The Small Business Administration (SBA) recently created a new program called the American Recovery Capital (ARC) in order to help struggling businesses during these hard economic times. These loans are not designed for start-up businesses, but those that have been in operation for at least three years and have supporting documents for proof. Effective on June 15, 2009, the ARC loan program will give up to $35,000 to small businesses that are suffering economically until September 30, 2010 – or until the funds have run out.
Some of the benefits of obtaining an ARC loan are that they are interest free, with no other hidden fees, and each one is a deferred payment loan. In addition, the business has 12 months after the last loan check received before payments are owed on the loan. The loan will be paid back over a period of 5 years. The funds provided are to go toward term and revolving lines of credit, mortgages, business credit cards, capital leases as well as other vendors, suppliers and utilities.
One of the main eligibility requirements to get one of these loans is that the business must have a history of good performance and their current financial difficulties are a result of the current economy. There must be supporting documents stating that in at least one of the past three years the business has turned a profit and will have sufficient cash flow to make current future loan payments over a two-year period. The SBA wants these documents and the projected cash flow in order to deem whether or not your debts are able to be paid off in a two year period as well as repaying the loan. Their logic is that it would make no sense for the SBA to give an ARC loan to a struggling business that, even with assistance, will ultimately fail due to severe pre-existing debt or lack of future cash flow.
The money is not coming from the SBA itself, which is why the loan must be repaid promptly within a two year period and only certain good standing businesses are eligible. One of the major benefits of this loan is that the banks are loaning the money to the businesses, but the SBA will be paying the interest charges, not the small businesses. By having the loans payments wait a year, the SBA is giving small businesses a chance to invest in themselves instead of pouring all their money in their debts. These loans are going to be given out in the hopes that they will stimulate the community that the business serves through creating jobs and restoring the bank’s faith in loaning to small businesses for future loans.
For more information about applying for an ARC Loan visit the SBA website: http://www.sba.gov/recovery/arcloanprogram/REC_ARCLOAN_WHERE.html
Showing posts with label small business opportunities. Show all posts
Showing posts with label small business opportunities. Show all posts
Thursday, June 11, 2009
Tuesday, April 28, 2009
Thursday, March 26, 2009
Change and Business Growth – Five Steps To Success
There is an old expression that says change is one of the three unavoidable facts of life – the others are death and taxes. Change is both essential to business success and one of the most frightening things a business owner can face; market conditions fluctuate, profits rise and fall, employee turnover… All of these and many more are all an integral part of doing business in today’s world.
Building your business is hard work, and once you have the ball rolling in one direction it can be very difficult to change the course. Doing something differently can be a terrifying prospect, but the best business owners have to stay flexible in order to succeed! Resisting change and trying to stick to the old ways can lead to trouble and worse. Companies that don’t change stagnate, miss growth opportunities, and, even worse, die out.
You’ve seen this time and again. Successful businesses generally have a core area that works well for them, but regularly fiddle with what they do, tweaking and improving constantly to see what works the best for them. Take a look at McDonald’s, for example; a franchise operation that works as a standard cookie-cutter template or mold. They’ve had the same basic setup, offerings, and operations for decades, but try out new things all the time – products, promotions, marketing, everything. Not all of these changes work or are kept, but every once in a while the company finds that perfect new item that makes all the difference and then brings in millions of dollars.
Constant reinvention, innovation, and acceptance of change are what keeps companies like McDonald’s at the forefront of their market. Smaller companies can and should learn from this and be willing to take a leap into a new venture or try out a new way of thinking or doing business! Taking a leap can pay off with huge rewards, as long as you make sure of a few things and follow five steps in a fairly straightforward plan.
1) Plan Your Approach
Before you start any major change or new business venture, have a plan of attack. Know what you want to do, why you want to do it, and do your homework! Don’t go into anything without a good, strong feel for what your strategy is going to be.
2) Don’t Bite Off More Than You Can Chew
You have to be realistic. If this new venture or change is going to swamp your business, don’t do it! Keep the proportions manageable – if the resources required to do this are more than you can afford to allocate (and possibly risk losing) then it is a simple decision. Be sure to have a backup plan!
3) Don’t Be Afraid
Having steps 1 and 2 taken care of can make this easier. Fear is one of the most detrimental things to any business, and can dramatically reduce a business owner’s ability to proceed and prosper in a new venture. You have a good plan, and know that it is something you can handle – what is there left to be afraid of?
4) Take The Plunge
As a business owner, by now you have already done this many times. You’ll have to do so many more before your time as a business owner draws to a close. Have your leaps in the past paid off? Obviously, you’re still here! Remember these times and try to do it again.
5) Wait, Evaluate, Measure, And Decide
Now that you’ve had some time working in the new venture, you should evaluate your progress. You don’t want to simply close your eyes and hope; pay attention to what’s going on, tweak what needs to be changed, and keep a fluid plan of attack. Adjust your actions according to the development of what you are doing – if something isn’t working, fix it! Determine whether or not your venture is paying off, or simply burning resources, and decide if you should celebrate and keep it, or accept a loss and move on to the next big idea.
