Economic Perspectives with Hopeton Hay on KAZI 88.7 FM in Austin, TX

Archive for February, 2011

Collective Leadership and Community Technology Symposium Focus of February 28th Economic Perspectives

Posted by nchanel on February 26, 2011

 Mehrdad Baghai, author of As One: Individual and Collective Power will be the guest on Economic Perspectives on Monday, February 28th at 5:30pm-6:00pm.  Hopeton Hay also interviews Juanita Budd, Executive Director of Austin-Free Net. Listen live at KAZI 88.7 FM Austin or online here: KAZIFM.org

Like a school of fish moving synchronously together with one goal in mind; easy for fish, not so easy for humans. How can we get everyone on the same page in business and accomplish goals more efficiently? Our world is as much about cooperation as it is about conflict; as much about collaboration as competition. Leaders who have been trained in the command-and-control mode of management are realizing that it often fails to truly engage people.

For the past two years Deloitte has invested in a major global initiative, the As One project, to study effective collaborations. The project has discovered that there are eight archetypes of leaders and followers. Taking more than 60 cases of successful collective behavior, the authors define the characteristics for each model and show how you can apply them to your organization. As One claims to show you a new way to lead, and to get your team working to reach all your goals. www.asone.org

Also featured, Juanita Budd will discuss Austin-Free Net’s  Second Annual Community Technology Symposium March 1, 2011 at the AMD campus on Southwest Parkway. 

 Austin Free-Net provides technology training and access for the community, fostering skills that enable people to succeed in a digital age. The Austin Free-Net has come together with the City of Austin and Skillpoint Alliance to form a partnership called Austin Connects which is sponsoring the technology symposium.

This event will bring together leadership from local nonprofits, government and business to share ideas and solutions to strengthen digital inclusion efforts. Topics include Community Technology Resources, DigitalStorytelling, Technology Education and more. The Keynote Speaker is Kami Griffiths, Executive Director of the Community Technology Network (serving the Bay Area) and Training and Outreach Manager at TechSoup. For more information please visit http://www.austinconnects.org/

Posted in Books, Business, Community Development | Tagged: , | Leave a Comment »

504 Loan Refinancing For Eligible Small Business Assets Under Jobs the Act

Posted by Hopeton on February 21, 2011

Market research shows that a large percentage of commercial mortgages outstanding are set to mature within the next few years, particularly those held by community banks.  As real estate values have declined, however, even small businesses that are performing well and making their payments on time can have a hard time refinancing these loans and may need to restructure their debt.

Under the Small Business Jobs Act, the SBA will implement a temporary program—authorized until Sept. 27, 2012—allowing small businesses to refinance eligible fixed assets in its 504 program without requirement of an expansion, as is the case with typical 504 loans. This program will provide small businesses the opportunity to lock in long-term, stable financing, as well as protect jobs.

Key Program Features

  • SBA will launch this temporary program on Feb. 17, 2011 and will begin accepting loan applications on Feb. 28, 2011.  The program will end on September 27, 2012.
  • Borrowers can finance up to 90 percent of the current appraised property value, or 100 percent of the outstanding principal, whichever is lower, plus 504 eligible refinancing costs.
  • SBA will initially open the program only to businesses with immediate need.  Priority will be on those businesses potentially at risk because they face loan maturity or balloon payments before Dec. 31, 2012.  SBA will later revisit the program parameters, and may open the program to businesses with later balloon payments or that can demonstrate need in other ways.
  • The program is structured like SBA’s traditional 504 loan program: borrowers will work with third-party lending institutions and SBA-approved Certified Development Companies (CDCs), typically private, non-profit organizations to obtain financing, in a traditional 10%/50%/40% split.
  • SBA estimates that as many as 20,000 businesses may ultimately participate in this program, which will provide up to $15 billion in SBA-guaranteed financing leading to total project financing of over $30 billion.
  • The program, which is completely separate from SBA’s traditional 504 program, is zero-subsidy, requiring no cost to the taxpayer: It will be funded entirely through additional fees assessed for refinancing projects.

