NSBA: Economic Survey Released

See midyear survey from the National Small Business Association.

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NSBA today released its 2014 Mid-Year Economic Report which shows positive gains in revenues and hiring as well as improved economic outlook and confidence among America’s small-business owners.

I’ve included a link to the report below along with several social media posts you are welcome to use. We greatly appreciate any help you can provide in spreading the word about this survey within your networks.

Report Link:

http://nsba.biz/docs/Mid-Year-Economic-Report-2014.pdf

Social Media Posts:

Per @NSBAAdvocate: when asked to compare today’s economy with five years ago, 50 percent say it’s better—the highest it’s been in six years.

http://nsba.biz/docs/Mid-Year-Economic-Report-2014.pdf

The majority of small-business owners anticipate a flat or recessionary economy in the coming year per @NSBAAdvocate report.

http://nsba.biz/docs/Mid-Year-Economic-Report-2014.pdf

Per @NSBAAdvocate: 72 percent of small-business owners are confident about the future of their business, up from 66 percent six months ago.

http://nsba.biz/docs/Mid-Year-Economic-Report-2014.pdf

Forty-six percent of small-business owners—up from 41 percent six months ago say they are concerned that inflation could be an issue facing their business in the coming year, per @NSBAAdvocate. http://nsba.biz/docs/Mid-Year-Economic-Report-2014.pdf

According to @NSBAAdvocate, 3-in-4 small firms either increased employee compensation in the last year, or plan to do so in the coming year. #minimum wage

http://nsba.biz/docs/Mid-Year-Economic-Report-2014.pdf

Nearly ¼ of small firms hired new employees in the last year—the highest hiring rate in six years according to @NSBAAdvocate

http://nsba.biz/docs/Mid-Year-Economic-Report-2014.pdf

72 percent of small firms say they can access adequate financing, up from 70 percent six months ago and 65 percent one year ago per @NSBAAdvocate  

http://nsba.biz/docs/Mid-Year-Economic-Report-2014.pdf

“End the partisan gridlock” was top ranked issue among small firms for lawmakers to address per @NSBAAdvocate report. 

http://nsba.biz/docs/Mid-Year-Economic-Report-2014.pdf

Thanks,

Molly

Molly Brogan Day | VP of Public Affairs

National Small Business Association

1156 15th St., NW, #1100

Washington, D.C. 20005

202-552-2904 (o) | 202-276-2131 (c)

mday@nsba.biz | www.nsba.biz

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 Scott Hauge

President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

Napa Quake A Grim Warning To California Employers

Mother nature's decision to send a 6.1 magnitude earthquake to the Napa Valley region in the middle of the night likely saved lives and employers in the region untold losses on their workers' comp policies. Hundreds of individuals have received medical treatment as a result of the quake, including some for critical injuries, but the majority are believed to have been sustained outside the scope of employment.

Defense attorneys note that it was a lucky break for employers that the quake hit when most businesses were closed. "If an injury happens at work during an earthquake, I think it is compensable," says one Northern California defense attorney.

Damage from the quake, which struck at 3:20 in the morning, is still being evaluated but was extensive enough for Gov. Jerry Brown to issue a declaration of emergency for the region. The quake was the largest to hit Northern California since the 1989 Loma Prieta earthquake. That one struck just at the close of the typical business day but didn't generate any new legal precedence for workers' comp.

As employees return to work, employers need to be aware that there will be increased exposure to potential injuries during clean-up and/or from aftershocks and should take appropriate precautions. State and local agencies, as well as the utility companies, are also facing additional risks as safety officers and repair crews respond to the damage caused by the quake. The scope overall, however, could have been much worse if the timing was different and the quake hit when most workers in the area were on the job.

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

Minimum wage | Customer Communications

On July 1st, the minimum wage in California will go to $9/hr. It will increase to $10/hr in July of 2015. Senator Mark Leno has failed in the Assembly to pass his minimum wage bill. It would have increased the minimum wage to $11/hr in 2015, $12/hr in 2016 and $13/hr in 2017.

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About a week ago I asked you how you did business with your customers. I asked if you stressed meeting your clients in person or talking to them by phone vs. email and texting as your main communication vehicle. I was a bit surprised that most people responded they mostly use email. Most people said they did not text much.

