Many of you I am sure have seen that a number of large companies are taking charges in the current quarter for reforms that came out of the health care bill. 300 large corporations have urged the President to repeal a provision that allows them to receive a subsidy on drug coverage and then take a tax deduction for the expense. The companies have said this would deal a significant blow to corporate profits and discourage companies from hiring more workers.
I don’t understand the large companies on this one as it seems to me that if I receive a subsidy I shouldn’t be allowed to then take a deduction. Seems like double dipping but maybe some of you can explain this to me.
Yesterday I received an inquiry from a reporter indicating that businesses are going to be allowed to reduce their prepayment on payroll taxes due to the economy. I have not heard of this. Are any of you familiar with this provision and if so will it help you?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Tuesday, March 30, 2010
Friday, March 26, 2010
Waiver of fees and 90% guarantees extended/ IRS Scam/ On Bill Financing/ LA Times
I just received word from Tony Wilkinson of the National Association of Government Lenders that legislation has been passed by the House and the Senate to extend the 90% guarantees on SBA 7a and 504 loans through the end of April. It is expected the President will sign. While this is good it is another stop gap measure and what is really needed is the passage of HR4312 which would extend funding through the end of the year.
Yesterday I received an official looking email which appeared to be from the IRS. It appeared that they were checking information. Have any of you received this? If so it is a scam. My accountant told me the IRS does not send things through email.
Southern California Edison just filed with the California Public Utilities Commission[CPUC] their intention to do On Bill Financing as is being done by San Diego Gas. This would mean 0% financing for small businesses who do energy retrofits. The loans would be $5,000 to $100000. Unfortunately it is not clear when the program will start for small businesses. San Diego Gas has loaned over $6 million on the program and numerous small contractors are getting work they would not have received without the program. The amazing thing is that the default rate on these loans is around 1%.Small Business California and our Executive Director Hank Ryan is responsible for bringing On Bill Financing to California and has spent numerous hours testifying before the CPUC.
For more information on On Bill Financing go to www.smallbusinesscalifornia.org
I received a call the other day from a reporter at the LA Times. It seems they will be running stories about the impact of the health bill on small businesses. If you are in the LA area please let me know if you would be willing to speak to her.
For those of you in the Bay Area I will have my comments in the SF Chronicle Sunday. My comments were based on your responses to me.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Yesterday I received an official looking email which appeared to be from the IRS. It appeared that they were checking information. Have any of you received this? If so it is a scam. My accountant told me the IRS does not send things through email.
Southern California Edison just filed with the California Public Utilities Commission[CPUC] their intention to do On Bill Financing as is being done by San Diego Gas. This would mean 0% financing for small businesses who do energy retrofits. The loans would be $5,000 to $100000. Unfortunately it is not clear when the program will start for small businesses. San Diego Gas has loaned over $6 million on the program and numerous small contractors are getting work they would not have received without the program. The amazing thing is that the default rate on these loans is around 1%.Small Business California and our Executive Director Hank Ryan is responsible for bringing On Bill Financing to California and has spent numerous hours testifying before the CPUC.
For more information on On Bill Financing go to www.smallbusinesscalifornia.org
I received a call the other day from a reporter at the LA Times. It seems they will be running stories about the impact of the health bill on small businesses. If you are in the LA area please let me know if you would be willing to speak to her.
For those of you in the Bay Area I will have my comments in the SF Chronicle Sunday. My comments were based on your responses to me.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Wednesday, March 24, 2010
Governor's Conference on Small Business & Entrepreneurship II
I have been asked by a reporter how the health bill will affect small business both directly and indirectly. Please provide me your comments today.
Please see below information on the Governors Small Business Conference May 6. Click on the image and zoom in to enlarge it.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Please see below information on the Governors Small Business Conference May 6. Click on the image and zoom in to enlarge it.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Monday, March 22, 2010
Health Bill Passes
I know many of you were opposed to the health bill but it now has passed. It is now time to move forward as there are many details to be worked out. Small Business California plans to be involved in those discussions.
The biggest issue I think for California small businesses is the development of an Exchange. Small Business California wants to be part of its development.
Do you want more information about what an Exchange is? Do you want to be part of this discussion?
Scott Hauge
President
Small Business California
2311 Taravel Street
San Francisco, CA 94116
415-680-2188
shauge@cal-insure.com
The biggest issue I think for California small businesses is the development of an Exchange. Small Business California wants to be part of its development.
Do you want more information about what an Exchange is? Do you want to be part of this discussion?
Scott Hauge
President
Small Business California
2311 Taravel Street
San Francisco, CA 94116
415-680-2188
shauge@cal-insure.com
Tuesday, March 16, 2010
SBIR/IRS collects 4 cents and $202.31 in penalties/SBA Stimulus Funding
I have been asked why Small Business California should get involved in the Small Business Innovation Research[SBIR] debate.
I start with Ms Velazquez statement “Without the participation of venture -backed companies, the SBIR program has become little more than corporate welfare for marginal companies who are unable to secure external market based funding”.
Ms Velazquez is the Chair of the House Small Business Committee and in fairness to her she retracted her statement but still believes VCs should be allowed into the program.
The statement in my mind is an attack on the small businesses around the country and the SBA. Does she also mean that small businesses that get SBA 7a and 504 loans, which are not "external market based programs", are taking corporate welfare and marginal small businesses.
Will these programs only be legitimized if VC’s are allowed to use the program? It should be noted that VC’s that have less than 500 employees can use the SBIR or if they do not control the management of the small business those small businesses can use the SBIR program.
For background information there are 4000 companies getting venture capital in the US and there are 25 million small businesses in the US.
You might find the article by Bob Shallit interesting. It was in the Sacramento Bee. It is a story about a car wash owner who had two IRS agents show up at his business to collect 4 cents the IRS says was due. The penalties on this were $202.31
Click here: Bob Shallit: IRS visits Sacramento carwash in pursuit of 4 cents - Sacramento Business, Housing Market News Sacr
Last week I sent an email regarding HR 4213 which would provide $560 million stimulus funding to continue the 90% guarantees on 7a and 504 SBA loans and waive the fees on those loans.
