Taxes, Hiring And The Minimun Wage In Ohio

April 5, 2014 by

business (7)It is the tax season and talk about taxes, penalties, tax cuts, minimum wage and hiring are the talk of the town.  For everyone that is still procrastinating about doing their taxes, I just want to remind you you ONLY have 10 DAYS left.   If you are not ready nor will be ready in ten days time, it is probably wise for you to file and extension to file later and avoid those pesky penalties the IRS will impose on you. For more news about what is happening in Ohio please follow the links below.

Push for $10.10 minimum wage would create winners, losers in Ohio

Amy Zickefoose’s husband works long, difficult hours with machines in Tennessee, hundreds of miles from their Mansfield home . For this dangerous work, he receives $11 an hour.

State and federal politicians have proposed raising the minimum wage to $10.10 an hour by 2016, but Zickefoose said fast-food employees shouldn’t be paid that much.

“I definitely don’t feel (they) should make almost as much as my husband,” said, Zickefoose, adding that she doesn’t believe an increase would help her family . “I know his boss wouldn’t give him another dollar.”

An increase in the minimum wage, which is $7.95 an hour in Ohio, would mean layoffs and potentially higher food prices, but also better-paid workers and potentially lower costs for social services. Whether that sounds like a great or horrible idea depends largely on where you fit into the workforce.

“From the employees’ perspective, a wage increase is always appreciated,” said Randy Davies, president and CEO of the Chillicothe-Ross Chamber of Commerce. “There are many aspects a small business owner  would have to adjust.”

The Congressional Budget Office estimated 500,000 workers, or 0.3 percent of the American workforce, would lose their jobs by 2016 if Congress raised the minimum wage to $10.10 an hour. However, another 16.5 million would see their wage increase, the report stated.

Faber: Tax cuts, regulatory reform has Ohio going in the ‘right direction’

LIMA — The leader of the state Senate claims Ohio is moving in the right direction, but that is not good enough and more work needs to be done.

Before Republican Gov. John Kasich took office, the state was losing 100,000 jobs per year for several years, Senate President Keith Faber, R-Celina, said. In the last three years, the state has seen private enterprise create 238,000 jobs, including 300 jobs at Ford Motor Co. Lima Engine Plant.

Under former Democratic Gov. Ted Strickland, Faber pointed out the state’s “rainy day” fund dropped to 89 cents and Kasich inherited a state budget that was $8.5 billion in debt. Today, the “rainy day” fund is approaching $1.5 billion and the budget is balanced.

“We are going in the right direction now,” Faber told about 100 people Friday during the Allen County Republican Party luncheon at the Elks. “Ohio is doing better, we are doing better, but better is still not good enough, because if we sit on our laurels than we should expect to go back to the bad old days of 2010, and 2009 and 2008.”

Survey: Ohio business owners hold off on hiring

More Ohio small and mid-size business owners are expecting higher sales and profits over the next six months compared to a year ago, according to new survey results released today by The PNC Financial Services Group Inc.

PNC Bank, Ohio’s fourth largest bank by deposits held, surveys business owners and customers twice a year, gauging sentiments about the economy.

On a less-positive note, the same Ohio business owners told PNC that even though business looks to be improving, it doesn’t mean they plan to hire more people.

“Ohio business owners are still very guarded,” said Mekael Teshome, PNC economist.

The outlook has brightened across the local, national and global economies, Teshome said. For example, six months ago the U.S. government was shutdown.

But small Ohio business owners — who do the majority of the hiring — are looking for more goods news before they risk the investment.

“I see this as indicating businesses are pretty much playing defense. There has been some volatility in Ohio’s economy. We hit a bit of a speed bump in the fourth quarter” from declines in government employment, Teshome said.

“I think that speed bump had something to do with firms taken a more precautionary approach,” he said.

“The other reason I think is the manufacturing rebound is really approaching a more mature, more advanced stage. I think there will be continued improvement in this sector, but not of the same magnitude we saw in 2012,” he said.

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How To Spot Problem Employees Before Hiring Them

April 3, 2014 by

business (7)How to Spot Problem Employees Before Hiring Them

The whole hiring process requires careful thought and consideration. If an employer is not careful there are many things that can be overlooked in finding great employees. Upon viewing a prospect, the employer should view the initial application carefully to see if there is anything there that appears to be misleading or false. References and past employers should carefully be checked by giving them a call and asking a few unexpected questions and making certain that the past employer has a legitimate company. The past employer can be researched to see if they really exist.

