Please see information on the Small Business Jobs Act.
Small Business California has been asked to comment on this bill. Caroline Bruckner in Senator Landrieu’s office is looking for your comments and support (Caroline_Bruckner@sbc.senate.gov).
Note one of the provisions is to allow full deductions for the self employed purchasing health insurance. We have worked on that for years and Senator Landrieu has always been there for us.
I have received a call from Caroline advising that she may not be able to respond to your email but know she appreciates it.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
For Immediate Release
June 29, 2010
BAUCUS, LANDRIEU UNVEIL BILL TO CREATE JOBS
AND HELP SMALL BUSINESSES GROW
Finance and Small Business Chairs Release Small Business Jobs Act
Washington, DC - Senate Finance Committee Chairman Max Baucus (D-Mont.) and Senate Committee on Small Business and Entrepreneurship Chair Mary Landrieu (D-La.) today released the Small Business Jobs Act, a bill to help small businesses access capital, stimulate investment in small businesses and promote entrepreneurship - all of which will help small business create jobs.
"Small businesses are the engine of our economy and need to be a critical focus of our job-creation efforts. Helping small businesses helps get Americans back to work," said Baucus. "Working together, we crafted our bill to promote entrepreneurship and investment in small businesses and provide small businesses with the vital access to capital they need to create jobs."
"Every day, headline after headline goes to big business layoffs and losses, but in reality it is the small businesses and their employees that are bearing the brunt of this crisis," said Landrieu. "Since the start of the economic downturn, 80 percent of the country's job losses came from small businesses. It is time to turn our attention to the small businesses and entrepreneurs to get Americans back to work. By providing some cost-effective and commonsense changes to lending, contracting and technical assistance programs, we can build on successful programs implemented in the Recovery Act to help small businesses keep their doors open. Ranking Member Snowe and I have crafted this package to include provisions that we have both advocated for, and I am very pleased with the finished product. As we finalize our package, I look forward to working with my colleagues on both sides of the aisle, as well as the other committees, to ensure the swift passage of this legislation."
The Small Business Jobs Act will:
Help Small Businesses Access Capital
· The legislation encourages investment in small businesses by allowing investors to exclude the gains from the sale of certain small business stock from their income for tax purposes if the stock is held for more than five years. This policy helps small business owners access more private capital to finance an expansion and hire new workers.
· The legislation reduces the tax burden for small businesses by allowing them to carry back general business tax credits to offset their tax burdens from the previous five years. Small businesses will also be able to count the general business credits against the Alternative Minimum Tax (AMT), freeing up capital for expansion and job growth.
The legislation establishes a Small Business Lending Fund of $30 billion to provide capital investments to small community banks to increase small business lending. The fund is limited to only the smallest banks, those who hold less than $10 billion in assets, and the performance-based program would incentivize only those lenders that extend new credit by decreasing the dividend rate banks pay as they increase lending.
The legislation establishes the State Small Business Credit Initiative to provide $900 million in grants to existing successful state small business programs that help private lenders extend more credit to small businesses.
The legislation raises the cap on small business loans to increase lending by $5 billion in the first year after enactment, and refinances commercial real estate debt into long-term, fixed-rate loans, provisions that are expected to be budget neutral and could create or save 200,000 jobs.
Building on successful initiatives we put in place through the Recovery Act, by making simple and cost-effective changes to the SBA's two largest lending programs and to its microloan program, we were able to pump more than $20 billion into more than 40,000 businesses in our economy. This legislation calls for an extension of these lending provisions through December 31, 2010.
Increase Small Businesses' Ability to Make Investments
· The legislation allows taxpayers to write off more of the cost of purchases for their business, such as equipment and machinery, in the year the purchase is made. The legislation also expands the types of purchases that would qualify for special expensing to include some types of real property, such as leasehold, retail and restaurant improvements. When small businesses are able to deduct the cost of purchases more quickly, they have more cash on hand to create jobs.
Promote Entrepreneurship
· The legislation doubles the amount of start-up expenditures that may be deducted by someone starting a small business, making it easier for new businesses to open.
· The legislation increases resources to support the Office of the United States Trade Representative's small business export promotion and trade enforcement activities. These efforts help U.S. small business exports grow in foreign markets and ensure small businesses compete on a level playing field.
· The legislation allows self-employed individuals to deduct health insurance costs for purposes of paying the self-employment tax.
The legislation improves the Small Business Administration's (SBA) trade and export finance programs, elevates the Office of International Trade within the SBA and adds export finance specialists to the SBA's counseling programs.
The legislation establishes the State Export Promotion Grant Program (STEP), which would increase the number of small businesses that export.
The legislation allows the SBA to waive or reduce the state-matching share of its funding requirement for up to one year to continue providing technical assistance to underserved communities to start and grow small businesses.
Promote Equity
· The legislation promotes tax fairness by preventing small businesses from incurring large tax penalties aimed at large corporations and wealthy individuals investing in tax shelters.