It should be noted it does not include increasing the size of those loans from $2 million to $5 million. That would be done by passage of HR 4302 which Small Business California has strongly supported.
The provisions of HR4302 are in the Senate jobs bill which Senators Feinstein and Boxer have coauthored. We have been working on getting House members from California to coauthor HR 4302 and to date the Congress people that have signed on are Baca, Speier, Costa, Cardoza, Richardson, Davis and Woolsey.
Please ask your congressman to support HR 4302. If you want a sample letter please let me know. Please also tell me where you are located so we can set the letter up to the person in your district.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
I start with Ms Velazquez statement “Without the participation of venture -backed companies, the SBIR program has become little more than corporate welfare for marginal companies who are unable to secure external market based funding”.
Ms Velazquez is the Chair of the House Small Business Committee and in fairness to her she retracted her statement but still believes VCs should be allowed into the program.
The statement in my mind is an attack on the small businesses around the country and the SBA. Does she also mean that small businesses that get SBA 7a and 504 loans, which are not "external market based programs", are taking corporate welfare and marginal small businesses.
Will these programs only be legitimized if VC’s are allowed to use the program? It should be noted that VC’s that have less than 500 employees can use the SBIR or if they do not control the management of the small business those small businesses can use the SBIR program.
For background information there are 4000 companies getting venture capital in the US and there are 25 million small businesses in the US.
You might find the article by Bob Shallit interesting. It was in the Sacramento Bee. It is a story about a car wash owner who had two IRS agents show up at his business to collect 4 cents the IRS says was due. The penalties on this were $202.31
Click here: Bob Shallit: IRS visits Sacramento carwash in pursuit of 4 cents - Sacramento Business, Housing Market News Sacr
Last week I sent an email regarding HR 4213 which would provide $560 million stimulus funding to continue the 90% guarantees on 7a and 504 SBA loans and waive the fees on those loans.
It should be noted it does not include increasing the size of those loans from $2 million to $5 million. That would be done by passage of HR 4302 which Small Business California has strongly supported.
The provisions of HR4302 are in the Senate jobs bill which Senators Feinstein and Boxer have coauthored. We have been working on getting House members from California to coauthor HR 4302 and to date the Congress people that have signed on are Baca, Speier, Costa, Cardoza, Richardson, Davis and Woolsey.
Please ask your congressman to support HR 4302. If you want a sample letter please let me know. Please also tell me where you are located so we can set the letter up to the person in your district.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Friday, March 12, 2010
SBIR
I have written about the battle in Washington between small business and the large venture –backed companies. Basically venture backed capital companies want to redefine the SBA’s criteria of small business.
On March 4 a document passed by the House contained the following statement put forth by Chair of the House Small Business Committee Nydia Velazquez:
“Without the participation of venture-backed companies, the SBIR program has become little more than corporate welfare for marginal companies who are unable to secure external market based funding."
The passage of the document was with the proviso that the document could be changed to make punctuation and technical changes.
For some background information, if you go to the www.sbir.gov website, you will see The US Small Business Administration[SBA] Office of Technology administers the Small Business Innovation Research[SBIR] Program and the Small Business Technology Transfer{STTR] Program. Through these two competitive programs, SBA ensures that the nation’s small,_high-tech innovative businesses are a significant part of the federal governments research and development efforts.
Eleven federal departments participate in the SBIR program; five departments participate in the STTR program awarding $2 billion to small high-tech businesses.
It should be noted that the SBIR program does not prohibit venture-backed companies from participating in the SBIR program just those that do not meet the definition of small business put forth by the SBA.
There was a firestorm around the country about Ms. Velazquez' comments. As a result Ms.Velazquez revised her statement to say:
“In addition, SBA should permit venture capital-backed small businesses to be able to fully participate in the Small Business Innovation Research program. Such participation is essential for high- growth small firms seeking capital, particularly during this period of economic weakness”
Seems to me this is a bit more than punctuation and technical changes but the bottom line is that Ms Velazquez has become a real problem for small business. Not only on the SBIR issue but she prevented an amendment to include small businesses from being included on the credit card reform bill passed by the legislature and signed by the government and voted against the $125 million included in the Defense bill which extended stimulus funding for SBA loans
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
On March 4 a document passed by the House contained the following statement put forth by Chair of the House Small Business Committee Nydia Velazquez:
“Without the participation of venture-backed companies, the SBIR program has become little more than corporate welfare for marginal companies who are unable to secure external market based funding."
The passage of the document was with the proviso that the document could be changed to make punctuation and technical changes.
For some background information, if you go to the www.sbir.gov website, you will see The US Small Business Administration[SBA] Office of Technology administers the Small Business Innovation Research[SBIR] Program and the Small Business Technology Transfer{STTR] Program. Through these two competitive programs, SBA ensures that the nation’s small,_high-tech innovative businesses are a significant part of the federal governments research and development efforts.
Eleven federal departments participate in the SBIR program; five departments participate in the STTR program awarding $2 billion to small high-tech businesses.
It should be noted that the SBIR program does not prohibit venture-backed companies from participating in the SBIR program just those that do not meet the definition of small business put forth by the SBA.
There was a firestorm around the country about Ms. Velazquez' comments. As a result Ms.Velazquez revised her statement to say:
“In addition, SBA should permit venture capital-backed small businesses to be able to fully participate in the Small Business Innovation Research program. Such participation is essential for high- growth small firms seeking capital, particularly during this period of economic weakness”
Seems to me this is a bit more than punctuation and technical changes but the bottom line is that Ms Velazquez has become a real problem for small business. Not only on the SBIR issue but she prevented an amendment to include small businesses from being included on the credit card reform bill passed by the legislature and signed by the government and voted against the $125 million included in the Defense bill which extended stimulus funding for SBA loans
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Thursday, March 11, 2010
ALERT Senate Votes, Extend SBA Recovery Act to 12/31
Please see below for the National Association of Government Guaranteed Lenders information to members. As you all know Small Business California and the National Small Business Association have been working closely with NAGGL to get this funding.