If the application looks impressive, the next phase would be to give the person a call and let them know that their application was received and ask them why they feel they would be a good prospect for the job. It would be a good idea to tell them about the main job duties and ask them if they have experience in those areas. If the applicant is able to answer the questions in a convincing manner then this would be a great time to schedule an interview. If the person does not sound convincing they could be told that that there still needs to be time to view their application. This would be the perfect time to send them an email and thank them for their application and let them know why it was denied.

The interview is the final draw. First impressions mean everything. The applicant should be dressed for success suitable for the interview. Does the employer really express that they are interested in the company or in just getting paid to do a job? Some concerns may be health related problems that may cause this person not to be able to perform well on the job. The applicant should be able to work the hours needed and be able to be to work on time. Does the applicant answer in a way that he or she comprehends the questions asked? Does he or she communicate well and present themselves professionally? The answers to these questions could be red flags that help spot problem employees.

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Is Your Small Business Due A Refund?

March 25, 2014 by

business (6)Some of the most interesting news coming for small business owners this week is as follow. If you have filed taxes with the Ohio department of taxation and think that you may had paid too much in taxes, now it’s the time to find out if you are due a check.  If you have specific questions about it you can also give them a call.  The phone numbers for you to call are listed below, give them a call, it may be worth your while.

Ohio looks to return money to small businesses 

The Ohio Department of Taxation is writing checks to small businesses, and some area employers may be eligible to receive money.

That was the gist of Tuesday’s meeting between State cabinet directors, the Youngstown Warren Regional Chamber of Commerce and local small businesses at the Covelli Center, as various government officials shared information about how to take advantage of money available to grow their businesses.

Business owners can call 1-888-405-4039 for general tax questions, or 1-888-722-8829 for questions specifically about the commercial activity tax.

Ohio businesses must comply with Ohio EPA air pollution standards

I plan to buy a small manufacturing business in Ohio. Do I need an air permit?

If you will be using manufacturing equipment, your business must comply with certain environmental regulations. In particular, air pollution regulations are closely monitored and enforced, so you should understand these regulations and obtain any appropriate permits. Ohio EPA may be willing to guide you in this process, but if you aren’t sure about your permitting status, consult an attorney.

When does Ohio require air permits?

Ohio usually requires a “permit to install and operate” (PTIO) before air pollution sources are installed. An air pollution “source” may be anything from an industrial furnace stack to a paint booth, or even a gravel roadway that creates dust.

Are there any exceptions to air permitting requirements?

Yes. There is an exception for very small (“de minimis”) sources of air pollution that have the potential to emit no more than 10 pounds of any individual pollutant in a 24-hour period of continuous operation. This exception also applies to sources that would emit more than 10 pounds if operated continuously for 24 hours, but never do so in normal operations, but the operator must keep records showing that the 10-pound threshold is never exceeded.

FirstEnergy Solutions billing customers for reserve power during arctic weather

AKRON, Ohio — January’s arctic weather drove up heating bills. Now it’s about to increase electric bills for some consumers and businesses.

FirstEnergy Solutions is preparing to bill about 2 million of its 2.7 million retail customers a surcharge for expenses the company will soon have to pay for reserve power it needed when temperatures plummeted below zero.

Residential and small business customers whose electricity bills show FirstEnergy Solutions as the supplier will see a one-time charge of $5 to $15 between May and July.

The 500,000 residents and small businesses that buy from FirstEnergy Solutions through the Northeast Ohio Public Energy Council, or NOPEC, will not face the extra charge, said Diane Francis, FES spokeswoman, because the NOPEC contract prohibits it.

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Is It Time For Spring Cleaning Your Business?

March 20, 2014 by

business (4)Spring cleaning for business requires something more than mopping the floors or airing the office. It is a time when the paperwork from the previous year can be organized, receipts for expenses tallied and summarize for your taxes, the health plan for you and your employees should be reviewed and renewed if you haven’t done so by this time of year. Organizing your business for the incoming one is a good habit that can pay off in the long run. To read more about how to organize your business or spring clean your business this year, follow the links below for more information.

Spring cleaning for small business owners

With January and February behind us, most small business owners are likely off to a good start in terms of their first quarter operations, budgeting, and outlook for the rest of the year. However, with spring upon us, there is no better time for business owners to dust off their finances, organize quarterly plans, and prepare for the future. Using the idea of spring cleaning and applying it to a business can fix “messes” in a timely fashion and have a meaningful impact throughout the rest of the year.