The legislation removes the red tape and closes loopholes that too often put government work into the hands of multinational corporations, instead of Main Street businesses.
The legislation makes clear that no single contracting program receives priority over another program when competing for federal contracts.
The legislation is fully paid for, closes unintended tax loopholes and reduces the tax gap.
Wednesday, June 30, 2010
Monday, June 28, 2010
Grandfathered Health Plans
On June 14 regulations were put forth explaining how health plans can be grandfathered. It appears that the regulations as written will mean very few businesses will be able to keep their current health plans. My personal comment is that this is very disappointing.
Plans in effect on March 23, 2010 and plans maintained pursuant to one or more collective bargaining agreements ratified before March 23, 2010, are “grandfathered” in certain respects.
For individuals and small business, who are more likely to significantly change the plan design (such as increase out of pocket expense or copayments) and/or change carriers, will lose their “grandfathered” status.
In order for a plan to not lose “grandfathered” status, it cannot do any of the things below:
Cannot Significantly Cut or Reduce Benefits.
Cannot Raise Co-Insurance Charges.
Cannot Significantly Raise Co-Payment Charges.
Cannot Significantly Raise Deductibles.
Cannot Significantly Lower Employer Contributions.
Cannot Add or Tighten an Annual Limit on What the Insurer Pays.
Cannot Change Insurance Companies.
There will be thousands of regulations written in the coming years and many will define what the health bill really is.
Scott Hauge
President
Small Business California
2311 Taravel Street
San Francisco, CA 94116
415-680-2188
shauge@cal-insure.com
Plans in effect on March 23, 2010 and plans maintained pursuant to one or more collective bargaining agreements ratified before March 23, 2010, are “grandfathered” in certain respects.
For individuals and small business, who are more likely to significantly change the plan design (such as increase out of pocket expense or copayments) and/or change carriers, will lose their “grandfathered” status.
In order for a plan to not lose “grandfathered” status, it cannot do any of the things below:
Cannot Significantly Cut or Reduce Benefits.
Cannot Raise Co-Insurance Charges.
Cannot Significantly Raise Co-Payment Charges.
Cannot Significantly Raise Deductibles.
Cannot Significantly Lower Employer Contributions.
Cannot Add or Tighten an Annual Limit on What the Insurer Pays.
Cannot Change Insurance Companies.
There will be thousands of regulations written in the coming years and many will define what the health bill really is.
Scott Hauge
President
Small Business California
2311 Taravel Street
San Francisco, CA 94116
415-680-2188
shauge@cal-insure.com
Tuesday, June 22, 2010
Doug Urbick's Comments
Five and a half years ago I founded Small Business California. My goal was to give small businesses a voice in Sacramento. A couple of weeks ago we presented our sales tax bill SB 1373 to the Revenue and Taxation Committee.
Testifying for our bill was Doug Ubrick from Hazard Construction. Chairman Wolk asked if this issue had ever come up before the legislature. Here is Doug’s answer
Question from Chairwoman Wolk:
A) Has there been prior legislation proposed on this and if not, why not?
To the best of our knowledge, there has not. The truth is that paving contractors are a fairly disjointed and unsophisticated group. The trade associations like the AGC (Associated General Contractors) tend to be lead by the larger more sophisticated contractors, included many of those who are vertically integrated. Trying to ‘change laws’ is just something that seems way beyond the grasp of the normal paving contractor. Small Business California has brought the ‘know-how’ to this group to finally address this inequity.
While these are paving contractors we have done the same thing in one way or the other for all of small businesses around the state. If you are not a member please consider joining.
You can do so by going to www.smallbusinesscalifornia.org
I am frequently asked if small businesses are using social marketing. Quite frankly in my business I have not done so.
Are you? Do you use Facebook, You Tube, Twitter or Yelp to market your business? Does it help you? If you use any of these what advice would you give to other businesses in how to effectively use these social marketing vehicles?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Testifying for our bill was Doug Ubrick from Hazard Construction. Chairman Wolk asked if this issue had ever come up before the legislature. Here is Doug’s answer
Question from Chairwoman Wolk:
A) Has there been prior legislation proposed on this and if not, why not?
To the best of our knowledge, there has not. The truth is that paving contractors are a fairly disjointed and unsophisticated group. The trade associations like the AGC (Associated General Contractors) tend to be lead by the larger more sophisticated contractors, included many of those who are vertically integrated. Trying to ‘change laws’ is just something that seems way beyond the grasp of the normal paving contractor. Small Business California has brought the ‘know-how’ to this group to finally address this inequity.
While these are paving contractors we have done the same thing in one way or the other for all of small businesses around the state. If you are not a member please consider joining.
You can do so by going to www.smallbusinesscalifornia.org
I am frequently asked if small businesses are using social marketing. Quite frankly in my business I have not done so.