Change should be part of every business owner’s plan. Take a look at how you do business – do you anticipate the need for new ideas, products, markets, or methods? If not, carefully consider your approach; not being prepared can be disastrous.
However, if you are willing to consider expanding your business into new markets, give Gateway to Government a call! We can help you with all five steps and introduce you to a lucrative new business arena.
Building your business is hard work, and once you have the ball rolling in one direction it can be very difficult to change the course. Doing something differently can be a terrifying prospect, but the best business owners have to stay flexible in order to succeed! Resisting change and trying to stick to the old ways can lead to trouble and worse. Companies that don’t change stagnate, miss growth opportunities, and, even worse, die out.
You’ve seen this time and again. Successful businesses generally have a core area that works well for them, but regularly fiddle with what they do, tweaking and improving constantly to see what works the best for them. Take a look at McDonald’s, for example; a franchise operation that works as a standard cookie-cutter template or mold. They’ve had the same basic setup, offerings, and operations for decades, but try out new things all the time – products, promotions, marketing, everything. Not all of these changes work or are kept, but every once in a while the company finds that perfect new item that makes all the difference and then brings in millions of dollars.
Constant reinvention, innovation, and acceptance of change are what keeps companies like McDonald’s at the forefront of their market. Smaller companies can and should learn from this and be willing to take a leap into a new venture or try out a new way of thinking or doing business! Taking a leap can pay off with huge rewards, as long as you make sure of a few things and follow five steps in a fairly straightforward plan.
1) Plan Your Approach
Before you start any major change or new business venture, have a plan of attack. Know what you want to do, why you want to do it, and do your homework! Don’t go into anything without a good, strong feel for what your strategy is going to be.
2) Don’t Bite Off More Than You Can Chew
You have to be realistic. If this new venture or change is going to swamp your business, don’t do it! Keep the proportions manageable – if the resources required to do this are more than you can afford to allocate (and possibly risk losing) then it is a simple decision. Be sure to have a backup plan!
3) Don’t Be Afraid
Having steps 1 and 2 taken care of can make this easier. Fear is one of the most detrimental things to any business, and can dramatically reduce a business owner’s ability to proceed and prosper in a new venture. You have a good plan, and know that it is something you can handle – what is there left to be afraid of?
4) Take The Plunge
As a business owner, by now you have already done this many times. You’ll have to do so many more before your time as a business owner draws to a close. Have your leaps in the past paid off? Obviously, you’re still here! Remember these times and try to do it again.
5) Wait, Evaluate, Measure, And Decide
Now that you’ve had some time working in the new venture, you should evaluate your progress. You don’t want to simply close your eyes and hope; pay attention to what’s going on, tweak what needs to be changed, and keep a fluid plan of attack. Adjust your actions according to the development of what you are doing – if something isn’t working, fix it! Determine whether or not your venture is paying off, or simply burning resources, and decide if you should celebrate and keep it, or accept a loss and move on to the next big idea.
Change should be part of every business owner’s plan. Take a look at how you do business – do you anticipate the need for new ideas, products, markets, or methods? If not, carefully consider your approach; not being prepared can be disastrous.
However, if you are willing to consider expanding your business into new markets, give Gateway to Government a call! We can help you with all five steps and introduce you to a lucrative new business arena.
Friday, March 6, 2009
Obama Charges Administrators to Reform Contracting
President Barack Obama on Wednesday ordered a much-needed look at and reform of the processes surrounding government contracting and procurement. This is to include virtually all agencies and branches of the federal government, including the Department of Defense, usually exempted from such measures. The following quote is from President Obama via the White House executive memorandum:
“I hereby direct the Director of the Office of Management and Budget (OMB)… and the heads of such other agencies as the Director of OMB determines to be appropriate… to develop and issue by July 1, 2009, Government-wide guidance to assist agencies in reviewing, and creating processes for ongoing review of, existing contracts in order to identify contracts that are wasteful, inefficient, or not otherwise likely to meet the agency’s needs, and to formulate appropriate corrective action in a timely manner. Such corrective action may include modifying or canceling such contracts…”
What does this mean for the small business owner?
Well, that depends. If you have a long-term contract currently in place, immediately make sure that your processes are well documented and defensible. Excess waste should be cut out proactively and inefficiencies need to be addressed – nobody wants a contract canceled so be sure to take a look at what you can do to prevent it.
On the other hand, for companies looking to break into contracting, this is potentially a tremendous opportunity. As of July 1, 2009, existing long-term contracts will begin to be reviewed. Many incumbent contractors could be hoisted out of their positions, which means that many contracts will have to be refilled. Over the coming year many businesses will be tapped to replace the companies who have their contracts cancelled, so now is a great time to start positioning your business to take their place!
Obama also said he wants to “open up the bidding for contracts to small businesses,” which will help drive even more potential growth to the small business owner!