Reviewing business plans over the coming weeks is beneficial since it is early enough in the year that budgets can be reworked, yet implementation is still well under way. From a human psychology standpoint, businesses often experience a slow down during summer months, and winter months/end of year are typically reserved for wrapping up, squeezing in last minute profits, and planning for the next year.

Below, we outline several areas that owners may want to consider “cleaning” this season:

3 Spring Cleaning Tips for Small Business

Spring cleaning is not only for households. For small business owners, springtime is a reminder to get things in order. From an aesthetic standpoint, cleaning up a messy office not only injects a sense of order that might desperately be needed, it also provides a sense of accomplishment. From an operational standpoint, small business owners can clean up their books from 2013, store receipts, tax returns and other important documents electronically, and close out old inventory to greet the arrival of warm weather.
Clean Up 2013 Receipts
Unfortunately, April 15th, Tax Day, is a rite of spring. As many entrepreneurs are meeting with their accountants during the upcoming weeks, it is important to close out the books on 2013. Make sure you have all the receipts you need for write-offs.  Some of them may be stuck in your pocket or buried under catalogs in your inbox. Now is the time to look for them. You don’t want to be frantically searching for receipts from major purchases on April 14th. It is easier to find things when the pressure is off. You may have forgotten the receipt from the computer you bought last February. Neglecting to do so could cost you thousands of dollars in business expenses that you could have deducted and saved yourself substantial dollars on your tax bill.

10 Spring-Cleaning Tips for Small Business

Organize your office and your processes with these tips.

Spring cleaning your small business requires more than just scrubbing and dusting.

Tackling your to-do list is easier when you have a clean office, uncluttered desk and clear mind. Beyond vacuuming and dusting, here are 10 tasks to add to your spring-cleaning checklist.

1. Evaluate your systems, processes and vendors, and eliminate or streamline things that aren’t working.

2. Create a filing system according to how you think, and get rid of old, unnecessary files.

3. Go digital—scan, save and purge hard copies of files.

4. Clear your desktop of anything you don’t use regularly.

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Why Must You Have 90 Day Goals for your Business?

March 17, 2014 by

business (11)Why Goals Are a Must-Have for Any Business

We all love to dream big for our companies. That is, after all, why most of us started our businesses. One day, we had a dream that we decided to turn into something real. The fact of the matter is that we all love dreaming more than doing. Dreams aren’t worth much without some serious hustle. Without doing the work, you are not going to see your company grow or succeed. That’s why setting goals and working toward those goals is such an important part of running a business.

Research has proven time and time again that people who set goals have a much higher likelihood of reaching those goals and succeeding in whatever they’re trying to accomplish than those who don’t set goals. The problem for many of us, however, is that we either don’t know where to start when setting goals or we set our goals unattainably high and give up when we don’t reach them. So how do we set goals that will help us move our businesses in the right direction consistently? Here are a couple quick tips:

1. Don’t try to create too many goals at once
Researchers on productivity have found that you really can’t focus on more than about 5 things at once. Creating goals with several sub-goals will only cheat you out of your productivity.

2. Keep your goals “smart“
Your goals need to follow these five guidelines:

  • Keep your goals specific. Instead of saying “grow my business”, say “increase my customer base by 10%.”
  • Make your goals measurable. “Make 10% more in profit over the next 90 days.”
  • Every goal should be actionable. They should start with an action verb. “Call two more customers a week.”
  • Be sure to keep your goals realistic. Instead of trying to double your sales, aim for a 15% increase.
  • Your goals should always be time-bound. “Gain 5 customers by April 1.”

Make goals, write them down, keep them few in number and make them “smart” and your business will be on its way to being the company of your dreams.

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Tax Cuts For Small Business Owners

February 25, 2014 by

business (6)As a small business owner is always nice for you and your wallet to hear that you won’t be paying as much in income tax for 2013 as you did the previous year.  Under the measured passed by the Ohio Legislature last year, small business owners can deduct half of their business income up to $250,000 this year.  That is significant if you considered the amount saved in taxes can be used to invest in the business, or buy machinery that needed to be replaced.

To read more about this follow the links.

Small Businesses Sort Out Affordable Care Act Details

Small businesses around Ohio are struggling to sort out the details of the Affordable Care Act.

As Lewis Wallace reports from Ohio Public Radio  station WYSO, it’s unclear whether recent delays in the law help or hurt the confusion.

