SBA News Alert!

Tightened credit, Reduced Demand Push SBA Loan Volume Down in FY 2008; Agency Works with Banks To Jumpstart Small Business Lending

WASHINGTON – A “perfect storm” of tightened credit by commercial lenders, declining creditworthiness, and reduced demand for loans from small business borrowers uncertain about the future has led to a substantial decline in the number of small business loans guaranteed by the U.S. Small Business Administration during FY 2008, SBA Acting Administrator Sandy K. Baruah said today. Although SBA posted a record year in 2007 with nearly 100,000 loans approved, that number dropped by nearly 30 percent in 2008. The dollar value of those loans declined by 13 percent, from a combined $20.6 billion in 2007, to $17.96 billion in 2008. Average loan size increased from $142,000 in FY 2007 to $183,000 in FY 2008, demonstrating that by increasing the average amount, these loans may in fact contribute to expanding more sustainable and successful small businesses. These program declines began not long after the fiscal year started in October 2007, and accelerated throughout the fiscal year.

The volume numbers represent loans made under SBA’s two primary loan programs, the 7(a) guaranteed loan program and the Certified Development Company, or 504, loan program. Loans approved under 7(a) declined by 30 percent, from 99,606 in 2007 to 69,434 in 2008, with loan dollars falling 11 percent, from $14.3 billion in 2007 to $12.7 billion in 2008. In the 504 program, loan approvals fell by 17 percent, from 10,669 in 2007 to 8,883 in 2008, and loan dollars declined by 16 percent, from $6.3 billion in 2007 to $5.3 billion 2008. Loan volume in both programs had set records in each of the previous five years. Baruah said he feels strongly that the steps taken by the Administration and Congress will have a positive effect on the credit situation and the economy. The SBA is holding meetings across the country to better understand how the agency can work with both lenders and small businesses to help them during these difficult economic times. “I am very hopeful,” said Baruah. “I am hopeful because I have seen this great nation tackle and overcome all sorts of challenges in just the last few years. From the Y2K scare, to the bursting of the dot-com bubble, to the 9-11 terror attacks, to corporate scandals, and large natural disasters, we’ve proven that we can take a hit and keep on growing – it’s one of our unique strengths as Americans. “President Bush and his economic team have been doing everything possible to resolve the financial crisis and restore stability to the markets, aggressively using every tool available on every front to unclog the pipes of our credit system, increase liquidity, and restore confidence in all facets of our economy,” he said. “The recently signed Emergency Economic Stabilization Act of 2008 does this by giving the government new tools to unclog the arteries of our financial system, allowing credit and capital to flow once again,” Baruah said. “And that objective should be important to all of us because capital is the lifeblood not only of our economic system but also small business.” The rescue plan also authorizes FDIC to expand insurance to cover all non-interest bearing accounts, which are commonly used by small businesses to cover day-to-day operations including payroll and inventory purchases. Also, the Federal Reserve will soon become the buyer of last resort for commercial paper. By unfreezing the market for commercial paper, which provides short-term financing for banks and businesses, this action will help businesses of all sizes meet payroll, purchase inventory, and invest to create new jobs. “All these efforts will need time to fully work their way through the economic system,” Baruah said. “But when they do, we will see results. We will see money and credit and capital flowing once again, making a big difference for small business, whose lifeblood depends upon access to capital.” Baruah also said SBA is taking steps to encourage the flow of credit to small businesses. Among the steps taken by the agency are:

*Working to improve the liquidity of SBA loans on the secondary market and exploring strategies to increase access to capital by small businesses.

*The accelerated launch of Small Rural Lender Advantage ahead of schedule, which targets smaller financial institutions – like community banks – and institutions with low SBA volume.

*Encouraging SBA’s lending partners to use their authority to work with qualified borrowers on a case-by-case basis and defer SBA guaranteed loan payments by up to three months.