Are you? Do you use Facebook, You Tube, Twitter or Yelp to market your business? Does it help you? If you use any of these what advice would you give to other businesses in how to effectively use these social marketing vehicles?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Monday, June 07, 2010
Support SB 1373/ 1099s
On Wednesday Small Business California sponsored bill SB 1373 will be coming before the Senate Revenue and Tax committee.
This bill will level the playing field between paving contractors and vertically integrated manufactuers/ contractors. Currently vertically integrated manufacturers/ contractors pay a sales tax based on the cost of materials that go into products like asphalt and paving contractors pay a sales tax based on the cost of the final product. This gives the vertically integrated manufacturer/contractor a 4% to 5% bid advantage.
Most of the paving contractors are small businesses and the vertically integrated manufacturers/ contractors are for the most part big business. We have seen many cases where these paving contractors have lost bids due to the sales tax advantage.
Many of you have sent emails to Senator Leno, author of 1373, supporting his legislation. Please see below members of the members of the Revenue and Tax Committee. If you are in one of the committee members district please send an email supporting SB1373. I know this probably doesn’t impact you directly but we need to show small business solidarity.
Lois Wolk (Sacramento, San Joaquin, Solano, Yolo), Chair: Senator.Wolk@senate.ca.gov
Mimi Walters (Orange, Tustin, Laguna Niguel, Laguna Hills) Vice Chair: Senator.Walters@sen.ca.gov
Elaine Alquist (Santa Clara): Senator.Alquist@sen.ca.gov
Roy Ashburn: (Bakersfield): Senator.Asburn@sen.ca.gov
Alex Padilla: (Los Angeles) Senator.Padilla@sen.ca.gov
Last week Harry Moos represented Small Business California and the Plumbing Heating and Cooling Contractors of California at a Dan Lungren press conference supporting Congressman Lungrens HR 5141.
As you have read here before the recently passed health bill had a provision that would require businesses to file 1099s on all businesses that you pay$600 or more to. Currently you only need to file 1099s for businesses that provide you services and who are not incorporated. What this means for my business, CAL Insurance, is that I currently file 25 1099s. Under the new law I will have to file about 700.
HR 5141 will repeal this requirement. Currently there are 70 cosigners on this bill. All are Republicans. The Democrats many of which recognize the burden this places on small business are not supporting this because the Congessional Budget Office has said this requirement will raise $17 billion over 10 years.
Write your Congressman and ask them to support HR5141.
One final comment. I don’t want anyone to think my above comments are a slap at Democrats. There is another bill HR 4302 which will provide for the waiver of fees on SBA loans, 90% guarantees on SBA loans and increase the size of SBA loans to $5 million. On that bill we have 63 Democrats and no Republicans. The partisianship in Washington is really hurting not just small business but the people of this country.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
This bill will level the playing field between paving contractors and vertically integrated manufactuers/ contractors. Currently vertically integrated manufacturers/ contractors pay a sales tax based on the cost of materials that go into products like asphalt and paving contractors pay a sales tax based on the cost of the final product. This gives the vertically integrated manufacturer/contractor a 4% to 5% bid advantage.
Most of the paving contractors are small businesses and the vertically integrated manufacturers/ contractors are for the most part big business. We have seen many cases where these paving contractors have lost bids due to the sales tax advantage.
Many of you have sent emails to Senator Leno, author of 1373, supporting his legislation. Please see below members of the members of the Revenue and Tax Committee. If you are in one of the committee members district please send an email supporting SB1373. I know this probably doesn’t impact you directly but we need to show small business solidarity.
Lois Wolk (Sacramento, San Joaquin, Solano, Yolo), Chair: Senator.Wolk@senate.ca.gov
Mimi Walters (Orange, Tustin, Laguna Niguel, Laguna Hills) Vice Chair: Senator.Walters@sen.ca.gov
Elaine Alquist (Santa Clara): Senator.Alquist@sen.ca.gov
Roy Ashburn: (Bakersfield): Senator.Asburn@sen.ca.gov
Alex Padilla: (Los Angeles) Senator.Padilla@sen.ca.gov
Last week Harry Moos represented Small Business California and the Plumbing Heating and Cooling Contractors of California at a Dan Lungren press conference supporting Congressman Lungrens HR 5141.
As you have read here before the recently passed health bill had a provision that would require businesses to file 1099s on all businesses that you pay$600 or more to. Currently you only need to file 1099s for businesses that provide you services and who are not incorporated. What this means for my business, CAL Insurance, is that I currently file 25 1099s. Under the new law I will have to file about 700.
HR 5141 will repeal this requirement. Currently there are 70 cosigners on this bill. All are Republicans. The Democrats many of which recognize the burden this places on small business are not supporting this because the Congessional Budget Office has said this requirement will raise $17 billion over 10 years.
Write your Congressman and ask them to support HR5141.
