The Greater Durham Black Chamber of Commerce

CNNMoney.com - Free cash for your business

Sent from info@durhamblackchamber.org's mobile device from http://money.cnn.com .

Free cash for your business

When hunting for cash, desperate small business owners may find themselves sucked into buying books and software packages promising "Billions in Free Grants!" from Web sites with names like NeverPayItBack.com, or hiring consultants who promise to find them gads of money. All they're likely to get, though, are empty promises.

Grants are rare, but the information you need to find and apply for legitimate ones is publicly available and free. For qualifying businesses, there really are opportunities to land free money from state, county and city governments, as well as private foundations and corporations.

Technology startups traditionally have the best chance of getting grant funding, often through the federal government's Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs. These programs are lucrative, awarding more than $2 billion each year, but both require a tight match with exacting requirements.

For most companies, a better fit will be the grants many state and city governments offer for small, tech-focused businesses. In Columbus, Ohio, TechColumbus offers TechGenesis grants of up to $50,000 to allow entrepreneurs to test their ideas and see if they are business-worthy. The Ben Franklin Partnership in Philadelphia and the Maine Technology Institute in Gardiner, Maine, are two more of the dozens of organizations that invest in local tech companies with growth potential.

Finding grant money for non-tech businesses is a little tougher. The first step: Figure out if you qualify for any special small business certifications, such as a minority-owned, disadvantaged, woman-owned or veteran-owned business. Federal and state governments sometimes give priority for grants to these types of business owners.

Then look at your local government Web sites -- for your city, county and state -- and find the economic development agency or area equivalent. Many of these agencies offer government-sponsored grants to attract new businesses or help existing firms expand, train workers, or become more environmentally friendly. For instance, the Illinois Department of Commerce and Economic Opportunity offers matching grants to businesses that want to expand and modernize their recycling programs, while the Central Oregon Intergovernmental Council gives workforce training grants to businesses in several Oregon counties.

Next, sign up at Grants.gov to receive information about specific kinds of federal grants. Few businesses will directly qualify, but with some creativity, you can find ways to tap the cash flow, says Kate Lister, author of Finding Money --The Small Business Guide to Financing.

"Let's say you own a small plumbing company," Lister says, "and at the federal level there is a grant for capital improvements for which only schools can apply. Sign up to be notified of anything that happens with that grant and post your own note to it that says, 'I'd like to be a subcontractor on this.' Or go to the contracting officer listed and say, 'Here's what I can offer.' Since that contracting officer is the person who will notify the winner of their grant award, he can also say to the school: 'Hey, I've got a contractor you might want to try.' And even if this isn't the right grant for you, there might be something else down the line, so connecting with these contracting officers is really all about networking."

Another avenue for grant money is workforce training. Most states have grants, often funded through the unemployment insurance tax system, says Michael Godley, principal at Workforce Development, a consultancy in Boston that focuses on helping business owners tap into workforce training funds nationwide. A good way to find these grants is by simply Googling "workforce training funds" within your state, or contacting local community colleges -- they often administer the funds -- or a workforce investment board.

The legislature in Massachusetts, for example, just funded its workforce training fund at $10 million. That's down from the previous year, when it got $21 million. But as Godley points out: "Ten million is still a lot of money. And that will go to a few hundred companies."

Small manufacturers can find grants for upgrading facilities or updating processes by looking at their state's Manufacturing Extension Partnerships. Nearly every state has one, says Bob Kill, president of Enterprise Minnesota, which provides Minnesota-based manufacturing companies with matching grants for process improvement or staff development. In New York, Empire State Development offers capital grants of up to $1 million to manufacturers with as few as 50 employees, through its manufacturing assistance program.