*Reminding lenders and borrowers that interest rates have fallen with the prime rate, and are now about 40 percent less than a year ago.

For more information on how to get an SBA loan, visit www.sba.gov.

Vacation!

Time for a small vacation for the next 2 weeks. We will be back in a couple Tuesdays and post any SBA alerts in the meantime! Have a great week!

Friday Wake-Up - Week of October 20th, 2008

If you are still kind of new to the whole small business culture, one of the first things you should look for is a county IDA. IDA stands for Industrial Development Agency, and pretty much every county in Central New York has one. The reason you want to look them up, is that in the current small business atmosphere, they are usually the ones with the grants and the tax breaks. So they definitely should be at the top of your list. Just as an example, check out the County of Herkimer's(NY) IDA web site:

http://herkimercountyida.com/index.php

Here you will find bond programs, other financing, real estate, and tax breaks to aid you in your business relocation, start-up, or expansion. Even if you are just starting a new e-bay business, get to know these folks because you never know what they might have to offer you and your company!

-Dale

The Wake-up Column FYI

Over the past couple of weeks we have received a lot of great feedback (and a large increase in
visitors) for our Friday night Wake-Up postings. So from this week on, that's where it will be! This will also allow us to create room for other columns and authors, as our ongoing expansion of this section of the project continues. Its like we said we want this to be for you guys, so let us know what you need and what works best for you~! See you Friday! -Dale

SBA News Alert! - Small Business Awards Official Release

Syracuse District Office
401 South Salina Street
Syracuse, New York 13202

Release Date: October 23, 2008
Contact: Rachael Stanton
SBA Public Information Officer
rachael.stanton@sba.gov


SBA Seeks 2009 Small Business Week Award Nominations


The U.S. Small Business Administration Syracuse District Office is accepting nominations for the 2009 Small Business Week Awards.

The deadline for submission is Nov. 14. All nominations must be submitted to the SBA Syracuse District Office at 401 South Salina Street, Syracuse, NY, 13202. Please address nomination envelopes to Cathy Pokines, U.S. Small Business Administration.

The Syracuse District Small Business Week Award winners go on to compete for the title of Regional Award winner for New York, New Jersey, Puerto Rico and the U.S. Virgin Islands. The Regional winners will compete for the national awards.

For a full list of all award categories and instructions on creating a nomination package, see the 2009 Small Business Week Award Nomination Link at http://www.sba.gov/ny/syracuse under the Spotlight heading.

For more information, contact Cathy Pokines at cathy.pokines@sba.gov or 315-471-9393 ext. 241.

Tools for Tuesday- Week of October 21, 2008

Good evening!

Today's tool is membership in the NFIB, which stands for the National Federation of Independent Businesses. The group is the premier lobbyist group for small businesses, as well as the sponsor of several entrepreneurship initiatives. Why is this the tool for today? because as a small business owner it may be tough to have your voice heard, but if you unite those voices, it is much easier to make changes in our government which will aid the small business owner. You can find out more at:

http://www.nfib.com/page/home

Also the price of registration is free...so you can't beat the price!

Have a great night!

-N

The Wed. Wake-Up - Week of October 14, 2008

Need a USB cable? Go to the Dollar Store. (Not kidding)

So you need a cable for your computer, you need paper for the printer, etc. Where do you go? Do you sign up for an corporate account with a single big box store like Office Depot or Office Max? Maybe. Do you deal with your local office supplier? Maybe also.

One of the issues I have been struck by lately is the failure of small business owners to keep an eye on the "tedious" expenses, such as office supplies. So many small business owners, simply sign themselves up for a corporate account, and deal with the consequences at the end of the month. To give you an example, one organization I was working with recently needed a USB cable to transfer data (nothing special). They bought the cable at one of the "big box" stores and paid $17 (note: no discount), though they knew the store down 5 feet from them had the same cable, by the same manufacturer, for $1. What is the point of all this? All dollars add up! Small businesses, all too often, get caught up in the "big issues" affecting their business, and forget about the "little things", such as the cost of office supplies. This can be a killer. Let's face it, small businesses are successful because of great idea, hard work, and great management. Take out one part of the equation and you are suddenly 1/3 less successful. So don't lose sight of the "small things", because these are the things which will help small business succeed in Central New York.

