 179 property
Sect. 2022: Additional first-year depreciation for 50% of the basis of certain qualified property
Sect. 2031: Increase in amount allowed as deduction for start-up expenditures in 2010
Sect. 2042: Deduction for health insurance costs in computing self-employment taxes in 2010

FAQ's on the SBA's Women-Owned Small Business Federal Contract Program

When Does the Women-Owned Small Business (WSOB) Program Start?

The WOSB Federal Contract Program will officially start one hundred and twenty days (120) from October 7, 2010, or February 4, 2011.

Who Administers the WOSB Program?
The Small Business Administration (SBA) is charged with implementing and administering the program. This means that SBA publishes regulations that provide the framework for the program, conducts eligibility examinations of WOSB and EDWOSBs, decides protests, conducts studies to determine eligible industries, and works with other Federal agencies in assisting WOSBs and EDWOSBs.

What Are the Laws that Govern the WOSB Program?
On December 21, 2000, Congress enacted the Small Business Reauthorization Act of 2000, Public Law 106-554. Section 811 of that Act added a new section 8(m), 15 U.S.C. 637(m), authorizing Federal contracting officers to restrict competition to eligible Women-Owned Small Businesses (WSOBs) or Economically Disadvantaged Women-Owned Small Business (EDWOSBs) for Federal contracts in certain industries.



What Is the Purpose of the WOSB Program?
The purpose of the WOSBFCP is to enable contracting officers to identify and establish a sheltered market for competition among WOSBs or EDWOSBs for the provision of goods and services to the Federal Government. Restricting competition to WOSBs and EDWOSBs increases their success to compete for and win federal contracts. The program also ensures a level playing field on which such small businesses can compete for Federal contracting opportunities.



How Does my Firm Qualify as a WOSB or EDWOSB?
Qualification as a WOSB - To qualify as a WOSB, a concern must be: a small business not less than 51 percent unconditionally and directly owned and controlled by one or more women who are United States citizens.

Qualification as an EDWOSB - An eligible business must be not less than 51 percent owned by one or more women who are "economically disadvantaged" (i.e. an EDWOSB). However, SBA may waive this requirement of economic disadvantage for industries in which WOSBs are "substantially underrepresented." The ownership of the business must be direct as defined in (13 CFR 127.201(b) Requirement for unconditional ownership.

There are additional requirements for qualification that can be found on the SBA's website.



What Does It Mean To Be Economically Disadvantaged?
An Economically Disadvantaged Women-Owned Small Business (EDWSOB) is a small business concern that is at least 51 percent directly and unconditionally owned and controlled by one or more women who are citizens (born or naturalized) of the United States and who are economically disadvantaged. The EDWOSB automatically qualifies as a women-owned small business eligible for the WOSB Program. A woman is presumed economically disadvantaged if she has a personal net worth of less than %750,000, her adjusted gross yearly income averaged over the three years preceding the certification does not exceed $350,000, and the fair market value of all her assets (including her primary residence and the value of the business concern) does not exceed $6 million.



What Criteria Enables Contracting Officers to Restrict or Set-Aside Contracts for WOSBs?
In order to restrict or set-aside contracts for WOSBs or EDWOSBs, the contracting officer must:

1. A contracting officer may restrict competition in industries where SBA has determined that WOSBs or EDWOSBs are underrepresented or substantially underrepresented in Federal procurement. Based upon analysis, SBA will designate by NAICS Industry Subsector Code industries where WOSBs are underrepresented and substantially underrepresented.

2. Have a reasonable expectation that two or more EDWOSBs or WOSBs will submit offers for the contract;

3. The contract award price must not exceed $5 million in the case of manufacturing contracts and $3 million in the case of all other contracts;

4. The contract can be awarded at a fair and reasonable price.



Where Can I Find the List of Eligible Industry Codes?
A complete listing of the Eligible Industry Codes for the WOSBFCP can be found on the SBA's website at http://www.sba.gov/wosb. You may also contact the SBA's Office of Government Contracting Area Offices of the District Offices to obtain a list of eligible Industry Codes.



Am I Required to Self-Certify as a WOSB?
WOSBs and EDWOSBs must self-certify their status in the Central Contractor Registration (CCR) and the On-Line Representations and Certifications Application (ORCA) as other small businesses do. You must also submit documents to the WOSB Program Repository. If the Repository is unavailable, documents must be submitted to the Contracting Officer if the WOSB or EDWOSB is selected as the apparent successful offeror. If someone falsely self-certifies, misrepresents its status as a WOSB or EDWOSB or provides false information to the Government, the SBA or other Federal agency may propose to suspend and debar you pursuant to the procedures set for the the FAR, 48 CFR 9.4. In addition, other penalties for criminal activities may be imposed.



What Are Eligibility Examinations?
An eligibility examination is the formal process through which SBA verifies the accuracy of any certification made or information provided as part of the certification process or in connection with an EDWOSB or WOSB contract. An eligibility examination can be conducted at any time and is not tied to a particular solicitation or contract award. The statute also gives SBA the authority to conduct random eligibility examinations of WOSBs and EDWOSBs to minimize fraud and abuse.



How long can my company participate in the WOSB Program?
There is no term limit on program participation. You can receive WOSB Program contracts as long as you are eligible for the program and have met all of the requirements set forth in the regulations.



Who Do I Contact for Assistance with the WOSB Program?
For assistance, you may contact the SBA Answer Desk at:
1-800-U-ASK-SBA (1-800-827-5722)

For specific questions about WOSB set aside contracts, you may contact the Federal agency contracting officer that is responsible for the contract and/or named in the contract documents. You may also visit SBA's WOSBFCP web page at http://www.sba.gov/wosb for more information about the program.