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

  1. News & Events
    • Small Business Loan and Federal Tax Incentive Updates
    • Upcoming Compliance Deadlines
    • SBC Partnerships
  2. Small Business Commission Report
    • March 9 Meeting: New SBC Subcommittees
    • Next Meeting: April 13
  3. Small Business Assistance Center Updates
  4. Workshops and Technical Assistance
    • SBA Courses
    • Americans with Disabilities Act (ADA) & SB 1608 Update
    • Community Boards

 

1. News & Events

Small Business Loan and Tax Incentive Updates 

Revolving Loan Fund Update: The Small Business Revolving Loan Fund (RLF) will be available April 15, 2009.  The City and County of San Francisco is seeking an administrator for its RLF, which will be selected by the Office of Economic and Workforce Development (OEWD) April 1. 

Details regarding final RLF loan amounts, loan terms, and borrower eligibility will be available on April 15, 2009 from the RLF administrator. 

Preliminary parameters for microloans are as follows:

    • RLF microloans must not exceed $50,000, and
    • Interest rates on RLF microloans must be fixed and cannot exceed 6%, and
    • RLF microloan terms must be no longer than 5 years, fully amortized, and
    • RLF microloans can be used for start-up expenses, equipment, tenant improvements, working capital, and marketing, and
    • RLF microloans may not be used for personal expenses, debt consolidations, debt refinancing, or research/development of new products.

Preliminary parameters for borrower eligibility are as follows:

    • A RLF borrower must operate a business that is located within the boundaries of the City and County of San Francisco, and
    • A RLF borrower must create or retain at least one full-time equivalent job that is filled by a low- to moderate-income San Francisco resident, and
    • Borrowers must meet the following minimum financial conditions: 
      a. Debt Coverage Ratio: 125%
      b. Loan to Value Ratio: 75%
      c. Equity Injection:  15%

In the meantime, prepare your business plan and financial package as well as consider these alternative lending sources.  If you need more assistance, the Small Business Assistance Center is available to provide additional resources. Fill out this form and we will notify you once applications are available.

SBA Update - At last month's SBC meeting, SBA District Director Mark Quinn presented parts of the stimulus bill, the American Recovery and Reinvestment Act of 2009, that impact small businesses. The stimulus bill will add funds for SBA to make it easier and less expensive for small businesses to get loans, give lenders new incentives to make more small business loans, and help unfreeze the secondary markets to boost liquidity in the credit markets.  Specifics include the following:

  • Increase the number of SBA micro loans 
  • Waive the 2% guarantee fee for any business getting a loan.
  • Increase the guarantee percentage to the small-business lender from 75% of the loan to 90%. From a lender's perspective, they would have less risk making a small business loan at a time when they feel there is higher risk.
  • Create a new program that would help small businesses meet existing debt payments
  • Provide direct loans to securities dealers and buyers helping to unfreeze the secondary markets to boost liquidity in the credit markets so they can lend to more small businesses.

Read more about ARRA at the State's website: http://www.recovery.ca.gov/
and the Caltrans website: http://www.dot.ca.gov/Recovery/

Free Online Course: Finance Primer: Guide to SBA's Loan Guaranty Programs

 

Tax Relief and Incentives Programs for Small Businesses

If your business is located within the Enterprise Zone, you may be eligible for significant tax deductions and tax credit.  Businesses within the Enterprise Zone could be eligible for Hiring Tax Credit, Sales Tax Credit, Business Expense Deductions, and Net Operating Loss Carryover.  To see if your business is located within the amended boundaries of the Enterprise Zone, please refer to this  address listing (PDF).  Click here to learn more.

Net Operating Loss Carryback - Q&A
Extends the maximum net operating loss carryback period from two to five years for losses generated in 2008 for qualified small businesses with gross receipts $15 million or less.  This means profits your business made up to five years ago, on which tax was paid, can now be claimed back if you had a loss in 2008
Read a LA Times article about this tax relief.

Small Business Expensing
In order to help small businesses quickly recover the cost of certain capital expenses, small business taxpayers may elect to write off the cost of these expenses in the year of acquisition in lieu of recovering these costs over time through depreciation. Businesses that buy new equipment or machinery in 2009 will be able to immediately expense those assets up to a maximum deduction of $250,000. These benefits are extended through 2009. Phase out of the deduction begins at $800,000.  The maximum was scheduled to decrease to $133,000 before the stimulus law passed.

