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News from SCORE Boston
May 2009

SCORE News
Greetings!
 
"I'm from the government and I'm here to help" ... not exactly what we are used to hearing but the new American Recovery and Reinvestment Act of 2009 and the SBA are actually putting some real benefits in place for small business.  Be it capital equipment tax benefits, revolving credit lines, business loans or other financial supports, the SBA is making it easier for small businesses to survive this extraordinary downturn.
 
Your Boston SCORE office can help you access these funds and navigate the SBA programs.  Call to set up a meeting today! 

10 Causeway St.
Suite 265
Boston, MA 02222
 
617-565-5591

scorenews@verizon.net


Looking For a Loan For Your Business?

SBA - Post Stimulus Package 

The American Recovery and Reinvestment Act (Stimulus Package) signed by President Obama in March 2009 should have a significant impact on small businesses during the current credit crunch. As a result of this act, the SBA has access to the following monies:
$375 million dollars for temporary fee reductions or eliminations on SBA loans and increased SBA guaranteed shares, up to 90% for certain loans.
$255 million for a new loan program to help small businesses meet existing debt payments.
$30 million for expanding SBA's Microloan program, enough to finance up to $50 million in new loans .
 
Applying for an SBA Loan introduced through the Economic Stimulus program is basically no different than before. The loan is not made through the SBA but by a traditional financial institution such as a local bank. The loan must be credit-worthy, which means that a business must demonstrate an ability to repay the loan out of the business operations. If a businesses' loan profile meets repayment criteria, but lacks sufficient collateral, is a start-up business, or otherwise does not meet the bank's normal requirements, then the bank may submit the loan application to the SBA for approval as an SBA guaranteed loan.
With a SBA Loan Guarantee, if the client defaults, the SBA will cover the bank's risk at up to 90% of the loan amount. This amount was formerly 75-85% prior to the stimulus package.  By increasing the guaranteed percentage and lowering the bank's risk, the new SBA Loan program hopes to encourage banks to make more small business loans.
Another important benefit to business borrowers is that the SBA has temporarily waived loan origination fees, which formerly represented 2% to 3.75% of the total loan value. Before this change, business borrowers would have had to pay a $6,000 fee for a $200,000 loan at a 3% origination fee rate. Under the recovery program, a business borrower does not have to pay this fee and can instead use these monies to further the business.
More information about these program changes can be found at http://www.sba.gov/recovery/
 
Additionally, the SBA has created a page on their website called 'Small Business Survival Resources'. This page contains links to valuable information and training that may help new businesses navigate through these turbulent economic times. Access this page

According to Anne Hunt, Lead Lender Relations Specialist in the Boston SBA office, their office has had their best two weeks of loan production in March after the signing of the stimulus package, and hopes to continue this success. For all the information you need, including a list of preferred Massachusetts lenders, go to the SBA Website or call the SBA at (617) 565-5590.
 
SCORE Spotlight on the Neponset Valley Chamber of Commerce
 
SCORE provides counseling at many Chamber of Commerce locations throughout the greater Boston area as well as at our Boston office and at the Kirstein Business Library.
The Neponset Valley Chamber of Commerce, located in Norwood, is a regional Chamber covering nine towns and cities including Norwood, Dedham, Canton, Sharon, and Westwood as well as other towns in the vicinity. More than 70% of the Chamber members are businesses of five or less employees.
To  meet the needs of their membership, the Chamber runs many events for its members covering business as well as political issues concerning the region. In April, State Treasurer Timothy Cahill spoke in their Spring speaker series, and in May the featured speaker was Congressman Barney Frank.
The Neponset Chamber offers both a Spring and Fall speaker series as well as networking breakfast meetings, a luncheon series, and Business After Hours events, and other annual events such as the signature 'Flavors of Neponset Valley Gala'.
For more information about the Neponset Chamber of Commerce, go to their website, or call the Chamber at (781)769-1126.
 
Spotlight on SCORE Business of the Year Award Recipients

Can a Casual Family Dinner Time Conversation Lead to a Business Idea?

In John Pandiscio's case, the answer was a resounding yes! He noticed how his wife's casual question to his two children elicited more conversation than he had ever heard from them over a typically busy dinner hour.
John initiated several more conversations with his kids incorporating the idea of games and rewards when they answered his questions with more than a yes or no. He started thinking about printing these games on bottles of catsup and milk - two staples that were always on his dinner table.
After John started talking to food product companies, he decided to initiate counseling sessions with SCORE. He met with SCORE counselor Jack Calkins who quickly suggested that working with a large food distributor would not be as productive as following his idea in another way.
John then thought about printing his dinnertime game ideas on laminated cards that could be stored in a small tin box - small enough to fit on the dining room table. Jack Calkins, and several other SCORE counselors worked with John on packaging ideas, and marketing strategies for several months before John found a manufacturer who could make up both his cards and the recipe-style tin box.
He contacted a manufacturer's representative in the toy industry who loved his idea and took some of his first run of 5,000 game boxes to a toy fair. The first day they sold eight stores, and within months had 80 stores carrying his products. Currently, he has four different dinner game products that are sold in over 1,000 stores and are shown in many toy catalogues.
John credits SCORE counseling with giving him both positive and negative feedback, and making sure that he could afford to support his family while he grew his business. To see more about John's Family Time Fun Dinner Time Games, go to his website.

How about you? Have you had any recent dinner conversations that would bring you to a SCORE counselor?

 

In This Issue
Looking For a Loan For Your Business?
Spotlight on the Neponset Valley Chamber of Commerce
Business of the Year Award Recipient
 
Upcoming Events

BUSINESS WORKSHOP 
 
June 11, 2009

Focusing on essential topics for new business owners, this tried and true one day workshop will cover a variety of topics including: cash flow management; marketing; entrepreneurship; and forms of business organization. An informal round-table discussion with SCORE counselors and other business owners will help you get greater clarity on your own business challenges.

See the panel below for further information and to register, or call SCORE Boston at 617-565-5591

Workshop Information
Thursday, June 11,  2009

8:45AM - 2:30PM

Tip O'Neil Federal Building,
10 Causeway Street, Boston

Fee:  $35 in advance

Click here to download a workshop registration form
 
 
 
 
 
 
 
 
Quick Links
 
 Quick Start Business Plan
 7 Start-up Tips
 May Toolkit: Accelerate your Launch!
 National SCORE Success Stories


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Brought to you by SCORE "Counselors to America's Small Business," a nonprofit association and resource partner with the U.S. Small Business Administration. SCORE is dedicated to entrepreneurship and the formation, growth and success of small businesses nationwide. Since 1964, SCORE has helped more than 8 million entrepreneurs.

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