SBA Elevated to Cabinet | Get Ready for Reporting Season: Filing W-2s, 1099 Forms, and More

Image via Wikipedia

Small Business Administration sent this bulletin at 01/19/2012 10:52 AM EST

 

SBA Administrator Elevated to the President’s Cabinet New Plan to Make Government Work Better for Entrepreneurs and Small Business Owners   Friday, January 13 was an important day for America’s small businesses.  President Obama asked Congress for the authority to reorganize and modernize government and he elevated Karen Mills‘ position as the SBA Administrator to Cabinet-level status. These actions are a reflection of the importance he places on small business, economic growth, and job creation.   > Read more Get Ready for Reporting Season – How to File W-2s, 1099 Forms, and More Did your small business hire employees for the first time in 2011? Did you use the services of an independent contractor? Or do you simply need a refresher on the ins and outs of wage reporting season? Here’s what you need to know about your annual employer reporting obligations.   > Read more Got Competition? 6 Tips for Dealing with a New Competitor on the Block Has someone opened up a competing business in your town? Are you worried that your business may be at risk? Not sure how to react to the new competition? Here are some tips for dealing with competitors and, quite possibly, collaborating with them!   > Read more    General Business Liability Insurance – How it Works and What Coverage is Right for You If you’ve heard it once, you’ve heard it a thousand times: if you’re starting a business, you’re going to need general liability insurance. But what does that mean? How do you determine your coverage needs? Here are a few answers about liability insurance to help guide you through the process.   > Read more    Sorting Out Confusion About Tax Information Returns Information returns are tax-reporting forms required to be submitted to the IRS. In turn, the IRS uses the information to cross-check reporting by taxpayers. According to the IRS, information returns greatly increase the compliance rate. Here’s what you need to know so you can get things right on your 2011 tax return.   > Read more    SAVE THE DATE! National Small Business Week 2012  National Small Business Week 2012 is May 20-26, 2012.   SBA will host a conference in Washington, D.C. to honor outstanding small businesses and host panel discussions on a variety of topics. You can follow along on our website or via hashtag #SBW2012. Registration for the event will open in February.

Small Business Taxpayer Recovery Program Information

Beverly Eaves Perdue  

Governor               

State of North Carolina

Office of the Governor

20301 Mail Service Center • Raleigh, NC 27699-0301 

Nov. 30, 2011

Contact: Chris Mackey

Office: (919) 733-5612         

Recovery Program Now Helping More than 1,000 Small Businesses

RALEIGH –  The Small Business Taxpayer Recovery Program launched by the NC Department of Revenue and the N.C. Small Business Commissioners Office in July is now helping more than 1,000 small businesses get back on their feet after facing financial hardships during the economic downturn.

“Our top priority is creating and sustaining jobs in North Carolina, and we all know that small businesses are the primary engine of job growth,” Gov. Bev Perdue said. “More than 1,000 small businesses are now able to keep their doors open and their employees working. These are the types of programs that ease regulatory burdens and make doing business with state government more efficient.”

The program offers penalty and fee waivers, as well as longer-term payment plans to companies that have fallen behind on sales, withholding and other trust taxes. With a total cost savings of almost $6.8 million in fees and penalties, 1009 businesses are now participating in the program. 

“Companies from the mountains to the coast are benefiting from the state’s help during these tough economic times,” said Secretary of Revenue David Hoyle.  “We have everything from restaurants, automotive centers, and healthcare services to landscaping and building companies that are using this program to get back on their feet.”

Businesses with 200 or fewer employees qualify for the program and must agree to use the counseling services of the Small Business and Technology Development Center (SBTDC) or the NC Small Business Center Network (SBCN).  Both organizations are available to assist with financial planning and other business needs.   All services are confidential and protected from public information requests. 

The program runs through June 2013.

Interested business owners should contact the department at 1-877-252-3052 and visit the “Information for Businesses” section of www.dornc.com to learn more about eligibility and participation.

###

 