The big Obamacare question for small employers is this: am I required to provide health insurance to my employees or not?

Paul: And that question is sort of like that underwear commercial: boxers, briefs, depends…

That’s Paul Tambe with BW Employee Benefits speaking to Dayton-area small business owners.

And yes, it does depend. Here’s the basic rule: companies with less than 50 full-time employees are exempt.

Companies with 50 or more—need to provide health coverage for their full-timers or pay fines.

Medina residents explain what they want to hear from Governor Kasich at State of State speech

MEDINA, Ohio – Business owner Amy Douglass came up with a quick list of topics that she hopes Governor John Kasich addresses during his State of the State address Monday night at the Performing Arts Center in Medina.

Douglass, who owns The Interior Design Studio and JK Gift Shop, said she would like Kasich to create a statewide initiative to encourage people to shop at local stores.

“It’s very difficult competing against the big box stores, number one, and there are so many small businesses in small towns around Ohio,” Douglass said.

Another concern she would like discussed is the high cost of healthcare, something she has never been able to provide in 13 years as a small business owner.

Douglass only has four employees and they depend on their husbands for health benefits.

“We just can’t afford to offer it and it’s very important to be able to offer something like that to families.”

Why small businesses won’t pay Ohio’s tax collectors as much this year

With tax season in full swing, small businesses will receive a significant tax cut for income they earned in 2013 under a measure passed by the Ohio Legislature last year.

Those who file their business income on their individual income tax form – a vast majority of Ohio businesses – can deduct half of their business income up to $250,000.

That means if a business owner earns $250,000 in adjusted gross income, he or she can exclude the first $125,000 from their tax return. The exclusion is available to each investor or owner in a business, said Ohio Tax Commissioner Joe Testa.

The cut, a part of Gov. John Kasich’s effort to slice income tax rates, is expected to be worth $1.6 billion to Ohio small businesses.

“It’s pretty significant,” Testa said. “This gives them the opportunity to have more revenue they can put back into their businesses, to grow their businesses by purchasing additional equipment or marketing their products or maybe even adding a full-time person when they only had a part-time person.”

Small business owners earning income at the top marginal tax rate – 5.33 percent – could expect to see a $6,000 benefit, said Ohio Development Services Director David Goodman.

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What Every Small Business Owner Should Practice

February 17, 2014 by

business (4)How do you keep motivated every day so you can be successful as a small business owner? The challenges and time constrains every business owner faces daily are daunting, yet many small business are open yearly, and  the dream of being your own boss, and having your own business is part of what makes the dream come to fruition.  Read more by following the links below.

Forget Setting Goals. Focus on This Instead.

We all have things that we want to achieve in our lives — getting into the better shape, building a successful business, raising a wonderful family, writing a best-selling book, winning a championship, and so on.

And for most of us, the path to those things starts by setting a specific and actionable goal. At least, this is how I approached my life until recently. I would set goals for classes I took, for weights that I wanted to lift in the gym, and for clients I wanted in my business.

What I’m starting to realize, however, is that when it comes to actually getting things done and making progress in the areas that are important to you, there is a much better way to do things.

It all comes down to the difference between goals and systems.

Let me explain.

The Difference Between Goals and Systems

What’s the difference between goals and systems?

  • If you’re a coach, your goal is to win a championship. Your system is what your team does at practice each day.
  • If you’re a writer, your goal is to write a book. Your system is the writing schedule that you follow each week.
  • If you’re a runner, your goal is to run a marathon. Your system is your training schedule for the month.
  • If you’re an entrepreneur, your goal is to build a million dollar business. Your system is your sales and marketing process.

Abraham Lincoln’s Brilliant Method for Handling Setbacks 

Today would’ve been Lincoln’s 215th birthday. Here’s what the legendary leader can teach you about keeping a reasonable temperament during hard times.

What was the secret of Abraham Lincoln’s success in dealing with people?

Incredibly, this is not just a question that a business journalist would ask. Dale Carnegie himself–the legendary author of How to Win Friends and Influence People–asked the exact same question on page 8 of that famous book.

Carnegie was in a unique position to know the answer. Four years before How to Win Friends came out, he authored a book called Lincoln the Unknown, which he spent three years working on.

How Lincoln Practiced Patience

The point is that Carnegie–America’s preeminent expert on networking, arguably the person who first codified networking as a skill–analyzed Lincoln’s life for his people skills.

