So it appears that the extender bill HR4213 filed in the House was defeated.
The Senate was expected to take this up today but clearly with no bill it appears nothing is going to happen until after recess. HR 4213 would have extended the waiver of SBA fees on SBA loans and the 90% guarantee. So that means the SBA will run out of money for the waiver and guarantee and a queue is being set up.
Keep in mind this bill was not defeated because of the SBA provisions but as usual small business gets caught in the cross fire between Democrats and Republicans over whether stimulus money should be going back to pay off the debt or if any spending can be provided without off setting revenue.
The bill had a cost of $134 billion of which our SBA funding was about $500 million. For those of you in SF this means there is no funding to continue Jobs Now.
Small Business California has been trying to get repealed the requirement that businesses file 1099s for all companies they pay $600 or more. House member Dan Lungren has introduced HR 5141 to do this. He will be holding a press conference June 2 and SB Cal will there. If you are in his district and interested in attending let me know.
We have 70 cosigners on the bill all Republicans.
SBA Administrator Mills in a letter to small business said that the IRS is working on eliminating reporting for providers of goods and services that are paid by credit card. This is a start but clearly not enough.
Proposition 16 will be on the June ballot. This would require a two thirds vote to set up public power. What are your thoughts on this - Support? Oppose? Undecided?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Friday, May 28, 2010
Thursday, May 27, 2010
SBA Loans
See below article on SBA loans.
I mentioned yesterday that there is an extender bill HR 4213 which would extend the waiver of SBA fees and 90% guarantee through the end of the year. I heard from some of you that you called to ask this get passed. Thank you.
It is expected that this bill will come up in the House tonight and the Senate tomorrow. The SBA portion of this bill is very small. The cost of the bill has been reduced from $200 billion to $144 bill making it much more likely to get passed.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Money runs out for SBA small business loan breaks
Catherine Clifford, staff reporter, On Thursday May 27, 2010, 9:07 am EDT
In the middle of the federal government's National Small Business Week, two of the most successful Small Business Administration programs are about to run out of money -- again.
The SBA announced Wednesday that it is opening up its Recovery Loan Queue for the fourth time.
For more than a year, the SBA has used money first allocated in last year's Recovery Act to temporarily reduce fees for borrowers and increase the guarantees banks receive on loans made through the agency's lending programs. The SBA's loan volume has picked up sharply in that time, a turnaround agency officials attribute to the stimulus incentives.
But the funding for them ran out in November. Since then, the agency has relied on a series of temporary extensions to keep the loan sweeteners in place. Every time the money runs out, the SBA opens up its Recovery Loan Queue to track applicants hoping to collect the last few remaining dollars.
The latest authorization for some of the loan incentives expires at the end of this month, and the money for them is likely to be exhausted even sooner.
President Obama and many in Congress say they want the loan incentives extended for at least the rest of this fiscal year, which runs through September. But the two chambers of Congress haven't yet agreed on legislation to do that. Result: A series of emergency bills that so far have kept the funds flowing, but only after several brief expirations.
"The stopping-and-starting is problematic," said SBA spokesman Jonathan Swain. "It is a complicating factor for our lenders and our borrowers."
When the funding pool starts to go dry, lenders scramble. Seacoast Commerce Bank, a community bank in Chula Vista, Calif., had pushed five SBA-backed loans through by midday Wednesday.
"It certainly puts a lot of strain on the whole process," said David Bartram, an executive vice president in the bank's SBA division.
It also throws borrowers into limbo. Losing the SBA's fee waiver can make a loan thousands of dollars more expensive for the borrower -- and there are some loans banks are only willing to make if they can get the higher SBA guarantee. Without it, those loans become too risky.
"There are some customers that we are not going to be able to help," Bartram said.
Members of both the House of Representatives and the Senate are pushing for another extension, but it's unclear whether legislation can make it through before the Memorial Day break.
"Nothing gets through Congress easily these days, even bipartisan legislation," said Lynn Ozer, executive vice president of government lending at Susquehanna Bank.