One final comment. I don’t want anyone to think my above comments are a slap at Democrats. There is another bill HR 4302 which will provide for the waiver of fees on SBA loans, 90% guarantees on SBA loans and increase the size of SBA loans to $5 million. On that bill we have 63 Democrats and no Republicans. The partisianship in Washington is really hurting not just small business but the people of this country.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Tuesday, June 01, 2010
HR4213 Arises from the ashes/ Prop 16 results
A surprise occurred Friday in that HR4213 passed the House after looking dead Thursday.
While funding of the SBA program to waive fees and extend the 90% guarantee on 7a and 504 loans is a very small piece of the bill it is critical for small business and its ability to access capital. The bill started as a $200 billion measure it got passed as a $113 billion measure.
Unfortuately the Senate did not take up 4213 as they were in recess so funding has run out for the waiver and the guarantee. Hopefully it will get taken up quickly when the Senators return but it is no sure thing it can get the 60 votes needed for passage.
I found the results of the question on Prop 16 interesting. This is the PG&E measure that would require a two thirds vote for Community Aggregation/Public Power. The Small Manufacturers Association of California supports the Measure and the Golden Gate Business Association opposes. Most associations that responded did not have a position.
What was more interesting is that of the 25 individuals that responded only two supported and 22 opposed with one undecided. This certainly is not a large enough number to make any conclusions but I was surprised how lopsided it was.
One would think that small business would be opposed to government getting into any business but it seems as though the two thirds vote is perceived by many as wrong.
Lets try one more time. If you didn’t respond what is your position on Prop 16?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge-cal-insure.com
415-680-2188
While funding of the SBA program to waive fees and extend the 90% guarantee on 7a and 504 loans is a very small piece of the bill it is critical for small business and its ability to access capital. The bill started as a $200 billion measure it got passed as a $113 billion measure.
Unfortuately the Senate did not take up 4213 as they were in recess so funding has run out for the waiver and the guarantee. Hopefully it will get taken up quickly when the Senators return but it is no sure thing it can get the 60 votes needed for passage.
I found the results of the question on Prop 16 interesting. This is the PG&E measure that would require a two thirds vote for Community Aggregation/Public Power. The Small Manufacturers Association of California supports the Measure and the Golden Gate Business Association opposes. Most associations that responded did not have a position.
What was more interesting is that of the 25 individuals that responded only two supported and 22 opposed with one undecided. This certainly is not a large enough number to make any conclusions but I was surprised how lopsided it was.
One would think that small business would be opposed to government getting into any business but it seems as though the two thirds vote is perceived by many as wrong.
Lets try one more time. If you didn’t respond what is your position on Prop 16?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge-cal-insure.com
415-680-2188
Friday, May 28, 2010
HR4213/1099s/Proposition 16
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
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
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
Friday, April 30, 2010
New 1099 Requirements
It seems as though the US Chamber is stepping into this discussion. See below.
Thank you to everyone that said they would send a letter of support for HR 5141. I will have a letter to you by Monday.
I talked to Congressman Lungrens office yesterday and they said what will be important in any letters sent will be the affect on your business. For example my company does 25 1099s. The new requirements will force me to do 700. Give some thought as to how it will impact you.
Thank you also to all the association that agreed to sign a joint letter. I will get the letter to you Monday.
If any other associations on this email want to sign on please let me know. I will be sending to every House member in California.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Letter supporting H.R. 5141, the "Small Business Paperwork Mandate Elimination Act"
April 29, 2010
The Honorable Dan Lungren
U.S. House of Representatives
Washington, DC 20515
Dear Representative Lungren:
The U.S. Chamber of Commerce, the world’s largest business federation representing the interests of more than three million businesses and organizations of every size, sector, and region, strongly supports H.R. 5141, the “Small Business Paperwork Mandate Elimination Act,” which if passed into law, would repeal the onerous paperwork burdens imposed on business by the ill-conceived expanded information reporting mandate contained in Section 9006 of the “Patient Protection and Affordable Care Act” (PPACA). This provision was used as an unrelated “pay for” in the PPACA and it should be rescinded based on the merits of the provision alone.
Unless this section is repealed, businesses across the nation will be subjected to the folly of data collection and information filing on virtually all business-to-business transactions they make aggregating $600 or more in a year at a time in which many can least afford it. When the United States is depending on the small business community to generate jobs and grow the economy, lawmakers are diverting their precious time and resources to collecting volumes of information and filling out mounds of new paperwork for the government.
If allowed to be implemented, Section 9006 of the PPACA will also have a chilling effect on new business relationships, most of which will be small businesses and startups. Many businesses in an attempt to reduce data collection and paperwork burdens will simply reduce vendors and refuse to entertain new business dealings. This will have a disproportional impact on small businesses and entrepreneurs attempting to get a foot in the door.
The ultimate irony of these new burdens is that the IRS neither has the resources nor the ability to use the new information to reconstruct an accurate picture of a company’s revenues since a large volume of business-to-consumer transactions are not reported. While the vast majority of compliant taxpayers will bear the cost of implementing this law, it will have only minimal benefit as a government tool in reducing non-compliance.