Key Risk Mitigating Factors

  • Applicants must demonstrate that their loans are current and that they have successfully made all required payments in the last year.
  • A new, independent appraisal will be required for all projects.
  • SBA will perform full and thorough underwriting on all refinancing applications (i.e., there are no ‘delegated’ lenders).
  • Initially, the first mortgage loans on existing 504 projects are not eligible, and “cash out” refinancings are not permitted.  SBA may later revisit these restrictions.   In addition, no government guaranteed loan is eligible for this refinancing program.

SBA’s 504 Loan Program

SBA’s 504 loan program is a long-term financing tool, designed to encourage economic development within a community. The 504 Program accomplishes this by providing small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization.

Proceeds from 504 loans must be used for fixed asset projects, such as:

  • The purchase of land, including existing buildings
  • The purchase of improvements, including grading, street improvements, utilities, parking lots and landscaping
  • The construction of new facilities or modernizing, renovating or converting existing facilities
  • The purchase of long-term machinery and equipment

Typically, a 504 project includes three elements:

  • a loan (or first mortgage) secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost,
  • a second mortgage secured with a junior lien from an SBA Certified Development Company (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost,
  • and a contribution of at least 10 percent equity from the small business borrower.

Posted in Banking, Small Business Loans | Tagged: , , , | Leave a Comment »

LISTEN TO INTERVIEW: The Empowerment Experiment: Buying Black Focus on February 21 Edition of Economic Perspectives

Posted by nchanel on February 20, 2011

Imagine a whole year where all your purchases were from black owned business.  This is the experiment that Maggie Anderson and her family, based in Chicago, decided to do to support Black businesses. Maggie is the author of upcoming book Our Black Year: Our Tale of Buying Black in America’s Racially Divided Economy, and co-founder of the Empowerment Experiment (EE).  Listen to my interview with Maggie Anderson by clicking here: Maggie and Monica Anderson Interview.

Anderson is speaking in Austin, Texas on February 25, 3 p.m. – 5 p.m. at The University of Texas at Austin Student Union Center at an event sponsored by the UT Austin Center for Black Business History, Entrepreneurship, and Technology.  She is also speaking on February 26, 1 p.m., at The University of Texas at Austin LBJ Auditorium at an event sponsored by the Austin Black Newcomers Association.

Maggie Anderson

According to Maggie Anderson, EE converted the family’s pledge into a positive awareness campaign about the need for increased entrepreneurship and conscious consumerism in underserved minority communities.  The goal is to trigger a smart movement where Americans of all backgrounds will unite to support quality minority businesses and ensure that the American Dream truly applies to all.  In EE, the focus on uplifting Black businesses and empowering the Black community, as this community suffers disproportionately economically because it does not engage in self-help economics – like everyone else.  Due to this problem, Black businesses do not get the same level of support as other minority-owned businesses.

Dr. Moe Anderson

Also featured, Dr. Monica Anderson of the Austin Black Newcomers Association. The Austin Black Newcomers Association (ABNA) aims to foster community engagement by providing culturally sensitive programs and a network of supportive relationships for emerging leaders. Monica “Dr. mOe” Anderson is a practicing dentist on staff with St. David’s Foundation, a bestselling author, widely published journalist, and motivational speaker.

Posted in African American, Business, Economy, minority business | Tagged: , , , , , | 1 Comment »

Average Receipts of Black Firms Far Behind All Firms

Posted by Hopeton on February 20, 2011

As reported in one of my previous posts, the number of Black-owned businesses is growing at a much faster rate than all businesses.  What wasn’t discussed was how far behind Black firms are in average receipts.  Average receipts for Black businesses was $72,000 according to data from the U.S. Census Bureau 2007 Survey of Business Owners compared to $490,000 for all businesses classifiable by race.

What especially concerns me is the lack of growth in the average receipts of Black-owned businesses since the last report on 2002.  Average receipts for Black firms was $74,000 in 2002.  What is scarier is this doesn’t even take inflation into account.  Factoring in inflation, average receipts for firms in 2002 in 2007 dollars was approximately $85,000.

So what should be done to increase average receipts for Black firms?  Please share your comments, thoughts, ideas..

