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☆ The Biden administration is giving entrepreneurs a chance at loans up to $5 million to help launch and grow businesses
▼ + stars: | 2023-08-01 | by ( Noah Sheidlower | ) www.businessinsider.com time to read: +6 min

These efforts are meant to close capital access gaps for minority and rural small business owners. SBA loans, typically made by banks and other financial institutions, help entrepreneurs start and grow their small businesses. Fewer very small businesses have recently gotten loans, while startups have historically been viewed as risky by banks. Additionally, Black- and Hispanic-owned small businesses have a harder time securing credit than white-owned small businesses. Three nonbank lenders will be licensed to make SBA loans above $350,000, which some industry experts believe could make riskier loans.

Persons: Biden, Guzman, Han Nguyen Organizations: Business Administration, Service, Small, Administration, SBA, Entrepreneurs, Wall Street, Business Lending Company, Wall Street Journal Locations: Wall, Silicon

☆ The Biden administration just announced plans to crack down on more than 4,400 new cases of child labor in the US since October
▼ + stars: | 2023-07-31 | by ( Noah Sheidlower | ) www.businessinsider.com time to read: +5 min

The Department of Labor is heightening enforcement of child labor laws through new partnerships and tactics. On Thursday, the Department of Labor announced it would take more measures to crack down on illegal child labor nationally, including heightening enforcement of child labor laws through new tactics and partnering with other agencies and foreign governments. "Like the President, we believe that any child working in a dangerous or hazardous environment is one child too many." This comes after the department's February 2023 announcement of the Interagency Task Force to Combat Child Labor Exploitation, created in response to a 69% increase in illegal child labor findings from 2018 to 2022. Sixteen more McDonald's franchise locations in Louisiana and Texas were found in violation of child labor laws last week, impacting 83 minors.

Persons: Biden, Labor Julie Su Organizations: of Labor, Service, Department of Labor, Labor, Department of Health, Human Services, Refugee Resettlement, The Department of Labor, Housing, Urban Development, Transportation, US Small Business Administration, Commission, The Labor, State, Department of Education, Interagency, Force, Combat, The Locations: Wall, Silicon, Colombia, El Salvador, Guatemala, Honduras, Mexico, Minnesota, Kentucky , Indiana , Maryland, Ohio, Louisiana, Texas, Missouri , Ohio, South Dakota

☆ Billionaire Chobani CEO Hamdi Ulukaya says successful people can ditch this ‘rigid’ trait: It’s ‘never been my thing’
▼ + stars: | 2023-07-23 | by ( Ashton Jackson | ) www.cnbc.com time to read: +3 min

Chobani founder and CEO Hamdi Ulukaya went from working on a farm with little money to running a billion-dollar business — and he did it without sticking to a plan. "[When you stick to plans] you're creating some kind of rigid lines and not seeing the dimension of possibilities." Years later, Ulukaya came across an ad for a fully equipped yogurt factory — and buying it meant he needed a business plan. "I made my first business plan that I wrote for the Small Business Administration to [get a loan] to buy that whole factory... Ulukaya isn't the only one ditching the conventional wisdom of building a career plan and sticking to it.

Persons: Hamdi Ulukaya, Adam Grant, Grant, Ulukaya, Chobani, Tim Cook, Cook, I'm Organizations: Small Business Administration, Apple, Duke University Locations: Turkey, New York

☆ An earthquake destroyed their California home days before Christmas. They still have to pay the mortgage
▼ + stars: | 2023-07-02 | by ( Nouran Salahieh | ) edition.cnn.com time to read: +14 min

A 6.4 magnitude earthquake had just struck Rio Dell, California, upending homes and lives for the community of 3,400 people near Oregon. “It’s a gamble to not have it,” Rio Dell City Manager Kyle Knopp said. A whopping 90% of homes in California aren’t covered by earthquake insurance, according to Glenn Pomeroy, CEO of the California Earthquake Authority, a nonprofit quake insurer established by the state. Gavin Newsom proclaimed an emergency for Humboldt County, where Rio Dell is located, in part to help local governments access services. Despite seeing how costly earthquake damage can be, she doubts she’ll buy earthquake insurance for her next home.

