January/February 2011 SBA Advocate Newsletter | SBA


Release Date: February 2011

Volume 30, number 1

The Small Business Advocate is a periodic newsletter that details economic developments and regulatory trends related to small business as well as the latest initiatives of the Small Business Administration’s Office of Advocacy.

In This Issue

Executive Order 13563 to Improve Regulatory Review, 1

Text of E.O. 13563, 6-7

OSHA Withdraws Two Rules, 1

Startup America Launched, 2

Rodgers Appointed Deputy Chief Counsel, 11

New Advocacy Staff, 11

Message from the Chief Counsel

Small Business Talks; Advocacy Listens, 3

Research Notes

Small Business Economy Released, 2

Legislative Focus

Freshmen Senators Schooled in Small Business Values, 4

Regional Report

Nine Regional Advocates in Place, 8-10

Regulatory News

IRS Modifies PTIN Rule, 12

Financial Rule Delayed, 5

Major Clark Receives Public Service Award, 5

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SBA Loan Guarantees – New Equity Injection Rule

With the release of the SOP 50 10 5(C), which goes into effect on October 1, 2010, the SBA has revised the SOP to provide a specific list of documents required to be obtained by a Lender as adequate proof of equity injection. The requirements to document a cash equity injection are as follows:

1. A copy of a check or wire transfer along with evidence that the check or wire was processed showing the funds were moved into the borrower’s account or escrow;

2. A copy of the statements of account for the account from which the funds are being withdrawn for each of the two most recent months prior to disbursement showing that the funds were available; and

3. A subsequent statement of the borrower’s account showing that the funds were deposited or a copy of an escrow settlement statement showing the use of the cash.
Continue reading “SBA Loan Guarantees – New Equity Injection Rule”

Y Combinator, TechStars: Investor Mentorship and Leverage Outweigh Capital | Fast Company

“You’re starting to see a trend of investors having to work harder to convince founders that they should be able to invest in that company,” he explains. “There is very much early-stage capital available for startups–many are getting involved in angel investing, and lots of traditional VCs are too. Founders are now asking investors, What are you going to do? Why should I take your money over the other angels? On a day-to-day basis, why is having you in my company going to be a good thing? These are questions that people never asked before.”

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Small Business Dashboard | U.S. Department of Energy – Office of Economic Impact and Diversity

Transparency, Accuracy, and the Small Business Dashboard

With small businesses creating two out of every three net new jobs, holding more patents than the largest corporations and universities combined, and employing half of all working Americans, we can’t afford to ignore opportunities to improve and advance federal contracting opportunities to small businesses.

Today President Obama’s Interagency Task Force on Federal Contracting Opportunities for Small Businesses put forward thirteen recommendations to:

  • Develop clearer and more comprehensive small business contracting policies;
  • Provide for a better workforce and hold agencies accountable for meeting small business goals; and
  • Leverage technology to enhance transparency, increase federal procurement accessibility for small businesses, and improve data quality.

Transparency, Accuracy, and the Small Business Dashboard

Read the Executive Summary here.

Small business contracting goals, started in 1978, help agencies map out the percentage of annual prime contract spending that should be awarded to small businesses every year. The thirteen recommendations that the Interagency Task Force put forward today will address the gap between the annual government-wide goal for contracting and the actual annual prime contract spending. While the Department of Energy received an “A” grade for FY 2009 achievement from the Small Business Administration, we are fully committed to improving government-wide small business contracting.

The brand-new Small Business Dashboard is a reflection of this commitment. On the Small Business Dashboard visitors can see government-wide goaling information, design their own data feeds from small business data, perform detailed searches on government contractors, view top types of contracts used and states by vendor locations, and learn more about the contracts at each Federal agency.

Visit the Small Business Dashboard here.

The Department of Energy’s Office of Small and Disadvantaged Business Utilization is looking forward to working with the Task Force as we implement the recommendations put forward today and evaluate progress. We hope resources like the Small Business Dashboard prove useful to your small business, and we welcome the opportunity to continue talking with you.

How Goldman gambled on starvation | Johann Hari – The Independent

Goldman Sachs must die:

At the end of 2006, food prices across the world started to rise, suddenly and stratospherically. Within a year, the price of wheat had shot up by 80 per cent, maize by 90 per cent, rice by 320 per cent. In a global jolt of hunger, 200 million people – mostly children – couldn’t afford to get food any more, and sank into malnutrition or starvation. There were riots in more than 30 countries, and at least one government was violently overthrown. Then, in spring 2008, prices just as mysteriously fell back to their previous level. Jean Ziegler, the UN Special Rapporteur on the Right to Food, calls it “a silent mass murder”, entirely due to “man-made actions.”

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