Moreover, the U.S. tax system is only as strong as the willingness of its participants to voluntarily comply. Imposing vast new data collection and reporting requirements may be viewed by many small business owners as unreasonable and overreaching. In the end, this could serve to undermine confidence in the government and further frustrate tax collection efforts.
Ninety-six percent of the Chamber’s members are small businesses with fewer than one
hundred employees. On behalf of its members, the Chamber thanks you for introducing this important bill and looks forward to working with you on its passage.
Sincerely,
R. Bruce Josten
Thank you to everyone that said they would send a letter of support for HR 5141. I will have a letter to you by Monday.
I talked to Congressman Lungrens office yesterday and they said what will be important in any letters sent will be the affect on your business. For example my company does 25 1099s. The new requirements will force me to do 700. Give some thought as to how it will impact you.
Thank you also to all the association that agreed to sign a joint letter. I will get the letter to you Monday.
If any other associations on this email want to sign on please let me know. I will be sending to every House member in California.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Letter supporting H.R. 5141, the "Small Business Paperwork Mandate Elimination Act"
April 29, 2010
The Honorable Dan Lungren
U.S. House of Representatives
Washington, DC 20515
Dear Representative Lungren:
The U.S. Chamber of Commerce, the world’s largest business federation representing the interests of more than three million businesses and organizations of every size, sector, and region, strongly supports H.R. 5141, the “Small Business Paperwork Mandate Elimination Act,” which if passed into law, would repeal the onerous paperwork burdens imposed on business by the ill-conceived expanded information reporting mandate contained in Section 9006 of the “Patient Protection and Affordable Care Act” (PPACA). This provision was used as an unrelated “pay for” in the PPACA and it should be rescinded based on the merits of the provision alone.
Unless this section is repealed, businesses across the nation will be subjected to the folly of data collection and information filing on virtually all business-to-business transactions they make aggregating $600 or more in a year at a time in which many can least afford it. When the United States is depending on the small business community to generate jobs and grow the economy, lawmakers are diverting their precious time and resources to collecting volumes of information and filling out mounds of new paperwork for the government.
If allowed to be implemented, Section 9006 of the PPACA will also have a chilling effect on new business relationships, most of which will be small businesses and startups. Many businesses in an attempt to reduce data collection and paperwork burdens will simply reduce vendors and refuse to entertain new business dealings. This will have a disproportional impact on small businesses and entrepreneurs attempting to get a foot in the door.
The ultimate irony of these new burdens is that the IRS neither has the resources nor the ability to use the new information to reconstruct an accurate picture of a company’s revenues since a large volume of business-to-consumer transactions are not reported. While the vast majority of compliant taxpayers will bear the cost of implementing this law, it will have only minimal benefit as a government tool in reducing non-compliance.
Moreover, the U.S. tax system is only as strong as the willingness of its participants to voluntarily comply. Imposing vast new data collection and reporting requirements may be viewed by many small business owners as unreasonable and overreaching. In the end, this could serve to undermine confidence in the government and further frustrate tax collection efforts.
Ninety-six percent of the Chamber’s members are small businesses with fewer than one
hundred employees. On behalf of its members, the Chamber thanks you for introducing this important bill and looks forward to working with you on its passage.
Sincerely,
R. Bruce Josten
Thursday, April 29, 2010
1099 Requirements and Small Business
Small business traditionally has not been involved in the legislative process. This drives me crazy but when I ask why, you tell me you are to busy and the issue doesn’t affect you.
While I think this is wrong and we get hurt by legislation consistently, we now have an issue that effects almost every small business in this country.
I have sent out emails telling you about 1099 requirements under the new health care bill. These take affect in 2012 . If you think it doesn’t impact you you are wrong.
For my business, I currently send out 25 1099s. The new requirement will have me send out about 700.
I send out a challenge to you.. This email goes to 4000 small businesses. I don’t think there is a single one of you that won’t be impacted by this provision in the health bill.
If you think you re not impacted let me know. I will personally pay you $100 and let all on the email know how many of you have shown I am wrong. My only caveat to this is if you feel this may reduce competition from the underground economy this is not quantifiable and will not be considered.
However feel free to send this to anyone you want and my offer stands to them.
I am grandstanding I know but this is serious. I am being told we can’t win this battle and that is probably right.
Do you want Small Business California to fight the fight and will you join us?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
415-680-2188
shauge@cal-insure.com
While I think this is wrong and we get hurt by legislation consistently, we now have an issue that effects almost every small business in this country.
I have sent out emails telling you about 1099 requirements under the new health care bill. These take affect in 2012 . If you think it doesn’t impact you you are wrong.
For my business, I currently send out 25 1099s. The new requirement will have me send out about 700.
I send out a challenge to you.. This email goes to 4000 small businesses. I don’t think there is a single one of you that won’t be impacted by this provision in the health bill.