Persons: CNN —, Jacqui McIntosh, Rio, McIntosh, ”, unlivable, “ It’s, Fred Greaves, “, Kyle Knopp, Glenn Pomeroy, ” Brian Ferguson, Knopp, ” Knopp, Randy Jensen, ” Jensen, Jensen, Jane Tyska, ” Pomeroy, that’s, Pomeroy, Gavin Newsom, Michelle Bushnell, Bushnell, it’s, Keith Porter, Kent Porter, Bolt, Porter, ” Porter, ‘, Alyssa Jorgensen, Jorgensen, didn’t, ” McIntosh Organizations: CNN, Dell, California Earthquake Authority, California Governor’s, Emergency Services, Mendocino Triple Junction, FEMA, Rio Dell, Reuters, Rio Dell Water, Media, East Bay Times, San, Small Business Administration, Institute, The Press Democrat, Mitigation, retrofits, Earthquake, California Earthquake Locations: Rio Dell , California, Oregon, Rio Dell, California, It’s, Mendocino, Cape Mendocino, Northern California, Montecito, Beverly Hills, Malibu, Rio, Humboldt County

☆ The 'Wolf of Airbnb' made nearly $2 million through the pandemic running 'mini-hotels' in NYC. He just pleaded guilty to wire fraud.
▼ + stars: | 2023-06-28 | by ( Will Gendron | ) www.businessinsider.com time to read: +3 min

Konrad Bicher began renting Manhattan apartments in 2019, before subletting them out. On top of violating lease agreements, Bicher obtained nearly $600,000 in Covid relief loans. The self-proclaimed "Wolf of Airbnb" now faces prison time after pleading guilty to fraud. Prosecutors said he failed to make rent payments required by the lease agreements and refused to leave the apartments after the leases expired. When Bicher was indicted in October, Williams said Bicher operated at least 18 apartments in Manhattan "as mini-hotels" while using the pandemic as an excuse not to pay landlords.

Persons: Konrad Bicher, Bicher, Wolf, Airbnb, Prosecutors, Damian Williams, Williams Organizations: Prosecutors, US Small Business Administration Locations: Manhattan, Hialeah , Florida

New York CNN —The Small Business Administration distributed more than $200 billion in potentially fraudulent Covid-19 relief funds, according to a federal watchdog. At least 17% of the $1.2 trillion distributed by the SBA was wasted in fraud, the report found. Most of the fraud apparently happened through the EIDL funds, with the inspector general estimating more than $136 billion of fraudulent activity in that program. While the program successfully helped many companies pay workers during the pandemic, it was plagued by questionable lending and rampant fraud. To date, the agency has recovered nearly $30 billion in funds, according to the report.

Persons: Chris Steakhouse, Trump Organizations: New, New York CNN, Small Business Administration, SBA, Washington, PPP, Los Angeles Lakers Locations: New York

☆ More than $200 billion in Covid loans potentially stolen by fraudsters, watchdog says
▼ + stars: | 2023-06-27 | by ( Spencer Kimball | ) www.cnbc.com time to read: +4 min

Fraudsters potentially stole more than $200 billion in federal loans intended to help small businesses struggling during the Covid pandemic, a government watchdog said on Tuesday. More than $136 billion from Economic Injury Disaster Loan program and $64 billion from the Paycheck Protection Program loans was potentially stolen, the inspector general found. In total, SBA disbursed $400 billion in EIDL funds and $800 billion in Paycheck Protection Program loans during the life of the programs. These investigations have led to nearly $30 billion in stolen loans being seized or returned by federal law enforcement agencies. The Economic Injury Disaster Loan program provided low-interest, fixed-rate loans to help small businesses nd other organizations to help cover their operating expenses.

