Friday, March 25, 2011

SBA Loans/ AB153 SF Chamber Supports Out of State Internet Tax

I was talking to Tony Wilkinson the head of the National Association of Government Guaranteed Lenders yesterday about SBA 7a lending for the fiscal year Oct 1 2010 to Oct 1 2011.

He indicated that as of March 18th the SBA had done $11.4 billion of 7a loans. This compares favorably with last year’s amount of the same time of $6.8 billion. Clearly there is demand for these loans but there continues to be problems with conventional small business loans.

While it is true that the Small Business Jobs Act played a role in the increase and increasing the loan size to $5 million had some impact Tony went on to say that after the 90% guarantee and the waiver of fees dropped off demand went down for about a month but has come back and he thinks the $17.5 billion authorized will run out before the fiscal year ends. The small business community needs to monitor these developments and if necessary speak out for the need to increase the authorization.

Yesterday the San Francisco Chamber voted to support Assemblywoman Skinners AB 153 requiring out of state internet companies to collect state sales taxes. As you know Small Business California is a strong supporter of this bill as it will level the playing field for brick and mortar stores and will take the administrative burden of tracking these purchases away from the business and place it on the out of state internet seller.

What is significant in the Chambers position is they originally were going to be neutral. This change was made because a small business committee at the Chamber asked for reconsideration and the vote was changed. Bravo to the SF Chamber and thank you.

If you are a member of a local Chamber or any business organization ask them to support AB 153. If you need a copy of SB Cal’s letter please let me know.

If you have received one of the 300,000 letters recently sent out by the Board of Equalization asking you to account for three years of receipts and pay any outstanding money on out of state internet purchases please let me know.

How long will/did it take you to go over your records.

Will you have to pay any penalties and interest.

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

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