Building Partnerships with AICPA

ComputerEaAICPA 2016se is a major sponsor of the AICPA’s annual Real Estate and Construction Industry Conference in Las Vegas, NV next week! John Meibers, President of ComputerEase, will be attending and hosting an educational session entitled “WIP or Get Whipped: Why Accurate, Timely Work-in-Progress Reporting is Essential to Contractor Clients.” Continue reading

Year-End Tax Planning for Business

While the fate of several business-related tax extenders such as Research & Development tax credits, bonus depreciation, and Section 179 expensing that expired at the end of 2014 is uncertain, there are still a number of end of year tax planning strategies businesses can use to reduce their tax burden for 2015. Continue reading

Small Business Investment Company Program

There are a variety of alternatives to bank financing for small businesses, especially business start-ups. The Small Business Investment Company Program fills the gap between the availability of venture capital and the needs of small businesses that are either starting or growing. Licensed and regulated by the SBA, SBICs are privately owned and managed investment firms that make capital available to small businesses through investments or loans. They use their own funds plus funds obtained at favorable rates with SBA guaranties and/or by selling their preferred stock to the SBA. Continue reading

Business Record Keeping Essentials

What kind of Records Do I Need to Keep in My Business?200811-img3
Complete and accurate financial record keeping is crucial to your business success. Good records provide the financial data that help you operate more efficiently. Accurate and complete records enable you to identify all your business assets, liabilities, income and expenses. That information helps you pinpoint both the strong and weak phases of your business operations. Continue reading

The 7(m) and the (504) Loan Programs for Business

The 7(m) MicroLoan Program
The 7(m) MicroLoan Program provides small loans ranging from under $100 to $25,000. Under this program, the SBA makes funds available to nonprofit intermediaries; these, in turn, make the loans. The average loan size is $10,000. Completed applications usually are processed by the intermediary in less than one week. This is a pilot program available at a limited number of locations. Continue reading

Minority and Women’s Pre-qualification Programs for SBA Loans

If you are a woman or minority who owns or wants to start a business, The Minority and Women’s Pre-qualification Programs can help. Intermediaries assist you in developing a viable loan application package and securing a loan. On approval the SBA provides a letter of pre-qualification you can take to a lender. The women’s program uses only nonprofit organizations as intermediaries; the minority program uses for-profit intermediaries as well. Continue reading

Additional Need to Know Items Regarding SBA Loans

Interest Rates
Interest rates are negotiated with your lender, up to 2.25% over the prime rate. The guaranty fee is the same as for any standard 7(a) loan. The SBA places no servicing-fee restrictions on the lender for the Standard Asset-Based Line but requires full disclosure to ensure that fees are reasonable. On all other CAPLines, the servicing fee is restricted to 2% based on the average outstanding balance. Continue reading

SBA Loans

How The Procedure Works
You submit a loan application to a lender for initial review. If the lender approves the loan subject to an SBA guaranty, a copy of the application and a credit analysis are forwarded by the lender to the nearest SBA office. After SBA approval, the lending institution closes the loan and disburses the funds; you make monthly loan payments directly to the lender. As with any loan, you are responsible for repaying the full amount of the loan. There are no balloon payments, prepayment penalties, application fees or points permitted with 7(a) loans. Repayment plans may be tailored to each individual business. Continue reading

SBA Programs

The SBA offers a variety of financing options for small businesses. The SBA’s assistance usually is in the form of loan guaranties, – i.e., it guarantees loans made by banks and other private lenders to small business clients. Generally, the SBA can guarantee up to $750,000 or 75% of the total loan value, whichever is less. The average size of an SBA-guaranteed loan is $175,000, and the average maturity is about eight years. Continue reading