National Small Business Week, which began on Sunday, April 29 and runs through Saturday, May 5, is a time to highlight the role small businesses play in our economy. Small businesses represent 99% of all employer firms and account for half of our nation’s jobs and economic output. Innovation by small businesses spurs growth throughout the entire economy and boosts prosperity in their local communities, and NSBW is an important time to celebrate these contributions.
When borrowing from family and friends is the only way to start or fund a business, the following steps can greatly reduce that risk. First, you must inform the person you’re borrowing from how much money you need, what you’ll use it for and how you’ll pay it back. Next, draw up the legal papers -- an agreement stating that the person will indeed put money into the business.
Optimism seems to be abound, economically at least, with a businessman heading for the White House. The Dow has risen and, despite vocal opposition from opponents on many of his decisions, President-elect Trump has been announcing job creation measures even before he has taken the oath of office. For Wall St. and Main St., exciting things are happening. Banks and FinTech companies are using technological advances to improve access to capital, which is the lifeblood for small business growth. These developments bode well for small businesses in search of capital in 2017.
When Judy Balint, the chief marketing officer at SmartBiz Loans, read a freelance article that her company’s president contributed to Entrepreneur.com last month, she was startled to see that a promotion for a rival lender had been added to the beginning — a lender with a partnership with Entrepreneur.
African-American-owned businesses are the backbone of their communities, major contributors to our growing economy, and sources of innovation and thought leadership -- not just in their industries but throughout our society. They also provide economic opportunity and stability to struggling minority communities. The problem is there are simply not enough of them.
Alternative lending arose from the financial crisis of 2008, in part, as a solution for business owners that were constantly getting turned down for capital. Some would say the industry has done a great job of helping small business owners, like mom-and-pop-shops, keep their doors open, while others remain a bit skeptical of online alternative lenders.
The Consumer Financial Protection Bureau (CFPB) has business lending in its sights thanks to an oft-forgotten mandate of the 2010 Dodd-Frank Act.
The agency is beginning preliminary work to implement Section 1071 of the law, which requires it to collect new data on the state of small-business lending, along with information about access to credit for women-owned and minority-owned businesses.