Now, I know that there is a place for all these communication vehicles, but in my opinion personal contact is the best. Interestingly enough, no one mentioned Facebook or LinkedIn. I tell my employees to call first and if you don’t reach them, send an email because emails can be misunderstood as you don’t have a chance to add texture and nuance. I especially don’t want my employees to lose personal contact.

There are however exceptions to this where the client wants to be contacted only by email but I don’t think most people want to do business this way. It does seem that people in the tech industry seem to prefer email, though. Maybe I am too old fashioned...



Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

Transamerica Center for Health Studies | AB 2096 - Crowdfunding

On Tuesday, Small Business California's AB 2096 (Muratsuchi) - Crowdfunding,  passed the Senate Judiciary Committee! It will now go to Appropriations. Senator Mark Leno from San Francisco was the major reason this got out of the Committee over the objections of Committee Chair Jackson. Thank you Mark!

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In an effort to keep you up to date on the Affordable Care Act please see below. Thank you Hector for sending.

Scott,

As we discussed, the national nonprofit Transamerica Center for Health Studies (TCHS) launched a new 50-state online guide to help small business owners with 50 or fewer employees understand their health plan options and costs through the Small Business Health Options Program (SHOP).

The neutral, free guide includes the following information:

• Each state’s SHOP Marketplace information
• Tax credit information
• Employer benefits survey
• Employer wellness program incentives
• Updated federal notice requirements

A recent survey by TCHS revealed six in 10 small businesses are aware of SHOP, but only 56 percent of them feel very informed about their company’s options for health insurance.

For more information, go to http://www.transamericacenterforhealthstudies.org/small-business/small-business-affordable-care-act.
 

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

Relationships

One of the things that is really important in my business is to build relationships with my customers.  I will be the first to say I am of the age where this means talking to people face to face and by phone. I tell my employees that they should call people, our clients, and suppliers. If they cannot reach them, then to leave an email saying they left a message, asking them to call back or outline in the email what they wanted to talk about.

How do you do business? 

Is it by email and text message? 

Can you build a relationship without talking directly to people? 

Do you prefer to do business by email or texting? 

What do you tell your employees in this area?

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

GO-Biz Webinar | AB 2096 | SB 610

Please see information below signature on Online Lending. As indicated this is going to be more prevalent in the future.

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On Wednesday Small Business California’s crowd funding bill AB 2096 (Muratsuchi - LA) passed the Senates Business Professional and Economic Committee 7 to 2. Small Business California Board member Mark Hiraide, Governmental Affairs Manager Lori Kammerer and myself, testified in support. It will now go to the Senate Judiciary Committee on July 24th. We have had great success with this bill due to Assemblyman Muratsuchi’s support and dedication, thank you Assemblyman! 
 
Also on June 24th  SB 610 (Jackson – Fresno), which gives franchisees protection in negotiations with Franchisers, will go to the Assembly Business, Professions and Consumer Protections Committee. I will be testifying in support. Thanks to Senator Jackson for authoring this bill!
 
Most of you have probably never heard of Lori Kammerer, our Governmental Affairs Manager. Small businesses around California  are in her debt for the great work she does representing the interest of small businesses. All the legislators in Sacramento know her and she brings great energy to her position. We are able to have her because of the financial support of our members.
 
If you are not a member please consider joining Small Business California. You can do so Online at www.smallbusinesscalifornia.org or we can invoice you. The cost is $150 if you are under $1 million in revenues and $300 over $1 million. If you are already a member, thank you!

 

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

 

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Ever Consider an Online Loan for Your Business? 
Join GO-Biz for an Encore Webinar and Learn More About Online Lending


Small business loans from online lenders have become an increasingly popular option for some businesses. Some say that they are quicker and more flexible to process than loans from brick and mortar lenders.  Have you wondered if this financing option would work for your business?

If so, please join our webinar on Monday, June 23rd.  GO-Biz has invited a panel of experts to discuss the advantages and disadvantages of online business lending options.  The presentation will describe online loan amounts and loan terms, as well as the online loan application process.  This very informative webinar will provide small business owners with an introduction to this new business loan arena.  Register here now - space is limited!

