Latest Business News

At a Federal Reserve conference in Washington this week, Fed Chairman Ben Bernanke called upon banks to increase their lending to small businesses.

“Making credit accessible to sound small businesses is crucial to our economic recovery,” said Bernanke, a vocal proponent of loosening credit for smaller companies.

While many big firms are flush with cash and are expected to report strong profits during earnings season, smaller businesses have struggled to secure the loans they need to expand and hire.

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Microsoft introduces new, easy to use website creation software

Microsoft recently made small business technology news by announcing that it was testing a website development tool-set in order to help design websites.

The WebMatrix, which is now available for download on Microsoft’s website, will be able to create sites in a fast and easily maintainable way, according to Small Business Computing.

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This year’s federal income tax rate is highly favorable to small businesses. If your company pays you a dividend in 2010, the maximum federal income tax rate will be only 15%. Likewise, 2010 corporate payouts or stock sales that generate long-term capital gains will be subject to a maximum 15% federal tax rate.

Those rates are set to expire after this year. Wall Street Journal columnist Bill Bischoff suggests three ways to take advantage of these low tax rates.

• Take Low-Taxed Dividends This Year
  If your profitable C corporation has a healthy amount of earnings and profits (or E&P), shareholders should consider taking dividends this year, instead of risking a bigger (though deferred) tax hit down the road.

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Elizabeth Echols was recently named SBA Administrator in Region.

There is breaking news for entrepreneurs – the U.S. Small Business Administration recently announced a new addition to its west coast operation.

Overseeing the SBA in California, Nevada, Arizona, Hawaii and Guam will be Elizabeth Echols, who was recently named Regional Administrator in Region IX. In making the announcement, SBA Administrator Karen G. Mills spoke of Echols’ impressive record in public service.

“Both the SBA and small businesses of the region will benefit greatly from Elizabeth?s career in public service and commitment to innovation and business development,” said Mills.

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The conviction that the ‘trade creditor’ would come to the rescue and fund businesses may no longer be the case. Trade creditors are now scrutinizing their credit applicants. While banks just make up about 20% of the short term credit for small businesses, the other suppliers make up the rest (surveyed by Credit Research Foundation, a trade group in Columbia, MD). But with banks showing more friction towards lending, small companies have their eyes fixed on private creditors for loans. They are also pressing vendors for more time to make their bill payments and also asking for loans so that they can keep afloat until they receive payments from their clients.

“Small businesses have been forced to reach out to trade creditors and begin to utilize them as bankers,” says Lyle P.

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