Tools for Tuesday - Week of October 14th, 2008

Today's Tool for Tuesday is the NYBDC's Micro Loan program. As stated on their website:

"NYBDC's Micro Loan Program was designed to provide an alternative to credit scoring for smaller loan requests. We recognize that some applications which fail to meet credit scoring models are worthy of consideration, and our staff of trained loan officers reviews each application on a case-by-case basis. if you have been declined financing by a bank, we may be able to help. "

The funds can be used for:

• Working capital
• Real estate
• Leasehold improvements
• Machinery and equipment
• Relocation
• Debt refinancing
• Business acquisitions

Loan Amounts range from $50,000 - $150,000 and rates are tied to Treasury securities. You can find out more by contacting your local NYBDC represenative. A full list of contacts is available at:

http://www.nybdc.com/ContactOfficerList.htm

We'll see you tommorow!

-N

SBA News Alert - Online Exporter Training

SBA Offers New Online Training for Exporters

WASHINGTON ─ A new online course will help small businesses explore exporting opportunities in international markets. Global Enterprise: A Primer on Exporting is a free, self-paced course that provides practical guidance on exploring international markets.The new course is available from the Small Business Administration training Web site at www.sba.gov/training.

To access the course, click on “Free Online Courses,” and then select the first course listed under International Trade.The course is a comprehensive training module using script and audio to provide fundamental information about selling in global markets. It illustrates how to identify international markets, develop an export strategy, make and receive international payments, and finance trade operations, plus guidance on determining a firm’s readiness and suitability for exporting. The Exporting Primer includes more than 45 direct links to many key international resources. Exporting can be an avenue to tap into the increasing global marketplace. There are some 236,000 small business exporters, representing 97% of all U.S. exporters, and they generate some 30% of export sales. In 2007, U.S. exports of goods and services amounted to $1.6 trillion, with small businesses accounting for nearly $500 billion of those exports.“The advantages to exporting can mean big opportunity for entrepreneurs that want to capitalize on emerging markets worldwide,” said SBA Acting Administrator Sandy K. Baruah. “The SBA recognizes the value of reaching out to small businesses early in the trade game by using technology that is readily accessible and easy to use.”In addition, the SBA’s partnership with the U.S. Department of Commerce and the Export-Import Bank offers federal export programs and services through the U.S. Export Assistance Centers. Small businesses can receive a full range of business export assistance under one roof to makes it easier to get the help needed to compete and succeed in the global marketplace.“More now than ever, small business exports play a major role in our economy,” said Luz Hopewell, SBA Director of International Trade. “Through the new online exporting course, the SBA will be able to help more small businesses access new markets, sell more goods overseas, and create new jobs at home.” Course participants completing the 30-minute online training programs can earn a certificate of completion from the SBA, with their name, date and course title. The Export Primer course is one of nearly 30 online tutorials offered by the SBA on its virtual campus, the Small Business Training Network (www.sba.gov/training). SBTN is part of the SBA’s Office of Entrepreneurship Education (OEE), which combines the agency’s online education programs, youth outreach, and outreach to underserved markets under a single umbrella.

Friday Wake-up - Week Of October 6th, 2008

Good evening!

As promised this our first-ever Friday wake-up column! For this week we wanted to talk about doing business overseas. We want to talk about some of the popular countries and some of the myths associated with them. One of the hottest countries people "have to business with" is China. This is a very dangerous trap. The key selling point being the large population China has within her borders. What is often left out is that the average Chinese citizen makes less than $1,000 a year...that's right... I said YEAR. Good luck selling anything at American prices over there. Another popular destination is Mexico. A historically poor country and population, though better than China, is hardly a "hot market". Ask GM.