Featured presenters:

SUSAN RILEY BROWN, Business and Community Development Consultant
Susan has 25 years of experience in the field of business and community development.  Her background includes diverse areas such as credit analysis, online marketing, and real estate finance.  Susan was previously Executive Director of two business-development nonprofits, and has served as a presenter, trainer, and facilitator at statewide, regional, and national forums.  She has a Bachelor’s in Economic Development from U.C. Berkeley and a Master’s in Public Policy from Princeton University.


PAUL QUINTERO, Chief Executive Officer of Accion East, Inc.
Paul joined Accion East in 2007, bringing 15 years of investment banking, public accounting and community development investment experience.  Paul serves on the board of directors for the Association for Enterprise Opportunity (AEO) and Accion, The U.S. Network. Paul was a CPA for Deloitte & Touche and earned a BA in business administration and accounting from the University of Washington. He was a Robert F. Toigo Foundation fellow and earned an MBA from Columbia Business School.

Support Letter - SB 610 - Franchises

Below, please find our support letter for SB 610. This is an important bill that will further level out the playing field for franchisees. For too long, franchisees have had little ability to negotiate on their contracts with Franchisers. This bill will help with that. 

If you are a franchise owner, please fill out this 3 question survey. 

1. What is your contact information? (Name, phone, and email)
2. Where are you located?
3. What type of franchise to you own or manage?

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

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The Honorable Hannah-Beth Jackson
Member, California State Senate
State Capitol
Sacramento, CA  95814

RE:  SB 610 (Jackson) As Amended June 10, 2014 - Franchises - SUPPORT

Dear Senator Jackson: 

On behalf of Small Business California and its network of more than 5,000 employers who represent 3.2 million small businesses in this state, we are pleased to STRONGLY SUPPORT Your SB 610 that would impose restrictions on a franchisors’ ability to terminate a franchisee’s contract, provide the franchisees with a right to renew their franchise, protect the franchisees’ ability to sell their business to qualified buyers, and protect the franchisee from retaliation, if they join a franchisee association.

Senate Bill 610 will offer protections to small businesses who are franchisees to fast-food restaurants, retail stores, tax-preparation services, auto-repair shops and other businesses bearing major brand names.  The franchisees often put their life savings at risk to start their businesses.  Under current law, franchisors can put franchisees out of business for even the most minor violation of the Franchisor’s rule book – a rule book that can be modified to suit the franchisor at any time.  For example, a franchisor can require the franchisee to purchase new equipment at any time during the contract period or terminate the contract if the small business franchisor is handing out too many coupons.

Senate Bill 610 is designed protect small-business owners by bringing some balance to the franchisor-franchisee relationship. Current California law allows franchisors to terminate franchise agreements for “good cause,” which includes a failure to comply with a requirement of the contract. But franchise contracts often specify dozens—or even hundreds— of requirements. Franchise agreements often allow the franchisor to inspect franchisees’ operations at any time and terminate the agreement for minor violations of the contract or of thousands of pages of manuals and other rules. And these are rules that the franchisor can often change unilaterally.

Senate Bill 610 gives franchisees’ rights to renew their franchise, if they comply with the franchisor’s standards. California law now allows franchisors to decide not to renew a franchisee’s contract for any reason or no reason at all. As with terminations, SB 610 would protect franchisees from nonrenewal, unless they commit substantial and material violations of their contract.

Senate Bill 610 protects franchisees’ ability to sell their business to qualified buyers. Franchisees should be able to sell it and reap the reward of their labor and investment. However, franchisors sometimes interfere in franchisees’ sale or transfer of the business, driving down the price or blocking the sale altogether. Franchisees need the right to be able to sell or pass on their business to qualified operators without interference. SB 610 would also protect franchisees from retaliation if they join a franchisee association.

Franchisee associations provide franchisees with a forum for discussing common problems and issues and with a collective voice for raising these issues with the franchisor.  Some franchisees have reported that franchisors have retaliated against franchisees who join these associations.  The bill would protect franchisees from retaliation for joining an association, thus ensuring that franchisees can continue to work together to improve conditions for their business.

For these reasons and more, Small Business California strongly SUPPORTS your Senate Bill 610. We greatly appreciate your leadership in this policy area and we look forward to working with you and your staff to ensure passage of this very important legislation.   If you have any questions, please contact me directly at 415.680.2109 or email at shauge@smallbusinesscalifornia.org.  Or, you may contact our Governmental Affairs Advocate in Sacramento, Lori Kammerer, Kammerer & Company, at 916.441.5674 or at LCK@midtown.net.