We now ask Speaker Pelosi and all members of the California House delegation to support passage quickly of HR 4213.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Senate Passes HR 4213, Includes NAGGL-Originated Amendment to Extend & Fund SBA Recovery Act Provisions through CALENDAR Year
March 10, 2010
Dear Members,
Just moments ago the Senate passed HR 4213, To amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes -- more commonly called the 'Tax Extenders Bill' to extend jobless benefits, tax breaks... and small business programs.
The bill includes an amendment sought by NAGGL that increases the amount of funding to further extend the SBA Recovery Act provisions. NAGGL argued that the additional $354 million proposed in earlier legislation would likely not support SBA lending stimulus provisions through even the end of the fiscal year.
Senators Mary Landrieu (D-LA) and Snowe (R-ME) (the Chair and Ranking Member of the Senate Committee on Small Business & Entrepreneurship) concurred with NAGGL. As part of a technical amendment, the Senate has increased the funding to $560 miliion (in addition to the $60 million for March). The $620 million total should be sufficient to get the SBA lending industry through the end of the CALENDAR year. The bill also includes an extension of the authorization of the SBA Recovery Act provisions through 12/31/2010.
What's next? HR 4213 now goes to the House for consideration. NAGGL is hopeful that all congressional work will be completed and the bill signed into law by the March 28 expiration of the recently extended stimulus provisions.
Thank you for your continued support. We'll keep you updated on naggl.org and through email alerts.
Anthony R. Wilkinson
& Your NAGGL Team
NAGGL
215 East 9th Avenue
Stillwater, Oklahoma 74074
We now ask Speaker Pelosi and all members of the California House delegation to support passage quickly of HR 4213.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Senate Passes HR 4213, Includes NAGGL-Originated Amendment to Extend & Fund SBA Recovery Act Provisions through CALENDAR Year
March 10, 2010
Dear Members,
Just moments ago the Senate passed HR 4213, To amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes -- more commonly called the 'Tax Extenders Bill' to extend jobless benefits, tax breaks... and small business programs.
The bill includes an amendment sought by NAGGL that increases the amount of funding to further extend the SBA Recovery Act provisions. NAGGL argued that the additional $354 million proposed in earlier legislation would likely not support SBA lending stimulus provisions through even the end of the fiscal year.
Senators Mary Landrieu (D-LA) and Snowe (R-ME) (the Chair and Ranking Member of the Senate Committee on Small Business & Entrepreneurship) concurred with NAGGL. As part of a technical amendment, the Senate has increased the funding to $560 miliion (in addition to the $60 million for March). The $620 million total should be sufficient to get the SBA lending industry through the end of the CALENDAR year. The bill also includes an extension of the authorization of the SBA Recovery Act provisions through 12/31/2010.
What's next? HR 4213 now goes to the House for consideration. NAGGL is hopeful that all congressional work will be completed and the bill signed into law by the March 28 expiration of the recently extended stimulus provisions.
Thank you for your continued support. We'll keep you updated on naggl.org and through email alerts.
Anthony R. Wilkinson
& Your NAGGL Team
NAGGL
215 East 9th Avenue
Stillwater, Oklahoma 74074
Monday, March 08, 2010
Proposition 16 June Ballot
PG&E will be putting on the ballot Proposition 16. This measure will require a two-thirds voter approval before local governments provide electricity service to new customers or establish a community choice electricity program using public funds or bonds.
Questions: Were you aware this would be on the June ballot? Do you support or oppose this initiative?
Last week I heard from Tony Wilkinson of the National Association of Government Guaranteed Lenders that the Senate has put forth an amendment that would provide $560 million for the SBA to provide 7a and 504 loans with a 90% guarantee and waives the fees on these loans for the calendar year. This is on top of the $60 million that is now in place with the extender legislation that was passed a couple of weeks ago. Small Business California has been at the for front of this effort along with our partners at the National Small Business Association.
Small Business California has delivered the results of our survey to every House member from California and the Governor’s office. We will be sending the surevey results this week to every member of the California legislature.
For the results for 2010 and the results of 2009 please visit our website at http://www.smallbusinesscalifornia.org/
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Questions: Were you aware this would be on the June ballot? Do you support or oppose this initiative?
Last week I heard from Tony Wilkinson of the National Association of Government Guaranteed Lenders that the Senate has put forth an amendment that would provide $560 million for the SBA to provide 7a and 504 loans with a 90% guarantee and waives the fees on these loans for the calendar year. This is on top of the $60 million that is now in place with the extender legislation that was passed a couple of weeks ago. Small Business California has been at the for front of this effort along with our partners at the National Small Business Association.
Small Business California has delivered the results of our survey to every House member from California and the Governor’s office. We will be sending the surevey results this week to every member of the California legislature.
For the results for 2010 and the results of 2009 please visit our website at http://www.smallbusinesscalifornia.org/
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Thursday, March 04, 2010
Workers Compensation/ AB 32 Global Warming
On Tuesday I spoke at the Department of Workers Compensation conference. Dave Belluschi from the Workers Compensation Insurance Rating Board also was a speaker and he reported that he expects that combined loss ratio for workers compensation for 2009 was going to be around 125%. The combined loss ratio for 2008 was 111%. As I have said before at some point there is going to be double digit increases for small businesses for their comp insurance.
You all may know that there is a movement afoot to put a measure on the ballot to suspend implementation of AB 32.The measure will delay implementation until California’s unemployment drops to 5.5% for a year. Currently the unemployment rate is just over 12%.
Yesterday Valero Energy Corp and Tesoro Corp Texas based refiners have pledged $2 million to get signatures to put this on the ballot. What are your thoughts on this?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
You all may know that there is a movement afoot to put a measure on the ballot to suspend implementation of AB 32.The measure will delay implementation until California’s unemployment drops to 5.5% for a year. Currently the unemployment rate is just over 12%.
