April, 2009

1. American Recovery and Reinvestment Act (ARRA)

President Obama has signed the American Recovery and Reinvestment Act (ARRA) into law: ARRA includes $100 Million for the CDFI Fund. The funds are to be used for…financial assistance, technical assistance, training and outreach programs …and provided primarily through qualified community development lender organizations with experience and expertise in community development banking and lending…

2. Jobs Created From Business Startups in the United States

Found that while business start-ups declined slightly during most cyclical downturns, start-ups remained robust even in the most severe recession over the sample period.

"Job growth is essential for our economy to rebound, and this study shows that new firms have historically been an important source of new jobs in the United States," said Kauffman Foundation vice president of research and policy Robert E. Litan. "Our research into the early years of business formation consistently shows how vital new firms are to our economy, and this data should give policy makers and budding entrepreneurs alike great hope for how we can solve our current crisis -- create and grow jobs through entrepreneurship." "Kauffman Foundation-Funded U.S. Census Bureau Data Highlight Importance of Business Startups to Job Creation in the U.S." Ewing Marion Kauffman Foundation Press Release 1/14/09.

For more information, visit http://kauffman.org/uploadedFiles/BDS_Jobs_Created_011209b.pdf

3. Excerpt from the Spokane Journal of Business (November 7, 2008)

Factoring sector picks up as credit market tightens; microloan inquiries swell By David Cole Of the Journal of Business ...Spokane Neighborhood Economic Development Alliance or SNEDA, a non-profit located at 715 E. Sprague that makes loans to businesses, usually for between $10,000 and $75,000, has seen a spike in interest and inquiries, says Eric Loewe, its executive director….Loewe says. "These were more creditworthy applicants than in the past. These were people who were bankable," or able to qualify for bank loans under normal circumstances. Some of the increased interest is because banks are sending clients to SNEDA. "They want to do a soft no," Loewe says. The banks want to see the customers stay in business, and continue to make deposits, but can't make a loan to them, he says…. "We don't like to have any more than $100,000 in one deal, "he says. "We're very interested in talking to people who are near bankable and would like a business loan."

For more information, visit http://www.spokanejournal.com/article.php?id=3778

4. SNEDA’s focus on the Spokane business community
of East European origin

See SNEDA’s advertisement below in the monthly publication “Russian Spokane”:

5. High-Impact Firms: Gazelles Revisited June 2008:
Zoltan Acs, William Parsons and Spencer Tracy

This study revisits and expands upon some of the conclusions on rapidly growing firms made by the small business research pioneer, David Birch, in the 1980s. Birch found that rapidly growing firms, which he termed “gazelles,” are responsible for most employment growth. While Birch’s definition of gazelles was based on their revenue growth, this study examines firms with significant revenue growth and expanding employment. These are termed “high-impact firms” to distinguish them from gazelles. The research offers summary statistics helping to define the scope and characteristics of high impact firms. The report sheds light on several previously unanswered questions, including: What are high-impact firms before they become high-impact firms? What happens after their high-impact phase?

Overall Findings: High-impact firms are relatively old, rare and contribute to the majority of overall economic growth. On average, they are 25 years old, they represent between 2 and 3 percent of all firms, and they account for almost all of the private sector employment and revenue growth in the economy.

Highlights: From 2002 to 2006 there were 376,605 high impact firms in the United States. This number increased from 299,973 between 1998–2002 and was greater than the 352,114 firms in the 1994–1998 period of analysis. …

The full text of this report and summaries of other studies performed under contract with the U.S. Small Business Administration’s Office of Advocacy are available on the Internet at: www.sba.gov/advo/research.

http://www.sba.gov/advo/research/rs328.pdf

6. The Association for Enterprise Opportunity:
TOP TEN REASONS WHY MICROENTERPRISE MATTERS MORE THAN EVER TO AMERICA

These businesses may be relatively small, but they are making a very large difference when it comes to job creation and help for our nation’s struggling economy.

Here are ten facts about microenterprises that you may not be aware of.

7. Community Development Venture Capital Alliance (CDVCA)

The Community Development Venture Capital Alliance (CDVCA) is the network for the rapidly growing field of community development venture capital (CDVC) investing. CDVC funds provide equity capital to businesses in underinvested markets, seeking market-rate financial returns, as well as the creation of good jobs, wealth, and entrepreneurial capacity.

For more information, visit http://www.cdvca.org/

8. Opportunity Finance Network

ABC World News Tonight describes opportunity finance and CDFIs as the ethical lending solution to the economic crisis of the century. This story focuses on NHS of Chicago.

Story: http://abcnews.go.com/Business/Economy/Story?id=6934151

Video: http://abcnews.go.com/Video/playerIndex?id=6934997

Website: www.opportunityfinance.net

Phone Eric Loewe at 444-7633 for information on supporting SNEDA's work. Contributions to SNEDA are tax deductible. Information on SNEDA is also available at www.sneda.org, www.guidestar.org and www.inwcomfound.org.