So after all this negativity you may be asking, "what are good countries to sell my products or services in?" Anywhere they are needed and where they will pay for them. However, some of the best countries to start in would be English-Speaking countries, where marketing and other endeavors will not be disrupted (see Canada, England, etc.). Also look for the avg income for families when researching companies to do business in (Make sure its high). Finally, contact your local economic development group. Cortland County, for example, has a program for existing companies looking to do business overseas, which can ease some of the financial, legal, and technical issues you may experience. There are a lot of opportunities out there, which can greatly expand your profits, so get them!

Where's the wake-up???

Hi all!

We had a technical issue the last couple of days and we will be posting our very first (are you ready for this?) FRIDAY WAKE-UP tommorow night!

Who knows maybe this will work better for you guys...let me know!

-Dale
info@cnysmallbiz.com

Tools for Tuesday - Doing Business with the Feds!

Good afternoon!

A new dimension of small biz customer is the topic for today: the federal government. Today's tool is the Federal Business Opportunity website:

https://www.fbo.gov/

Here you can locate contract opportunities that may suit your business's skills set or locate a demand you can adapt to. Before you think that you business can not compete because the big boys will snap them up, keep in mind that the federal government has a set-aside program for businesses just like yours, and are in desperate need of businesses to fulfill that requirement. Though no one knows the exact percentage reserved, it is estimated at about 5%. That's is 5% of the trillions of dollars that the government spends every year, which is a pretty sizable market. So go now! What are you waiting for? We will post another article tommorow! Bring that business home to CNY!

Have a great day!

SBA News Alert - Small Business Economic Crisis Hotline

More news from the SBA today; they will be launching a hotline for small business owners, to answer questions about the current economic crisis and how it will affect SBOs in CNY. Here is the informations supplied to us:

SBA’s SYRACUSE District Office LAUNCHES Its first-ever small business hotline

SYRACUSE – The U.S. Small Business Administration’s Syracuse District Office has launched its first-ever Small Business Hotline to address the Upstate New York small business community’s concerns during the current economic climate and credit crunch. The SBA Syracuse District Office has heard from small businesses that are concerned about the ongoing effects of rising energy, fuel and food costs to their bottom line, in addition to the recent credit tightening and drop in consumer spending. The purpose of Small Business Hotline is to give small business owners a single phone number they can call with business related questions. The phone number is 315-471-9393 ext 233. Expert business advisors are standing by to expedite these calls and provide confidential counseling, free of charge. “Many small business owners are worried about the rising costs of doing business, decreasing consumer confidence and tightening credit markets,” comments Bernard J. Paprocki, SBA’s Syracuse district director. “This hotline is dedicated to providing expedited business counseling from SBA and our Resource Partner experts, including the Small Business Development Centers, SCORE, and Women’s Business Centers. Small business owners can get advice on ways to enhance their marketing plans, re-evaluate their business plans, and look for new sources of financing. Business counseling services are confidential, free of charge and are available across our 34-county district.”

SBA Small Business Hotline: 315-471-9393 ext 233

Wed Wake-up - Nominate(or self-nominate) a Small Business for an SBA Small Business of the Year Award

It is that time of year again! Nominate a deserving small business for a small business of the year award from the SBA! Here are the details:


Small Business Week 2009 - Nominations Due 11/14/08

Overview

In recognition of the small business community's contribution to the American economy and society, the President of the United States designates one week each year as National Small Business Week. Small Business Week 2009 will be celebrated nationally the week of May 19 as well as locally in Albany on May 4 and in Syracuse on May 8. The SBA Syracuse District Office will present awards to small business owners and champions in ten different categories at the Albany and Syracuse luncheons. All SBA Syracuse District Office Small Business Week award winners are sent to the SBA Region II Office for further consideration. Since 1998, six SBA New York State Small Business Person of the Year award winners have come from the Syracuse District Office. A winning nomination highlights the achievements of a deserving small business owner or champion in a meaningful way and validates the importance of small business to our community

The award categories for small businesses are:

1. Small Business Person
2. Small Business Exporter
3. Young Entrepreneur
4. Family-Owned Business

The award categories for small business champions are:

1. Financial Services
2. Small Business Journalist
3. Home-Based Business
4. Minority Small Business
5. Veteran Small Business
6. Women in Business.

