Small Business Financing

June 23, 2009

As Bankruptcies Surge, Fewer Emerge

As the effects of the recession continue, the high number of business bankruptcies—7,514 in May, up 40% from the prior year—shows few signs of abating. ...

June 15, 2009

Turning Nonprofits into For-Profits

The nonprofit Bikestation reached a crossroads in late 2007. Founded in Long Beach, Calif., in 1996 to design, build, and manage bike transit centers, the 10-employee ...

June 12, 2009

When Your Business Loan Affects Your Personal Credit

The third sentence in the letter Gary Kerr received earlier this month about his $50,000 loan from Capital One (COF) surprised him: "We'll begin reporting your loan ...

June 2, 2009

The SBA Sees a Lending Shift

Small business lending was still growing through the first half of 2008, albeit more slowly—and much of the growth was via credit cards rather than traditional ...

May 29, 2009

No Relief for Small Business Cardholders

Joseph Rosmann thought he was a model small business credit card customer. A 65-year-old general contractor in Bellevue, Wash., Rosmann typically charges between ...

May 7, 2009

Snipping Credit Lines for Small Businesses

For small business owners, a line of credit can be a lifesaver, giving them a buffer against cash-flow problems and enabling them to handle regular expenses such as ...

May 7, 2009

Pitching? Let Your Dashboard Do the Work

Over the past decade, Jim Calhoun has founded a variety of tech companies—most notably PopularMedia and CustomerClick—and raised venture capital from ...

April 24, 2009

Cash Vanishes from Merchants' Accounts

In the midst of the worst economic contraction in decades, some small business owners are experiencing an additional—and brutal—cash squeeze, this time at ...

April 3, 2009

Mills Vows to Reinvigorate the SBA

Editor's note: This is an updated version of the story. President Barack Obama's pick to head the Small Business Administration, Karen Gordon Mills, was approved on ...

March 20, 2009

A Primer on Changes to SBA-Backed Loans

President Barack Obama and Treasury Secretary Timothy Geithner recently announced sweeping changes for the Small Business Administration's loan programs. Are these ...

March 17, 2009

Tax Advice from a Former IRS Auditor

Everyone wants to maximize their tax deductions and reduce what they owe the government. But remember: If you report income as a small business owner, you face a ...

February 27, 2009

Three Steps to a Sound Business Model

Portero, which operates an online market for luxury goods, secured $6.6 million in venture capital financing earlier this month. In the press release announcing the ...

February 17, 2009

Hidden Tax Tips for Entrepreneurs

Are you missing tax deductions you're entitled to? Small business owners, self-employed workers, and independent contractors can write off many legitimate business ...

February 6, 2009

When to Postpone Efforts to Raise Capital

Even when the economy is growing, it's often difficult to raise equity capital for an early-stage company, with only a tiny number of entrepreneurs actually securing ...

January 30, 2009

How to Vet a Merchant Cash Advance Provider

If you're considering a merchant cash advance for your business, how can you evaluate the provider? Even the largest providers, who say cash advances have gotten a bad...

January 27, 2009

Community Banks Increase Small Business Loans

About six months ago, David Klein, owner of Scientific Fire Prevention & Environmental Services in Long Island City, N.Y., decided to apply for a bank credit line ...

January 23, 2009

The Perils of a 'Down Round' Financing

When entrepreneurs work with equity investors to structure an angel or venture capital round of financing, most have to agree to an anti-dilution provision in the term...

January 20, 2009

How Obama's SBA Chief May Change the Agency

President Barack Obama's Dream Team is packed with so many high-caliber picks, it might be easy to overlook Karen Gordon Mills, his choice to head up the Small ...

January 9, 2009

How Merchant Cash Advances Work

Small-business owners who need quick access to capital have a burgeoning industry eager to fund them: merchant cash advance providers. The decade-old industry has ...

January 6, 2009

Avoiding Tax Pitfalls When Issuing Stock

Working with outside investors to finance an early-stage company by issuing stock can be stressful, time-consuming, and complex. For the most part, founders will focus...

December 23, 2008

The Credit Outlook for Small Business

Over the past year, the economic downturn and the frozen credit markets have harmed small business owners' access to get loans and credit lines. While the severity of ...

December 12, 2008

The Right Number of Shareholders for Your Company

With Facebook growing at a torrid rate, the private company has had to raise several rounds of capital as well as issue shares to its employees. As a result, the ...

December 2, 2008

Advice for Startups Seeking Venture Capital

Landing venture capital is tough for startups (BusinessWeek, 2/1/08), even in a good economy. But given the ongoing financial crisis, how hard is it for early-stage ...

November 18, 2008

Raising Capital from Customers

If you run an independent company and are looking for ways to raise capital, consider selling shares to your customers via a private placement. A private placement is ...

November 11, 2008

Barter Exchanges Catch On as Credit Tightens

Shawn Cressman, president of Cressman's Lawn & Tree Care, the business his father started 33 years ago in Bethlehem, Pa., has occasionally engaged in bartering with ...