“I hereby direct the Director of the Office of Management and Budget (OMB)… and the heads of such other agencies as the Director of OMB determines to be appropriate… to develop and issue by July 1, 2009, Government-wide guidance to assist agencies in reviewing, and creating processes for ongoing review of, existing contracts in order to identify contracts that are wasteful, inefficient, or not otherwise likely to meet the agency’s needs, and to formulate appropriate corrective action in a timely manner. Such corrective action may include modifying or canceling such contracts…”
What does this mean for the small business owner?
Well, that depends. If you have a long-term contract currently in place, immediately make sure that your processes are well documented and defensible. Excess waste should be cut out proactively and inefficiencies need to be addressed – nobody wants a contract canceled so be sure to take a look at what you can do to prevent it.
On the other hand, for companies looking to break into contracting, this is potentially a tremendous opportunity. As of July 1, 2009, existing long-term contracts will begin to be reviewed. Many incumbent contractors could be hoisted out of their positions, which means that many contracts will have to be refilled. Over the coming year many businesses will be tapped to replace the companies who have their contracts cancelled, so now is a great time to start positioning your business to take their place!
Obama also said he wants to “open up the bidding for contracts to small businesses,” which will help drive even more potential growth to the small business owner!
Tuesday, February 24, 2009
Hassles with Uncle Sam
This morning I woke up and was excited to do my job. I know, that's an odd statement, but I was. Today is a good day to be a government contractor. The Obama stimulus package is unleashing hundreds of billions of dollars into the U.S. economy in the coming months and years, and now is a great time to get started. However, businesses that want to become government contractors need to be aware of the risks and difficulties involved.
We are often asked what ‘hassles’ are involved in government contracting. Many business owners have never tried to do work with the government before and so don’t truly understand what is involved. What benefits are there to using a program like ours? What $70,000 are people talking about?
Our goal is to help small business owners become government contractors without all the hassle of actually having to be one. There are quite a few difficulties that can make it impossible for many small business owners to be able to reasonably do it on their own (hence only about 2% of small businesses DO!). There is the lengthy waiting process – certification can take quite a while, and then it will likely be months before you get a contract. Just doing the paperwork and qualifying for the certifications can take more time than a lot of business owners have.
Add to this the cost of training and hiring someone (like me!) full-time to handle the contracts and you are starting to look at a serious investment. Training courses and materials can and do run as high as $15,000 – no paltry sum for anyone. Many small businesses simply can’t afford to float the cost – months of preparation, overhead, and paychecks before a single contracting dollar comes in. Your business would have to learn what to bid on, how bidding works, who to talk to, how to process payments… The list goes on.
Gateway to Government has done this already. We already have the certifications, the course material, and the experience to get your small business contracts and recognized within the community. We don’t look at just Federal government contracts either – Gateway to Government is registered and looks at contract opportunities within larger contractors as well (such as Lockheed Martin, Boeing, etc.) so that all available opportunities are scoured. In fact, some of these names are usually the ones associated most with government contracting and most in the public eye.
Photo illustration by J.P. Trostle
As a small business aide, we know that the government wants to focus on businesses like yours for the next several years to help stimulate the economy. Statements by President Obama and many others in the administration have said time and again that small businesses are the future of government contracting.
Gateway to Government cares about the small businesses that come to us. Each of our partners wants to grow and expand their business – and it is both our job and our desire to help with that. You are all a part of the Gateway to Government family and if you need help on a contract, we’ll be here, eager to help.
We are often asked what ‘hassles’ are involved in government contracting. Many business owners have never tried to do work with the government before and so don’t truly understand what is involved. What benefits are there to using a program like ours? What $70,000 are people talking about?
Our goal is to help small business owners become government contractors without all the hassle of actually having to be one. There are quite a few difficulties that can make it impossible for many small business owners to be able to reasonably do it on their own (hence only about 2% of small businesses DO!). There is the lengthy waiting process – certification can take quite a while, and then it will likely be months before you get a contract. Just doing the paperwork and qualifying for the certifications can take more time than a lot of business owners have.
Add to this the cost of training and hiring someone (like me!) full-time to handle the contracts and you are starting to look at a serious investment. Training courses and materials can and do run as high as $15,000 – no paltry sum for anyone. Many small businesses simply can’t afford to float the cost – months of preparation, overhead, and paychecks before a single contracting dollar comes in. Your business would have to learn what to bid on, how bidding works, who to talk to, how to process payments… The list goes on.
Gateway to Government has done this already. We already have the certifications, the course material, and the experience to get your small business contracts and recognized within the community. We don’t look at just Federal government contracts either – Gateway to Government is registered and looks at contract opportunities within larger contractors as well (such as Lockheed Martin, Boeing, etc.) so that all available opportunities are scoured. In fact, some of these names are usually the ones associated most with government contracting and most in the public eye.
Photo illustration by J.P. Trostle
Gateway to Government cares about the small businesses that come to us. Each of our partners wants to grow and expand their business – and it is both our job and our desire to help with that. You are all a part of the Gateway to Government family and if you need help on a contract, we’ll be here, eager to help.
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