In this month's issue of Small Business News: July 2009

  2. Small Business Assistance Center
    Survey: What are your small business technology needs
    Complete the survey and join the pilot group for free tech tools
  3. Small Business Commission Report
    June 8 meeting highlights: Commercial Tenancy in Common (TIC)
    July 13 meeting highlights: Certificate of Honor: Macchiarini Creative Design, vehicle, sales, and parcel tax.

    Next Meeting: August 10

1. NEWS & EVENTS 

Mayor Gavin Newsom announced Tuesday that the City has awarded the first two loans through the San Francisco Revolving Loan Fund (RLF). The loans will allow two, women owned, small businesses to open or expand their businesses in San Francisco – Bubbles & Shampoo, a beauty supply store / salon in Noe Valley and 18 Rabbits, an organic granola company in the Northeast Mission. Each business received a loan of $25,000 through the Revolving Loan Fund.

"Small businesses are the backbone of our economy, but like many in the nation, San Francisco small businesses are shedding jobs while consumer spending drops and bank loans and credit diminish," said Mayor Newsom. "Our small businesses are too important to fail - that is why we created the Revolving Loan Fund to boost and aid entrepreneurism with more loans and free resources. The loans are designed to bridge the funding gap experienced by many small companies who have viable business plans but are failing to access funds." read more

Apply to the Revolving Loan Fund Program

America's Recovery Capital (ARC) Loan Program - Tomorrow!

If you have an established business, have financial statements demonstrating it was profitable in one of the past two years, and be able to project sufficient cash flow to meet current and future loan payments over a two-year period from loan approval, you may be eligible for an ARC loan.  If your business does not meet these criteria, you can discuss your eligibility with your lender.  ARC loans are not designed for start-up businesses.  

Attend this informational meeting on Friday July 17 (Registration required at this free event) 
9:00 to 10:30 AM at the SBA Entrepreneur Center at 455 Market Street

Or, join the July 17th session via your personal telephone by calling toll free:  866-740-1260.  The access code for this call will be: 3091202.  Place your call at 9:00 A.M. on Friday, July 17th.  There is no need to register in advance for this audio call.

ARC Loan FAQ's (pdf)

Notice for Small Businesses with LESS than $250,000 in payroll expense

In our February newsletter, we brought you information on Prop Q.  Prop Q increased the small business exemption threshold from $167,000 to $250,000 of annual payroll.  That is, businesses whose payroll expenses are $250,000 or less would be exempt from the payroll tax.  Proposition Q took effect on January 1, 2009, and did not apply to the 2008 tax year or prior years.

 

Important Prepayment Notice:   This change in the exemption threshold ALSO relieves certain taxpayers from the obligation to PREPAY payroll expense taxes to San Francisco. 

  1. Less than $250K in Taxable Year 2008:  Specifically, taxpayers who reported less than $250,000 in payroll expense in taxable year 2008 are not required to prepay payroll expense taxes for taxable year 2009.  If you received a prepayment payroll tax bill last month, June 2009, and if you reported less than $250,000 in payroll expense in taxable year 2008, disregard the notice.  You should have also have received a correction notice from the Office of Treasurer and Tax Collector.
  2. Greater than $250K in Taxable Year 2008, but less than $250K Taxable Year 2009: you will be required to pay the prepayment now, and request a refund by notifying the Tax Collector's Office.  

    Requests for prepayment reduction must be made in writing and must clearly explain the facts and circumstances relating to the anticipated reduction in 2009 payroll tax liability.   The Office of the Treasurer and Tax Collector encourages taxpayers to provide as much detail as necessary to explain the situation (e.g. detail about the taxpayer's actual payroll expense tax liability thus far in 2009 due to work force reductions, as well as the taxpayer's total anticipated payroll expense tax liability for 2009). Any change in prepayment amount will be effective ONLY upon written approval by the Office of Treasurer and Tax Collector.

In order to apply, please write a letter to Business Tax Section, Account Services Unit, P.O. Box 7425, San Francisco, CA 94120. In your letter, please be sure to clearly indicate your business name, address, and business registration number.

General inquiries, please call the Treasurer and Tax Collector at 415-554-4400. 