Persons: Kevin Chambers, Hannibal, Mike, Ware, Michael Horowitz, Roy D, Dotson Jr, Bailey DeVries, DeVries, Trump, nonpayment Organizations: Department of Justice, Small Business Administration, United States Secret, Small, Administration, Injury, SBA Locations: Rayburn, Washington ,

WASHINGTON, June 27 (Reuters) - Over $200 billion from the U.S. government's COVID-19 relief programs were likely stolen, a federal watchdog said on Tuesday, adding that the U.S. Small Business Administration (SBA) had weakened its controls in a rush to disburse the funds. The SBA disputed the more than $200 billion figure put forward by the watchdog and said the inspector general's approach had significantly overestimated fraud. The agency said its experts put the likely fraud estimate at $36 billion and added that over 86% of that likely fraud took place in 2020, when the administration for former President Donald Trump was in office. The fraud estimate put forward by the inspector general for the EIDL program stood at more than $136 billion while the PPP fraud estimate was $64 billion. Earlier this year, a separate watchdog report said the U.S. government likely awarded about $5.4 billion in COVID-19 aid to people with questionable Social Security numbers.

Persons: government's, Donald Trump, Joe Biden, General Merrick Garland, Kevin Chambers, fraudsters, Kanishka Singh, Aurora Ellis Organizations: U.S . Small Business Administration, SBA, Force, U.S . Justice Department, U.S . Labor Department, Social, Thomson Locations: United States, U.S, COVID, Washington

☆ The IRS is cracking down on a popular small business tax break that could lead to a costly audit
▼ + stars: | 2023-06-09 | by ( Cheryl Winokur Munk | ) www.cnbc.com time to read: +6 min

A cottage industry of specialist firms has sprung up to help business owners claim the Employee Retention Credit (ERC), a governmental tax incentive intended for companies stressed by the pandemic. To be sure, the IRS warned business owners last October to be on the lookout for third parties promoting improper ERC claims. The IRS went so far as to add fraudulent claims involving the ERC to its annual "Dirty Dozen" list of tax scams. Start by understanding the basic ERC claim requirementsStart by knowing the basics so you can understand whether your business may qualify for a credit. Another red flag is when a third party doesn't ask for documentation to ensure a business owner qualifies, Perrone said.

Persons: Donald N, Hoffman, Danny Werfel, Gina Perrone, Sax, Jenn McCabe, Perrone Organizations: ERC —, Eisner Advisory, IRS, ERC, CPA, Small Business Administration, Armanino

☆ Tiny tech bank defies US massacre of the minnows
▼ + stars: | 2023-06-08 | by ( John Foley | ) www.reuters.com time to read: +6 min

One example is $1 billion Live Oak Bancshares (LOB.N), which flouts many preconceptions about what it means to be a tiny U.S. bank. But if those failures demonstrated that rapid growth brings escalating risk, Live Oak is a counterexample. Because of the way that programme is structured, around 40% of Live Oak’s lending carries a government guarantee. The company spun out its cloud-based banking software division nCino (NCNO.O) in 2014; that firm is now worth $2.8 billion, more than twice Live Oak’s value. That more earthly valuation might reflect Live Oak’s biggest risk: that it starts to look more like the rest of the pack.

Persons: it’s, Chip Mahan, SVB, It’s, Huntley Garriott, Goldman Sachs, reckons, ’, Keefe, Mahan, Liam Proud, Streisand Neto Organizations: YORK, Reuters, Wachovia, Valley Bank, U.S, Regional, Silvergate, Reuters Graphics Reuters, government’s, Business Administration, SBA, Federal, Truist, PNC Financial Services, redwoods, Twitter, Thomson Locations: United States, North Carolina, U.S

You may also consider contacting a business loan specialist or a direct business lender that offers many options. "Business loan options are abundant, and it can be very easy to obtain business financing," says Grayson. Lenders generally look at your time in business, credit scores (both business and personal), cash flow, collateral, and the industry the business is in. Grayson emphasizes three key factors that lenders prioritize before making lending decisions: Ability to repay the loan, the need for the money and how it will assist with a critical business need or growth, and the business and business owner's overall creditworthiness. Grayson emphasizes that research is the most important tool to be successful with a small business loan.

