President Bush signed a bill last week to keep the Small Business Administration’s 504 loan program active, although the SBA’s other large loan program is still operating with restrictions.
Although the 504 loan program, which helps small firms acquire real estate and equipment, is run through fees, not money from Congress, the SBA needed the legislation to continue collecting the fees.
The SBA temporarily shut down its popular 7(a) loan program earlier this year due to a funding shortfall. The program has since restarted, but loans are capped at $750,000, down from $2 million, and the SBA no longer permits “piggyback” loan structures, in which a business uses the same real estate or equipment as collateral for more than one loan.
Sen. Olympia Snowe (R-Maine) set the wheels in motion to increase funding for the SBA by $121 million through an amendment to the final budget resolution.
Telecom fees, needs studied
A study has found that small businesses spend an average of $543 monthly on telecommunications services.
The Small Business Administration’s Office of Advocacy ordered the study to help legislators and regulators understand small businesses’ telecom needs.
“On issues like competition and broadband service the discussion has focused on individual consumers,” Thomas Sullivan, the office’s chief counsel, said in a news release. “This report will help policymakers understand how their decisions will affect innovative and job-generating small businesses.”
The report noted that the smallest businesses pay the most per employee for local and long-distance phone service. Firms with four or fewer employees pay $82.81 per worker, while businesses with between 10 and 499 employees pay $20.99 per worker.
Also, the report found that 73 percent of small firms have Internet access. Of those, 38 percent have dial-up access.
The report is available on the Office of Advocacy’s Web site at www.sba.gov/advo.
Chamber to host product showcase
The Chicagoland Chamber of Commerce will host a “marketplace bazaar” Wednesday at which firms from various industries can showcase products and seek new customers.
The event, called Exchange, has attracted hundreds of small- and medium-size firms in prior years.
Wednesday’s event will take place from 5 p.m. to 7 p.m. at the Hilton Chicago, 720 S. Michigan Ave. Monday is the last day for early registration, when tickets cost $20. The tickets are $35 at the door.
Registration is available by calling the chamber at (312) 494-6709 or online at www.chicagolandchamber.org.