Yesterday Valero Energy Corp and Tesoro Corp Texas based refiners have pledged $2 million to get signatures to put this on the ballot. What are your thoughts on this?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Monday, March 01, 2010
Survey Results/CARB Workshop
Please see link to the results of Small Business California’s 6th annual survey.
The top concerns for Small business are:
1. The Economy-88% Top or High Priority
2. Cost of Healthcare-79% -Top or High Priority
3. Quality of Public Education-74%
4. Repair of Infrastructure-66%
5. Access to Capital- 64%
6. Awarding state contracts to small business-61%
7. Regulations-60%
8. State Taxes-58%
9. Energy- 48%
We had over 2700 hundred responding. Thank you.
English results:
http://www.zoomerang.com/Shared/SharedResultsSurveyResultsPage.aspx?ID=L247A8TNDLL3
The California Air Resources Board has developed, and is hosting, a FREE workshop entitled “Taking Advantage of the Growing Green Economy – Real People. Real Solutions. Real Opportunities!” in conjunction with the Green California Summit on Tuesday, March 16, 2010, from 9:30AM to 4:00PM, at the Sacramento Convention Center. Please help us promote this workshop by distributing the attached agenda and flyer to your networks, colleagues, customers and clients.
The focus of this workshop is "Real California Small Businesses" learning from other "Real California Small Businesses" about what is working, what didn't work, how their respective businesses have benefited from the actions they've taken to “Green” their businesses by reducing energy and fuel use, becoming more efficient, accessing local assistance programs, and selling green products and services.
This is a fresh approach and the response thus far has been quite excellent. Our confirmed attendance figures to date have already exceeded our original attendance goals within the first three days of marketing, but we want to be even MORE successful with your assistance! We've expanded the room that was originally reserved for us so we still have capacity to accommodate additional small businesses who want to learn and GROW during this very challenging economy.
Thank you for your support and we hope to see you AT the workshop on March 16!
Jerry Hart
Air Pollution Specialist
CA Air Resources Board
ghart@arb.ca.gov
916-324-5941
The energy challenge facing California is real. Every Californian needs to take immediate action to reduce energy consumption. For a list of simple ways you can reduce demand and cut your energy cost, see our web site at http://www.arb.ca.gov/
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
The top concerns for Small business are:
1. The Economy-88% Top or High Priority
2. Cost of Healthcare-79% -Top or High Priority
3. Quality of Public Education-74%
4. Repair of Infrastructure-66%
5. Access to Capital- 64%
6. Awarding state contracts to small business-61%
7. Regulations-60%
8. State Taxes-58%
9. Energy- 48%
We had over 2700 hundred responding. Thank you.
English results:
http://www.zoomerang.com/Shared/SharedResultsSurveyResultsPage.aspx?ID=L247A8TNDLL3
The California Air Resources Board has developed, and is hosting, a FREE workshop entitled “Taking Advantage of the Growing Green Economy – Real People. Real Solutions. Real Opportunities!” in conjunction with the Green California Summit on Tuesday, March 16, 2010, from 9:30AM to 4:00PM, at the Sacramento Convention Center. Please help us promote this workshop by distributing the attached agenda and flyer to your networks, colleagues, customers and clients.
The focus of this workshop is "Real California Small Businesses" learning from other "Real California Small Businesses" about what is working, what didn't work, how their respective businesses have benefited from the actions they've taken to “Green” their businesses by reducing energy and fuel use, becoming more efficient, accessing local assistance programs, and selling green products and services.
This is a fresh approach and the response thus far has been quite excellent. Our confirmed attendance figures to date have already exceeded our original attendance goals within the first three days of marketing, but we want to be even MORE successful with your assistance! We've expanded the room that was originally reserved for us so we still have capacity to accommodate additional small businesses who want to learn and GROW during this very challenging economy.
Thank you for your support and we hope to see you AT the workshop on March 16!
Jerry Hart
Air Pollution Specialist
CA Air Resources Board
ghart@arb.ca.gov
916-324-5941
The energy challenge facing California is real. Every Californian needs to take immediate action to reduce energy consumption. For a list of simple ways you can reduce demand and cut your energy cost, see our web site at http://www.arb.ca.gov/
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Friday, February 26, 2010
SB California Survey/Withholding
Last call for Small Business California survey. We will be closing Monday. To date we have over 2600 responses. Please see below links for survey in English and Spanish. Thank you to all that have completed the survey and if you haven’t please do so.
You may be interested to know that people in New York and Rhode Island are working with us to develop a similar survey. Also on Monday I hand delivered in Washington preliminary results of our survey to Senator Boxers office, Senator Snowes office, Speaker Pelosi’s office and Congresswoman Speiers office. I also gave the survey to SBA Administrator Karen Mills and a staff person from the Senate Small Business Committee.
When the survey is complete it will be sent to every State Senator, Assemblyperson and the Governor. We will also be sending to Senator Feinstein and every California member of the House of Representatives
2010 Small Business California Survey in English:
http://www.zoomerang.com/Survey/?p=WEB22A6JHNSTRD
2010 Small Business California Survey in Spanish:
http://www.zoomerang.com/Survey/?p=WEB22A9FR7KRDV
Thank you to all of you that sent letters opposing the 3% withholding for sole proprietors and Partnerships. Due to a tremendous response from the business community this has been put on a back burner. There , however, are no guarantees it won’t raise its ugly head in the coming months as the budget gets put together.
Small Business California is closely watching this and will let you know if it comes back into play.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
You may be interested to know that people in New York and Rhode Island are working with us to develop a similar survey. Also on Monday I hand delivered in Washington preliminary results of our survey to Senator Boxers office, Senator Snowes office, Speaker Pelosi’s office and Congresswoman Speiers office. I also gave the survey to SBA Administrator Karen Mills and a staff person from the Senate Small Business Committee.