If you think you re not impacted let me know. I will personally pay you $100 and let all on the email know how many of you have shown I am wrong. My only caveat to this is if you feel this may reduce competition from the underground economy this is not quantifiable and will not be considered.
However feel free to send this to anyone you want and my offer stands to them.
I am grandstanding I know but this is serious. I am being told we can’t win this battle and that is probably right.
Do you want Small Business California to fight the fight and will you join us?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
415-680-2188
shauge@cal-insure.com
Wednesday, April 28, 2010
1099s/ Worker Compensation/ Arizona Boycott
Yesterday I told you about the requirement that was slipped into the health bill that businesses would have to file 1099s on all providers of goods and services over $600 to their business. This will now include corporations so you will have to do so for companies like PG&E, IBM as well as smaller corporations.
I had one of the people on the email list that said his business will now have to file about 3000 new 1099s at a cost he estimates at about $1300. He pointed out something I hadn’t thought about and that is he will also have to get the Federal ID number for all of these businesses.
I have verified that this requirement will take effect 2012 and it is estimated that it will raise $17 billion over a 10 year period.
Dan Lungren from California has introduced HR 5141 to repeal this onerous provision. Small Business California has been in contact with his office and we strongly suggest you write a letter supporting this legislation. If you want to do so send me a return email and I will send you a suggested letter. If you are in the Congressman district [ Sacramento/ Parts of the Mother Lode] let me know that also.
I have been trying to find rate filings for increases in workers compensation. It seems that most of the major players have not done so yet but what I do have is Everest will be filing a 5% increase, First Comp 13.5% Hanover 7.1% and Benchmark 12.34. There are other filings but they are really small carriers. As I have said before I don’t expect major increases in July except for a few carriers but watch out for January.
Yesterday I was interviewed on a local television channel on boycotting Arizona over their new immigration law. SF is not the only City looking at this and I believe the state is also considering something. In SF there is discussion of not allowing City contracts to businesses doing business in Arizona. My personal opinion is that I think it is a horrible law and I hope it gets struck down by the courts but I don’t think there should be a boycott. What do you think.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
I had one of the people on the email list that said his business will now have to file about 3000 new 1099s at a cost he estimates at about $1300. He pointed out something I hadn’t thought about and that is he will also have to get the Federal ID number for all of these businesses.
I have verified that this requirement will take effect 2012 and it is estimated that it will raise $17 billion over a 10 year period.
Dan Lungren from California has introduced HR 5141 to repeal this onerous provision. Small Business California has been in contact with his office and we strongly suggest you write a letter supporting this legislation. If you want to do so send me a return email and I will send you a suggested letter. If you are in the Congressman district [ Sacramento/ Parts of the Mother Lode] let me know that also.
I have been trying to find rate filings for increases in workers compensation. It seems that most of the major players have not done so yet but what I do have is Everest will be filing a 5% increase, First Comp 13.5% Hanover 7.1% and Benchmark 12.34. There are other filings but they are really small carriers. As I have said before I don’t expect major increases in July except for a few carriers but watch out for January.
Yesterday I was interviewed on a local television channel on boycotting Arizona over their new immigration law. SF is not the only City looking at this and I believe the state is also considering something. In SF there is discussion of not allowing City contracts to businesses doing business in Arizona. My personal opinion is that I think it is a horrible law and I hope it gets struck down by the courts but I don’t think there should be a boycott. What do you think.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Tuesday, April 27, 2010
Small Business and 1099s
It has just come to my attention that the Health bill recently passed had a provision slipped into it that will require all businesses to file 1099s to any provider of goods and services over $600 in a year.
It appears this will start in 2012 but I am verifying this. For a $14 trillion dollars US economy that is a lot of 1099s.
House member Dan Lungren is introducing legislation to repeal this.
Scott Hauge
President
Small Business California'
2311 Taraval Street
San Francisco, CA 94116
415-680-2811
shauge@cal-insure.com
It appears this will start in 2012 but I am verifying this. For a $14 trillion dollars US economy that is a lot of 1099s.
House member Dan Lungren is introducing legislation to repeal this.
Scott Hauge
President
Small Business California'
2311 Taraval Street
San Francisco, CA 94116
415-680-2811
shauge@cal-insure.com
Friday, April 23, 2010
Red Flag
AB 1771 passed the Assembly Public Safety Committee yesterday on a 4 to 0 vote. Voting in support was Jerry Hill from South SF, Curt Hagman from Diamond Bar, Danny Hill from Hanford and Jim Beall from San Jose. This is the Small Business California bill that would allow small businesses to bid on small contracts with state agencies. Currently they can only be done by prisoners.
The Red Flag rules which have been postponed for about a year will be enforced effective June1. These rules put in place by the Federal Trade Commission. The rule was designed to fight identity theft by requiring creditors with certain kinds of accounts to implement compliance programs to detect and prevent identity theft. Take a look at the website below to see if you are impacted by this. There is a $2500 fine for noncompliance.
