We are very sorry to report that in 2006 and 2007, several companies and organizations that were not small businesses received funds that had been earmarked for small businesses. This mistakenly given money amounted to some $5.7 million in contracts, according to the Department of the Interior.

Among those companies who received money that was intended for small businesses were: Starwood Hotels, Home Depot, Dell, Xerox, Waste Management Inc. and Sherwin Williams.

Some of the blame for awarding small business funds to big business was placed on absent-minded contract workers who were not mindful about data entry. As you can imagine, this is little comfort to hopeful small businesses. The report from the Department of the Interior did not indicate whether or not this money would have to be returned.

While this is not cheerful news, the good news is that this mistake in now way hampers your ability to get a small business loan. Visit sba.gov to learn how you can apply for a small business loan. And review all of your documents carefully.

The Gulfport Chamber of Commerce in Mississippi knows that getting money to provide grants does not have to be dull. In June 2008 they sponsored Margaritafest, a party with a purpose. They did more than let their hair down at this luau-filled fest of dancing, food, and fun; they raised funds for the grants that they give out to small businesses.

They started giving out these grants to help small businesses after Hurricane Katrina. There is no doubt that Hurricane Katrina devastated New Orleans, but some people are not aware of how much damage it also did to neighboring areas.

If your local chamber of commerce doesn’t have a Margaritafest, think about starting something similar.

If you are thinking that you might be able to go to the SBA for a small business grant, be aware that the SBA does not provide grants directly to small businesses. They do, however, give grants to non-profits that provide management, financial or technical assistance to small business. Click here to learn more about these grants.

If you recently fell victim to a disaster, be certain to check on the deadlines for disaster loan applications for people from your area.  The terms and the amount of money you can receive are determined by the SBA based on your individual circumstances, but the deadlines for renters, businesses, and non-profits do not vary. When a deadline is set for an area, it applies to all who were affected.

For example, those whose property sustained physical damage from a mid-June fire at the Queen Anne’s Gate Apartments in Massachusetts have until September 2, 2008 to file an application.

The SBA gives loans in amounts up to $200,000 to be used for the repair of primary residences that have sustained damage from a disaster. Businesses and non-profits can get up to $2 million that they can put towards the repair of their damaged real estate, machinery, inventory, and equipment.

If you think you are eligible to receive such a loan, call the SBA Customer Service Center at 1-80-659-2955, between 8 am and 9 pm, Monday-Friday. You can also request information and assistance by sending an e-mail to disastercustomerservice@sba.gov.

The SBA website has a new assessment tool that will make it easy for you to figure out if you are ready to start a small business. If you are wondering just how ready you are, it may be just the tool you need.

You can find the Small Business Readiness Assessment Tool at sba.gov. There are no multiple choice or essay questions. Each question is answered with a simple yes or no. There is not waiting for a grade, either. When you finish answering the questions, hit the "Submit" button and your assessment score will be tabulated automatically.

Because the SBA understands that people who want to start businesses need advice and feedback, they don’t stop at giving you a score. After you get your score, you will also get a list of "Suggested Next Steps" telling you exactly which SBA resources would be the most beneficial to you.

You can complete the assessment tool in less than 5 minutes and gain valuable insight into your level of readiness to start a small business.

When you are thinking about starting a small business, there are so many little details to consider. You many be doing research, gathering information and sketching an outline for your business plan. While you are doing all of this factual footwork, do not forget one important aspect of your research: human connections. Doing your homework before launching a new business venture includes getting information on other entrepreneurs’ real-life experiences.

People who have "been there and done that" will be one of your greatest resources as you get your business off the ground. You can save yourself a lot of time and grief if you make the effort to "research" the wisdom of veteran and retired small business owners. Actually, brand new business owners will have some interesting perspectives for you as well.

The SBA is all about business, and they recognize the importance of getting in touch with established small business owners. Visit the Find a Mentor page on the SBA website to view organizations that can put you in touch with experienced small business owners.

The U.S. Small Business Association is a veritable gold mine of information on small business issues. Recently, they unveiled an updated online course list that is available to everyone . . . and it’s free.

Located at SBA.gov, the courses cover topics such as starting a business, business planning, business management, finance and accounting, marketing and advertising, government contracting (a very good place to look for lucrative contracts), small business retirement, e-commerce, international trade, and federal tax training. Among the classes offered are some specialized classes from Trump University (yes, that Trump), and a guide to winning specialized classes from the government. (I’m definitely going to take these government contracts classes after reading this past week about how our government awarded lucrative contracts to Dell, John Deere, and other large companies in a snafu that has independent auditors chomping at the bit; if changes are coming in the field of government contracts, I am so there. See here and here.)