When the survey is complete it will be sent to every State Senator, Assemblyperson and the Governor. We will also be sending to Senator Feinstein and every California member of the House of Representatives
2010 Small Business California Survey in English:
http://www.zoomerang.com/Survey/?p=WEB22A6JHNSTRD
2010 Small Business California Survey in Spanish:
http://www.zoomerang.com/Survey/?p=WEB22A9FR7KRDV
Thank you to all of you that sent letters opposing the 3% withholding for sole proprietors and Partnerships. Due to a tremendous response from the business community this has been put on a back burner. There , however, are no guarantees it won’t raise its ugly head in the coming months as the budget gets put together.
Small Business California is closely watching this and will let you know if it comes back into play.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Internet Sales Tax
The Northern California Retail Booksellers Association is an affiliate member of Small Business California. I received a call from Assemblywoman Nancy Skinners office asking us to support legislation supporting brick and mortar stores to level the playing field on the sales tax. I asked Hut Landon the ED of the Booksellers Associationto give me his organizations position. Please note there are many small businesss impacted by this and not just booksellers.
The argument against this is that Amazon and Overstock will eliminate their affiliates in California.. Please note this provision has been passed in I believe 5 states and Amazon has eliminated affiliates in most states however they were very small states except New York. New York, I think has more sales than all the other states combined.
I will get back to Assemblywoman Skinners office with your comments.
The issue is should sales tax be charged on internet sales?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-288
There are several reasons to support legislative efforts to compel Amazon.com, Overstock.com and other large out-of-state retailers to collect sales tax on sales made to California customers.
1. Let's start with the law. Consumers are legally obligated to pay sales tax on taxable items they purchase, whether from an independent business, a chain store, or Amazon. If you don't pay it at the time of purchase, you're still obligated to do so. It's called use tax. Look at your state tax form -- there's a place to record the amount you owe. No one does it, of course, but the tax is still owed. So this is not a new tax; we're only talking about how it's collected.
2. The law, part two. The California state tax code states that retailers with "nexus" in the state must collect sales tax. Nexus is most commonly defined as physical presence, so if you buy a pair of shoes on Macys.com, sales tax will be collected because Macy's has a physical presence in the state.
But the tax code also says that out-of-state sellers without a physical presence in the state have nexus if they have affiliates, or sales agents, operating on their behalf. In Amazon's case, they have literally thousands of affiliates driving traffic to its site in exchange for a commission on any sales that occur. For many such sales agents, Amazon provides weekly specials that can be emailed out as a further inducement to shop.
3. The consequences. Let's take any retail business and tell them that they now have a major competitor with deep pockets and an aggressive discount pricing model. That competitor also enjoys a nearly 10% price advantage because it does not collect sales tax. Unfortunately, this is not a hypothetical example. Amazon and Overstock alone are selling electronics, appliances, clothing, shoes, furniture, sporting goods, hardware, groceries, toys, auto parts, garden supplies, books, music, etc. If you or any business you know is selling anything on this list, they are up against competitors who have a huge competitive edge right out of the gate.
Now, if you don't care about small business and what they add to a neighborhood or a community, or the jobs they provide and create, you can stop reading. But small business are closing right and left because they can't compete with these out-of-state behemoths, especially in tough economic times. And the ones that are still around are having to cut back on the number of employees and benefits they provide, which only adds to the state's economic woes.
4. Fairness. These small merchants aren't asking for a handout or for special treatment, and many of them have successfully competed against chain stores for years. But it's tough to compete when they're at a 10% disadvantage for every single sale. Hardly a level playing field.
5. Why you should care. In addition to collecting sales tax for the state, these local businesses support local causes and charities, and are integral to vibrant, diverse shopping neighborhoods. And if that doesn't move you, consider this: the state Board of Equalization has stated that sales tax revenue lost to out-of-state e-tailers amounts to over $150 million annually. That's money that could be used to help schools, hire more police, retain essential health services, keep state parks open...you get the idea.
Hut Landon
Northern California Independent Booksellers Association (NCIBA)
Presidio National Park
1007 General Kennedy Avenue
PO Box 29169
San Francisco, CA 94129
415-561-7686, 415-561-7685 (fax)
www.nciba.com
The argument against this is that Amazon and Overstock will eliminate their affiliates in California.. Please note this provision has been passed in I believe 5 states and Amazon has eliminated affiliates in most states however they were very small states except New York. New York, I think has more sales than all the other states combined.
I will get back to Assemblywoman Skinners office with your comments.
The issue is should sales tax be charged on internet sales?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-288
There are several reasons to support legislative efforts to compel Amazon.com, Overstock.com and other large out-of-state retailers to collect sales tax on sales made to California customers.
1. Let's start with the law. Consumers are legally obligated to pay sales tax on taxable items they purchase, whether from an independent business, a chain store, or Amazon. If you don't pay it at the time of purchase, you're still obligated to do so. It's called use tax. Look at your state tax form -- there's a place to record the amount you owe. No one does it, of course, but the tax is still owed. So this is not a new tax; we're only talking about how it's collected.
2. The law, part two. The California state tax code states that retailers with "nexus" in the state must collect sales tax. Nexus is most commonly defined as physical presence, so if you buy a pair of shoes on Macys.com, sales tax will be collected because Macy's has a physical presence in the state.
But the tax code also says that out-of-state sellers without a physical presence in the state have nexus if they have affiliates, or sales agents, operating on their behalf. In Amazon's case, they have literally thousands of affiliates driving traffic to its site in exchange for a commission on any sales that occur. For many such sales agents, Amazon provides weekly specials that can be emailed out as a further inducement to shop.
3. The consequences. Let's take any retail business and tell them that they now have a major competitor with deep pockets and an aggressive discount pricing model. That competitor also enjoys a nearly 10% price advantage because it does not collect sales tax. Unfortunately, this is not a hypothetical example. Amazon and Overstock alone are selling electronics, appliances, clothing, shoes, furniture, sporting goods, hardware, groceries, toys, auto parts, garden supplies, books, music, etc. If you or any business you know is selling anything on this list, they are up against competitors who have a huge competitive edge right out of the gate.
