If you don’t have an ARC loan, you’re not alone!
The America’s Recovery Capital (ARC) Loan Program was introduced in June 2009 by the US Small Business Administration “to provide up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship to help ride out the current uncertain economic times and return to profitability.” Only 2715 loans had been approved through September 15 across the nation.
Catherine Clifford, writing in CNNMoney.com, explains that big lenders are foot-dragging or opting out from participating in this lending program altogether – there is a lot of paperwork for relatively little bank profit -”only” 2 percentage points over prime from the SBA to the banks. (So much for anything resembling gratitude for the TARP money we taxpayers gave the banks!). One of the biggest shockers she uncovers is how few lenders are participating – only 400 lenders as of September. The SBA lists those lenders participating in the ARC pr0gram as of October 5 by state on their site.
Even if you do find a lender who participates, the process is taking months to get a response. Ironic, when one considers how quickly billions went to bail out Wall Street.
So good luck! But don’t count on this program to be a panacea for your business.
written by Nancy Chorpenning
\\ tags: ARC Loans, ARC progam, SBA, small business loans
Angel Investing Down
Check out this article in Inc.com. Maybe not a huge surprise but economic uncertainty is impacting the private equity world. But there are some recession-resistent markets for startups that may disprove the rule: green technologies, renewable energy, and health care, to name but a few.
written by Nancy Chorpenning
\\ tags: Angel Investor, equity, Investors
Effective Communication for Managing Virtual Office Employees – Entrepreneur.com
If you are thinking about letting some of your team work from home, or adding some staff that will work remotely, this article in Entrepreneur.com may shed some light on your decision.
The author, David Javitch, presents a nice overview that rings true to me. I managed a team of 19 in NYC from Atlanta for over 3 years and learned many of these lessons the hard way!
Some questions to ask yourself might include:
- How are you with technology? (You don’t have to be a chip-head, but it will make a difference if you’re comfortable with instant messaging, web conferencing programs, Continue reading »
written by Nancy Chorpenning
\\ tags: managing virtually, virtual employee, virtual office
Eight Insurance Coverage Areas to Review Annually
A once-a-year checkup can save you big bucks in the year ahead!
Year end is always busy, but it’s also the perfect time to review your insurance coverage as you look ahead to the beginning of a new year. Even if you don’t do it all at once, you need to review each of these areas at some point during the year. Your insurance agent should be able to advise what is appropriate for your business (or steer you towards other agents who handle them!), and there may even be other insurance types depending upon your industry (e.g., Errors & Omissions for professional services).
Here are some areas you might want to check out: Continue reading »
written by Nancy Chorpenning
\\ tags: Insurance
Have you heard the quote by our 34th President, Dwight Eisenhower while he was Supreme Allied Commander? Good advice for soldiers as well as business owners.
“The plan is useless, but planning is essential.”
And there couldn’t be a better time than right now. During a recession, pragmatic business planning is vital. Strategic plans are important but tactical operating plans might be your most valuable management tool during this recession. Here’s the perfect opportunity to focus in on Continue reading »
written by Nancy Chorpenning
\\ tags: business planning, recession
The Crisis Facing Business: Succumbing to the Madness of the Crowd | The Corner Office | BNET
This excellent article by Stanford B School Org Behavior prof, Jeffrey Pfeffer, is a breath of fresh air in an otherwise dismal and gloomy business media environment.
Pfeffer confirms what I have long believed: “the evidence on the effects of downsizing is remarkably consistent: According to peer-reviewed published studies, downsizing does not increase productivity, profits, stock price, or innovation.”
He goes on to describe what kinds of companies are not subject to the vicissitudes of market fluctuations. Does your company fit into that profile?
written by Nancy Chorpenning
\\ tags: Finance, Financial, Financial Accounting
How To Hire A Lawyer – Forbes.com
by Robert Bovarnick
Legal fees are a cost of doing business. This very practical article (Click to Open Link) covers such things as how to identify potential attorneys and then selecting the right firm. Don’t miss this!
written by Nancy Chorpenning
\\ tags: Business Law, Legal
How Angel Investing Works – BusinessWeek (click to open link)
While VCs make much larger investments, angel groups give from around $25,000 to $50,000—and tend to want real involvement with the company
Here is a good brief by Tom Taulli that explains the difference between Angel Investors and Venture Capitalists. He also references some websites you can explore to locate a good fit angel group.
“Is your company looking for an equity investment under a few million dollars? You might first Continue reading »
written by Nancy Chorpenning
\\ tags: Angel Investor, capital, funding, Investors
Unless you’ve been in a cave for the past month, you know we are in the midst of a credit crisis.
And if you’ve been watching TV, listening to the radio, reading the newspaper, or looking at the Web, you realize that the credit crisis has hit small business owners particularly hard.
So what can small business owners do to cope with the crisis? Scott Shane offers a few suggestions in this article (link will open new page):
1. Extend less credit to your customers.
2. Borrow from different sources.
3. Bootstrap, or raise equity.
4. Cut your costs.
5. Sell Assets.
written by Nancy Chorpenning
Small Businesses Feeling the Chill | NYTimes.com
Did you see this article in the New York Times? Most entrepreneurs don’t need the newspaper to tell them that something has happened in the credit markets and it isn’t good.
Despite the media predictions, there are some banks that are lending to small businesses. Look for lenders who didn’t get in deep with subprime mortgages. Yours must be a basically healthy and growing concern, and your business plan needs to be current. Continue reading »
written by Nancy Chorpenning
