WASHINGTON, DC (August 30, 2018) - Federal Reserve interests rates are projected to rise from 2% to 3.1% by the end of 2019, indicating that the longer businesses delay to secure loans, the higher the interest rate they will pay.
“Business owners continue to invest in their firms and are finding success in securing capital, according to our latest figures,” CEO Rohit Arora says. “Smaller banks are a good source of capital for startups and companies with less than stellar credit rating.”
PORTLAND, ME (August 29, 2018) - Numerous towns throughout the state of Maine are issuing economic development loans to spur business growth and job creation.
The city of Portland loaned $3.04 million since 2013 to 38 different projects ranging from a daycare to tortilla manufacturers.
“The city’s commercial loan program exists to assist Portland businesses that are not yet bankable or that have a financial gap with a bank to support business growth,” Nelle Hanig, Portland’s business programs manager said.
KEARNEY, NE (August 25, 2018) - The University of Nebraska’s Center for Entrepreneurship and Rural Development is teaching students age 10 to 14 to develop business ideas and manage finances.
"It's to kind of light that entrepreneurial fire for these students. They might know they want to start a business someday and we're really just helping them refine those skills and put them into practice," said Aliese Hoffman, coordinator of youth education.
ST. LOUIS, MO (August 24, 2018) - The Federal Communications Commission allocated $254.7 million to provide over 95,000 small businesses and homes in rural Missouri with broadband internet service.
“Making sure rural Missourians have access to broadband will improve quality of life and enhance economic opportunities,” Senator Roy Blunt said of the program.
Senator Claire McCaskill called it “an important step toward connecting rural communities throughout Missouri with high-speed broadband — a service that is only becoming more and more necessary for small businesses.”
FRANKFORT, KY (August 23, 2018) - Entrepreneur mentorship network TechStars hosted Innovation Day in Frankfort, a summit for startups and entrepreneurs to meet potential investors and access resources throughout the state of Kentucky.
"Through our KY Innovation efforts, the Commonwealth is a leader in connecting entrepreneurs and small businesses with the resources needed to launch globally competitive companies," said Kentucky Governor Matt Bevin. "Whether they need mentorship, access to premier research facilities or financial capital, we're aligning valuable resources through KY Innovation and RISE to help them succeed. Unprecedented collaboration between the state's public and private sector partners is opening new doors of opportunity, and there has truly never been a better time to start and grow a business in Kentucky."
JACKSON HOLE, WY (August 22, 2018) - The US Small Business Administration has named the Wyoming Small Business Development Center as a recipient of the Federal and State Technology (FAST) Partnership Program award.
“FAST partners are an important part of the innovation entrepreneur ecosystem. They provide training, financial and technical assistance for small, next-generation technology businesses, and help them navigate federally-funded innovation and R&D programs,” said Linda McMahon of the SBA.
BOISE, ID (August 21, 2018) - Zion Bank awarded $100,000 in seed funding for startup ideas pitched by Idaho State University students at the annual Idaho Entrepreneur Challenge.
The event gives students an opportunity to present their ideas to a team of angel investors and venture capitalists.
“Numerous judges and panelists commented on the very high quality of the ideas and presentation of the ISU teams. Over 90 teams from across the state joined the competition. According to the judges, our student teams represented ISU very well as the benchmark institution for others to follow,” said Jeff Street of the ISU Center for Entrepreneurship and Economic Development.
COLUMBIA, SC (August 15, 2018) - South Carolina Community Bank rebounded from the financial crisis by developing a new network of Fintech partnerships.
“As a small bank, we don’t have a large innovation lab budget; we don’t have the thousands of people focused on product development that large banks have,” CEO Dominik Mjartan said. “But we do have some very good partners we’re working with that could really transform our ability to innovate and then scale the innovation.”
SIOUX FALLS, SD (August 14, 2018) - The states of South Dakota, Tennessee, Alaska, Michigan and Utah rank highest for being friendly and supportive to small business owners, according to a new national survey of 7,500 business owners.
BRIDGEPORT, CT (August 13, 2018) - The new initiative Urban Synergy in Action (USA) is building an incubator to provide office space and business development support to the growing tide of urban entrepreneurs.
“It’s important to see people who live in your neighborhood or reflect the demographic of the neighborhood, opening up businesses and having a slice of that American dream… of being able to contribute, create jobs and be a fabric of the community,” said the director of Bridgeport’s Small and Minority Business Enterprise, Fred Gee.
LINN COUNTY, OR (August 10, 2018) - Oregon’s Regional Accelerator and Innovation Network will begin funding entrepreneurs and startups in eight participating towns in Linn and Benton Counties.
Corey Wright of RAIN aims to build new entrepreneurial ecosystems in the area, with the use of asset mapping.
“I figure out what types of resources are available and what doesn’t exist, that might be used by local entrepreneurs," Wright said. "Let’s say there are several people in Brownsville making specialty food products in their homes. Is there a local commercial kitchen with whom they could contract to expand their production capabilities?”
VERGENNES, VT (August 6, 2018) - The previously quiet town of Vergennes, Vermont has seen a boom in new businesses since the town was declared an “opportunity zone”, encouraging investment in local businesses.
The program offers tax incentives to investors who fund businesses based in the zone. Vermont now has 17 opportunity zones that include 85,000 people and 7,000 local businesses.