Here is the website:
http://www.ftc.gov/bcp/edu/pubs/business/alerts/alt050.shtm
Small Business California sponsored bill SB1373 will be going before the Revenue and Taxation Committee on April 28. This bill levels the playing field for small businesses on paving work. It will require vertically integrated manufacturers[ businesses that manufacturer asphalt and cement and install the materials] to pay the same sales tax as the contractors that only do the work.
We are running into to strong opposition by vertically integrated manufacturers as it could effect as much as $10 billion of work. Thank you to all the associations and individuals that sent letters and a big thank to Betty Yee Chair of the Board of Equalization and Senator Mark Leno for authoring the bill
For those of you in San Francisco be sure and get your paperwork into the City for the Health Care Ordinance. It is due April 30.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
The Red Flag rules which have been postponed for about a year will be enforced effective June1. These rules put in place by the Federal Trade Commission. The rule was designed to fight identity theft by requiring creditors with certain kinds of accounts to implement compliance programs to detect and prevent identity theft. Take a look at the website below to see if you are impacted by this. There is a $2500 fine for noncompliance.
Here is the website:
http://www.ftc.gov/bcp/edu/pubs/business/alerts/alt050.shtm
Small Business California sponsored bill SB1373 will be going before the Revenue and Taxation Committee on April 28. This bill levels the playing field for small businesses on paving work. It will require vertically integrated manufacturers[ businesses that manufacturer asphalt and cement and install the materials] to pay the same sales tax as the contractors that only do the work.
We are running into to strong opposition by vertically integrated manufacturers as it could effect as much as $10 billion of work. Thank you to all the associations and individuals that sent letters and a big thank to Betty Yee Chair of the Board of Equalization and Senator Mark Leno for authoring the bill
For those of you in San Francisco be sure and get your paperwork into the City for the Health Care Ordinance. It is due April 30.
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Monday, April 19, 2010
SB 900/AB 1771 and Governor's Conference for Small Business
I just found out that Senator Alquist has introduced legislation to create a Health Insurance Exchange. This would be housed in the California Health and Human Services Agency. The Exchange will be governed by a board with gubernatorial and legislative appointments and would meet at least once every two months. We are tracking this legislation closely.
It is critical that small business have representatives on this board. Small Business California will be pushing hard to make this happen.
The bill number is SB 900 and you can get more information by going to www.leginfo.ca.gov
We are getting close to the Governor's Conference for small business. Please see below information. If you have not done so already please register for this event.
There has been added a session on the new health bill from Washington. I will be speaking at this event on this issue.
Assemblyman Tony Mendoza has introduced AB 1771 which would allow small businesses to bid on goods and services for state agencies currently provided by prisoners. The sale of prison goods and services is a $230 million dollar industry.
Small Business California has been quoted in numerous media outlets supporting this legislation.
Even though the Prison Industry Authority has considerable advantages such as lower labor cost and lower overhead we are only asking that small businesses be given the opportunity to bid on these contracts and the low bidder should be awarded the contract.
In these difficult economic times where small businesses are struggling to survive this does not seem unreasonable. Also the state may be able to save some money.
It is interesting to note that 30% of the prisoners or about 2000 are lifers.
What do you think?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
It is critical that small business have representatives on this board. Small Business California will be pushing hard to make this happen.
The bill number is SB 900 and you can get more information by going to www.leginfo.ca.gov
We are getting close to the Governor's Conference for small business. Please see below information. If you have not done so already please register for this event.
There has been added a session on the new health bill from Washington. I will be speaking at this event on this issue.
Assemblyman Tony Mendoza has introduced AB 1771 which would allow small businesses to bid on goods and services for state agencies currently provided by prisoners. The sale of prison goods and services is a $230 million dollar industry.
Small Business California has been quoted in numerous media outlets supporting this legislation.
Even though the Prison Industry Authority has considerable advantages such as lower labor cost and lower overhead we are only asking that small businesses be given the opportunity to bid on these contracts and the low bidder should be awarded the contract.
In these difficult economic times where small businesses are struggling to survive this does not seem unreasonable. Also the state may be able to save some money.
It is interesting to note that 30% of the prisoners or about 2000 are lifers.
What do you think?
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Friday, April 16, 2010
Workers Compensation Results/SBS Funding Extended/Webinar/ Employer Lawsuits
The Workers Compensation Insurance Rating Bureau released April 14th the summary of Insurer Experience for 2009. The total written premium was $8.9 billion down from $10.7 billion for 2008. The average rate per $100 of payroll was down slightly from $2.37 to $2.35. This is down 63% from 2003. The accident year loss ratio was 75% up 6% from 2008. The combined loss ratio was not reported but in 2008 it was 108% and the estimate is that it will be around 120%.