Persons: you've, —, Matt Brewster, Gina Taylor Cotter, You'll, Noah Grayson, Grayson, Brewster, Cotter Organizations: Service, Business Administration, Estate Bees, Nonprofit, Revenue

☆ Founders break down 5 challenges standing in the way of AAPI entrepreneurs
▼ + stars: | 2023-05-23 | by ( Jackie Lam | ) www.businessinsider.com time to read: +6 min

Asian Americans own 10% of small businesses in the US, but AAPI entrepreneurs still face challenges. Despite that, AAPI entrepreneurs still face unique struggles. As they've collaborated with their network of makers, Byun and Park have identified five challenges that need to be overcome to let AAPI entrepreneurs thrive. Fifty-eight percent of AAPI entrepreneurs have struggled with federal, state, and local programs to help small businesses. A good step is to learn the ins and outs of the US Small Business Administration's funding programs for small businesses.

Persons: Arnold Byun, —, MAUM, they've, they'll, they're, Byun Organizations: Service, Business Development Center, AAPI, US, Business, SBA Locations: Kioh, Park, American

☆ When Floods Destroy Homes, Hidden Costs Can Devastate Survivors
▼ + stars: | 2023-04-22 | by ( Colleen Hagerty | ) www.nytimes.com time to read: +2 min

The Combses then took over those payments for a few years until the expense — more than $500 a month, Ms. Combs said — became unaffordable. Ms. Combs did apply for a loan from the Small Business Administration but was denied because of her credit score, she said. A church group helped clean out the house, including throwing out the refrigerator, stocked with spoiled food. They have been blessed, as Ms. Combs sees it. Ms. Combs estimated that they had spent a few thousand dollars to get back home.

☆ Racial Disparities are worsening disaster recovery for people of color. With climate change, things could get worse
▼ + stars: | 2023-04-14 | by ( Lauren Lee | ) edition.cnn.com time to read: +13 min

Rolling Fork, Mississippi suffered massive damage from a powerful tornado on March 24. Racial disparities existed in Rolling Fork for decades. She started I-DIEM after spending over 14 years in disaster management. Shirley Stamps stands in the rubble of her home in the aftermath of the Rolling Fork tornado. And increasingly, non-profits are doing things differently to address racial disparities in disaster management.

☆ These are the 9 least expensive states to start a business—none of them are in the northeast
▼ + stars: | 2023-04-12 | by ( Tom Huddleston Jr. | ) www.cnbc.com time to read: +4 min

Nevada tops this ranking as the least expensive U.S. state to start a small business, due to factors like an abundance of available commercial space and the state's lack of corporate income tax. Small business loans were also widely available in those two states in 2020, the most recent year with complete Small Business Administration data. Arkansas small businesses received nearly $43 million in loans per 100,000 residents that year, the sixth-highest of any state. Some states offer tax credits for businesses in specific industries, which could help some startups and not others. "For entrepreneurs who have the ability to pick and choose where they want to start their business, it's clear that certain states will allow you to save money," the ranking noted.

☆ Billionaire Mark Cuban says successful people aren't afraid to go broke: 'When you've got nothing to lose, you go for it'
▼ + stars: | 2023-04-06 | by ( Ashton Jackson | ) www.cnbc.com time to read: +3 min

Before becoming a billionaire, Mark Cuban slummed it in an apartment with five other guys, sleeping on the floor and using "nasty" towels taken from a Motel 6. Those circumstances may seem pretty bleak, but they're exactly what drove Cuban to put his all into entrepreneurship. Cuban, who has an estimated net worth of $6.5 billion, referenced his "Shark Tank" co-star Daymond John's phrase "the power of broke," saying it's "one of the defining elements" of any successful business owner. Most people consult with friends and explore their idea on Google, but ultimately never follow through, Cuban said. Disclosure: CNBC owns the exclusive off-network cable rights to "Shark Tank."