Now, if you don't care about small business and what they add to a neighborhood or a community, or the jobs they provide and create, you can stop reading. But small business are closing right and left because they can't compete with these out-of-state behemoths, especially in tough economic times. And the ones that are still around are having to cut back on the number of employees and benefits they provide, which only adds to the state's economic woes.
4. Fairness. These small merchants aren't asking for a handout or for special treatment, and many of them have successfully competed against chain stores for years. But it's tough to compete when they're at a 10% disadvantage for every single sale. Hardly a level playing field.
5. Why you should care. In addition to collecting sales tax for the state, these local businesses support local causes and charities, and are integral to vibrant, diverse shopping neighborhoods. And if that doesn't move you, consider this: the state Board of Equalization has stated that sales tax revenue lost to out-of-state e-tailers amounts to over $150 million annually. That's money that could be used to help schools, hire more police, retain essential health services, keep state parks open...you get the idea.
Hut Landon
Northern California Independent Booksellers Association (NCIBA)
Presidio National Park
1007 General Kennedy Avenue
PO Box 29169
San Francisco, CA 94129
415-561-7686, 415-561-7685 (fax)
www.nciba.com
Tuesday, February 23, 2010
2010 Small Business California Survey in Spanish
Here is the link to the Small Business California Survey in Spanish. Please forward it on to any of your colleagues and associates.
We have over 2500 responses to the survey as of last night and it would be helpful to get some input from the Hispanic small business owners in the state.
http://www.zoomerang.com/Survey/?p=WEB22A9FR7KRDV
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
Phone: (415) 680-2188
We have over 2500 responses to the survey as of last night and it would be helpful to get some input from the Hispanic small business owners in the state.
http://www.zoomerang.com/Survey/?p=WEB22A9FR7KRDV
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
Phone: (415) 680-2188
Friday, February 19, 2010
SBA Loan Funds/ Washington Meetings
It looks like the stimulus money for 7a and 504 will run out Monday. The SBA will go back to the queue system. Expect a big drop off in loans starting next week.
I will be going to Washington on Sunday and meeting on Monday with Speaker Pelosi’s staff, Congresswoman Speier’s staff, Senator Boxers staff and Senator Snowes staff on this issue.
On Wednesday Assemblyman Mark Leno agreed to carry Small Business California’s bill to have sales tax charged to manufactures of asphalt and concrete who compete with contractors on road work. This means they have a 6% plus bid preference when they bid on this work. Small contractors have been fighting this for about 20 years and went nowhere without Small Business California’s help. Thanks to all of you that sent letters to Senator Leno’s office in August.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
I will be going to Washington on Sunday and meeting on Monday with Speaker Pelosi’s staff, Congresswoman Speier’s staff, Senator Boxers staff and Senator Snowes staff on this issue.
On Wednesday Assemblyman Mark Leno agreed to carry Small Business California’s bill to have sales tax charged to manufactures of asphalt and concrete who compete with contractors on road work. This means they have a 6% plus bid preference when they bid on this work. Small contractors have been fighting this for about 20 years and went nowhere without Small Business California’s help. Thanks to all of you that sent letters to Senator Leno’s office in August.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Wednesday, February 17, 2010
Gavin Newsome/Survey in Sapnish
Mayor Gavin Newsom is considering a run for Lt Governor. He has until March 12 to file the papers but he has until 5PM today submit a ballot statement for the voter guide. I am curious how small business around the state feels about Mayor Newsom. Would you support him?
I am particularly interested in how SF small businesses feel about this. If he should run and win he would have to resign as Mayor and the Board of Supervisors would select the new Mayor.
Many people don’t realize that the Board can select anyone they want with 6 votes. It does not have to be a current member of the Board raising possibilities of Aaron Peskin past President of the Board of Supervisors being selected as Mayor.
We are going to be keeping our survey open one more week. To date we have 2365 respondents.
We expect today or tomorrow to have the survey in Spanish. If any of you can distribute the survey to Spanish speaking small business people let me know. Currently we have only 5% of the respondents identifying themselves as Hispanic and we would really like to see that number increase.
If you haven’t completed the survey please do so and for all of you please forward to others. I don’t know if it is doable but it would be great to have over 3000 respondents. Last year we had about 630.
http://www.zoomerang.com/Survey/?p=WEB22A6JHNSTRD
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
I am particularly interested in how SF small businesses feel about this. If he should run and win he would have to resign as Mayor and the Board of Supervisors would select the new Mayor.
Many people don’t realize that the Board can select anyone they want with 6 votes. It does not have to be a current member of the Board raising possibilities of Aaron Peskin past President of the Board of Supervisors being selected as Mayor.
We are going to be keeping our survey open one more week. To date we have 2365 respondents.
We expect today or tomorrow to have the survey in Spanish. If any of you can distribute the survey to Spanish speaking small business people let me know. Currently we have only 5% of the respondents identifying themselves as Hispanic and we would really like to see that number increase.
If you haven’t completed the survey please do so and for all of you please forward to others. I don’t know if it is doable but it would be great to have over 3000 respondents. Last year we had about 630.
http://www.zoomerang.com/Survey/?p=WEB22A6JHNSTRD
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Friday, February 12, 2010
Breaking News SBA Funding Stripped from Baucus/Grassley Jobs Bill
In a real shock yesterday Senator Harry Reid stripped the Baucus/ Grassley bill of the $354 million for extending money for the 7a and 504 increase guarantees and the waiver of fees.
This after the White House applauded Senators Baucus and Grassley for working out a bipartisan jobs bill.
As I understand it the Senate will be in recess next week and the funding will run out at the latest February 28. I say at the latest February 28th because it is very possible there will be a rush to get loans approved before February 28 and I am hearing that it is more likely that funding will run out earlier.
I will get back to you with a strategy on what you might be able to do but if you have a pending loan push your Bank hard to get this funded immediately.
