A Grapevine of Current Info

The Small Business Economy: 2006

A new report issued by the Office of Advocacy of the U.S. Small Business Administration, "The Small Business Economy for Data Year 2005" examines the economic contributions of small business using data from a variety of sources. The report released before the National Economists Club in Washington, D.C, highlights some of the following:

• Business borrowing in 2005 was at an all-time high, and commercial banks expanded lending and eased lending standards in response to competition from non-bank lenders.
• Women’s contribution to business, using multiple data sources, the most recent show that women owned 6.5 million, or 28.2 percent, of non-farm firms. These firms employed 7.1 million workers with $173.7 billion in annual payroll.
• Three economic indicators key to an analysis of the economy’s performance—output, productivity, and unemployment—were up. To obtain a copy of the report visit: http://www.sba.gov/advo/research/sb_econ2006.pdf, and the research summary at http://www.sba.gov/advo/research/rs286.pdf. Should you need further information, please feel free to contact Chad Moutray at (202) 205-6533 or advocacy@sba.gov .

Regional Asset Indicators

The Federal Reserve Bank of Kansas City has recently unveiled an excellent resource to assess regional innovation and entrepreneurship assets. The web site hosts a variety of interesting tools for judging how your region is performing on key economic and demographic factors. It includes spreadsheets and maps that track important categories such as innovation, creative workforce, human amenities, wealth, infrastructure, and entrepreneurship. It also includes useful articles providing further information on each of the indicator categories. To access the Federal Reserve Bank of Kansas City’s Regional Asset Indicators web page, visit http://www.kansascityfed.org/ RuralCenter/Indicators/Indicators_main.htm.

New IRS Fact Sheet on Depreciation of Business Property

The IRS has recently issued a new fact sheet relating to the depreciation of business property. You may find this information useful in working with your clients. This fact sheet can be found at http://www.irs.gov/newsroom/ article/0,,id=164589,00.html

Small Business Advocate Newsletter

The latest issue of the SBA Small Business Advocate Newsletter for November 2006 can be found by clicking on http://www.sba.gov/advo/nov06newsletter.pdf The November issue of the Small Business Advocate highlights efforts to simplify regulatory compliance at the state and federal levels.

Grant Opportunities

National Trust Grants Encourage Preservation

The National Trust for Historic Preservation is currently accepting grant applications from nonprofit organizations and public agencies for four grant programs: the Johanna Favrot Fund for Historic Preservation, the Cynthia Woods Mitchell Fund for Historic Interiors, the Jeffris Family Foundation Preservation Fund for Wisconsin, and the Hart Family Fund for Small Towns (less than 5,000 in population). All four grant programs have a February 1, 2007, postmark deadline.

National Trust grants are designed to encourage preservation at the local level by providing seed money for preservation projects focused on preservation planning or education efforts. Support is offered for obtaining professional expertise in areas such as architecture, archeology, engineering, preservation planning and fundraising. Grant funds may also be used to support preservation education activities. Grants range from $500 to $10,000. In addition to nonprofit organizations and public agencies, individuals and for-profit businesses may receive grants from the Favrot and Mitchell funds if the project for which funding is requested involves a National Historic Landmark. For further information, please call the Midwest Office at 312-939-5547 or email to mwro@nthp.org.

Donnelley Preservation Fund Grant

The next grant round application deadline February 1, 2007.

This fund provides nonprofit organizations and public agencies matching grants from $500 to $5,000 (typically from $3,000 to $5,000) for preservation planning, education and fundraising efforts. Funds may be used to obtain professional expertise in areas such as architecture, archeology, engineering, preservation planning, land-use planning, fundraising, organizational development and law, as well as preservation education activities to educate the public.

Many organizations have found that grants from our Preservation Fund provided the crucial boost to get a project off the ground and solicit matching funds from other sources.

If you have any questions or would like to discuss a potential project, please contact Chris Morris, Illinois Program Officer at 312.939.5547 x231 or christina_morris@nthp.org. She can work with you to determine if your project is
eligible for the grant, assist with the application process, and review draft applications.

Aiding Small Business Federal Subcontracting Programs

The Government's Role in Aiding Small Business Federal Subcontracting Programs in the United States was authored by Major Clark III, Chad Moutray, and Radwan Saade from the Office of Advocacy. The study discusses the importance of the small business sector to the overall economy and the policy framework for the federal government's involvement in requiring federal prime contractors to subcontract with small businesses. It examines the policy from 1958 to the present; and discusses steps needed to improve the American small business subcontracting program to accommodate greater participation by these businesses in new and emerging global markets.

To obtain a copy, visit: http://www.sba.gov/advo/research/rs281tot.pdf . The research summary is located at: http://www.sba.gov/advo/research/rs281.pdf . Should you need further information regarding this report, please feel free to contact Major Clark at: advocacy@sba.gov or (202) 205-6533.

New Markets Tax Credit Pilot Loan

On October 4, 2006, SBA published a notice in the Federal Register announcing the New Markets Tax Credit (NMTC) Pilot Loan Program. Under this Program, certain Community Development Entities will be able to purchase a participation interest in a SBAExpress or Community Express 7(a) loan up to 90 percent of the gross loan amount as part of their investment in low-income communities under the New Markets Tax Credit Program administered by the U.S. Department of Treasury. You may access the entire text of the Federal Register notice at www.access.gpo.gov/su_docs/fedreg/frcont06.html. For information on the New Markets Tax Credit Program please contact the US Department of the Treasury, CDFI Fund at http://www.cdfifund.gov/.