☆ Premarket stocks: Banking chaos could break the strong job market
▼ + stars: | 2023-03-28 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —The job market has remained strong even as the Federal Reserve has spent a full year attempting to cool off the economy by raising interest rates. But economists think that the recent banking turmoil may be what finally raises unemployment. Even with those big job cuts, the labor market in the United States remains white hot. Since the pandemic, regional banks “have provided a vast majority of lending to small firms, underwriting local small business formation,” said Philip Wool, an analyst with asset manager Rayliant. AI will likely lead to job loss, they wrote, but technological innovation that initially displaces workers has historically created employment growth over long haul.

☆ 25-year-old 'Shark Tank' contestant sold ice cream from a roadside tent—now he has a $200,000 deal with Barbara Corcoran
▼ + stars: | 2023-03-20 | by ( Ashton Jackson | ) www.cnbc.com time to read: +3 min

When Jeremy Carlson was a college freshman, he started selling ice cream cones from a tent by the side of the road. The cooking style, which he discovered during a mission trip to the Czech Republic, ultimately led to two brick-and-mortar ice cream shops called Crispy Cones — and a $200,000 investment deal with Barbara Corcoran on Friday's episode of ABC's "Shark Tank." Carlson's earnings as an Uber and Lyft driver, along with a Small Business Administration loan and $190,000 credit line, helped Crispy Cones move from a tent to a trailer to the two storefronts. Together, the couple asked for a $200,000 investment in exchange for 10% of Crispy Cones. Corcoran offered the Carlsons a more lucrative deal: $200,000 for 20% of Crispy Cones' equity.

Yet only 54% of all businesses say they have a business continuity and disaster recovery plan for a cyberattack. 2 2022 Small Business Profile, U.S. Small Business Administration Office of Advocacy. https://cdn.advocacy.sba.gov/wp-content/uploads/2022/08/30121338/Small-Business-Economic-Profile-US.pdfCyber Readiness Institute (CRI) is not an affiliate of any company of the Principal Financial Group®. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392. ©2023 Principal Financial Services, Inc.

☆ What Is an SBA Loan?
▼ + stars: | 2023-02-07 | by ( ) www.wsj.com time to read: +13 min

By Tanza LoudenbackEntrepreneurs without a ton of cash or access to affordable financing may want to consider an SBA loan. Types of SBA loansThe most common type of SBA loan is a 7(a) loan. SBA loan rates and repayment termsInterest rates on SBA loans are negotiated between the lender and the borrower, within the SBA’s minimums and maximums. “The big difference is SBA loans tend to have much more favorable terms,” says Chris Hurn, the founder and CEO of Fountainhead, an SBA lender. How to apply for an SBA loanHere are the steps to apply for an SBA loan.

☆ U.S. watchdog identifies $5.4 billion in potentially fraudulent COVID-19 loans
▼ + stars: | 2023-01-30 | by ( Kanishka Singh | ) www.reuters.com time to read: +2 min

WASHINGTON, Jan 30 (Reuters) - The U.S. government likely awarded about $5.4 billion in COVID-19 aid to people with questionable Social Security numbers, a federal watchdog said in a report released on Monday. The watchdog, the Pandemic Response Accountability Committee (PRAC), said it "identified 69,323 questionable Social Security Numbers (SSNs) used to obtain $5.4 billion from the Small Business Administration's (SBA) COVID-19 Economic Injury Disaster Loan (COVID-19 EIDL) program and Paycheck Protection Program (PPP)." In May 2021, Attorney General Merrick Garland launched a COVID-19 Fraud Enforcement Task Force. In September, the inspector general for the U.S. Labor Department said fraudsters likely stole $45.6 billion from the United States' unemployment insurance program during the coronavirus outbreak by applying tactics like using Social Security numbers of deceased individuals. Reporting by Kanishka Singh in Washington; Editing by David GregorioOur Standards: The Thomson Reuters Trust Principles.