 

Upcoming Compliance Deadlines

Health Care Security Ordinance (HCSO) Annual Reporting Form - The Annual Reporting Form (ARF) for 2008 has been mailed to all registered businesses that may be covered by the HCSO.  Only covered employers are required to return the ARF; self-employed individuals, independent contractors, and employers with 19 or fewer employees total (including any employees located outside of SF) are not covered by the HCSO and should NOT return the ARF.  (If your business is not covered by the HCSO, be sure to answer questions B & C on your annual Business Registration Renewal to avoid receiving the mailing again next year.)  If you have not received your ARF, you can also download it from the Office of Labor Standards Enforcement's (OLSE) website as a fillable PDF.  NOTE: Only ONE form needs to be returned.  If you print the form from the website, do not return the form that is mailed to you. 

  • Filing is due April 30, 2009. 
  • For questions about the HCSO and the ARF, call the OLSE at 554-7892.

Sales and Use Tax Increase FAQ's: For transactions prior to April 1, 2009, continue to charge the same sales and use tax rate(s) you are charging now. For transactions on or after April 1, 2009, the tax rate(s) you are charging now will increase by 1%.  The tax rate increase is effective April 1, 2009, through June 30, 2011. However, it may be extended through June 30, 2012, if the voters approve the proposed Budget Stabilization constitutional amendment at a statewide election to be held on May 19, 2009.

 

SBC Partnerships

 Access to Business Capital (ABC) Training [ETP] - The ABC Training Program is a formal training for businesses ready to take the next step.  Partially funded by the California Employment Training Panel (ETP) you may qualify to receive training at no cost with an opportunity "to pitch" business plan to investors, angel investors and venture capital companies in a formal and in-depth format after completion of the program via an ABC Pitch Session. 

ABC Pitch Series - Seeks growing businesses that are ready to receive private investment or equity financing. Provides informal but focused forums to pitch to potential investors and free "coaching" available through the ABC Committee.

  • Saturday's – March 21st & 28th, April 4th & 11th /  10:00 a.m. to 3:00 p.m.
  • 25 Van Ness Avenue, Room 330 A

 

  A Joint Entertainment and Small Business Commissions Forum The Night Time Economy - Survive and Thrive.  Entertainment Commission President Audrey Joseph and Small Business Commission Past President Michael O'Connor will host a forum to provide a tool box of options to assist night-time businesses in the current economic climate.  There will be presentations by The City's Chief Economist, banks, industry vendors, including beer and liquor distributors, and the SF Chamber of Commerce.

  • Monday, March 30, 2009, 3pm - 5pm
  • Koret Auditorium, SF Main Library, 100 Larkin Street, SF
  • Fill out this survey to provide information about your night-time business.

 

 
 Make Me a Match! Procurement Summit - The NAWBO®-SFBA summit is a groundbreaking event that will match women business owners with several large companies and their primary suppliers so they can do business together. When you attend, you will have scheduled one-on-one appointments with your matched Prime Suppliers to potentially negotiate and sign contracts. Simultaneously, there will be several Educational and Networking Roundtables providing expert discussions on many aspects of procurement and opportunities to do business with other women business owners corporations, along with their Prime Suppliers, so they can explore contracting opportunities.

 

 

 

2. Small Business Commission

 

March 9 Meeting Report - With the mission statement in mind "...to foster, promote, and retain small businesses in the City and County of San Francisco", the Small Business Commissioners formed and introduced five subcommittees with the following preliminary goals:

  1. Budget and Economic Development - request information from the Tax Collector's office of the dollar amount from taxes and the fees contributed by SF small businesses, work with the Controller's to better understand the current economic downturn and how it is impacting businesses including Chinatown, continue to participate in the quarterly district economic forums, and participate in the Board of Supervisors' district meetings.
  2. Outreach - assist merchant associations with gathering a list of vacancies from their neighborhoods, work with landlords and community to showcase vacancies, market San Francisco businesses to visit SF and to buy from SF, highlight Office of Small Business programs including Shop Local, outreach to ethnic communities and neighborhoods, and emphasize policy impacting small businesses
  3. Legislation and Policy - highlight policies impacting small businesses, advocate to support specific small business issues, participate in Board of Supervisors meetings, develop relationships with Labor Council, draw on departmental relationships to engage in/collaborate on legislation and policy changes.
  4. Permitting - streamline permits, track permits and status, work with departments and Board of Supervisors to streamline process, and develop incentives for empty buildings to attract small businesses
  5. Contracting - develop policy to require top contractors to include local San Francisco small businesses in their bids if they wish to continue to do business with the city.

