Latest Headlines on OCRegister.com
[x] Close
Jan Norman on Small Business ~ News and practical tips for and by Orange County small business owners

Archive for the 'Finance' Category

« Previous Entries

IRS expands tax writeoffs for recession losses

November 24th, 2009, 12:00 pm by Jan Norman, small-business columnist

Almost any business that has lost money since Jan. 1, 2008, can apply that loss to federal tax returns for the past five years, under a new Internal Revenue Service procedure.

The change could mean a tax refund for these struggling businesses.

Previously, the loss applied only to small businesses. But the Worker, Homeownership and Business Assistance Act of 2009 extended what is called the “loss carryback option” to any taxpayer with business losses except those that received payments under the Troubled Asset Relief Program.

The business can apply a net operating loss for a period of three to five years. It can carry back a loss from operations for four or five years. That action can offset taxable income in those years.

The procedure applies to losses from Jan. 1, 2008 through Dec. 31, 2009. You should talk to your tax adviser about the procedure and whether to move some spending into 2009 to have a loss this year instead of in 2010.

Click here to read the new IRS procedure.

Other economy stories…

Posted in: Economy • Government rules • Taxes • Top posts • | Post a Comment »

Will you pay tax for online purchases?

November 23rd, 2009, 12:00 pm by Jan Norman, small-business columnist

Californians who buy gifts from online merchants in other states are supposed to report and pay use tax (same as sales shop-online-small1tax) on those purchases, the State Board of Equalization says.

The reminder is obviously timed as shoppers prepare for Black Friday (day after Thanksgiving) and Cyber Monday (Monday after Thanksgiving) two big sales day of the year.

Tell us what you will do then read on:

Will you pay the tax on out-of-state purchases
View Results

For in-state purchases, California relies on businesses to collect the sales tax (8.75% in all Orange County cities except La Habra where it’s 9.25%).

In fact the Board of Equalization is in the midst of a three-year campaign to catch retailers that don’t have proper sellers permits and haven’t been collecting and forwarding to the cash-strapped state coffers sales tax on stuff they sell.

But technically, the buyer owes the tax and is supposed to send a check for tax if the retailer doesn’t and that, of course, includes out-of-state retailers.

Here’s the Board of Equalization’s reminder:

Sales of many seasonal items, such as Christmas trees and firewood, are taxable. In addition, purchases of many holiday items, such as holiday cards and books, are taxable even when purchased from an out-of-state seller. Consumers are reminded that use tax is due on purchases they make from out-of-state retailers online — even if the retailer does not charge California tax.

Click here to read the entire press release.

Earlier this year, the legislature passed a law requiring businesses to register with the Board of Equalization to pay taxes on out-of-state purchases. The law is aimed at companies that make large purchases, such as machinery or inventory.

So far, the state is relying on individuals to cough up payment voluntarily without having to register.

Other business stories…

Posted in: Government rules • Poll • Taxes • Top posts • • • | 32 Comments »

Northern Cal. bank expands to O.C.

November 21st, 2009, 1:00 am by Jan Norman, small-business columnist

Fremont Bank, a community bank based in Northern California, is expanding into Southern California with its residential lending center in Aliso Viejo, which will open Dec. 1.

“With multiple Southern California community banks vanishing or being acquired by larger intuitions,

Fremont Bank fills a much needed void to provide residents with sound, traditional prime mortgage

lending,” says Brad Seibel, who will lead the new facility.

Click here to read the bank’s press release.

Other business stories…

Posted in: Banks • Top posts • • | Post a Comment »

Forbes drops list of top venture funds

November 19th, 2009, 1:00 am by Jan Norman, small-business columnist

More sobering news for the venture capital and media industries. Forbes has dropped it annual Midas 100 list of venture capital funds with highest returns for their investors,  peHUB reports.

Really a shame, given that 2010 would have been the year in which Google’s IPO would have no longer factored into the rankings.

Forbes’ Midas List is … considered the bible for VC bragging rights, with firms quick to send out indulgent press releases when one of their partners makes the cut.

Forbes has laid off staffers and made other cutbacks, shrinking its travel web site staff and closing its auto site.

Venture Beat adds that online network and conference company AlwaysOn has released its own list, the 2009 Venture Capital 100.

Other investing stories…

Posted in: Venture capital • • • | 1 Comment »

Sunwest Bank acquires, reopens failed bank

November 16th, 2009, 9:40 am by Jan Norman, small-business columnist

Pacific Coast National Bank of  San Clemente, which had received $4.1 million in federal TARP bailout funds, was sunwest-logoshut down Friday, and Tustin-based Sunwest Bank has acquired it and reopened it today, Nov. 16.