A good source for foundation grants is the Foundation Center, which offers basic information on U.S.-based foundations, grant-making public charities and corporate giving programs. Most of these sorts of grants go to non-profits, but one way small businesses can broaden their suitability for grants is to create a not-for-profit offshoot to their business. The not-for-profit side usually offers different or less comprehensive products and services than the for-profit, says Dave Lavinsky, president of Growthink in New York City, a consultancy that assists startups in developing business plans and raising capital. A for-profit children's theatre company, for example, could have a non-profit arm teaching after-school drama programs.

No matter what grant you apply for, remember that the cash is usually earmarked for funding specific projects or products -- not entire companies. If you want free money, be prepared to adapt. "A lot of times business owners will modify their business based on funding opportunities," Lavinsky notes.

Information in Prepration for Black Wall St Night

This is a press release done by the Small Business Majority. It highlights NC small business owners and what they are looking for in healtcare reform. You will also find a link to more information regarding the healthcare environment in our state.

 

North Carolina Small Business Owners Eager for Healthcare Reform Research Shows Small Business Owners

Believe Healthcare Reform is Necessary and Important to Getting the Economy Back on Track Sausalito, CA, Sept. 14, 2009 – Recent research shows the majority of North Carolina small businesses are struggling due to the high costs of healthcare, and believe healthcare reform is necessary and important in getting the economy back on track.
A statewide survey of 200 randomly selected small businesses found that affordability is the primary obstacle in obtaining health insurance. North Carolina was one of 15 states polled over the past five months by Small Business Majority, a leading national small business advocacy organization focused on healthcare reform.
Eighty-five percent of North Carolina small business owners not offering health insurance say they can’t afford to. Of those who do provide insurance, 88 percent are struggling to do so. Small business owners also see the cost of health insurance as a significant barrier to entrepreneurship.
“Small business people are in an untenable position when it comes to healthcare. Costs are astronomical and rising every year, yet being uninsured can be just as burdensome financially if illness strikes,” said John Arensmeyer, founder and chief executive officer of Small Business Majority. “Small businesses are desperate for reform. The cost of doing nothing is just too high.”
The survey found that 88 percent of the state’s small business owners believe that people should be able to buy health insurance without regard to any past health problems. In addition, 80 percent support the creation of a health insurance exchange from which small businesses could choose coverage from competing health plans.
“The cost for healthcare is exorbitant. I have only six employees, so getting a group policy isn’t something we can afford. We have no choice but to be uninsured,” said Blake Anderson, owner of Innovation Renovation—a specialty construction business in Raleigh. “If it could be made affordable and all my employees could be insured, that would be a huge weight off my shoulders. We all need it.”
Additional findings in the report include:
51% of small businesses believe their company has a responsibility to provide health coverage for its employees.
65% of small business owners believe that to make healthcare more affordable, it’s important to share the responsibility among individuals, employers, insurance companies, providers, and government.
65% support the choice of a private or public health insurance plan

 

Download NC Small Business Healthcare

How can you and your small business participate in the healthcare dicussion?

A non-partisan group called the Small Business Majority are looking for
people like you. Small business owners that are interested in sharing their
experiences with providing health care for employees. This is a group that
is for reform and wants to bring small businesses together and reduce the
costs of healthcare. Attached is a letter from John Karatzas. He is the
State Outreach Director for the Small Business Majority. If you are
interested in sharing your story please call or email John. If you want to
learn more information, come to our discussion Oct. 29 at the Hayti Heritage
Center. Also you can go to the Small Business
Majoritywebsite.

Download SBM introductory letter

Black Wall St. Night Oct. 29th at the Hayti Heritage Center. Join us @ 6pm for a discussion on Why Small Businesses Should be Apart of the Healthcare Debate.

A non-partisan group called the Small Business Majority are looking for
people like you. Small business owners that are interested in sharing their
experiences with providing health care for employees. This is a group that
is for reform and wants to bring small businesses together and reduce the
costs of healthcare. Attached is a letter from John Karatzas. He is the
State Outreach Director for the Small Business Majority. If you are
interested in sharing your story please call or email John. If you want to
learn more information, come to our discussion Oct. 29 at the Hayti Heritage
Center. Also you can go to the Small Business
Majoritywebsite.



