How Does the New Stimulus Package Affect You?



Like the CARES Act, the newest stimulus bill has brought significant changes not only to entrepreneurs but individuals, too. While some relief is immediate, some updates last through 2022. As with any new tax opportunity, it’s crucial to examine each and determine how you can maximize them. Here’s how the new bill will affect you.

Changes for entrepreneurs

The bill provided many changes to the Paycheck Protection Program. One of the biggest is that PPP expenses are now tax-deductible, and the forgiven loan is still not taxable income. However, small business owners need to do the due diligence to confirm if their state plans to follow suit. Not all states conform to Federal Tax Law, so it’s likely that states that need tax dollars (like California or New York) won’t conform. Business owners in those states should plan on higher state taxes this year.

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January 22, 2021 |

The financial outlook for the Hispanic small business community in 2021


Source: CNBC

Often hailed for higher-than-average rates of entrepreneurialism and new business formation, the Latino community has been struck particularly hard by the Covid-19 crisis.

The Stanford Latino Entrepreneurship Initiative reported in May that 86% of Latino business owners had felt immediate negative impacts from Covid, a rate higher than other ethnic groups. Help was also harder to come by for Latino business owners, who had less cash on hand when requesting Covid assistance in the form of PPP loans, and were only half as likely as their White counterparts to receive the federal loans.

Still, the pandemic tells only half the tale of where Hispanic businesses stand today, because prior to the crisis, Latino entrepreneurs were making great strides — increasing their funding, improving their credit, and their revenue growth. That means that there is underlying strength in the Latino business community that can help in their emergence from the ravages of Covid-19.

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December 12, 2020 |

Beloved businesses are going bankrupt waiting for federal help


Source: NBC News

Last Friday, as Americans waited to learn who their next president would be, Debbe Andrews-Lewis of Lincoln, Nebraska, knew her life was about to change either way. At the end of the day, she would lose her boutique, The Funky Sister.

She had built it from scratch to honor her late husband’s memory — they had always wanted to run a store together in retirement. She found quick success selling antiques and oddball items, which allowed her to expand the business and hire her daughter, who took her young son to work every day.

But then the Covid-19 pandemic hit, shuttering the store for two months last spring. When Andrews-Lewis reopened, a loan from the Paycheck Protection Program — part of the emergency relief bill passed by Congress in March and signed into law by President Donald Trump — covered only a brief stretch of her daughter’s salary.

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November 13, 2020 |

PayPal Invests $50 Million in Black and LatinX-led Venture Capital Funds


Source: Black Enterprise

Earlier this year, BLACK ENTERPRISE reported that PayPal had committed over $500 million toward advancing social change and closing the racial wealth gap within the United States. This week, as part of its commitment, the tech giant has announced that it will invest $50 million into early-stage venture capital funds for Black and Latinx businesses.

The investment will be distributed between eight Black and Latinx-led venture capital funds, including Chingona Ventures, Harlem Capital, Precursor Ventures, Zeal Capital Partners, Slauson & Co., and the Fearless Fund, and another fund that was not named.

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October 28, 2020 |

How Do SBA Coronavirus (COVID-19) Loans Work?


Source: Lendio

As the coronavirus (COVID-19) pandemic continues to spread, the federal government has allocated resources to support small businesses through economic hardship and hopefully restore some of the jobs lost (now at 9.6 million people according to the latest jobs reports) as a result of mass stay-at-home orders and business closures.

Given how quickly the rollout has come—and how many changes have happened along the way—many small business owners have been left scratching their heads, saying, “Wait a second, how do these SBA coronavirus loans work, and will my business even qualify?”

Great question. Let us answer it.

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April 5, 2020 |

Small businesses, slammed by coronavirus, plead for quick help


Source: Politico

U.S. lawmakers are moving to give a cash infusion to small businesses that have been hammered by the economic fallout from the coronavirus pandemic, but the industry is already sounding the alarm that it won’t be enough.

The $349 billion contained in the Senate version of the stimulus package — which stalled in Congress on Sunday — would guarantee private-sector loans to companies through the Small Business Administration, freeing up more funds for outfits struggling to keep their head above water as revenue evaporates.

But small-business owners and trade groups warn that the money is probably not sufficient and that it’s not likely to get to those most in need fast enough. Others wonder whether enough help can be distributed to a sector that’s so vulnerable because so many businesses have no cash cushion.

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March 25, 2020 |

13 Best Small Business Grants for Women


Source: Nav

Women are a core pillar in business, but in far too many cases women face inordinate challenges and find themselves behind their male counterparts based on several measures when it comes to business ownership and incomes. While there are many incredibly successful female entrepreneurs that come to mind when discussing women in business, women remain underrepresented at the workplace and often earn less than their male counterparts for the same work.

Business owners already struggle to qualify for business loans or other forms of financing as they try to build business credit and build their businesses, and women business owners moreso. When loans are tough to come by, money can be in short supply and small businesses struggle.

These 13 grants are doing something to solve that problem. If you are a woman looking to start or grow a business, these small business grants for women and other resources may be just what you need to get to the next level.

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February 10, 2020 |

Widening Borrower Protection’s Scope To SMBs


Source: PYMNTS

Borrower protection initiatives have taken aim at predatory lenders, both online and brick-and-mortar, with legislators at the state and federal levels addressing concerns that include a lack of transparency and sky-high fees and interest rates.

But only recently have these efforts begun to gradually turn toward small business borrowers, too.

Last month, reports in The Wall Street Journal, citing Federal Reserve data, found that nearly one-third of U.S. small businesses had sought a loan online, compared to just 19 percent that did so in 2017. As online lending platforms proliferate among the SMB borrowing community, however, experts warn that a lack of regulation means these companies rarely publicly reveal interest rates and fees.

As the publication noted, Opportunity Fund recently dug into the numbers and found that the average interest rate among 150 online small business loan contracts is 94 percent, with one rate topping 358 percent.

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January 30, 2020 |

5 Things Banks Look For In A Business Plan

Business Journals | LoanNEXXUS

Source: American City Business Journal – Boston

When it comes to securing a commercial loan, business plans aren’t only for startups. Bankers want just as much information from an established business as they do from a new company.

You will have to demonstrate that you and your business qualify for a loan. Doing so will require you to present a story that is both compelling and complete.

“We want to hear the good, the bad and the ugly,” said David Bennett, senior vice president of business banking at Middlesex Savings Bank. “We may be able to help by connecting the business with mentoring partnerships like SCORE and the Small Business Development Center network.”

“Middlesex works so closely with its customers that its bankers might be considered part of the customer’s team of advisors, along with CPAs, attorneys, and insurance agents,” Bennett said.

“We can help them grow their company and ease their cash flow concerns. A lot of times they don’t have a team in place to help solve important issues,” he said.

A bank’s ability to help a business stems largely from the initial meeting with a client.

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December 1, 2019 |

When Venture Funding Becomes A Pipe Dream, Entrepreneurs Looks To Loans

Forbes | LoanNEXXUS

Source: Forbes

Kevin Banahan operated his Brooklyn-based skateboarding academy as a side gig for years, renting space from another business. Eventually, he and his partner decided the academy had grown strong enough to merit its own location.

When Banahan’s local bank wouldn’t grant him a loan to establish a physical space for SKATEYOGI, due to his lack of collateral, he applied for financing through Lendio’s marketplace. Banahan received a loan of about $35,000 from American Express that was based on his business credit card sales.

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November 25, 2019 |
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