So you are asking what does this mean. The pressure is on to increase rates and at some point they will go up double digits but I do not see it happening this year but look out for January. There will most likely be some increase in pricing but I do not see any dramatic increases this year. The caveat here is that some companies may increase premiums by double digit amounts but most won’t. State Fund is one of those companies you will see double digit increases
The Senate passed an extension of several of the American Recovery and Reinvestment Act provisions that were set to expire April 30th. These provisions include the higher guarantees for SBA 7a loans and fee waivers for 7a[ working capital and some real estate] and 504 loans[ real estate] The extension provides $80 million to extend these provisions until May 31 2010.
While this is clearly good news what we need is passage of S2869 which will extend these provisions to the end of the year and increase the loan size to $5 million and allow refinancing of 504 loans.
Some of you were on the webinar Wednesday on the impacts of the health bill on small and medium size businesses. We received great reviews of the webinar and we had about 115 people participate. What would you think of us doing another one of these in about three months? If you would like a copy of all the questions that were asked and the answers to these questions please let me know by return email.
The other day I was talking to a labor attorney and asked him what he was seeing in the way of litigation against businesses. His answer was that there has been an explosion of lawsuits for wage and hour violations. I strongly recommend you talk to your insurance broker about coverage for Employment Practices liability. This coverage also provides for wrongful termination, sexual harassment and discrimination along with some third party liability like ADA. Be sure to ask your broker about wage and hour and ADA as some Employment Practices policies do not automatically cover this
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
So you are asking what does this mean. The pressure is on to increase rates and at some point they will go up double digits but I do not see it happening this year but look out for January. There will most likely be some increase in pricing but I do not see any dramatic increases this year. The caveat here is that some companies may increase premiums by double digit amounts but most won’t. State Fund is one of those companies you will see double digit increases
The Senate passed an extension of several of the American Recovery and Reinvestment Act provisions that were set to expire April 30th. These provisions include the higher guarantees for SBA 7a loans and fee waivers for 7a[ working capital and some real estate] and 504 loans[ real estate] The extension provides $80 million to extend these provisions until May 31 2010.
While this is clearly good news what we need is passage of S2869 which will extend these provisions to the end of the year and increase the loan size to $5 million and allow refinancing of 504 loans.
Some of you were on the webinar Wednesday on the impacts of the health bill on small and medium size businesses. We received great reviews of the webinar and we had about 115 people participate. What would you think of us doing another one of these in about three months? If you would like a copy of all the questions that were asked and the answers to these questions please let me know by return email.
The other day I was talking to a labor attorney and asked him what he was seeing in the way of litigation against businesses. His answer was that there has been an explosion of lawsuits for wage and hour violations. I strongly recommend you talk to your insurance broker about coverage for Employment Practices liability. This coverage also provides for wrongful termination, sexual harassment and discrimination along with some third party liability like ADA. Be sure to ask your broker about wage and hour and ADA as some Employment Practices policies do not automatically cover this
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Monday, April 12, 2010
Health Bill Small Business Tax Credits
All of you are probably aware that the recently passed health bill provided for small business tax credits. Some of the details of those tax credits are:
Tax credits are available to small businesses in two phases:
Phase One -if you are a business with 25 employees or less and average wages of $50000 or less and pay at least 50% of the total premium for your employees coverage you can receive a credit up to 35% of the premium cost between 2010 and 2013.
Phase Two begins 2014 and if you meet the criteria you can receive a tax credit up to 50% of your health insurance cost. The full tax credit is available in both phases to employers with 10 employees or less who have an average wage of $25000 . The credit phases out for employers with between 10 to 25 employees with average wages between $25000 and $50000. The credit ends 2016.
The tax credits can be captured by a deduction on your federal income tax liability and can be carried back 1 year and forward 20 years.
Are you eligible for these tax credits?
If you are not providing insurance will this incentive be enough to get you to provide health insurance to your employees?
Would you be willing to talk to the media? If so send me your contact information and the number of employees you have.
If you want to learn more about this and other provisions of the health bill please join the webinar April 13 at 9AM. You must register and can do so by calling 800-399-5331.
Scott Hauge
PresidentSmall Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
Tax credits are available to small businesses in two phases:
Phase One -if you are a business with 25 employees or less and average wages of $50000 or less and pay at least 50% of the total premium for your employees coverage you can receive a credit up to 35% of the premium cost between 2010 and 2013.
Phase Two begins 2014 and if you meet the criteria you can receive a tax credit up to 50% of your health insurance cost. The full tax credit is available in both phases to employers with 10 employees or less who have an average wage of $25000 . The credit phases out for employers with between 10 to 25 employees with average wages between $25000 and $50000. The credit ends 2016.
The tax credits can be captured by a deduction on your federal income tax liability and can be carried back 1 year and forward 20 years.
Are you eligible for these tax credits?
If you are not providing insurance will this incentive be enough to get you to provide health insurance to your employees?
Would you be willing to talk to the media? If so send me your contact information and the number of employees you have.
If you want to learn more about this and other provisions of the health bill please join the webinar April 13 at 9AM. You must register and can do so by calling 800-399-5331.
Scott Hauge
PresidentSmall Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188
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