Arkansas SBTDC: E-News

In this edition of Biz Bytes, we are focusing on The American Recovery and Reinvestment Act and how it affects small businesses.

Read the articles below to learn about:
- some of the changes SBA is making to stimulate small business lending
- learn about Web sites for the federal government, SBA and Arkansas where you can track recovery efforts and where the money is going
- learn about scams targeting small businesses about free government money
- find out how to participate in a live Web chat with SBA on March 19.

We hope you find this information helpful. Learn more about how the ASBTDC can help your business at: http://asbtdc.ualr.edu .

The following statement was issued March 16 by Acting Administrator Darryl K. Hairston of the U.S. Small Business Administration following the announcement by President Barack Obama of important steps being taken by the SBA and the U.S. Department of Treasury to address the economic challenges facing small businesses and entrepreneurs across the country.

“SBA this week is implementing two key provisions laid out in the Recovery Act – we are temporarily eliminating certain loan fees and raising guarantees on some 7(a) loans up to 90 percent. With these critical steps by SBA, and the Treasury Department’s commitment of up to $15 billion aimed at getting lending markets flowing again, we are standing up with small business owners across this country and telling them how we are going to put much-needed capital in their hands.

“We hope small businesses will take the opportunity to ask their banks about the SBA loans that might be available to them. And, we encourage community banks and other lenders to work with us to reach as many qualified borrowers as we can during these difficult times.”

Beginning March 16, the SBA will:

• Temporarily raise guarantees to up to 90 percent on SBA’s 7(a) loan program, through calendar year 2009, or until the funds are exhausted. This increase in guarantee levels will help provide banks with the greater confidence they need to extend credit during the current recession, will mean more capital available to small business owners around the country.

• Temporarily eliminate fees for borrowers on SBA 7(a) loans and for both borrowers and lenders on 504 Certified Development Company loans, through calendar year 2009, or until the funds are exhausted. This will mean more capital available to small businesses at a lower cost. The fee elimination is retroactive to February 17, the day the Recovery Act was signed. SBA is developing a mechanism for refunding fees paid on loans since then.

For more information on these and other announcments on the SBA and Treasury initiatives by the President, visit the SBA Web site at www.sba.gov.

The Obama Stimulus Package has led to a significant increase in the number of internet and e-mail schemes to get your money. Do not be fooled by offers telling you how to get free government money to start your business or to pay off your individual debt. There is not free money available for this! Several Web sites and internet ads state that free government grants are available and will even show you pictures of people who have received their checks. This is all a scam.

Typically, these sites try to sell you a book or CD that will tell you how to get your free money. Some are even offering these resources free, but you have to pay $1.98 in shipping with your credit card to get it.

For more information on this topic, read the article written by Jarrett Byrom of the Small Business Development Center National Information Clearinghouse (SBDCNet) at:

http://sbdcnet.org/sbdcs-in-the-news/scam-alert-there-are-no-obama-stimulus-checks-or-grants.php

The Arkansas Small Business and Technology Development Center also has an article, Small Business Grant Information, on its website describing the myths and facts about small business grants.

http://asbtdc.ualr.edu/business-information/510-grant-information.asp

Contact the Consumer Protection Division of the Arkansas Attorney General's Office to report scams of this nature at: (800) 682-2007 and visit their Web site at: http://ag.arkansas.gov/consumers_protection.html for postings of scam alerts.

Recovery.gov is a tool to help taxpayers learn where the money from the recently enacted American Recovery Act is going. Visitors can track which states, Congressional districts, and even Federal contractors are receiving the funds distributed by Federal agencies. Charts, maps, and other graphics are available to help you better understand and track the progress.

Recovery.Arkansas.Gov provides local information regarding stimulus activity and funds distributed in Arkansas.

SBA.Gov/Recovery provides information on how The American Recovery and Reinvestment Act affects programs of the U.S. Small Business Administration.

Please visit these Web sites for more information:

Federal Government Web site:
http://www.recovery.gov/

State of Arkansas Web site:
http://recovery.arkansas.gov/

U.S. Small Business Administration Web site:
http://www.sba.gov/recovery/

The American Recovery and Reinvestment Act will be the focus of discussion for the U.S. Small Business Administration’s March Web chat. SBA Associate Administrator for Capital Access Eric Zarnikow will help small business owners get answers to their questions about what the Recovery Act means for the nation’s small businesses.

The Recovery Act is a national effort to grow the U.S. economy by stimulating job creation, freeing credit markets, and investing in small business. The Act contains a package of loan fee reductions, higher guarantees, new SBA programs, secondary market incentives, and enhancements to current SBA programs that will help unlock credit markets and begin economic recovery for the nation’s small business sector.

SBA is working to enact the new programs created by the passage of the bill and make changes to the programs already in existence. Additional information on the Recovery Act is available online at www.sba.gov/recovery/index.html.

WHO: Eric Zarnikow, associate administrator for the Office of Capital Access at the U.S. Small Business Administration will host the SBA’s March Web chat on the topic “The Recovery Act and Your Small Business.” Zarnikow will answer a range of questions to help chat participants understand the elements of the Recovery Act that pertain to the SBA and the nation’s small businesses.

WHAT: SBA’s Web chat series, providing small business owners with an opportunity to chat about relevant business issues online with experts, industry leaders and successful entrepreneurs. Chat participants will have direct, real-time access to the Web chats via questions they submit online, both in advance of and during the live session.

WHEN: March 19, 2009, 1 – 2 p.m. ET

HOW: Participants can join the live Web chat by going online to www.sba.gov, and clicking the “Online Business Chat” icon. Web chat participants may post questions for Zarnikow before the January 15th chat by visiting http://app1.sba.gov/liveMeeting/mar09/, and posting their questions online.

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