SBA lending is one of the few bright spots in an otherwise barren credit landscape, but it's still a small part. A recent government report estimated that SBA programs account for just 4% of all small business lending.
President Obama this week renewed his push for a new, $30 billion loan fund to seed small banks with capital to boost their local business lending. In a report issued Tuesday, the Congressional Budget Office estimated that the measure would cost the government $3.3 billion over the next five years.
Copyright © 2010 Cable News Network and Time Inc. and their affiliated companies. All Rights Reserved.
I mentioned yesterday that there is an extender bill HR 4213 which would extend the waiver of SBA fees and 90% guarantee through the end of the year. I heard from some of you that you called to ask this get passed. Thank you.
It is expected that this bill will come up in the House tonight and the Senate tomorrow. The SBA portion of this bill is very small. The cost of the bill has been reduced from $200 billion to $144 bill making it much more likely to get passed.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Money runs out for SBA small business loan breaks
Catherine Clifford, staff reporter, On Thursday May 27, 2010, 9:07 am EDT
In the middle of the federal government's National Small Business Week, two of the most successful Small Business Administration programs are about to run out of money -- again.
The SBA announced Wednesday that it is opening up its Recovery Loan Queue for the fourth time.
For more than a year, the SBA has used money first allocated in last year's Recovery Act to temporarily reduce fees for borrowers and increase the guarantees banks receive on loans made through the agency's lending programs. The SBA's loan volume has picked up sharply in that time, a turnaround agency officials attribute to the stimulus incentives.
But the funding for them ran out in November. Since then, the agency has relied on a series of temporary extensions to keep the loan sweeteners in place. Every time the money runs out, the SBA opens up its Recovery Loan Queue to track applicants hoping to collect the last few remaining dollars.
The latest authorization for some of the loan incentives expires at the end of this month, and the money for them is likely to be exhausted even sooner.
President Obama and many in Congress say they want the loan incentives extended for at least the rest of this fiscal year, which runs through September. But the two chambers of Congress haven't yet agreed on legislation to do that. Result: A series of emergency bills that so far have kept the funds flowing, but only after several brief expirations.
"The stopping-and-starting is problematic," said SBA spokesman Jonathan Swain. "It is a complicating factor for our lenders and our borrowers."
When the funding pool starts to go dry, lenders scramble. Seacoast Commerce Bank, a community bank in Chula Vista, Calif., had pushed five SBA-backed loans through by midday Wednesday.
"It certainly puts a lot of strain on the whole process," said David Bartram, an executive vice president in the bank's SBA division.
It also throws borrowers into limbo. Losing the SBA's fee waiver can make a loan thousands of dollars more expensive for the borrower -- and there are some loans banks are only willing to make if they can get the higher SBA guarantee. Without it, those loans become too risky.
"There are some customers that we are not going to be able to help," Bartram said.
Members of both the House of Representatives and the Senate are pushing for another extension, but it's unclear whether legislation can make it through before the Memorial Day break.
"Nothing gets through Congress easily these days, even bipartisan legislation," said Lynn Ozer, executive vice president of government lending at Susquehanna Bank.
SBA lending is one of the few bright spots in an otherwise barren credit landscape, but it's still a small part. A recent government report estimated that SBA programs account for just 4% of all small business lending.
President Obama this week renewed his push for a new, $30 billion loan fund to seed small banks with capital to boost their local business lending. In a report issued Tuesday, the Congressional Budget Office estimated that the measure would cost the government $3.3 billion over the next five years.
Copyright © 2010 Cable News Network and Time Inc. and their affiliated companies. All Rights Reserved.
Calls to U.S. House Needed Today
Please see request of Trent.
He is the head of Health and Human Services in SF.This is important to all of you in SF that are receiving Jobs Now money.
It is also important to small businesses around the country because it will provide until the end of the year the stimulus money for the waiver of SB fee and the 90% guarantee. The money for this is scheduled to run out the end of May.
Take a moment and make the call
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
From: Trent Rhorer [mailto:Trent.Rhorer@sfgov.org] Sent: Wednesday, May 26, 2010 10:07 AMTo: Scott HaugeSubject:
Hi Scott.This is the bill to extend JobsNow. Can you send it out to your members? Maybe they can make a call in support. Thanks.