John Karatzas
State Outreach Director
Small Business Majority
415-887-9861
jkaratzas@smallbusinessmajority.org
www.smallbusinessmajority.org

Political Uncertainty Puts Freeze on Small Businesses - WSJ.com

http://www.wsj.com/article/SB125659324579108943.html?mod=WSJ_hpp_LEFTTopStories

Reuters - Obama presses banks on small business loans

This article was sent to you from info@durhamblackchamber.org , who uses Reuters Mobile Site to get news and information on the go. To access Reuters on your mobile phone, go to: http://mobile.reuters.com Obama presses banks on small business loans Saturday, Oct 24, 2009 3:53PM UTC By Patricia Zengerle WASHINGTON (Reuters) - President Barack Obama urged banks on Saturday to make more loans to small businesses and said his administration would do everything it can to push them to do so. "It's time for those banks to fulfill their responsibility to help ensure a wider recovery, a more secure system, and more broadly shared prosperity," Obama said in his weekly radio address, his latest plea for banks to do more for the larger economy. "And we're going to take every appropriate step to encourage them to meet those responsibilities." Insufficient capital for small businesses is weighing on the U.S. recovery from the worst recession since the Great Depression. The administration took steps this week to foster lending to cash-strapped business owners, by offering taxpayer capital to the small banks that do much of the lending to them at a lower cost than it had previously. Obama noted that banks had benefited from the government's taxpayer-funded $700 billion financial rescue program, and said they must now return the favor. His administration is increasingly focusing on the disconnect between the broad economy and the big financial firms of Wall Street -- where the Dow Jones industrial average recently topped the 10,000 mark after plunging in late 2008 and early 2009. "These are the very taxpayers who stood by America's banks in a crisis -- and now it's time for our banks to stand by credit-worthy small businesses, and make the loans they need to open their doors, grow their operations, and create new jobs," he said. With the U.S. unemployment rate nearing 10 percent, Obama is under pressure to boost job creation before midterm congressional elections next year. "Small businesses have always been the engine of our economy -- creating 65 percent of all new jobs over the past decade and a half -- and they must be at the forefront of our recovery," Obama said. Public approval of Obama's handling of the economy is at about 50 percent, up slightly from September. But many Americans are pressing for more effort to stimulate the economy, saying the administration's previous attempts have fallen short. Obama also used the radio address to push healthcare reform, his top domestic policy priority, saying his plan would lower the high costs that make it difficult for small business owners to provide health insurance coverage for their employees. (Editing by Xavier Briand)

CNNMoney.com - Obama tries again to revive small business loans

Sent from info@durhamblackchamber.org 's mobile device from http://money.cnn.com.

Obama tries again to revive small business loans

As small business lending continues to dry up, the federal government is readying two new initiatives aimed at reversing the trend. To unveil them, President Obama traveled Wednesday to Maryland, where he visited a family-owned company that used a government-backed loan to fund a recent expansion.

"There are still too many entrepreneurs who can't get the loan they need to open their doors and start hiring," Obama said from the headquarters of Metropolitan Archives, a Landover, Md., company that stores and delivers paper files. "There are still too many who are struggling to make payroll and stay open. And there are still too many successful small businesses that want to expand further and hire more but just don't have the capital to do it."

The new measures -- a collaboration between the Treasury Department and the Small Business Administration -- aim to make capital cheaper for community banks and raise the funding limit for loans backed by the SBA.

Under the new plan, banks with less than $1 billion in assets will be able to borrow money from the government at a 3% dividend rate. That's a reduction from the 5% rate the Treasury currently offers borrowers through its Capital Purchase Program, a TARP (Troubled Asset Relief Program) initiative. To qualify, banks will need to submit a small business lending plan illustrating how they'll use the borrowed money to expand their small business lending.