SF Commuter Benefits Compliance Form

Employers with 20+ employees, are you in compliance with the City of San Francisco's Commuter Benefits Ordinance 199-08?  Effective January 19, 2009 the ordinance requires San Francisco businesses to offer transportation benefits to their employees in one of three ways:
  1. a pre-tax deduction for transit/vanpool,
  2. an employer paid subsidy, or
  3. as a free shuttle service.

The City is requesting all businesses submit an Employer Compliance Form by an extended deadline of August 31, 2009. Employers with 20+ employees must submit the form.  Employers who have already submitted a Compliance Form do not need to submit a new form.

For more information on the Ordinance and to obtain a copy of the Employer Compliance Form, visit CommuterBenefits.org.

  District 10 Neighborhood Merchants Summit - July 29, 6-8PM

The San Francisco Chamber of Commerce, office of Supervisor Sophie Maxwell, local business and merchant associations, are pleased to present the District 10 Neighborhood Merchants Summit. This event will bring merchants together with their Supervisor and other city officials to discuss local business issues.

Merchants can expect:

  1. A presentation and question-and-answer session with Supervisor Sophie Maxwell
  2. Presentations on small business related topics such as: developments in District 10, city and federal stimulus funds and neighborhood safety
  3. Representatives from city departments with relevant materials
  4. Small business resource providers to talk to merchants
  5. Networking with other merchants - The Neighborhood Merchants Summit is an excellent opportunity to meet elected and city officials, network with other merchants in District 10 and strengthen neighborhood ties.

Support San Francisco small businesses by attending the Neighborhood Merchants Summit in district 10! There is no fee to attend. Complimentary refreshments will be provided. Merchants not located in District 10 are welcome to attend.

Date & Venue:
Wed Jul 29 6pm – 8pm
Walden House, 1550 Evans Avenue, San Francisco, CA 94124

For more information contact Paula Zamudio at pzamudio@sfchamber.com

Pushcart Vendor Opportunities in City Parks

The Recreation and Park Department is preparing a Request for Proposals (RFP) soliciting vendors to operate pushcart concessions in City Parks. The Department will issue this RFP shortly. 

For more information or to register to receive updates on this opportunity email Nick Kinsey at Nicholas.Kinsey@sfgov.org

Stimulus Opportunities for Small Business program

The Stimulus Opportunities for Small Business program is a half-day session featuring buyers for state and federal government projects, as well as buyers from large corporations. It will also feature local panelists able to offer insight into the latest developments in surety bonding and local workforce investment initiatives.

Business Matchmaking specializes in small business procurement with a track record of facilitated more than 70,000 face to face buyer-seller meetings throughout the country. California Small Business Development Centers provide free and low cost business consulting and training for thousands of California small businesses annually. For more information go online to: www.businessmatchmaking.com, or www.californiasbdc.org.

Who should take this class?
This course is designed for small business entrepreneurs who have an interest in learning about what State and Federal opportunities exist for contractors implementing President Obama's Economic Recovery plan.

Register now

Looking back on 20 Years of Neighborhood Commercial Zoning   (pdf)

Ever wonder how San Francisco zoning developed?  NC@20, a draft copy of a new report authored by the San Francisco Planning Department, will explain the progress and policies behind the developments.  The report offers a historical overview of twenty years of neighborhood commercial zoning along with recommendations and issues for today and the future. This summer the Planning Department will hold a number of public hearings so that the draft report can be discussed and feedback obtained.

All questions and comments about the report and public hearings should be directed to Daniel Sider at (415) 558-6697 / dan.sider@sfgov.org, or Scott Dowdee at (415) 558-6259 / scott.dowdee@sfgov.org.

Developing the City's Annual Budget

Usually, it takes a year to approve the City's budget.  However, with projections on the upcoming year's shortfalls, the Mayor's Budget and Policy Office began the process early by issuing budget instructions and goals to City departments. After the departments submits their proposals for the budget, the Mayor's Office then works to balance the budget and considers department requests.  On June 1st, the Mayor submitted a balanced budget to the Board of Supervisors.  Last month, the Board's Budget Analyst prepared analysis and reports for the Board.  The Board's Budget and Finance Committee uses these reports to evaluate the proposed budget. The Budget and Finance Committee made changes and passed the revised balanced budget to the full Board for a vote in July.