Watch the SBC meetings on SFGTV

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

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

 

3. Small Business Assistance Center (SBAC) -  1,775 Customers Served!

Here are just two recent victories for small businesses:

  • More Seller's Permits Issued: SBAC responded when clients were denied Seller's Permits for lack of proper identification.  SBAC investigated discovering that by law the State Board of Equalization (BOE) is required to accept passports including foreign passports.  The BOE processors received an updated report to accept as proper forms of identification the FEIN, California Identification Card, ITIN (individual taxpayer identification number), Passport, Visa (not the credit card), paycheck stubs, and income tax returns.
  • Postings Scam in the Castro Unveiled: SBAC helped Castro business community catch those responsible for a shakedown scam.  Individuals posed as government officials who inspected the businesses for legal postings offered automatic compliance in exchange for a $200 fee.  Phone calls with the businesses and government agencies unveiled the scam and the perpetrators were caught.

City Hall, Room 110
1 Dr. Carlton B. Goodlett Place, San Francisco, 94102
415-554-6134 (center)
415-558-7844 (fax)
415-554-6181 (en Espanol)
415-554-6489 ()

 

4. Workshop and Technical Assistance Resources

Small Business Administration March Classes - the SBA offers a variety of classes, including a Business Law Basics that discusses the choice of a legal entity (corporations, LLC, partnership, etc.); intellectual property; employee issues; and real estate issues, Marketing, Bookkeeping, Emergency Finances Counseling, etc..

Location: The Entrepreneur Center, located at 455 Market St., 6th Floor in downtown San Francisco. For more information, please contact Gary Marshall at (415) 744 6771 or  gary.marshall@sba.gov

 

Americans with Disabilities Act (ADA) & SB 1608 Update

Is your threshold too high for a wheelchair?  Your parking lot with blue-striped access lanes narrower than eight feet?  Or your public restroom where the coat hook on the back of the door is beyond the reach to someone in a wheelchair?  If so, you may not be ADA compliant.

An important piece of legislation in California, SB 1608, now gives employers a way to reduce their risk of ADA/accessibility lawsuits. One of the best ways to avoid being sued under the disability access laws is to ensure that buildings are in compliance. SB 1608 provides a number of ways to help business owners:

  • Businesses should hire a CASp. A certified access specialist (CASp) is a person that has been tested and certified by the state as an expert in disability access laws. Business that hire a CASp to inspect their buildings helps ensure compliance with disability access standards. After inspection, the CASp writes up inspection report as proof that the business hired a CASp. Read more from the California Chamber of Commerce.
  • Click here for a list of CASp

Resolving Lawsuits Early

A business owner with a CASp report in hand will have more resources to resolve a lawsuit early. The defendent, without an attorney, may requset a 90-day stay of the lawsuit and an early evaluation conference (EEC). A stay is a temporary cessation of all litigation. 

Other resources for your business to become compliant:


 

  Community Boards

Small businesses in San Francisco can turn to Community Boards for assistance in addressing a variety of disputes.  Community Boards has been providing no-cost and low-cost conflict resolution services in the City since 1976.  Through mediation, they assist businesses in maintaining good public relations in their communities or lowering potential legal costs incurred from commercial disputes.

Due to the density of SF, many small businesses operate in mixed-use neighborhoods.  This frequently leads to "quality of life" conflicts with local residents.  Here, business owners can use our no-cost mediation services.  In the past, Community Boards has assisted with complaints involving noise, parking, property maintenance, loitering, graffiti removal, trash removal, garbage dumpsters and handicap access.

Community Boards' professional low-cost services are ideal for business owners interested in maintaining or repairing their professional or commercial relationships. They have assisted with troubled business partnerships, consumer complaints, vendor problems, multi-party contracts and insurance claims.  Competitively priced, their mediators help businesses reach settlement, restore damaged relations and save money.

This is how their mediation works.

    1. You contact them and explain the problem. They'll ask questions and answer yours.
    2. They then contact the other person and explain their mediation process.
    3. If both parties agree to meet, they then set the time and place.
    4. During the mediation, before speaking to each other, the disputants talk with the mediators to help identify the issues at the root of the conflict.
    5. The mediators help focus the best options for resolving the problem. The disputants themselves negotiate the most workable solution.
    6. Final agreements may be oral or written. They represent a true commitment to resolve the problem parties.

For more information, please visit http://www.communityboards.org/ or contact Liora Kahn, Mediation Program Manager, (415) 920-3820 x109, lkahn@communityboards.org.

3130 - 24th Street, San Francisco, CA 94110
Office Hours: Monday - By Appointment, Tuesday - Friday, 9:00 a.m. - 5:00 p.m. PST

 

 

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. Phone at 415-554-6134
website: http://www.sfgov.org/sbac