President Obama also threw his support behind Congressional efforts to increase the ceiling on SBA loans. Currently, the maximum loan under the SBA's major lending programs is $2 million. The proposed legislation -- which would need the approval of Congress -- would lift that limit to $5 million. The new initiative would also increase the maximum size for SBA-backed microloans to $50,000, up from a current cap of $35,000.

"Of all the steps we're taking to move this economy from recession to recovery, I continue to believe that the success of our small businesses will be a foundation upon which our future prosperity is built," Obama said in his address. "So we will continue to do whatever we can to help these businesses grow and thrive. And I am confident that the steps we announced today will do just that for small business owners across the country."

The obstacles: This is the Obama administration's second attempt to jump-start small business lending.

As part of February's stimulus package, Congress allocated $730 million to the SBA to temporarily waive fees and increase the guarantees the agency offers banks that make qualifying small business loans. Despite those measures, SBA lending continued to fall, dropping 36% in the 2009 fiscal year compared to a year earlier.

In March, Obama and Treasury Secretary Tim Geithner appeared at the White House before an audience of small business owners to formally kick off the stimulus efforts. Geithner used the event to announce a new Treasury edict: The biggest recipients of TARP funds would need to begin filing monthly reports on their small business lending.

The move was intended to shame or inspire the big banks into upping their lending, but it didn't work. In the last five months, the 22 biggest recipients of government TARP funds have cut their lending by $8 billion, according to the monthly reports they've filed. As of Aug. 31, the 22 reporting banks held a collective small business loan balance of $261.3 billion, down 3% from when they began reporting in April.

Now Treasury is trying to address the problem by going at it from the other end: Make cheap capital available to small banks, in hopes they'll use it to increase their local lending.

"While we have made progress stabilizing the financial system, we need to do more to help small businesses get the credit they need to grow and hire," Treasury Secretary Tim Geithner said in a written statement released Wednesday. "The President's announcement today has a simple goal: help small businesses by helping the community banks whose business it is to serve them."

The White House released statistics backing up its approach. Among banks with assets of less than $1 billion, 56% of their business loans go to small companies, according to the government data. From larger banks, only 21% of business loans go to small firms.

The catch is that small banks have a smaller role on the lending scene than their larger rivals. Of the 15 banks that put the money into SBA-backed loans last year, only four are so-called community banks: Live Oak Bank in Wilmington, N.C.; Excel National Bank in Beverly Hills; BNB Bank in New York City; and First Financial in El Dorado, Ark. The other 11 banks all have assets of more than $1 billion.

To significantly affect the pace of small businesses lending, the financial giants -- like Bank of America and JPMorgan Chase -- would have to commit to increasing their lending, too.

Increasing the max loan size: The second major component of the President's proposal involves lifting the maximum on SBA loans.

"These are the type of loans that Joe and Doug used to expand this business and create new jobs," Obama said, referring to his hosts for the day, Metropolitan Archives co-owners Joe Incarnato and Doug Peters. "Larger loans will help more small business owners and franchisees grow."

However, the majority of small businesses looking for loans are not pushing up against the SBA's loan ceiling. Of the 44,000 loans the SBA backed last year, less than 15,000 were for more than $150,000, according to SBA data.

Obama left the door open to further intervention, if these new efforts don't spark a turnaround.

"[There's] no question that we have a long way to go," he said.

One of the Sculptures Honoring the original Black Wall Street

 
The passage on the sculpture reads "A Legacy of Community and Institutional Connections." The businesses on the original Black Wall Street were great business people as well as community advocates. They are linked to many Durham schools, churches and libraries. The Greater Durham Black Chamber of Commerce is continuing this commitment to community through events like Black Wall Street Night. Please join us October 29th at the Hayti Heritage Center as we bring the community and business together.

Durham Unveils Parrish Street Sculptures October 16

Final Three Permanent Sculptures to Honor the Legacy of Durham's Historic Black Wall Street