The Budget was on this week's July 14 agenda, but was not yet voted on, because it must sit for 1 week. The budget will be voted on twice: once on the 21st (next week) and the final vote on July 28th. The final budget is scheduled to be enacted before the end of the month by the full Board and is effective August 1st.

The Mayor's proposed budget and Budget Analyst reports (pdf)

Click for weekly Budget and Finance Committee agendas.

 

Save Energy, Money and the Environment!

San Francisco Energy Watch Neighborhood Campaign

The City and County of San Francisco, in partnership with Pacific Gas and Electric Company (PG&E), is helping local businesses cut their energy costs through the San Francisco Energy Watch Program. Representatives from the City and County of San Francisco's Department of the Environment and PG&E will be visiting District 6 (Central North) in August 2009 to help you get started.

Sign up with San Francisco Energy Watch for:

    • A free, on-site energy efficiency assessment to identify potential energy-savings
    • Expert installation of energy-efficiency equipment at reduced cost
    • Opportunities to earn incentives for qualified, installed equipment
    • Ongoing energy savings over the life of the equipment
    • Turn-key professional service

The participation in SF Energy Watch will not only save you money but will help San Francisco meet the CLIMATE CHALLENGE. More efficient equipment means fewer greenhouse gas emissions. And with power plants producing fewer pollutants, San Francisco becomes a better, cleaner, healthier, GREENER place to live.

To schedule an appointment, please call 415.355.3769 or visit www.sfenergywatch.org

American Recovery and Reinvestment Act of 2009 Provides Energy Incentives

For both small and large businesses. Businesses and individuals who take advantage of these energy-saving steps this year may see bigger tax savings next year.

To keep up with ARRA and other IRS tax news, subscribe to e-News for Small Businesses

Local/State/Federal Enterprise Zone Explained - Save the Date
Tuesday, July 28, 5:30 - 7:30PM
City Hall room 305

The Small Business Commission is hosting a workshop for CPA's who may have clients living or have businesses in the Enterprise Zone.  This workshop is part of Mayor Newsom's effort to ensure that all eligible small businesses are well informed of the tax credit programs available to them.

Enterprise Zone boundary map (pdf)

Enterprise Zone address listing (pdf)

To RSVP: Contact Cecilia Chu, 451-554-6134, sbac@sfgov.org

2. SBAC

San Francisco Small Business Open Toolkit

The Department of Technology and Office of Small Business are teaming up to bring you free software to build and manage your business.  The software package will include tools to create and manage the following areas of your business:

  • Customer Relationship Management (CRM) to track and manage your clients
  • Human Resources
  • Communications and Marketing
  • Newsletter
  • Survey
  • Web Analytics
  • Webpage Creation

Our pilot program will start soon. Tell us about your current technology uses and needs, and you may be eligible to participate in the San Francisco Small Business Open Toolkit pilot program.

3. SMALL BUSINESS COMMISSION  

 

June 8 meeting highlights: Commercial Tenancy in Common (TIC)

Blake Mattow, an associate from Telegraph Hill Properties, presented to the SBC on how small businesses can own their commercial space through TIC/ Condo ownership.  Danny Ho, SBAC intern, reports.

Tenancy in Common – What is it?

TICs are a popular form of ownership in San Francisco whereby a group of owners collectively hold title to a property.

 

How does commercial TIC differ from condominium TIC?

In a commercial TIC, a group collectively owns the entire structure, but a co-owner may have exclusive occupancy rights to a specific area of the building, in this instance the ground floor retail space.

 

For example, a typical building that contains three residential units above a ground floor retail space qualifies as a four-unit building. Under existing law, the owner has the option of converting this building into a TIC to sell off its individual interests. The owner may also decide to retain the residential units and sell off the commercial unit.

 

How do commercial TICs benefit small business owners?

Ownership of an interest in real property provides incentive for individual business owners to perform improvements to the building that might not otherwise be done. By allowing businesses an ownership stake in the building, an owner stands to fully realize both the short and long term benefits of maintaining their retail space.

 

Commercial TICs also provide businesses with a security on a location. In the absence of commercial rent control, commercial TICs offer protection against exorbitant increases in rent. Today, a leaseholder of a retail location may be driven out of his space by the rising cost of rent.

 

How do TICs benefit property owners?

Commercial TIC conversions grant property owners the flexibility to sell or retain units in their building.