As an example, Carnegie cites a letter Lincoln wrote to a general who disobeyed his orders during the Civil War. Here’s a snippet:

“I do not believe you appreciate the magnitude of the misfortune involved in Lee’s escape. He was within your easy grasp, and to have closed upon him would, in connection with our other late successes, have ended the war.

Distractions Killing Your Flow? Try This Method.

Are distractions getting in your way? Have you noticed that many times when you are focusing on your work and are approaching that momentum where things start to flow easily, you get interrupted?

Most entrepreneurs have created productivity habits that work for them, yet upon closer inspection, they realize that when they are trying to get something done, tasks often take more time than had been originally budgeted. This is caused by distractions: A co-worker who needs something from them, a phone call from a potential client, a team member with questions about a project.

Every time you are interrupted or distracted, the energy you were building from moving your project forward is halted, and you need to start over. Too many times, you need to gather new strength to pick up where you left off, and you may waste valuable minutes trying to figure out exactly where that was.

Filed Under: Ohio Business News Tagged With: , , ,

Small Business Outlook For 2014

February 12, 2014 by

business (3)For a few months now we have read in the news that small business owners’ confidence in their business is good, and the outlook for an improved economy is embraced by many businesses across the nation. Some changes in taxes that small business owners could claimed  have expired last year, but still their outlook is optimistic. According to recent surveys conducted by the Federal Reserve Bank of New York in conjunction with The Federal Reserve Bank of Philadelphia found that many of the small business owners in NJ,NY, PHI and neighboring states claimed they are more confident  in finding credit for their small business and plan to hire within the next six months.

Read more about this topic by following the links below.

Some good news for small contractors in 2014

Federal contractors entered 2014 having witnessed the failure of Congress to implement comprehensive procurement legislation. But lots of large and small tweaks found their way into the system — and small businesses might be among the benefactors.

Many of these developments center on small business contracting. In 2014, contractors can expect increased governmental emphasis on small business size rules. Plus, major procurement reform may have eluded Congress, but one big change that did occur opens up new business opportunities for small companies.

That change occurred deep in the 2014 National Defense Authorization Act. Section 1609, one of the shorter sections, updates the rules for how large prime contractors are able to meet their small business subcontracting goals.

The NDAA in effect rewrites rules originally derived under the Small Business Act designed to boost participation in federal contracts by small, disadvantaged, woman-owned, and veteran-owned businesses, as well as those located in designated highly-underutilized business zones.

Small business confidence rising in 2014

More small business owners are planning to add jobs and boost pay this year, according to the most recent Business Confidence Survey released by Insperity Inc.

Half of the respondents said they plan to add employees this year, up from just 26 percent in October, while only 3 percent say they expect more layoffs. Compensation metrics climbed as well with average compensation for the fourth quarter of 2013 up 2.9 percent from the year before among the 5,500 small- and medium-sized clients with Insperity.

“The small business community is taking a more positive approach to 2014 business plans according to our Business Confidence Survey responses and internal data,” says Paul J. Sarvadi, Insperity chairman and CEO. “Business owners and managers seem willing to hire more employees, increase wages and gear up for improved sales in spite of challenges like an uncertain economy and the Affordable Care Act.”

Another ObamaCare Delay for Some Small Businesses

Small-business owners got a bit of reprieve from the Treasury Department and the Internal Revenue Service Monday, as the employer responsibility provision of the Affordable Care Act saw yet another delay.

Businesses with between 50 and 99 employees will not have to comply with the employer mandate portion of President Obama’s signature legislation until 2016. The law requires every business with at least 50 or more full-time workers to offer them approved coverage or face a penalty of $2,000 per worker per year for failing to comply. For companies with 100 or more full-timers, this mandate kicks in in 2015.

The government says it is delaying the move to “streamline” tax reporting requirements for  businesses. The departments said in a release that the delay will impact only about 2% of employers nationally. In 2011, there were 7,876,979 small businesses that fell into this category, according to the Small Business Administration.

Filed Under: Ohio Business News Tagged With: , , , ,

Financial News For The Small Business Owner

February 6, 2014 by

business (5)According to the ADP National Employment Reports small business created 78,000 jobs in January. The highest employment contribution among small businesses was from businesses with less than 20 employees and that accounted for 56% of the employment contribution growth. Analysts as well as small business entrepreneurs are eager to begin the New Year with great news about the economy.  Follow the links to read more about financial news and Obamacare.

What small business owners should know about the new Obamacare report

Despite some media reports, the health care law isn’t killing 2.5 million jobs.