Sincerely,
 
Scott Hauge, President
Small Business California

cc: The Hon. Ted Lieu, Chair, Senate Business, Professions & Economic Development
      The Hon. Mark Wyland, Vice Chair, BP&ED and Committee Members
      Bill Gage, Chief Consultant, Senate BP&ED         
      Amber Alexander, Republican Consultant, Senate BP&ED

Employer's Update: How to Prepare for the July 1st Posting Requirements

Please see information about requirements for businesses in California. I want to thank The California Employers Association for sending this! 
 




How to Prepare for the July 1st Posting Requirements
Read Time: Less than 2 Minutes

1.  First and foremost, post the 2014 Employment Notices Poster with the $9.00-per-hour California minimum wage by July 1, 2014!  You may purchase a new poster at the CEA Website OR you can download the posting now, for free, at: http://www.dir.ca.gov/iwc/MW-2014.pdf.

2.  Effective July 1, 2014, employers are required to provide new Workers’ Compensation pre-designation forms to all new hires. Once available, you can download this at: https://www.dir.ca.gov/dwc/DWCPropRegs/predesignation_Regulations/Predesignation_regulations.htm.

3.  Finally, effective July 1, 2014, paid family leave to care for a seriously ill “family member” now includes a grandparent, grandchild, sibling or parent-in-law. Employers are required to provide this pamphlet to new hires and when employees take a leave of absence for a covered reason.  Once available, you can download the Family Leave Pamphlet at: http://www.edd.ca.gov/Disability/PFL_Forms_and_Publications.htm.

New Poster and Updated Forms


New Poster
Purchase Here
Updated Posting
Download Here
Pre-Designation Forms
Download Here
Family Leave Pamphlet
Download Here
 

Website: www.employers.org | Phone: 800 399-5331

 
1451 River Park Drive, Suite 116 , Sacramento, CA 95815



Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

AB 1792 | AB 1351

Small Business California has been tracking AB 1792 and opposed AB 1351.
AB 1792 would require  all employers with 25 or more employees to  report to EDD all employees receiving public assistance. Public assistance is defined as MediCal, Cal Fresh and Cal Works. As best as I can determine employees are all employees of a business and not subject to any hourly requirement. The bill would only apply to business not government. This is supported  by Labor who says that these employees are a cost to the state. The Department of Labor would be  required to provide a list of employees receiving benefits for each company. The Department of Finance opposes this.It has passed the Assembly  by a vote of 52 to 26 and is going to the Senate.
What do you think?

Small Business California opposed AB1351.  This bill would require credit cards to have chips to prevent fraud. The problem with the bill is that it locks a technology in place which cant be changed without a vote of the legislature. It also does not apply to  government. The bill has died  in the Assembly as it could not get the votes before  the deadline.

On June 17 Cameo will be holding a celebration of its 20^th year . It will be at the Sterling Hotel. I am proud to say that at the event I will be given an award for  Small Business Advocacy. This is particularly meaningful to me because I have worked the ED Claudia Viek for many years going back to her days at SF Renaissance.


Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

SBDCs

I just found out yesterday that in the Governor's May revise of the budget, the SBDCs  were given $2 million. It will be from the general fund so that means the SBA will match this amount.

We are watching closely to make sure this money does not get shifted to a special fund jeopardizing the match. Hats off to Barbara Vohryzek, the Small Business Advocate and Panorea Avdis in the Governor’s office for making this happen.

Small Business California has been working for a while to get additional funding for California SBDCs. 


Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

Crowdfunding Bill Clears the Assembly Floor

As you all know Small Business California has put forth a crowd funding bill that will help small businesses and start-up businesses obtain equity capital. Yesterday, the Assembly passed our bill 75 to 0.

We had no nay votes previously in Banking and Financing and Appropriations. See below from our government affairs manager.

"It now goes to the Senate where it will be harder because AARP will be coming out opposed."

We are however very optimistic. Thank you to all that sent support letters.


 
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

Troy and Alana Pack Patient Safety Act of 2014

It is expected that a Patient Protection measure called the Troy and Alana Patient Safety Act of 2014 will be on the ballot in November. This will do a number of things like random drug and alcohol testing of doctors with privileges in hospitals. It also will test after adverse situations to a patient. It will also raise the cap on non-economic damages from $250,000 to a little over $1 million.  The current limit of $250,000 was signed into law in 1975 and has not been increase. The new cap is adjusted for inflation.

