Business Information for Entrepreneurs by an Entrepreneur

Are you a small business owner struggling in the flailing economy? You, like many other small business owners, can get help as a result from the Small Business Financing and Investment Act of 2009.

Also known as the "Small Business Bailout Act," this much-needed funding was a welcome relief to many business owners who watched as corporate giants such as AIG, JP Morgan, and dozens of national banks received billions in bailout funds. Now, $44 billion has become available for small business owners like you to help keep your business afloat and sustainable for the future.

How does this money help?

• Loan Guarantees - You can apply for business loans with a guarantee from the Small Business Administration. With loan guarantees, you are more likely to get approval for loans from your bank or financing company. Get startup loans, micro-loans, and other low-interest loans that will put much-needed cash capital back into your business.

• Save jobs - You now have access to capital to keep your business going without laying off workers. In times of economic trouble, companies tend to lay off employees in order to reduce expenses. However, how can your business grow when you have fewer workers? Keep your employees and help the unemployment rate through the funding allocated in the new act.

• Government Grants - Apply for government grants that you do not have to pay back at all. Grants are available for your business to convert to "green" technology and sustainability, to make improvements to your community, for research, or even to hire and train new employees.

The new bailout for small business is about choices. The money set aside for this bill is a way for business owners to have better options of staying alive and fruitful in a troubled economy. The small business bailout money is expected to create or save 1.3 million jobs each year.

Don't let your small business dwindle and fail due to the recession. Now small business owners have options. Get the financial help you need by talking to your local chapter of the SBA and applying for loans and grants that will sustain your business.

Since the global recession officially began in December of 2007, thousands of small businesses have filed for bankruptcy. Indeed, economic times have been tough, and sometimes the only resort for small business owners is to shutter their doors.

However, there is good news on the horizon! Small business bankruptcy analysis performed in September 2009 by Equifax is showing that there are locations in American where bankruptcy is fast receding.

East Coast Recovering Faster than the West

While western states are still having a tough time and bankruptcies continue to rise, more and more eastern cities are showing improvement. From the second fiscal quarter to the end of the third fiscal quarter of 2009, Charlotte, NC saw a 69 percent drop in bankruptcies. Other cities with dramatic decreases were White Plains, NY with 49 percent and Atlanta, GA with 44 percent.

In addition, Equifax reported the top 15 cities with the fewest bankruptcies. All but two cities were located in Eastern states, such as New York, New Jersey, Massachusetts, Pennsylvania, Virginia, West Virginia, North Carolina, Georgia, Ohio, Michigan, and Florida.

The Future of Bankruptcies across the Country

The study and statistics included small businesses defined as commercial entities with less than 100 employees. It is estimated that more than 25 million small businesses operate in the United States. Of those 25 million, 9,361 filed for bankruptcy in September of 2009 alone, which is up 27 percent from 7,386 in September 2008.

However, the recovery effort is underway. In addition, with the Small Business Bailout passed by Congress, small business owners are finding ways to keep afloat. Small business loans, micro-loans, grants, and other financial aid are available to help business owners remain viable while the economy continues to try to improve. Over $60 billion has been set aside for small business owners.

The government is hoping that the bailout will help save or create 1.3 million jobs per year. Although bankruptcies continue to rise today, the hope is to help reduce the number of bankruptcies quarter after quarter. If you own a small business that is on the verge of bankruptcy, don't become a statistic. Get help from your local SBA today and find out how you can prevent bankruptcy.

According to the 2009 National Small Business Cybersecurity Study, you are most likely not adequately prepared for internet security. The study was co-sponsored by the National Cyber Security Alliance (NCSA) and Symantec and included responses from over 1,500 small business owners from around the United States.

The statistics show that most small businesses do consider internet information security a priority, even though 65 percent of respondents said that internet and internet communication was critical to their success. Here is a sample of the valuable information handled and stored via the internet:

• Customer data 65%
• Financial records 43%
• Credit Card info 33%
• Intellectual property 20%

Yet, surprisingly few small business owners do anything about cyber security. Only 28 percent of American small businesses have any type of internet security policy in place. Only 35 percent of small businesses even provide training to their employees about internet security and safety. And an astounding 86 percent of small businesses do not have an employee dedicated and focused on Information Technology security.

These numbers are startling - especially considering that there are over 20 million small businesses operating in the United States. A breach in internet security can lead to extreme losses of vital customer and company data.

How can you improve your internet security policies? Here's a start:

• Check for viruses and malware at least once a week. 9 out of 10 small business owners thought they were safe from viruses, but only 53 percent checked their computers on a weekly basis. Check that your spyware and anti-virus software is updated at least once a week.

• Back up files. This cannot be stressed enough. Always back up your important data. Good business practice means backing up your critical data on a daily basis.

• Use strong passwords. Internet hackers are surprisingly resourceful. Make sure that all your passwords are changed frequently, and use authentication technology. Passwords should be at least eight characters and include both letters and numbers or symbols.

Don't let your business become a security risk for your customers or your important business data. Make sure you employ strong cyber security policies that ensure the integrity of your computer data and reduce your risk of becoming a cyber target.