Posted in African American, Entrepreneurship | Tagged: , | Leave a Comment »

SBA Launches Mentoring Program

Posted by Hopeton on February 17, 2011

The U.S. Small Business Administration today launched an initiative to mobilize members of the current generation of successful business owners to mentor and support startups and entrepreneurs to help them become the next generation of great American companies.

As part of the White House’s Startup America initiative, the Entrepreneurial Mentor Corps (EMC) is aiming to support more than 1,000 startup and early-stage firms across the country. SBA is partnering with the Ewing Marion Kauffman Foundation in identifying organizations and mentoring best practices for the EMC program.

In line with that, today SBA Administrator Karen Mills announced one of the first initiatives of EMC, a pilot program that will match mentors with 100 startups in the clean energy sector.

“Who better for entrepreneurs and startups to learn from than individuals who have been down a similar path before,” Mills said. “Mentors can provide valuable insights critical to their success; from opportunities for financing, advice on hiring to even walking an entrepreneur through steps for taking a product or idea into the commercial market. The Entrepreneurial Mentor Corps will mobilize some of the best and brightest business leaders to help create the opportunities for success, drive innovation and spur job creation across the country.”

Through EMC’s clean energy pilot, four regional “accelerators” will identify and match mentors with 100 clean energy startups, to help them quickly grow their revenue, create jobs, and attract outside financing while avoiding pitfalls that frequently challenge startups. Accelerators are organizations that offer services ranging from mentoring and technical assistance to business guidance and focused networking.

The EMC clean energy pilot is a partnership between SBA, the Department of Energy (DOE) and the Advanced Research Projects Agency-Energy (ARPA-E). Initially, eligibility for the clean energy pilot will be limited to startups that have already received funding from either DOE or ARPA-E.

The four accelerators funded in the initial stage of the project include:

• CleanTech Open (Bay area and New England);
• CleanTECH San Diego (Southern California and the Southwest);
• Clean Energy Trust (Midwest); and,
• Nevada Institute for Renewable Energy Commercialization (Mountain Region).

Going forward, Startup America’s EMC program, through the partnership between SBA and the Kauffman Foundation, will work to create mentoring initiatives across many industry sectors with a target of helping more than 1,000 entrepreneurs annually and build a nationwide network of mentors, accelerators and successful startups.

For more information on the Entrepreneurial Mentor Corps program please visit http://www.sba.gov/startupamerica.

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Census Bureau Reports the Number of Black-Owned Businesses Increased at Triple the National Rate

Posted by Hopeton on February 11, 2011

From 2002 to 2007, the number of black-owned businesses increased by 60.5 percent to 1.9 million, more than triple the national rate of 18.0 percent, according to the U.S. Census Bureau’s Survey of Business Owners. Over the same period, receipts generated by black-owned businesses increased 55.1 percent to $137.5 billion.

“Black-owned businesses continued to be one of the fastest growing segments of our economy, showing rapid growth in both the number of businesses and total sales during this time period,” said Census Bureau Deputy Director Thomas Mesenbourg.

These new data come from the Survey of Business Owners: Black-Owned Businesses: 2007. The survey provides detailed information every five years for black-owned businesses, including the number of firms, sales and receipts, number of paid employees and annual payroll.

Data are presented by geographic area (nation, state, county, city and metro area), industry and size of business. Preliminary national and state data were released in July 2010.

In 2007, nearly four in 10 black-owned businesses operated in the health care and social assistance; and repair, maintenance, personal and laundry services sectors. The retail trade and health care and social assistance sectors accounted for 27.4 percent of black-owned business revenue.

Among states, New York had 204,032 black-owned businesses and accounted for 10.6 percent of the nation’s black-owned businesses, followed by Georgia, with 183,874 black-owned businesses (9.6 percent) and Florida, with 181,437 (9.4 percent).

Among counties, Cook, Ill., had the most black-owned businesses, with 83,733, accounting for 4.4 percent of all the nation’s black-owned businesses. Los Angeles followed with 59,680 (3.1 percent) and Kings, N.Y., with 52,705 businesses (2.7 percent).

Among cities, New York had the most black-owned businesses, with 154,929 (8.1 percent of all the nation’s black-owned businesses), followed by Chicago, with 58,631 (3.1 percent), Houston, with 33,062 (1.7 percent) and Detroit, with 32,490 (1.7 percent).