Pacific Coast, which had two branches, is the 123rd FDIC-insured institution to fail in the nation this year, and the 15th in California.

The Office of the Comptroller of the Currency closed Pacific Coast Bank on Nov. 13 and turned it over to the FDIC. The FDIC estimates that the cost to the Deposit Insurance Fund will be $27.4 million.

Pacific Coast is the third acquisition Sunwest has made this year.

“Sunwest Bank’s position as a strong, well-capitalized and highly liquid community bank has allowed us to make this third acquisition,” said Glenn Gray, president and CEO of Sunwest Bank. “With realistic lending parameters throughout a time when banks were making irrational loans, our stability gives us the opportunity to help the local businesses and entrepreneurs to grow and expand their businesses.” pacific-coast-logo

As of August 31, Pacific Coast Bank had total assets of $134.4 million and total deposits of approximately $130.9 million, according to the FDIC.  Sunwest Bank did not pay a premium to assume all of the deposits of Pacific Coast. In addition to assuming all of the deposits of the failed bank, Sunwest Bank agreed to purchase essentially all of the assets.

Pacific Coast customers can conduct business as usual, Gray said. Loan customers should continue to make their payments to Pacific Coast National Bank as usual.

Earlier this year, Sunwest acquired MetroPacific Bank of Irvine in June and the six-branch First State Bank of Flagstaff, Ariz., in September. Sunwest now has seven locations in California and six in Arizona.

Click here to read the FDIC’s information about Pacific Coast’s closure.

Other business stories…

Posted in: Banks • Economy • Meltdown • Top posts • • • | 1 Comment »

State sales-tax hunters target O.C. city

November 16th, 2009, 6:00 am by Jan Norman, small-business columnist

Garden Grove retailers are being targeted by the state in its search for unpaid sales taxes.cash-register-no-sale

Inspectors for the California State Board of Equalization sent letters on Nov. 13 to businesses in Garden Grove’s 92844 and 92845 ZIP codes and 11 other cities that its inspectors will visit their shops and other businesses.

Owners will have to show that their businesses have appropriate sales permits or licenses that allow for collection of sales and use tax as well as other taxes and fees, the board said.

This notification is part of an ongoing program to maximize tax collections at a time when the state budget has been in deficit.

So far, merchants in Santa Ana, Costa Mesa, Westminster and other ZIPs in Garden Grove have been visited by BOE inspectors. Statewide, inspection teams have visited 94,600 businesses.

Although the board has not released the results of the money hunt, an owner without proper licenses could be fined up to $1,000 and have to spend six months in jail, plus have to pay all back taxes and face regular audits in the future.

Based on a pilot program, the board estimates that more than 3% of businesses operating in California lack the appropriate permits and fail to collect and forward to the state sales taxes.

Owners facing the upcoming inspections can get more information on the Statewide Compliance and Outreach Program by calling 800-400-7115 or by clicking here.

The other cities involved in the latest inspections are:

  • Beaumont (92223)
  • Chino (91710)
  • Covina (91723)
  • Indio (92201)
  • Los Gatos (95030)
  • Northridge (91324)
  • Monterey Park (91754)
  • Pasadena (91106)
  • Poway (92064)
  • San Pedro (90731 and 90732)
  • Woodland (95695)

The Board of Equalization estimates that Californians owe $2 billion more in taxes (including but not limited to sales tax) than they pay.

Other business stories …

Posted in: Taxes • Top posts • Updates • • | 32 Comments »

GE creates $250 million fund for health entrepreneurs

November 10th, 2009, 12:00 pm by Jan Norman, small-business columnist

GE has created a $250 million equity investment fund, called Healthymagination, to put money into promising ge-logohealthcare technology companies.

The new fund could be a source for Orange County ventures in  medical and technology, which is one of the strong venture-backed sectors locally.

Healthymagination is part of GE’s $6 billion global commitment to deliver better healthcare to more people at a lower cost. The fund will look for innovative technology the would be compatible with the strategic objectives of GE Healthcare.

The fund will consider three broad areas:

  • Broad-based diagnostics, including imaging, home health, patient monitoring, molecular diagnostics, pathology, novel imaging agents and other technologies for disease diagnosis.
  • Healthcare information technology, including electronic medical records, clinical information systems, healthcare information exchanges and value-added data services.
  • Life sciences, including tools for research and development in biopharmaceuticals and stem cells, and technologies for manufacturing of biopharmaceuticals and vaccines.

