One Month Left for Arkansas Nonprofits to Apply for SBA Disaster Loans

FROM THE SBA:

SACRAMENTO, Calif. – Director Tanya N. Garfield of the U.S. Small Business Administration’s Disaster Field Operations Center-West today reminded Arkansas private nonprofit organizations of the Aug. 14, 2017, deadline to apply for an SBA federal disaster loan for property damage caused by severe storms, tornadoes, straight-line winds and flooding that occurred April 26 – May 19, 2017. Private nonprofits that provide essential services of a governmental nature are eligible for assistance.

According to Garfield, eligible private nonprofits of any size may apply for SBA federal disaster loans of up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. SBA can also lend additional funds to help with the cost of making improvements that protect, prevent or minimize the same type of disaster damage from occurring in the future.

In addition, SBA offers Economic Injury Disaster Loans to help eligible private nonprofits meet working capital needs caused by the disaster. Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. Economic injury assistance is available regardless of whether the private nonprofit suffered any property damage. Private nonprofits have until March 15, 2018, to apply for an SBA Economic Injury Disaster Loan.

SBA low-interest federal disaster loans are available in Baxter, Benton, Boone, Carroll, Clay, Cleburne, Conway, Craighead, Cross, Faulkner, Independence, Izard, Jackson, Lawrence, Madison, Marion, Mississippi, Montgomery, Newton, Ouachita, Perry, Poinsett, Prairie, Randolph, Saline, Washington, White and Woodruff counties.

The interest rate is 2.5 percent with terms up to 30 years. Loan amounts and terms are set by SBA and based on each applicant’s financial condition.

Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. Individuals who are deaf or hard of hearing may call (800) 877-8339. Completed applications should be mailed to U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX  76155.

What is An EIN and Why Is It Important?

By Debby Winters

If you are the owner of a small business and you haven’t checked out the SBA, you definitely need to. Here’s an informative article from them on EIN. Do you know what is it? Do you know why it is important? If you answered “NO” to either then read on. The entire article appears on the SBA website.

What does EIN stand for? Employer Identification Number

Where does a business get an EIN? from the IRS

Who needs an EIN? Every business that needs to open a business bank account, apply for business licenses, or file tax returns. It’s helpful to apply for one as soon as you start planning your business. This will ensure there are no delays in getting the appropriate licenses or financing that you may need to operate.

How do you apply for an EIN?  The simplest way to apply for your EIN is online via the IRS EIN Assistant. As soon as your application is complete and validated, you’ll be issued an EIN.

How much does it cost?  There is no charge for this service.

Check out the SBA website for more information on small business.

3 Things You Mustn’t Do When Buying A Franchise

By FranchiseKing, Guest Blogger for the SBA

Published: March 15, 2016Updated: March 15, 2016

Sometimes I feel that I fall short in my quest to save you from potentially experiencing financial pain with regards to franchise ownership.

I’ve been writing a monthly article about franchising here for almost 6 years. I provide tips and advice based on my real-life experiences in franchising. I’ve been in franchise management, I’ve owned a franchise, and I’ve sold franchises. I know what works and I know what doesn’t. My main goal here and in my franchise consulting practice, is to provide helpful information. Information you can use to lower your financial risk (if you decide to become a franchise owner) while increasing your chances of success. Am I succeeding? I hope so.

3 Franchise Tips From A Different Angle

Sometimes, it pays to look at things from a different angle.

So, instead of offering tips on what you need to do when buying a franchise, I’m going to share 3 tips on what you mustn’t do when buying a franchise. I think you’ll find them to be helpful.

1. You mustn’t dismiss the impact of your potential decision on your family

Your immediate family is going to be impacted (big-time) if you decide to buy and run a franchise business. This is serious stuff; you need to treat it as such. Here’s how:

Schedule a formal meeting with your immediate family members.

During this meeting, share the reasons why you’re thinking of going this route. Tell them that you’re going to learn all you can about franchising. Be honest about the financial risk associated with going into business. Ask them about their concerns. If they’re frightened about your idea, be empathetic. Ask them what you can do to alleviate their fears. Do whatever it takes to get them in your court.

2. You mustn’t be cheap

You may be about to invest $150,000 (or more) in a franchise business. It’s a lot of money. A few hundred dollars here and there (in comparison) is not. Don’t be afraid to spend your money on…

A. A Business Plan for Your Franchise

If you’re planning on getting a small business loan for your franchise business, the way to up your chances of getting it approved is by submitting a detailed business plan with your loan application. Check out this video series on business plan creation.

If you’re knowledgeable about business plan writing, you may be able to put your business plan together yourself, for free. If you’re not, consider purchasing business planning software to help you put together a customized business plan.

B. Professionals

You should hire an accountant (preferable a CPA) who’s familiar with things like small business payroll, and small business taxation. A CPA can also help you setup the correct business entity for your specific situation.

You should also hire an attorney who’s familiar with franchising.

Today’s franchise attorney’s stay up on all the latest franchise laws, which is reason enough to hire one. In addition, a franchise attorney will need to go through all the documents you’ll be receiving from the franchisor-including the actual franchise contract.

3. You mustn’t skip the chance to visit headquarters

If the franchisor invites you to franchise headquarters for a day, book the trip. However, you should only book the trip if you’re getting real close to making a yes or no decision. Otherwise, it’s a waste of your time and theirs.

Spending a day at headquarters is your chance to meet face-to-face with the people you’ll be sending royalty checks to every month for the length of your franchise contract. Take advantage of your alone time with the CEO of the franchise by asking good questions. Try to spend a little time with each department. You’ll be able to see first-hand how they operate, and if you feel they’ll do a good job supporting your franchise business.

I hope you found this approach…my tips on a few of the things you mustn‘t do when buying a franchise, useful.