Other highlights:

  • Of the 1.9 million black-owned businesses in 2007, 106,824 had paid employees, an increase of 13.0 percent from 2002. These businesses employed 921,032 people, an increase of 22.2 percent; their payrolls totaled $23.9 billion, an increase of 36.3 percent. Receipts from black-owned employer businesses totaled $98.9 billion, an increase of 50.2 percent from 2002.
  • In 2007, 1.8 million black-owned businesses had no paid employees, an increase of 64.5 percent from 2002. These nonemployer businesses’ receipts totaled $38.6 billion, an increase of 69.0 percent.
  • The number of black-owned businesses with receipts of $1 million or more increased by 35.4 percent to 14,507 between 2002 and 2007.

The Survey of Business Owners defines black-owned businesses as firms in which blacks or African-Americans own 51 percent or more of the equity, interest or stock of the business. Additional reports from the survey highlighting other minority- and veteran-owned businesses will be issued over the next year. Subsequently, separate publications will be issued highlighting additional characteristics of all businesses and their owners.

Posted in African American, Business, minority business | Tagged: | Leave a Comment »

Black History Month Feature – Whitney Young, National Urban League

Posted by Hopeton on February 7, 2011

Young was executive director of the National Urban League from 1961 – 1971. Under his leadership, the National Urban League grew from 38 employees to over 1600, becoming a major force in the War on Poverty in the 1960s.  He implemented new skills and job training programs that helped African Americans find employment.  He fought for cities to receive federal assistance to combat the social ills facing African Americans, a strategy President Lyndon Johnson included in his War on Poverty platform.  And he persuaded Corporate America to provide more jobs for African Americans.  For  information on the programs and services of the Austin Area Urban League click here: AAUL.

Posted in African American, Black History | Tagged: , | Leave a Comment »

The State of African American Employment Focus of February 7 Economic Perspectives

Posted by Hopeton on February 4, 2011

Dr. Christian Weller will discuss trends in African American employment on the February 7 edition of Economic Perspectives on KAZI 88.7 FM, at 5:30 p.m. According to the latest data from the U.S. Bureau of Labor Statistics, African American unemployment was 15.7 percent in January.  Unemployment for Hispanics was 11.9 percent, Whites 8.0 percent, and Asians 6.9 percent (not seasonally adjusted) in January.  Weller will be followed by an interview with Kent Lineback, author of Being the Boss: The 3 Imperatives for Becoming a Great Leader. Listen live online at kazifm.org.

Christian Weller

Weller, a Senior Fellow at the Center for American Progress, is the co-author of the  Center’s report, The State of Communities of Color in the U.S. Economy.  In the report, Weller and his co-authors write, “…structural differences in unemployment rates by race and ethnicity meant  that communities of color fell into a deeper hole in terms of economic security  during the recession and that communities of color will need to see much stronger  growth than is the case for whites to climb back out of this hole.  Communities of  color are in more desperate need of policy attention to jobs, wages, and benefits  than whites to just recover the losses they suffered during the recession since they  experienced sharper economic security losses.”   Weller is also an associate professor of public policy at the University of Massachusetts Boston.

Being the Boss

In Being the Boss, Lineback and his co-author Linda Hill, bring their academic, consulting, and real life management experience to provide guidance for those struggling with management responsibilities.  Here are some great quotes from the book:

  • “…a certain amount of fragmentation, conflict, tension, instability, and general messiness is built into the basic nature of managerial work.  Only those who ignore the paradoxes think “good” management will produce a workplace of constant calm cooperation…”
  • “The political environment within organizations can lead to destructive or constructive outcomes, depending on how people conduct themselves.”
  • “A team’s purpose and goals, the future it’s trying to create, are the foundation of culture and must be clear.”

Lineback, now a writer and collaborator, spent nearly thirty years as a manager and executive in business and government. He is the coauthor (with Randy Komisar) of the bestseller The Monk and the Riddle.

Posted in African American, Books, Business, Economy, Employment, Interview, Radio | Tagged: , , , | Leave a Comment »