The U.S. Small Business Association (SBA) is a government-sponsored agency created in 1953 to “aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation.” The SBA “recognizes that small business is critical to our economic recovery and strength, to building America’s future, and to helping the United States compete in today’s global marketplace.”

In a nutshell, the SBA “helps Americans start, build and grow businesses. . . . There are those who argue that big businesses, profiting from ‘economies of scale,’ can produce far more efficiently than small businesses.  But small business is where the innovations take place.  Swifter, more flexible and often more daring than big businesses, small firms produce the items that line the shelves of America’s museums, shops and homes.  They keep intact the heritage of ingenuity and enterprise and they help keep the ‘American Dream’ within the reach of millions of Americans.  Every step of the way, SBA is there to help them.” 

If you’re wondering if there are any other programs out there for small business owners that are either free or low-cost, there are. Check with an employment services agency (contract or temp) about HR issues, check with your credit union or bank for classes or seminars available on finance issues, and inquire at the community college or learning centers in your area on classes about business plans or marketing courses. Even if you don’t learn from the SBA, make sure you find out about the scope of their services. It may save you a lot of time and heartache in the long run.

There are reports that the Small Business Administration’s business loan that was most popular with those seeking financed has fallen 19 percent. The recent economic downturn has had an effect an on the availability of small business loans, but the news is not all bad.

Some would-be business owners have had to go to several banks before getting a loan. If you are using your home as collateral, some banks are less than willing to help because of the shakiness of the housing market.

Those of you who are seeking business loans should know that banks are expecting higher down payments and plan accordingly. This is a challenge, but it is not an impossible hurdle.

People with strong credits ratings are getting loans. At least one expert feels that the standards had been rather lax. So what seems like a tightening may be a return to the status quo. When you do get a loan, you’ll know that you are in a good position to succeed. Strong businesses help the economy, so that may not be such a bad thing.

Visit www.sba.gov to learn about loan prequalification and read about loan requirements.

Business owners are crying foul over the state of California’s plan to offer an electric car maker a sweet deal as an incentive to keep business in that state.

Tesla will not have to pay state sales tax on the machinery it will use to build its Model S car. With this tax break, the company will be able to save 7 to 9 percent for each piece of equipment it buys for making the Model S.

Naturally other small businesses are not pleased that the state of California is giving Tesla this type of break. They feel as if this kind of tax should be offered across the board.

According to one state government official, California can offer specific incentives to certain companies. This official offered some insight into just how complex these decisions can be: the government must weigh many factors such as whether or not the incentive will take away from important public programs and whether or not they are rewarding a company for something they would have done anyway.

In the case of Tesla, it seems as if the state government was very concerned that the manufacturer would take their business to another state. So they put forth a serious effort to keep them in California.

As we prepare to celebrate the day our country declared its independence, this is good time to remind people that the SBA has loans to help U.S. citizens operate their own businesses independently.

Last year, the SBA started the Patriot Express program to provide support for veterans. These loans are available to veterans who want to start a small business or keep one going. You are eligible for the Patriot Express program if you are a veteran, service-disabled veteran, an active duty service member, a member of the National Guard, a Reservist. Patriot Express also helps businesses run by the spouses and widows of service members.

Business owners who are veterans have to apply, have a good business plan, and fit the basic qualifications, but these loans are processed fairly quickly. Some loan applications are processed in less than a week, while others may take several weeks.

One of the reasons that banks are so willing to take on these loans is that the SBA is really behind these loans. The SBA will guarantee loans of $150,000 for up to 85 percent of the loan.

Read more about the Patriot Express Loan Program at http://www.sba.gov/patriotexpress/.

How do you define a small business? That depends on the industry. What is considered a small business in one line of work may not qualify to be considered a small business in another field. Many a businessperson has researched possible SBA loans and gotten excited, only to find out that they do not fit the criteria.

The SBA has very specific guidelines for what constitutes a small business, so you should consult with them to find out where your business falls into.  The SBA has to take a lot into consideration when it shapes the criteria for small businesses within different industries. It has to look at start-up costs, barriers to entry, competition, growth trends and other factors. This actually works in your favor because a flower shop should not be measured by the same criteria as a t-shirt manufacturer.

The following are some general guidelines for the maximums for small businesses in different industries:

Agriculture: 1/2 million dollars or less

Retail: Five million dollars or less

Manufacturing: 500 employees or less

Wholesale trade: 100 employees or less