Mark Johnson

Deputy Communications Director

Office of the Governor

1 East Edenton Street

Raleigh, NC 27601

919-733-5612

919-520-0311 cell

State Launches Program to Help Small Businesses With Trust Taxes

Date: July 11, 2011 Raleigh, N.C.— The North Carolina Department of Revenue, along with the N.C. Small Business Commissioners Office, is launching a program that aims to help small businesses recover from certain tax liability issues they may have suffered as a result of the current economic downturn. The Small Business Taxpayer Recovery Program will offer penalty and fee waivers, as well as payment plans to companies that have fallen behind on sales, withholding and other trust taxes.  “The recent recession has caused financial difficulties for many small businesses in North Carolina,” said Secretary of Revenue David Hoyle.  “One of our agency goals is to be firm and fair, while still being compassionate.  This program does that, by offering us a tool to collect taxes due the State, while at the same time helping struggling businesses get back on their feet.”   Businesses with 200 or fewer employees qualify for the program and must agree to use the counseling services of the Small Business and Technology Development Center (SBTDC) or the NC Small Business Center Network (SBCN).  For more than 25 years, the SBTDC and SBCN have helped thousands of owners improve their businesses.  The SBTDC, a business advisory service of the University of North Carolina System, provides personalized management counseling designed to help small and mid-sized businesses with strategy, financing, marketing and performance improvement.  The SBCN, operated through the North Carolina Community College System, provides potential and current small business owners with free business counseling services, small business start-up and management training, and resource and referral services.   Both organizations will be available to assist participating small business taxpayers with financial planning and other business needs.   All services are confidential and protected from public information requests.  For more information on the SBTDC, visit www.sbtdc.org.  To learn more about the SBCN, go to http://sbcn.nc.gov.  Small businesses that complete the required counseling and that file and pay all outstanding taxes are eligible for longer-term repayment plans than normal.  In addition all penalties and collection fees may be waived. Fees and penalties may be reinstated if program participants fail to file or pay future taxes on time. “Small and local businesses are critical to the continued success of North Carolina,” Hoyle said.  “We want to give them a chance to get back on track and move forward as the economy recovers.” Interested business owners should contact the department at 1-877-252-3052 and visit the “Information for Businesses” section of www.dornc.com to learn more about eligibility and participation.   Public Affairs Office P.O. Box 25000, Raleigh, NC 27640-0001 An Equal Opportunity Employer

Are Hidden or Forgotten Fees Affecting your Bottomline?

Image via Wikipedia

How much do you pay each time a customer “swipes” their credit or debit card to buy your product or service?

The Federal Reserve reports that there were 38 billion transactions in 2009 creating $16 billion dollars in interchange “swipe” fees for those transactions.

Some businesses look at these fees as a “cost of doing business”…..  Even though it is a cost of doing business, make sure you are understanding how this cost is affecting your bottomline and your profit margin.  Specifically, when you set your profit margin and breakpoint, are you taking this type of fee into account?

There is a debate in the Senate now over regulating these fees, with small businesses in mind.  Now, having the government regulate this interchange fee, will small businesses be better off, or will it circumvent competition?  Anytime there is regulation, there will be  a cost….so, do some checking on your fees, see what percentage you’re paying, or if it is a flat rate. 

The example at the right shows how the interchange fee works.   A typical customer uses their card for a $100.00 purchase from you, My Small Business… The card company collects $2.00 interchange fee, then sends to the acquiring bank, who takes $.50 transactions fee.  My Small Business… receives $98.50 for the $100.00 purchase…..  Now that is 2.5% of the total purchase toward these fees.  How does that $2.50 affect your profit?  

Negotiate with your vendor or bank.  Remember, each little percentage you can shave off of cost, will help your bottomline.

SBA Launches Temporary Program for Commercial Real Estate Refinancing

Image via Wikipedia

Release Date: Thursday, February 17, 2011 Release Number: 11-15 Contact: David J. Hall (202) 205-6697 Internet Address: http://www.sba.gov/news

Agency will begin accepting refinancing applications Feb. 28 for small businesses facing maturing mortgages, balloon payments

WASHINGTON, D.C. – Small businesses facing maturity of commercial mortgages or balloon payments before Dec. 31, 2012, may be able to refinance their mortgage debt with a 504 loan from the U.S. Small Business Administration under a new, temporary program announced today.

The new refinancing loan is structured like SBA’s traditional 504, with borrowers committing at least 10 percent equity and working with third-party lending institutions and SBA-approved Certified Development Companies in the standard 50 percent/40 percent split. A key feature of the new program is that it does not require an expansion of the business in order to qualify.

SBA will begin accepting refinancing applications on Feb. 28. The program, authorized under the Small Business Jobs Act, will be in effect through Sept. 27, 2012.

“The economic downturn of recent years and the declining value of real estate have had a significant, negative impact on many small businesses with mortgages maturing within the next few years,” said SBA Administrator Karen Mills. “As a result, even small businesses that are performing well and making their payments on time could face foreclosure because of the difficulties they face in refinancing and restructuring their mortgage debt. This temporary program is another tool SBA can provide to help these small businesses remain viable and protect jobs.”

The SBA initially will open the program to businesses with immediate need due to impending balloon payments before Dec. 31, 2012. SBA will revisit the program later and may open it to businesses with balloon payments due after that date or those that can demonstrate strong need in other ways.

“We are making this initial restriction to make sure our funding goes first to small businesses with the most need,” said Steve Smits, SBA Associate Administrator of Capital Access.

Borrowers will be able to refinance up to 90 percent of the current appraised property value or 100 percent of the outstanding mortgage, whichever is lower, plus eligible refinancing costs. Loan proceeds may not be used for other business expenses. Existing 504 projects and government-guaranteed loans are not eligible to be refinanced.

Congress authorized SBA to approve up to $15 billion in loans under this program ($7.5 billion in both fiscal 2011 and 2012). Together with the first mortgage, this temporary program will provide up to $33.8 billion of total project financing. Additional fees charged to the borrower will cover the cost of this refinancing program and as a result no subsidy will be needed. The program is expected to benefit as many as 20,000 businesses.

SBA’s traditional 504 loan program is a long-term financing tool, designed to encourage economic development within a community. A 504 loan provides small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization.

Typically, a 504 project includes three elements: a loan (or first mortgage) secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a second mortgage secured with a junior lien from an SBA Certified Development Company (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business borrower.

Related Articles

• SBA yet to set loan rules (knoxnews.com)