Trent
Dear Director:
A quick phone call from you today to your U.S. Representative (see list below) is critical.
As soon as today, the House may vote on H.R. 4213
Calls are needed TODAY (Wednesday) 1-888-245-0215 (toll-free to Capitol Switchboard).
Cardoza - Fresno (part), Madera (part), Merced, San Joaquin (part), Stanislaus (part)
Costa - Fresno (part), Kern (part), Kings
Susan Davis - San Diego (part)
Eshoo - San Mateo (part), Santa Clara (part), Santa Cruz (part)
Filner - Imperial, San Diego (part)
Harman - Los Angeles (part)
Honda - Santa Clara (part)
Lofgren - Santa Clara (part)
McNerney - Alameda (part), Contra Costa (part), San Joaquin (part), Santa Clara (part)
Schiff - Los Angeles (part)
Speier - San Francisco (part), San Mateo (part)
He is the head of Health and Human Services in SF.This is important to all of you in SF that are receiving Jobs Now money.
It is also important to small businesses around the country because it will provide until the end of the year the stimulus money for the waiver of SB fee and the 90% guarantee. The money for this is scheduled to run out the end of May.
Take a moment and make the call
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
From: Trent Rhorer [mailto:Trent.Rhorer@sfgov.org] Sent: Wednesday, May 26, 2010 10:07 AMTo: Scott HaugeSubject:
Hi Scott.This is the bill to extend JobsNow. Can you send it out to your members? Maybe they can make a call in support. Thanks.
Trent
Dear Director:
A quick phone call from you today to your U.S. Representative (see list below) is critical.
As soon as today, the House may vote on H.R. 4213
Calls are needed TODAY (Wednesday) 1-888-245-0215 (toll-free to Capitol Switchboard).
Cardoza - Fresno (part), Madera (part), Merced, San Joaquin (part), Stanislaus (part)
Costa - Fresno (part), Kern (part), Kings
Susan Davis - San Diego (part)
Eshoo - San Mateo (part), Santa Clara (part), Santa Cruz (part)
Filner - Imperial, San Diego (part)
Harman - Los Angeles (part)
Honda - Santa Clara (part)
Lofgren - Santa Clara (part)
McNerney - Alameda (part), Contra Costa (part), San Joaquin (part), Santa Clara (part)
Schiff - Los Angeles (part)
Speier - San Francisco (part), San Mateo (part)
Friday, May 21, 2010
SBA Loans/OSHA/Red Flag Rules
As reported in prior emails the stimulus money for the waiver of fees and the 90% guarantee on SBA loans will run out the end of May. It is hoped that $505 million will be approved to provide funding for the rest of the year. It was expected that this would be passed yesterday but it did not happen. Again we are in a last minute situation and the banks will be rushing to get their packages to the SBA so I guess it is possible they could run out of money before the end of the month.
I just learned yesterday from one of our members that OSHA requires businesses to notify OSHA within 8 hours of a death of an employee at their business. This is required even if the death is from natural causes. Our member was fined $5000 for not reporting within 8 hours.
I hope all of you are aware of whether you are subject to the Red Flag rules put forth by the FTC. If you are considered a financial institution or arrange credit you are required to have a program in effect and enforcement will start June 1. Fines will be assessed if you are not complying. You also need to have this approved by your board if you are a corporation or a committee appointed by the board.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
I just learned yesterday from one of our members that OSHA requires businesses to notify OSHA within 8 hours of a death of an employee at their business. This is required even if the death is from natural causes. Our member was fined $5000 for not reporting within 8 hours.
I hope all of you are aware of whether you are subject to the Red Flag rules put forth by the FTC. If you are considered a financial institution or arrange credit you are required to have a program in effect and enforcement will start June 1. Fines will be assessed if you are not complying. You also need to have this approved by your board if you are a corporation or a committee appointed by the board.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Thursday, May 20, 2010
Small Business California continues to do amazing things for small businesses around the state -
We are responsible for bringing On Bill Financing to California. Last week I found out that PG&E in their filings has agreed to do On Bill Financing in their area effective July 1 2010. San Diego Gas has been doing this for years and has lent millions to small businesses. Southern California Edison will be implementing On Bill Financing in the next few months.
