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The $700 Billion Solution & the Small Business Credit Crunch

The current state of the U.S. economy, financial market turmoil, and a possible $700 billion solution dominates business news. Wall Street is getting a lot of attention, but things are tough on Main Street too as small firms all across the nation face a different kind of credit crunch. Small firms generate seventy-five percent of the nation’s net new jobs and currently small businesses are generating job growth for the nation while large companies cut jobs. Entrepreneurs and small business owners can expect no national bail-out; but their needs must not be ignored during the focus on Wall Street’s woes. As a journalist with a small business media company, I know the importance of a good relationship with a bank, the ability to open a line of credit, and the importance of business credit cards. SBTV.com and our CEO Susan Wilson Solovic are in constant contact with small business owners. I have worked on many stories about the tightening of credit and the possible impact on small enterprises and their ability to expand. Many small business start-ups are forced to turn to credit cards as a source of capital. I have included links to some of the streaming video segments and interviews I have produced on credit, business credit cards and some of the changes and challenges placing more small business owners in a credit crunch. ...

Posted Sep 23 2008, 07:23 PM by Danita Blackwood with | with no comments

Filed under: sbtv.com, Danita Blackwood, Congress, Susan Wilson Solovic, Washington, small business information, WALL STREET, Capital Hill, business credit cards, $700 billion solution, Senate, capital, tough economic times, credit crunch, Credit Cardholders' Bill of Rights Act, credit cards

Lawmakers Press SBA for Energy Initiatives for Small Business Owners

Record energy prices are among the top concerns for small business owners across the nation. Today two lawmakers pressed the Small Business Administration to implement several energy initiatives to help entrepreneurs. Senators John F. Kerry (D-Mass) and Olympia J. Snowe (R-Maine) are urging the SBA to step up efforts to implement programs passed as part of the Energy Independence and Security Act of 2007. “Small businesses are hurting and the SBA can help alleviate the strain of the current energy crisis,” said Kerry. “Small businesses account for more than half of our fuel consumption, and we should give them the tools to become more energy efficient, whether its loans to purchase renewable energy systems or effective telecommuting programs. Every drop of oil or kilowatt of electricity saved is more money in a company’s bottom line.” “With over three quarters of small business owners reporting an inability to cope with exorbitant energy prices, it is vital that the SBA swiftly implement the provisions that Chairman Kerry and I included in last year’s Energy Independence and Security Act,” said Senator Snowe. “The SBA has the opportunity and the responsibility to play a leading role in combating climate change and curbing skyrocketing energy prices. I hope that the SBA will fully implement the critical provisions to make loans for energy efficiency improvements, promote small business energy audits, and establish a priority for energy efficiency projects under the Small Business Innovation Research program. With energy prices where they are today, the SBA cannot afford to drag its feet and stand by while the American economy suffers.” In a July 31st letter, Senators Kerry and Snowe, Chairman and Ranking Member of the Committee on Small Business and Entrepreneurship, called on Acting SBA Administrator Jovita Carranza to implement a number of initiatives passed as part of the Energy Independence and Security Act of 2007, which became public law 110-140 in December of 2007. Specifically the bill calls for the SBA to develop and implement programs to do the following: ● Establish an Energy Clearinghouse program that works with the EPA’s Energy Star program to help educate small businesses on energy efficiency; ● Create a small business energy efficiency pilot grant program that would offer grants to Small Businesses Development Centers to conduct energy audits of small businesses and help them reduce their energy consumption; ● Encourage innovation in the field of energy efficiency by requiring Federal Agencies to give priority to SBIR/STTR program solicitations by small businesses that participate in or conduct energy efficiency or renewable energy system research and development; ● Allows loans to be made through the SBA’s Express Loan program for the purpose of purchasing a renewable energy system or financing of energy efficiency projects; ● Establish a renewable fuel Capital Investment Company program designed to promote the research, development, production, and marketing of renewable energy resources; ● Initiate the small business telecommuting pilot program authorized in the Energy Bill to provide information regarding telecommuting options to small business owners and their employees. ...

Posted Jul 31 2008, 02:17 PM by Danita Blackwood with | with 7 comment(s)

Filed under: entrepreneurs, veteran entrepreneur, sbtv.com, energy smart improvements, Business Center, Congress helps small business, www.sbtv.com, business conditions, energy, a trip to Washington, entrepreneurial activity, US small business owners, Washington, SBA., Energy Independence and Security Act of 2007, Senators John F. Kerry (D-Mass) and Olympia J. Snowe (R-Maine)

Small Firms are Proving to be the Silver Lining in a Cloudy Economy

Small business values and selling prices are up across the nation according to one new report. A web-based business marketplace, BizBuySell.com, has released the newest data tracking trends in for-sale and sold businesses. The data from BizBuySell shows despite what we’re all hearing about the troubled economy these days, business prices and valuations are on the rise nationally. The median selling price for a small business in the U.S. jumped to $200,000 for the second quarter. This is a $14,000 increase relative to the median selling price a year ago. We see similar increased valuation trends when we look at other metrics, such as revenue and cash flow multiples. That’s good news for business owners who are thinking about selling a business. General manager of BizBuySell.com, Mike Handelsman, is a member of Small Biz Central. I had the opportunity to talk to him this week about some of the reasons it is a seller’s market. Traditionally, as unemployment increases, so does the interest in entrepreneurship. It appears this is one of the factors driving business prices higher. “ Demand for buying a small business is increasing at a faster rate than the supply of businesses for sale. We see a few reasons for this. For starters, larger businesses with predictable future cash flows are still able to ask for premium valuations, especially in tough economic times like these,” explained Handelsman.“ These companies are still in high demand. At the same time, with the increasing unemployment movement, many individuals who may have severance or savings to invest, are looking to become entrepreneurs. So, demand for good businesses is very strong,” he added. How much are businesses selling for in your local market? Here are a few of the city profiles from the BizBuySell.com data:...

Posted Jul 24 2008, 12:06 AM by Danita Blackwood with | with no comments