Small Business California will be sending a letter to Senators Feinstein and Boxer to ask them to do everything they can to get funding extended. They have been very supportive of this and both coauthored S2869 which provided the funding and an increase in SBA loan size from $2 million to $5 million.
Our survey received over 500 responses yesterday bringing the total responses to over 2000.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
This after the White House applauded Senators Baucus and Grassley for working out a bipartisan jobs bill.
As I understand it the Senate will be in recess next week and the funding will run out at the latest February 28. I say at the latest February 28th because it is very possible there will be a rush to get loans approved before February 28 and I am hearing that it is more likely that funding will run out earlier.
I will get back to you with a strategy on what you might be able to do but if you have a pending loan push your Bank hard to get this funded immediately.
Small Business California will be sending a letter to Senators Feinstein and Boxer to ask them to do everything they can to get funding extended. They have been very supportive of this and both coauthored S2869 which provided the funding and an increase in SBA loan size from $2 million to $5 million.
Our survey received over 500 responses yesterday bringing the total responses to over 2000.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Wednesday, February 10, 2010
Independent Contractor Letter
Please see letter below being sent to every state Assembly Person and State Senator. We need to have as many of you as possible send a letter of opposition to your Assembly Person and State Senator. The situation is that the 3% withholding could be included in a budget bill to be sent to the Governor in the next week or so as part of the 8th Special Legislative Special Session.
Please click on www.leginfo.ca.gov to identify your legislators and to contact them. I sent a sample letter earlier in the week but don’t worry about the eloquence of your letter just that you oppose this and how it impacts you.
The California Chamber of Commerce has also sent out an alert on this issue.
I am pleased to tell you our annual survey just went over 1300 respondents. We are going to be keeping it open a couple more weeks as next week we will have it in Spanish also.
If you would like me to send the survey to you in Spanish so that you can distribute please let me know. I especially would like to hear from the Hispanic Associations that are on this email.
You all know that Small Business California has been working on the stimulus funding for SBA 7a and 504 loans to keep the 90% guarantees in place, waive the fees on these loans and increase the size of the loans from $2 million to $5 million. We are hearing that the Republicans seem to be okay with the allocation of this money to the 7a and 504 loans but are struggling with the increase to 5 million. The current money allocated for the guarantees and waiver of fees will run out the end of February.
As you can see Small Business California is extremely busy representing your interest. I hope you will consider joining Small Business California if you haven’t done so already. The cost is $150 for businesses with sales of less than $1 million and $300 for businesses over 1 million. You can join by going to our website at www.smallbusinessclifornia.org or we can send you an application and invoice you if you ask us to do so by return email.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Please click on www.leginfo.ca.gov to identify your legislators and to contact them. I sent a sample letter earlier in the week but don’t worry about the eloquence of your letter just that you oppose this and how it impacts you.
The California Chamber of Commerce has also sent out an alert on this issue.
I am pleased to tell you our annual survey just went over 1300 respondents. We are going to be keeping it open a couple more weeks as next week we will have it in Spanish also.
If you would like me to send the survey to you in Spanish so that you can distribute please let me know. I especially would like to hear from the Hispanic Associations that are on this email.
You all know that Small Business California has been working on the stimulus funding for SBA 7a and 504 loans to keep the 90% guarantees in place, waive the fees on these loans and increase the size of the loans from $2 million to $5 million. We are hearing that the Republicans seem to be okay with the allocation of this money to the 7a and 504 loans but are struggling with the increase to 5 million. The current money allocated for the guarantees and waiver of fees will run out the end of February.
As you can see Small Business California is extremely busy representing your interest. I hope you will consider joining Small Business California if you haven’t done so already. The cost is $150 for businesses with sales of less than $1 million and $300 for businesses over 1 million. You can join by going to our website at www.smallbusinessclifornia.org or we can send you an application and invoice you if you ask us to do so by return email.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Monday, February 08, 2010
Insurance Industry IK Withholding Letter
Thank you to all that responded saying you would send a letter of opposition to the 3% withholding for independent contractors. Please see sample letter below.
I think the easiest way for you to send is to go to http://www.leginfo.ca.gov/.
Click on legislator and put in your zip code. Go to your Senator and Assemblypersons site. Click on legislators contact site. It will ask you for personal information but in the comments say you are a small business owner and give the name of your company and why you oppose. Feel free to change the letter below anyway that works for you.
If you are a business group and would like to sign an opposition letter please let me know. I have 12 associations so far that will be signing letter
Dear Assembly Member / Senator _____:
I am a small business owner in your district. My company, _____, employs ____ persons. We have been in business in ______ since ____.
I am writing to oppose the independent contractor withholding proposal. This is another budget gimmick that does not generate more revenue to the State of California. Instead, it merely accelerates monies that will already be paid to the State and imposes an onerous burden upon small businesses like my company.
Under this proposal, businesses in this state would be required to collect taxes from other businesses and we would serve as a collection agent for the State. The new expense of withholding and remitting these monies to the Franchise Tax Board would be a cost borne by small businesses like my company. Moreover, small businesses would effectively be providing interest-free loans to the state. Even if an independent contractor owes no state taxes, 3% will still be withheld, affecting our cash flow and impacting our business.
I believe this proposal is unreasonable and should be rejected by the Legislature. I would appreciate hearing from you at your earliest convenience whether you will oppose this harmful idea.
Sincerely,
We now have 956 people responding to our survey. If you haven’t completed please do so within the next week. As always forward to others and if you are an association please send to members. It would really be great even if you have sent to send one more time.
Thanks
http://www.zoomerang.com/Survey/?p=WEB22A6JHNSTRD
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
I think the easiest way for you to send is to go to http://www.leginfo.ca.gov/.
Click on legislator and put in your zip code. Go to your Senator and Assemblypersons site. Click on legislators contact site. It will ask you for personal information but in the comments say you are a small business owner and give the name of your company and why you oppose. Feel free to change the letter below anyway that works for you.