For those of you that are not aware of what On Bill Financing is it is a way to provide capital to small businesses at 0% financing for energy retrofits.
Access to capital is a major issue for small businesses and Small Business California is making capital available for energy retrofits. Kudos to Hank Ryan our executive director for making this happen.
Small business is seen by many as an obstacle to solving the uninsured problem in this country and California. We do have problems with the recently passed health bill but Small Business California also wants to be proactive.
As such Small Business California strongly supports Volunteers In Medicine. This program takes volunteer heath professionals that serve the working uninsured. We now have 78 clinics in 25 states. I am working on setting up a Volunteers In Medicine Clinic in SF. Many of you have contributed to this effort and I thank you. We are now looking at opening this clinic in SF around September. It will be called Clinic by the Bay. This is my dream for 11 years but more importantly it is something small businesses can be proud of in trying to find solutions to helping the uninsured.
I don’t usually ask for your help but I am going to do so now. We need you to join Small Business California. For those of you that have done so thank you. For those of you that haven’t I ask what organization provides you more information about what is going on in Sacramento and Washington than SB Cal? What organization has been more effective representing small business than SB Cal ?
Please visit our website a www.smallbusinesscalifornia.org to find out more about our effort and join on line.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
For those of you that are not aware of what On Bill Financing is it is a way to provide capital to small businesses at 0% financing for energy retrofits.
Access to capital is a major issue for small businesses and Small Business California is making capital available for energy retrofits. Kudos to Hank Ryan our executive director for making this happen.
Small business is seen by many as an obstacle to solving the uninsured problem in this country and California. We do have problems with the recently passed health bill but Small Business California also wants to be proactive.
As such Small Business California strongly supports Volunteers In Medicine. This program takes volunteer heath professionals that serve the working uninsured. We now have 78 clinics in 25 states. I am working on setting up a Volunteers In Medicine Clinic in SF. Many of you have contributed to this effort and I thank you. We are now looking at opening this clinic in SF around September. It will be called Clinic by the Bay. This is my dream for 11 years but more importantly it is something small businesses can be proud of in trying to find solutions to helping the uninsured.
I don’t usually ask for your help but I am going to do so now. We need you to join Small Business California. For those of you that have done so thank you. For those of you that haven’t I ask what organization provides you more information about what is going on in Sacramento and Washington than SB Cal? What organization has been more effective representing small business than SB Cal ?
Please visit our website a www.smallbusinesscalifornia.org to find out more about our effort and join on line.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Wednesday, May 05, 2010
State Fund Announces Rate Cut/ Northern California Independent Booksellers Award/ Dodd Regulation bill
Last week State Fund filed for a 3.2% reduction in their workers compensation rates for July 2010. They also have filed to eliminate their loss free credit for policies between $25000 and $59999 but extended their merit credit to these policies which should make them more competitive on those accounts.
State Fund is in a unique position for insurance carriers. Their combined loss ratio [claims and expenses] was 161.5% yet because of their huge surpluses they made $143 million for 2009 up from about $75 million in 2008. I assure you other insurance carriers could not do this and eventually workers compensation rates are going to go up significantly.
I am pleased to announce that our affiliate member the Northern California Independent Booksellers Associations is being presented an award from The Bay Guardian as the Chain Alternative. Congratulations Hut Landon the Executive Director of the Association and Mike Tucker owner of Books Inc.
I’m sure you are all following the debate in Washington over financial regulations and trying to prevent future melt downs of our financial institutions. Yesterday they dropped the $50 billion bailout money and it appears Senator Dodd’s bill is getting closer to passage. As a small business person what do you think about this? Should the size of the huge financial institutions like Goldman Sachs be reduced? NSBA has consistently opposed the repeal of Glass Steagal.