"Now, this is a destination," business owner Jeannie Pelsue says. "We've got fabulous stores and people come from all over."
NASHVILLE, TENNESSEE (May 11, 2018) excerpt via CNBC - Small business workers saw their earnings grow at the highest rate in two years, according to a new Paychex report.
Hourly earnings increased by an annual rate of 3.25%, the study found. Among the 50 states, Tennessee placed first for small business job growth, and Arizona saw the highest hourly-wage growth.
"The low unemployment rate is contributing to steady increases in wage growth," Paychex CEO Martin Mucci wrote. "With tightening labor conditions and wages continuing to show positive momentum, business owners and HR managers will need to focus on recruitment and benefit strategies to attract and retain qualified talent."
TWIN CITIES, MN (May 9, 2018) excerpt via THE STAR TRIBUNE - Confidence is surging among Minnesota small business owners, who are investing in their businesses at higher rates, according to the new U.S. Bank Small Business survey.
The study found that 70% of Minnesota business owners had a positive outlook for their business, and 57% anticipate higher revenue in 2018.
"The small business economy in the Twin Cities is doing great, and most industries are surging, including manufacturing, construction and services," said Craig Veurink, U.S. Bank’s regional manager. "We are seeing more expansion and equipment purchases coming from business owners who already have felt the tax change or are anticipating it, especially at the smaller firms."
Image by Inside Tucson Business
TUCSON, AZ (April 26, 2018) excerpt via INSIDE TUCSON BUSINESS - Community banks are critically important in Arizona, providing half of all small business loans in the state despite holding only seven percent of deposits.
A recent Harris poll revealed that 70 percent of Arizona residents place the highest trust in community banks, and yet large banks are increasingly dominating the market. As large banks typically invest their money worldwide, there is less money flowing through local banks into the immediate community.
“Credit unions and community banks are critically important as providers of credit to small businesses as they serve thousands of communities that are underserved, or not served at all, by larger non-community banks across the nation,” Michael Peel of Local First Arizona writes. “They provide a traditional approach to banking with a focus on using local deposits to reinvest in the local community through lending and retaining more dollars in our community through locally-owned businesses.”
Photo Credit: Nav
HONOLULU, HI (April 24, 2018) excerpt via NAV - Hawaii has the highest average credit score of any state in the US, according to a new study.
The state averages 54.6 on the 1 to 100 scale used in business credit scoring. Washington, Illinois, Oregon, West Virginia, Arizona, Alabama, Ohio, Virginia and Michigan closely followed Hawaii in the rankings for top ten.
CLARKSBURG, WV (April 23, 2018) excerpt via WVNEWS - Small businesses are the backbone of West Virginia’s economy, accounting for 99% of all businesses in the state and employing half of the state’s private workforce, according to the Small Business Administration.
“Everybody thinks it would be so great if we had a factory come in that would employ 400 people, but it’s a lot better if you have 40 businesses that employ 10 people. You’ve got the same result, but you’ve got a much more diverse economy that’s better able to withstand downturns and problems that come along,” business owner Tom Hart said to WV News. “Small businesses are extremely, extremely important.”
CLEVELAND, OH (April 19, 2018) excerpt via CRAIN'S CLEVELAND BUSINESS - Ten organizations in Cleveland have coordinated to establish a coalition supporting growth initiatives for minority business owners, known as the Business Growth Collaborative.
"At its core, the BGC is about putting the needs of diverse entrepreneurs and small business owners first," said Cathy Belk, president of JumpStart Inc. "Each organization in the BGC has their own unique strengths and ways of doing things — but the best way to help the people we all serve get the knowledge and support they need is to work together whenever and wherever possible."
PHILADELPHIA, PA (April 17, 2018) excerpt via THE PHILADELPHIA TRIBUNE - Developing minority-owned small businesses could diminish the income gap, according to Marc H. Morial, president of the National Urban League.
“While white adults have 13 times the wealth of Black adults, the gap between white and Black business owners is only three to one. The median net worth for Black business owners is 12 times higher than Black non-business owners,” Morial wrote.
The National Urban League is partnering with Goldman Sachs 10,000 Small Businesses to provide access to business support services and foster growth.
“‘Histories of the civil rights movement that emphasize the glory and successes of charismatic leaders only tell part of the story,” said historian Louis Ferleger in The Philadelphia Tribune. “‘Small Black-owned businesses were critical because they were empowered to engage in civic participation. These businesses were uniquely situated to support the civil rights movement and also parted the waters.’”
NEW YORK, NY (April 4, 2018) excerpt via FORBES - The world of small business lending can be mystifying and immensely frustrating to entrepreneurs, with copious misinformation from predatory online lenders and questionable sources.
Levi King at Forbes presents a guide to dispelling common misunderstandings about business loans, and what it takes to qualify for one. He describes his dismay at the proliferation of misleading online articles, “perpetuating business credit myths and misconceptions that cost me thousands of dollars when I was starting my own small business. This bad advice is continuing to cost American entrepreneurs millions of dollars each year -- and, for many of them, their dream.”
King additionally reports that only 46% of business owners are satisfied with loans from online lenders, according to a study by the Federal Reserve Bank of New York, illustrating the significant problems that come with the convenient but predatory online lenders.
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