☆ Feds seized a party boat, a Rolls Royce, and a motorcycle from a man accused of using COVID loans to buy his way into a Texas yacht club
▼ + stars: | 2023-01-27 | by ( Azmi Haroun | ) www.businessinsider.com time to read: +3 min

A deceased Texas man had his party boat, Rolls Royce, and yacht club membership seized by the feds. He secured the goods through a COVID PPP loan fraud scheme, seeking $23 million, feds alleged. Between April 2020 and May 2020, he received almost $1 million in PPP loans and started spending. McQuarn agreed to hand over the items he bought with some of the $23 million in COVID PPP loans he tried to secure, which included a Rolls Royce and a sizable boat. By June 2020, federal investigators had caught up to McQuarn and his associates, seizing all of the money and luxury items that they had amassed in their scheme.

☆ Lender Popular Bank Fined Over Bad Covid Relief Loans
▼ + stars: | 2023-01-25 | by ( Richard Vanderford | ) www.wsj.com time to read: +3 min

Popular Bank has been fined $2.3 million for allegedly failing to stop fraud by applicants to the Paycheck Protection Program, the federal government’s massive Covid-related bailout for struggling small businesses. The Federal Reserve announced the fine Tuesday, saying New York-based Popular Bank, a subsidiary of Puerto Rico-based Popular Inc., had processed six PPP loans worth about $1.1 million despite having detected significant signs of potential fraud. The federal government used PPP loans to help businesses that experienced hardship during the Covid-19 pandemic, leaning on banks to dole out the money. The bank consented to the fine, a Popular Bank spokeswoman said, though the Fed order said the bank didn’t formally admit to or deny the allegations. The loans at issue originated with Popular Bank in August 2020, during a year in which millions of applicants sought access to the government money to try to keep their struggling enterprises afloat.

☆ Firms use Google ads to entice small businesses to pay for help the gov't provides free
▼ + stars: | 2023-01-20 | by ( Jesselyn Cook | Jesselyn Cook Is An Investigative Tech Reporter For Nbc News. | ) www.nbcnews.com time to read: +11 min

Several draw in unwitting customers like Talbot through Google ads that outrank the legitimate SAM.gov page, illustrating the ease of buying visibility on the world’s largest search engine. Google removed the ads for a number of these sites in response to an inquiry for this article but subsequently reversed its decision. “We have strict ads policies that govern the types of ads and advertisers we allow on our platforms,” Google spokesperson Davis Thompson said in a statement. But the Small Business Administration urges people not to spend their precious resources on these services when so many free alternatives exist. She expects new, prominently displayed Google ads to play a part in the problem.

☆ The 3 biggest reasons startups failed in 2022, according to a poll of almost 500 founders
▼ + stars: | 2023-01-20 | by ( Tom Huddleston Jr. | ) www.cnbc.com time to read: +2 min

Knowing the biggest risks that most commonly cause new startups to fail could make the difference between whether your own business sinks or swims. And roughly 20% of new businesses fail within their first year, according to data from the U.S. Bureau of Labor Statistics. Luckily, some new research can shed some light on the biggest recent obstacles that have thwarted startups. Skynova, which makes invoicing software for small businesses, surveyed 492 startup founders in November 2022 and analyzed startup data from CB Insights for the new study that looks at the most common reasons behind startup failures in 2022. The study notes that 47% of startup failures in 2022 were due to a lack of financing, nearly double the percentage that failed for the same reason in 2021, based on CB Insight's data.

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