What do you think about this?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
State Fund is in a unique position for insurance carriers. Their combined loss ratio [claims and expenses] was 161.5% yet because of their huge surpluses they made $143 million for 2009 up from about $75 million in 2008. I assure you other insurance carriers could not do this and eventually workers compensation rates are going to go up significantly.
I am pleased to announce that our affiliate member the Northern California Independent Booksellers Associations is being presented an award from The Bay Guardian as the Chain Alternative. Congratulations Hut Landon the Executive Director of the Association and Mike Tucker owner of Books Inc.
I’m sure you are all following the debate in Washington over financial regulations and trying to prevent future melt downs of our financial institutions. Yesterday they dropped the $50 billion bailout money and it appears Senator Dodd’s bill is getting closer to passage. As a small business person what do you think about this? Should the size of the huge financial institutions like Goldman Sachs be reduced? NSBA has consistently opposed the repeal of Glass Steagal.
What do you think about this?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Tuesday, May 04, 2010
I have the names of all of you that said you would send letters supporting HR 5141 but have decided to send the sample letter to everyone and hope you will take a couple of minutes to send the following.
Honorable Dan Lungren
US House of Representatives
Washington DC 20515
Dear Congressman Lungren:
I am a small business owner and am writing in support of your bill HR 5141 the Small Business Paperwork Mandate Elimination Act . HR 5141 will repeal section 9006 of the recently passed Patient Protection and Affordable Care Act PPAFC. PPAFC places a major burden on small business by requiring us to send 1099s for virtually all businesses we do business with.
The PPAFC requires me to send 1099s for anyone that provides goods and services to me with a value of $600 or more. This includes corporations and businesses that provide materials to me. I do not currently have to do this.
I currently send 1099s for [ fill in the number] businesses. If PPAFC goes into effect I will have to send [ fill in the number]. Not only will this create a serious paperwork problem to send these but it will create a problem for me to get all the tax ID numbers.
I also think it would create a serious problem for the government processing the millions of additional 1099s they will be receiving.
Thank you for introducing HR 5141 and we will be urging the House Member in our district to support this legislation also.
Signed
Be sure and include your name, company name and address.
Feel free to change this anyway you would like. If you are a sole proprietor you might add that your tax id number is your social security number and that you are concerned about identity theft.
Also if you think the number of additional 1099s is too small just say you support the bill.
Copy me and Kevin Holsclaw in Congressman Lungren's office (Kevin.Holsclaw@mail.house.gov) on the letter.
I will also send a copy of your letter to your House member and copy you on this.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
415 680 2188
shauge@cal-insure.com
Honorable Dan Lungren
US House of Representatives
Washington DC 20515
Dear Congressman Lungren:
I am a small business owner and am writing in support of your bill HR 5141 the Small Business Paperwork Mandate Elimination Act . HR 5141 will repeal section 9006 of the recently passed Patient Protection and Affordable Care Act PPAFC. PPAFC places a major burden on small business by requiring us to send 1099s for virtually all businesses we do business with.
The PPAFC requires me to send 1099s for anyone that provides goods and services to me with a value of $600 or more. This includes corporations and businesses that provide materials to me. I do not currently have to do this.
I currently send 1099s for [ fill in the number] businesses. If PPAFC goes into effect I will have to send [ fill in the number]. Not only will this create a serious paperwork problem to send these but it will create a problem for me to get all the tax ID numbers.
I also think it would create a serious problem for the government processing the millions of additional 1099s they will be receiving.
Thank you for introducing HR 5141 and we will be urging the House Member in our district to support this legislation also.
Signed
Be sure and include your name, company name and address.
Feel free to change this anyway you would like. If you are a sole proprietor you might add that your tax id number is your social security number and that you are concerned about identity theft.
Also if you think the number of additional 1099s is too small just say you support the bill.
Copy me and Kevin Holsclaw in Congressman Lungren's office (Kevin.Holsclaw@mail.house.gov) on the letter.
I will also send a copy of your letter to your House member and copy you on this.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
415 680 2188
shauge@cal-insure.com
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