This measure is being brought forth by Consumer Attorneys and is opposed by the California Medical Association. There are other pro and con supporters but I will not go into detail about. The argument made in favor of this is that about 10% of doctors have substance abuse problems. They point out that Medical Malpractice is the third leading cause of death in the country trailing Heart disease and cancer. They also argue that the $250,000 cap has not been raised for almost 40 years.

The CMA argues that this will drastically increase health cost and that the drug testing has been included so they can have something that resonates with voters but their real interest is to increase the malpractice cap. They also argue that the testing after an adverse situation will not hold up in court because I believe it has to be done three days after and the doctor may not necessarily be on duty.

This is going to be a highly contested issue and millions of dollars will be spent by both sides. What do you think?


Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

Volunteers In Medicine | Online Lending Seminar

Volunteers In Medicine (VIM) just completed its annual survey of our 95 eligible Volunteers In Medicine Clinics. 85 responded.

The highlights were,

1. We have 105,759 patients with 404.810 patient visits.
2. The average cost per patient was $332 and the average cost per patient visit was $85
3. There were 12178 individuals who volunteered - 6811 medical and 5567 non medical.
4. There were 348 paid staff
5. 75% of participating clinics are in states that did not expand Medicare.

Remember we take no government money

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Go-Biz is doing a webinar on May 22 to discuss online business lending. It will be from 12PM to 1PM. See information below.
  
 

GO-Biz's Small Business Unit to Host Webinar on Online Business Loans

Small business loans from online lenders have become an increasingly popular option for some businesses. Some say that they are quicker and more flexible to process than loans from brick and mortar lenders.  Have you wondered if this financing option would work for your business?

If so, please join our webinar on May 22nd.  GO-Biz will invite two experts to discuss online business lending in the U.S.  The presentation will describe online loan amounts and loan terms, as well as the online loan application process.  This very informative webinar will provide small business owners with an introduction to this new business loan arena.  Register now - space is limited!

Thursday, May 22nd -  12:00 PM to 1 PM  (PDT)
Registration information and additional details on the webinar are available here.

Featured presenters:

SUSAN RILEY BROWN, Business and Community Development Consultant
 

PAUL QUINTERO, Chief Executive Officer of Accion East, Inc.




Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

Crowdfunding

Equity capital for start-ups and growing small businesses has always been a problem. With the passage of the JOBS Act this was made easier but there are still some problems. While the final regulations have not been written, we know that general solicitation and adequate investor protections will not be in the final regulations.

To solve this problem Small Business California is sponsoring AB 2096. It allows general solicitation and many investor protections  like a cap of $5000 for non-accredited investors, attorney fees for successful plaintiffs, and additional disclosure requirements.
 
AB 2096 passed the Assembly Banking and Finance Committee on an 11 to 0 vote. It is going to the Assembly Appropriations Committee today and it is on consent calendar. We have over 20 small business associations around the state supporting this measure. This bill will fill a real need for small businesses to raise up to $1 million in equity capital.
 
For more information go to www.leginfo.ca.gov

 
Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188 

Health Conference | Registration Information

On Thursday and Friday I will be speaking at a Health, Healthcare and Economic Development Conference. I will be talking from the small business perspective. For those of you that provide health insurance to your employees what has been your experience since the implementation of the Affordable Care Act?

1. Have you looked at Covered California and the Small Business Health Option Plan?
2. Have you dropped your health insurance and had your employees get the subsidies in Covered California?
3. Do you think you will be dropping  health insurance in the future?
4. Have you placed your insurance outside Covered California?
5. Did you take an early renewal?
6. Has your premium gone up? How much?
7. Did you use a certified Covered California agent to place coverage?
8. Did your agent recommend not using Covered California?
9. Have you had problems with the doctor Networks. This can be both inside and outside Covered California.
10. Do you receive a tax credit from Covered California?
11. Do you think the Affordable Care Act will ultimately succeed?
12. Please indicate if you are in an urban or rural area.
13. Are the provider Networks [doctors, hospitals, etc.] adequate to meet your companies needs?
14. Other comments?

 If you are interested in attending conference see information below.

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188