If you are a business group and would like to sign an opposition letter please let me know. I have 12 associations so far that will be signing letter
Dear Assembly Member / Senator _____:
I am a small business owner in your district. My company, _____, employs ____ persons. We have been in business in ______ since ____.
I am writing to oppose the independent contractor withholding proposal. This is another budget gimmick that does not generate more revenue to the State of California. Instead, it merely accelerates monies that will already be paid to the State and imposes an onerous burden upon small businesses like my company.
Under this proposal, businesses in this state would be required to collect taxes from other businesses and we would serve as a collection agent for the State. The new expense of withholding and remitting these monies to the Franchise Tax Board would be a cost borne by small businesses like my company. Moreover, small businesses would effectively be providing interest-free loans to the state. Even if an independent contractor owes no state taxes, 3% will still be withheld, affecting our cash flow and impacting our business.
I believe this proposal is unreasonable and should be rejected by the Legislature. I would appreciate hearing from you at your earliest convenience whether you will oppose this harmful idea.
Sincerely,
We now have 956 people responding to our survey. If you haven’t completed please do so within the next week. As always forward to others and if you are an association please send to members. It would really be great even if you have sent to send one more time.
Thanks
http://www.zoomerang.com/Survey/?p=WEB22A6JHNSTRD
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Friday, February 05, 2010
3% Withholding for Independent Contractors/Survey
I am sorry for all the emails but something came up yesterday that could have a serious negative impact to small business. As you all know Small Business California wants to be known as a proactive organization but sometimes we just have to say no.
There is a movement afoot in Sacramento to impose a 3% withholding for independent contractors. So if you hire a sole proprietor or I think a company that is a partnership or LLP you would have to withhold 3% and send it to the state. The money will be held by the state and if there is a return it will be without interest.
Not only will this be a hardship for low margin businesses but another bookkeeping burden placed upon small business.
We need to make our voices heard to our legislators that this is a bad idea.
Please let me know if you would be willing to send a letter to your Assembly person or state Senator. Tell me where you are located.
On a more positive note we had as of 9AM this morning 730 responses to our survey, We got about 400 yesterday. If you haven’t done so already please take a few moments to complete. We will be closing the survey earlier this year due to the overwhelming response we have gotten in the last 5 days
http://www.zoomerang.com/Survey/?p=WEB22A6JHNSTRD
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
There is a movement afoot in Sacramento to impose a 3% withholding for independent contractors. So if you hire a sole proprietor or I think a company that is a partnership or LLP you would have to withhold 3% and send it to the state. The money will be held by the state and if there is a return it will be without interest.
Not only will this be a hardship for low margin businesses but another bookkeeping burden placed upon small business.
We need to make our voices heard to our legislators that this is a bad idea.
Please let me know if you would be willing to send a letter to your Assembly person or state Senator. Tell me where you are located.
On a more positive note we had as of 9AM this morning 730 responses to our survey, We got about 400 yesterday. If you haven’t done so already please take a few moments to complete. We will be closing the survey earlier this year due to the overwhelming response we have gotten in the last 5 days
http://www.zoomerang.com/Survey/?p=WEB22A6JHNSTRD
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Thursday, February 04, 2010
Survey/Health Cost/$5000 Tax Credit/ Senate Jobs Bill 2869
We are getting close to 300 responses to our survey. Thank you to all that have completed the survey and the associations that have sent this to their members. I also want to thank those of you that have forwarded to your colleagues.
If you haven’t completed please do so and forward.
http://www.zoomerang.com/Survey/?p=WEB22A6JHNSTRD
You may have seen in the paper this morning that health care cost for 2009 have increased to 17.3% of GNP and this represents an increase over previous years. I can’t think of a stronger argument that we need meaningful health reform in Washington and it is critical that we end partisan bickering between the Democrats and Republicans and get something meaningful done not just for small business but the future of our country.
I have mentioned that the President has recommended a $5000 tax credit for businesses with a net increase in employment. Many of you have indicated to me that you didn’t understand how this works. Briefly you will get your credit on a quarterly basis by reducing what you pay in FICA taxes. It is not subtracted from profits. Please note that you take the credit on a quarterly basis after you have paid an employee $7000.
If you would like a more complete description of the credits please let me know.
Small Business California is working hard to get additional funding for the SBA 7a and 504 loans to continue the increased guarantees, the waiver of SBA fees on those loans and the increase to $5 million of loans the SBA can make. Time is running short as the current funding will run out the end of this month.
What I am hearing is that Senator Reid is talking about doing a number of Jobs bills starting with the provisions that have the best chance of passing. We are very hopeful that we can get S2869 into the initial bill and get it passed before the end of the month but quite frankly this appears like it will be very difficult and the SBA will run out of money.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
If you haven’t completed please do so and forward.
http://www.zoomerang.com/Survey/?p=WEB22A6JHNSTRD
You may have seen in the paper this morning that health care cost for 2009 have increased to 17.3% of GNP and this represents an increase over previous years. I can’t think of a stronger argument that we need meaningful health reform in Washington and it is critical that we end partisan bickering between the Democrats and Republicans and get something meaningful done not just for small business but the future of our country.
I have mentioned that the President has recommended a $5000 tax credit for businesses with a net increase in employment. Many of you have indicated to me that you didn’t understand how this works. Briefly you will get your credit on a quarterly basis by reducing what you pay in FICA taxes. It is not subtracted from profits. Please note that you take the credit on a quarterly basis after you have paid an employee $7000.
If you would like a more complete description of the credits please let me know.
Small Business California is working hard to get additional funding for the SBA 7a and 504 loans to continue the increased guarantees, the waiver of SBA fees on those loans and the increase to $5 million of loans the SBA can make. Time is running short as the current funding will run out the end of this month.
What I am hearing is that Senator Reid is talking about doing a number of Jobs bills starting with the provisions that have the best chance of passing. We are very hopeful that we can get S2869 into the initial bill and get it passed before the end of the month but quite frankly this appears like it will be very difficult and the SBA will run out of money.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
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