 

How do TICs benefit the community in general?

Commercial TIC conversions encourage businesses to stay in and improve their buildings. Later, when that business and space is sold, it will continue to encourage its new owner to maintain the space.

 
 

July 13 Commission Meeting Highlights

Certificate of Honor: Macchiarini Creative Design       

On Monday, the SBC acknowledged Macchiarini Creative Design. Founded by Peter Macchiarini in 1948, Macchiarini Creative Design is the oldest continuous metal arts design house and production studio and gallery in the United States.  The groundbreaking artistic vision of this family, now in its third generation of family artists, is a landmark small business for both North Beach and San Francisco.  Among their many gifts to the vitality of our local art scene, the Macchiarini family founded, along with a small group of shop owners and artists, the Upper Grant Avenue Street Fair, which was the very first fine arts and crafts open street fair in the United States.  Art lovers and craftspeople throughout the world look forward to many more generations of the Macchiarini family continuing their unique contribution to the art world and to the character of our City.

www.macreativedesign.com

1544 Grant Ave
San Francisco, CA 94133-3324
(415) 982-2229

Discussion and Action to Make Recommendations to Board of Supervisors:

  1. SBC supported the Safe Streets and Road Repair Bond for $368 million. Executive Director of DPW Ed Reskin presented on the status of the bond initiative for the November 2009 ballot.  The bond will enable repair and improvement of SF roads, sidewalks, and street structure. Economic benefits are 1) job creation, 2) improving City's infrastructure, and 3) streetscape improvements to change character of the neighborhood commercial strips.  If the bond passes the Board of Supervisors committee this summer, it will be on the November 2009 ballot for voters to decide.  DPW was praised in last month's newsletter for being a City department that works hard to outreach to local and small businesses for City projects. Get LBE certified today.
  2. SBC supported an ordinance imposing a local assessment on all SF vehicles registering at the DMV.  The proposed income amount (contingent upon what happens at the State level) would be $43 million. The percentage increase would be less than 2%.
  3. SBC did not support the 0.50% Sales Tax for Health and Human Services and Public Protection. This initiative will be on the November ballot requiring 2/3 votes. The Commission agreed that another increase in the sales tax would discourage shoppers from buying local or within the state.  The projected revenue of $51 million to fund 45% to fire department, 45% to human services, and 10% to emergency management for 911 is based on current sales revenues, and not an anticipated sales revenue losses from the increase 0.50% tax.  
  4. SBC did not support Article 18, Parcel Tax amendment to be submitted for voter approval at November ballot.  The amendment would impose a flat property tax to establish a Recreation and Park parcel tax fund.

Watch the SBC meetings on SFGTV

Meeting times, agenda, and minutes are available on the website. 

The next SBC Meeting is on Monday, August 13, 2009. The SBC meets on the 2nd Monday of the month at 5:30 in room 400 of City Hall. 
 

4. WORKSHOPS & TECHNICAL ASSISTANCE

Small Business Administration June Classes  - the SBA offers a variety of classes including the following:

 

Identity Theft Awareness and Prevention Workshop

The workshop will cover information for individuals as well as businesses. Participants can expect to discuss what identity theft is and why it is increasing, as well as the four things you can do to protect yourself. The presenters will cover how to protect your mail and your computer, plus discuss credit cards versus debit cards and security freeze. A large part of the presentation will address how businesses can reduce company and employee liability, discussing topics such as: new ID theft laws, how laws affect your company and employees, if Red Flag Rules apply to you and your business, and how to create a culture of security and no cost solutions for your company. (read more) Register Online

Tuesday, August 4, 12–1 pm

San Francisco Chamber of Commerce Boardroom
235 Montgomery St., 12th Floor

Comments, Suggestions, or Questions?
Do you have any comments, suggestions, complaints, or questions about our newsletter or anything else small business related?  Email us at  sbac@sfgov.org or call the office at 415-554-6134.

Remember to Shop Local in San Francisco!

Small Business Assistance Center
City Hall, Room 110, 1 Dr. Carlton B. Goodlett Place, San Francisco, 94102
Monday through Friday, 8AM to 5PM.
website: http://www.sfgov.org/sbac

415-554-6134 (general)
415-554-6181 (en Espanol)
415-554-6489 ()