Small business champions are individuals or organizations that are dedicated to supporting small businesses.Nomination PackagesSmall Business Week award nominations packages can come from lenders, chambers of commerce, SCORE chapters, SBDCs, WBCs, economic developers, and other small business service agencies. Please visit the national Small Business Week 2009 website to review the nomination guidelines and download all of the forms necessary to complete nomination packages.Nominations for Small Business Champions do not require any financial statements unless the nominee is a business owner.

Complete nomination packages for all awards must be received by November 14, 2008.
Mail to:
Cathy Pokines
Director of Marketing & Communications
SBA Syracuse District Office
401 South Salina Street, 5th Floor
Syracuse, New York 13202
Please contact Cathy Pokines with any questions regarding Small Business Week 2009 at 315-471-9393 ext. 241 or cathy.pokines@sba.gov.

Tips for Nominators
1. Start your nomination package right away. Decide on a nominee that you are proud to be associated with and start to gather information as soon as possible. It is important to provide the judges with as much supporting documentation as possible (letters of recommendation, media articles, etc.) to demonstrate why your nominee deserves the award.
2. Be sure to read and follow the nomination guidelines exactly. Incomplete nomination packages cannot be considered, so ensure that every item required in the nomination guidelines is included in your nomination package. Consistent organization of the nomination package is important and helps the judges easily compare nominations. Address all the criteria for the award, making sure to explain how your nominee meets the criteria in the "concise statement of the qualities and performance that merit the award."
3. Put together a strong financial package. While not all nomination packages need financial information, several award nominations do require you to submit three years of financial statements for the nominee. Since statements alone don't always represent the complete financial picture of the business, provide additional data if possible and explain what the data means.
4. Make the nomination package look professional. Assemble all required documents in a three-ring binder with clearly labeled sections and remember to include a high-quality black and white photograph of the nominee. Neatness and organization are not rated elements, but the nomination package appearance does create an impression for the judges.

Tools for Tuesday- Week of September 31st, 2008

Good morning everyone!
Today we are going to go back in time, as we have a lot of people (and I do mean a LOT), who have recently joined the small business congregation. One of the biggest questions we have been getting is about visibility, so here is the column we wrote a while back regarding that subject. Enjoy!

One of the most common issues affecting the success of small businesses, at least which we have noticed, is a lack of visibility. Many small business owners, lack the financial resources to invest in any sort of media advertising, let alone pay the rent. One way of gaining exposure, without investing loads of money, is to put out press releases. Press releases do not have to be significant events. They can be the launch of a new product, a hiring of a new employee, an expansion to your building, etc. Distributing these types of releases to local media, not only gives your business tons of free exposure, but shows a commitment on your part, to the local community/economy and may help to create a sense of customer loyalty.Below we have assembled a number of links to press release templates, which can help you to easily assemble your press release. We highly recommend customizing these templates to create a standardized template, which includes your company logo, to create a sense of familiarity with local media.Here are the links:
http://office.microsoft.com/en-us/templates/CT101439021033.aspx (Microsoft Templates)http://marketingpr.suite101.com/article.cfm/press_release_template (Suite 101)http://www.publicityinsider.com/release.asp (Publicity Insider)http://advertising.about.com/od/pressreleases/ss/prlayout.htm (About.com)As always, have a great, profitable day!