Congressional budget analysts on Tuesday released revised estimates concerning the economic footprint of the health care law, spawning another round of headlines declaring that Obamacare will take a massive bite out of workers’ hours and eliminate millions of jobs.

Thing is, that’s not what the report said at all. In fact, the nonpartisan group’s predictions actually refute some of the warnings from small business leaders — namely, that the law will force employers to trim hours for their current workers and think twice about hiring new ones.

Still, there are some other areas of the law that the group says may indeed have unwanted side effects for companies.

Bank of America boosts small business lending as it hires even more bankers

Bank of America said Tuesday that it made almost $11 billion in new loans to U.S. small businesses in 2013. The bank also plans to hire 200 small business bankers this year, many on the West Coast.

The bank’s pace of small business lending last year was up 26 percent over 2012. California’s largest bank has seen small business loan originations rise every month on a year-over-year basis for the past three years. That may reflect the bank’s initiative to hire 1,000 small business bankers that began in late 2010.

Emily Shanks, BofA’s small business banking region executive for the West, based in Concord, told the San Francisco Business Times in May 2012 that the hiring, which included 31 small business bankers in the Bay Area up to that point, allowed for more face-to-face meetings between bankers and small business owners at their place of business.

When counting both new and renewing financing, BofA’s small business lending exceeds $22 billion.

GroupMe Founder Gets $3.4M to Make Small Business Loans More Accessible With Fundera

In the past five years, the number of bank loans under $1 million has dropped by more than 20 percent. This puts small business owners, arguably the driving force of our economy, at a severe disadvantage when it comes to starting a business.

But Jared Hecht, co-founder of startup success story GroupMe, alongside cofounders Rohan Deshpande and Andres Moran, is today launching a totally new service called Fundera, built specifically to facilitate small business funding through alternative lending.

Fundera has received a total of $3.4 million in funding from Khosla, First Round Capital, Lerer Ventures, SV Angel, and various angel investors including Strauss Zelnick, Rob Wiesenthal, David Rosenblatt, and David Tisch.

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Retirement Plans For The Small Business Owner

January 28, 2014 by

business (11)There is an overabundance of retirement financial groups all over the United States. For a small business owner a retirement solution for them and their employees is necessary and much needed. What are the retirement options a small business owner can have? The options are many according to financial planners all over the United States, the option is up to you and what you want to accomplished by retirement age.

Follow the links below for more information about this topic.

Retirement plans for small business owners

There are a lot of choices so figuring out what you need is crucial to ending up with the best strategy.

Americans ages 55 to 64 are fast becoming entrepreneurs. In fact, the share of new entrepreneurs in that age group grew from 14.3% to 23.4% from 1996 to 2012, according to the 2013 Kauffman Index of Entrepreneurial Activity.

And if you’re among that group of entrepreneurs who are trying to save for retirement while building your business there’s a plethora of plans from which to choose, including SEP-IRAs, SIMPLE-IRAs, SIMPLE 401(k)s, small-business owner 401(k)s, traditional 401(k)s, money purchase plans, profit-sharing plans, and defined benefit plans.

But which retirement plan might be best for you?

Small Business Administration Committing More Cash to SBIC Program

The U.S. Small Business Administration, which provides capital to private investment funds to back small businesses through its Small Business Investment Company program, is opening its wallet a bit wider these days.

The SBA plans to increase its annual commitment to the SBIC program to $4 billion, up from $3 billion, said Javier Saade, associate administrator for the Office of Investment and Innovation of the SBA. Launched in 1958, the SBIC program is designed to help private investment firms augment capital raised from private sources to back small businesses. A popular format of the SBIC program calls for the administration to match each dollar of equity capital that funds receive from private investors with two dollars of public funding in the form of debt.

Another Sign Your Next Small Business Loan Won’t Come From a Bank

Here’s more evidence of the growing market for alternative small business loans: OnDeck, an online lender that makes term loans up to $250,000, generated $65 million in revenue in 2013, Chief Executive Officer Noah Breslow said yesterday. He noted that’s up two and a half times from the year before. The increase comes after a report earlier this year estimating that nonbank lenders including OnDeck loaned about $3 billion to small business owners in 2013.

In a press release today, OnDeck said it received four times as many loan requests from residential construction contractors in 2013 compared with the year before, echoing research from Experian (EXPN:LN) and Moody’s Analytics (MCO) that’s highlighted a connection between rebounding housing markets and small business growth.

Filed Under: Ohio Business News Tagged With: , , , ,
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