“As GE works on solutions to healthcare’s biggest challenges, it is vitally important that we support the development of companies with promising technologies or business models that are aligned with our strategy and have the potential to shape the future of healthcare,” said GE Chairman and CEO Jeffrey Immelt. “This includes smarter processes and technologies that measurably increase access to healthcare, reduce the cost of delivery and improve quality.”

Click here for more information or to submit a proposal. GE says it will only respond if the concept is a promising fit.

Other investing stories…

Posted in: Private equity • Technology • Top posts • | Post a Comment »

Local small-business lending picks up

November 5th, 2009, 12:00 pm by Jan Norman, small-business columnist

More local businesses are getting federally guaranteed loans in the new fiscal year that started Oct. 1 after two years of borrow-smalldeclining loan numbers, reports the Santa Ana District office of the U.S. Small Business Administration.

For the two weeks ended Oct. 14, 32 businesses got 7(a) loan (the largest SBA-guaranteed program) approvals for $14.3 million. That a 60% jump in the number of loans and more than double the dollar amount for the same period a year earlier.

The Santa Ana District encompasses Orange, Riverside and San Bernardino counties. Here are the loan numbers from past years:

Source: SBA

Source: SBA

To boost the lending program more, President Obama recently called on Congress to increase the maximum amounts for SBA loans:

  • SBA 7(a) (the largest program) loan limit $5 million, up from $2 million
  • SBA 504 (for real estate and capital spending) loan limit $5 million, up from $2 million
  • SBA Microloan limit $50,000, up from $35,000

The rationale for the increase, the SBA says, is that the percentage of SBA 7(a) and 504 loans exceeding $1.5 million has grown significantly since 2005: 7(a) loans larger than that amount to 21%, compared with 13% in 2005; and 504 loans, 28% vs. 15%. The latter is especially true in Orange County, where real estate prices are higher than the national average.

Click here for more details.

Other business stories..

Posted in: Economy • Finance • Meltdown • Reports • Top posts • | 5 Comments »

Those interest-free federal loans hard to get

November 5th, 2009, 6:00 am by Jan Norman, small-business columnist

Buena Park consultant Mike Beard has tried unsuccessfully since July to get one of those deferred payment, interest-free federal loans promoted as a lifeline for struggling businesses.investing-generic

The U.S. Small Business Administration announced with much fanfare in May the  so-called ARC loans (short for American Recovery Capital) of up to $35,000 specifically for previously profitable small businesses that are struggling financially because of the recession. Click here to read a previous story.

The program is one of the few targeting small businesses in the federal economic stimulus efforts. Small businesses account for more than half the nation’s jobs and more than half the gross domestic product.

Beard, who has owned Value Based Project Management LLC since 2003 and  self-employed since 2009, says his business certainly qualifies, but has been told the “initial response” (after 4 months) “would not be favorable”  based on his personal credit history.

“If my company is negatively impacted by the negative economy for the past two years, caused by the greed of financial companies and banks, and I run a small consulting business then it stands to reason that the downturn is going to hurt my personal credit,” Beard wrote in a Nov. 2 letter to President Obama, the SBA, JP Morgan Chase Bank, 60 Minutes, Business Week magazine and the Orange County Register. Read the rest of this entry »

Posted in: Banks • Economy • Finance • Local companies • Meltdown • Top posts • • • | 9 Comments »

Business owners tap personal assets to survive

November 4th, 2009, 6:00 am by Jan Norman, small-business columnist

More than 6 out of 10 small-business owners say they are likely to have to use their personal assets to help their companies broken-piggy-bank-smallsurvive until the economy recovers, according to the Discover Small Business Watch monthly survey.

That one statistic alone goes a long way to explain owners’ lukewarm attitude about spending for advertising and growth and unwillingness to hire more workers.

Are they reflecting economic reality or creating it? Small businesses account for most of the jobs and gross domestic product.

Most — 69% — have been hurt by the recession. Here’s what they say about their business’ ability to rebound in the coming months (click on the image for a larger view):

Source: Discover Small Business Watch

Source: Discover Small Business Watch

Their expectations for the economy as a whole is even lower:

Source: Discover Small Business Watch

Source: Discover Small Business Watch

“Small-business owners aren’t showing any new optimism in the economy,” said Ryan Scully, director of Discover’s business credit card. “Half of them think it will take more than 12 months before most people feel the economy has stabilized, and two our of three are expecting to dig into their own pockets to stay afloat.”

Other findings: Read the rest of this entry »

Posted in: Economy • Finance • Meltdown • Top posts • • | 6 Comments »

« Previous Entries