association of small business owners
Small Business
- Study: Millions of Small Business Owners Hold Toxic Mortgages
Millions of U.S. small business owners own "toxic" mortgages and are at risk of defaulting on their loans, according to the National Association for the Self-Employed. Additionally, many of these bad mortgages were targeted to small business owners who were prime and near-prime borrowers, but who are now facing unmanageable payments. The news is startling because most of the nation's small businesses are run from a home office. Based on the association survey, about 3.7 million microbusinesses hold these bad mortgages. "These small business owners will be at-risk for payment shock and default as their monthly mortgage payments skyrocket during the 'resets' that are scheduled to begin in fourth quarter 2008 and continue through 2012," said Samuel Bornstein, a business professor at Kean University. "The current housing crisis is hurting entrepreneurs because they are unable to obtain important financing, such as home equity loans in order to start, operate and - Falling Gas Prices a Silver Lining For Small Businesses
A silver lining of the economic crisis is the rapidly falling cost of gas, Alejandro Lazo reports in Relief by the Gallon. After rising to record highs this past summer, gas prices have now fallen to a national average of $1.885 per gallon for regular unleaded, their lowest level since September 2004. This is good news for Stacie Banks and her family, who use their van and two cars to deliver flower arrangements for a local shop. "It is helping us out a lot, needless to say," Banks said. What about you? Have falling gas prices had an effect on your business? - IRS Announces New Mileage Rate
The Internal Revenue Service today issued its 2009 optional standard mileage rates that are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car, van, pickup or panel truck, will be: 55 cents per mile for business miles driven, 24 cents per mile driven for medical or moving purposes and 14 cents per mile driven in service of charitable organizations. Most of the new rates are lower than rates for the second half of 2008 that were raised by a special adjustment mid-year in response to a spike in gasoline prices. The rate for charitable purposes is set by law and is unchanged from 2008. The business mileage rate was 50.5 cents in the first half of 2008 and 58.5 cents in the second half. The medical and - New Lending Program Evokes 'Cautious Optimism' in Small Biz Community
The chairwoman of the House Small Business Committee is cautiously optimistic about the move by the Federal Reserve today to provide up to $200 billion to investors who put the money toward small business and consumer lending. "There is cautious optimism that the new facility, which is long-overdue, will begin to thaw the small business lending markets, which have all but stopped working," said Rep. Nydia Velazquez (D-N.Y.) today, reacting to the news. "More needs to be done, but this is a move in the right direction." The announcement by the Fed is part of a broad, economic package designed to rekindle the nation's economic growth. It is largely separate from the $700 billion Troubled Asset Relief Program, administered by the Treasury Department and focused on shoring up the country's financial system. "Continued disruption of these markets could significantly limit the availability of credit to households and small businesses and - How Do I...Find the Right Domain Name?
So you probably know you can lease a car, but did you know you can lease a Web site? But then, why would you want to? For answers to these questions and more, I spoke with YummyNames General Manager Bill Sweetman about tips for small firms in finding the best domain name, Web site strategies and why in fact some firms have made arrangements to rent-to-own when it comes to Web site addresses. YummyNames oversees, sells and rents more than 150,000 domain names owned by Tucows, an Internet services firm. YummyNames General Manager Bill Sweetman (courtesy of Tucows) "A lot of small businesses think that all the 'good' domain names are taken, but that's the biggest myth out there," Sweetman said. "It's all about how you conduct the search." For example, Sweetman suggests that a business owner might take a visit to a domain registrar and type in "cheeseboutique.com" or - Report: SBA Should Better Educate 8(a) Applicants
The Small Business Administration could do a better job of educating applicants about its popular 8(a) loan program, but its effectiveness has been hampered by agency downsizing and budget reductions, according to a new government report (pdf). The SBA's 8(a) program is designed to help small firms gain access to federal contracting opportunities and to help socially and economically disadvantaged small firms by providing management and contracting assistance. The federal government is supposed to award 23 percent of its total contract dollars to small businesses, but it has not achieved that goal. The Government Accountability Office said the program is challenged by several factors - participants don't understand the program's purpose and requirements, the agency's staff has a diminished ability to conduct business development activities, the process to terminate firms is inefficient and there is a lack of routine program surveillance reviews. "Years of SBA downsizing and budget reductions significantly - Growth of Minority Women-Owned Firms Skyrockets
Businesses owned by women of color are growing three times faster than all U.S. firms, according to a new report from the Center for Women's Business Research. "Businesses Owned by Women of Color in the United States 2008" found that firms owned by African American, Asian and Hispanic women business owners "substantially outpace" all U.S. firms in terms of revenue growth and number of employees. "The face of women entrepreneurship is changing," said center Chairwoman Margaret Smith. "Today, women of color represent 26 percent of all women business owners - up from 20 percent just a few years ago. These business owners are a vital driver of economic growth in every community and a vibrant source of suppliers and customers." There are 2.3 million firms that are 50 percent or more owned by women of color, providing 1.7 million jobs and generating $235 billion in revenues, according to the new - Five States Lead National Transformation to 'New Economy'
Five states -- Massachusetts, Washington, Maryland, Delaware and New Jersey -- are leading the United States' transformation into a global, entrepreneurial and knowledge- and innovation-based, or "new" economy, according to a new report (pdf) released this week from the Ewing Marion Kauffman Foundation and the Information Technology and Innovation Foundation. The 2008 State New Economy Index found that Mississippi and West Virginia ranked lowest among the states in making the transition to the "new economy." The other lowest-scoring states include Arkansas, Alabama and Wyoming. The report said the new economy has taken root in the Northeast, mid-Atlantic, Mountain West and Pacific regions. Fourteen of the top 20 states are in those regions. In contrast, 16 of the 20 lowest-ranking states are in the Midwest, Great Plains and Southern regions. The index measures states' economic structures. Rather than measuring state economic performance or state economic policies, it focuses on a single - Networking in a Down Economy
The economy is bleak, access to capital is near impossible and consumers aren't buying. It's enough to make many small business owners want to stay in bed - not to mention it's 35 degrees outside. But for tech start-ups in the D.C. area, the winter of their discontent is all about one thing - networking. That was the theme last night at the launch party for Dub Me Now, a digital business card sharing service. When I interviewed the firm's founder, Manoj Ramnani, in July, he was still trying to finalize funding. That's all come together, including agreements with Microsoft, Linked In and other bigger tech firms. The company plans 10 of these parties next year in major cities. D.C. was the kick-off venue as Dub is based in Tysons Corner, Va. To celebrate the service's launch, the company had a big bash at Georgetown's tony Sequoia restaurant, and it - Board of Trade Honors Three D.C.-Area Firms
The Greater Washington Board of Trade honored three companies last week at its annual Entrepreneurship Awards event celebrating smal