The Benefits Of Small Economic Development

Growing up in a very little town in Illinois was a lot different than growing up in Houston, Texas. When I was in the fourth grade I found many things to have changed about my surroundings, I currently lived in a place where, the people thought and acted differently. I know now reading about it and understanding more that some of those changes were for the good and some were not. Small town living has its advantages such as, very close friendships, close approximately to may things, and friendly people. Looking back, I also realized that there were a lot of disadvantages such as lack of transportation, affects of a poor education, no opportunities for growth, crime, no diversity, and low paying jobs and housing. Now that I am older, and aware of the affects of living in a small town, I can see how these many things affected my life and will continue affect it in the future.

The loan works in conjunction with a "certified development company" that will usually be the actual distributor of these funds to the end user once the loan has been approved within SBA mandated guidelines. SBA business size standards do apply due to the larger loan amounts.

The goal is to run a success small business that provides exceptional service, provides an excellent work environment, and provides supplemental income to the owner.

One piece of financial assistance that the SBA doesn’t provide are grants (SBA, 2017). Grants are appropriated directly by the federal government through bills that are passed by Congress and signed by the President. While the SBA does have authority to give grants to non-profit and educational organizations, there is no authorized authority for the SBA to provide grants to small businesses. Business owners hoping for a grant would need to check other state or local resources for this type of

The unemployment rate has dropped dramatically, thanks to small businesses who have been adding more jobs than large businesses. Since January this year, ADP job numbers show that about 50% of total nonfarm private sector jobs came from small businesses. Credit union member business loans are small business loans. Undoubtedly credit unions continue to support the economy’s recovery. This year, SBA partnered with NCUA to expand small business lending through credit unions. And as of March this year, 377 credit unions reported having outstanding SBA loans totaling $1.4 billion. Putting SBA 7(a)

The Small Business Administration has been providing small businesses with funding since 1953. The purpose of SBA is to continue the path of free trade and competition that United States businesses have enjoyed and prospered from. SBA does not offer grants directly to for-profit businesses, only not-for profit businesses, financial institutions, and government agencies for the disbursement of SBA loans. Loan programs that are available include homes for home based businesses. 7(a) Loan Guarantee Program The SBA offers a loan of up to $2,000,000 to small businesses that are just getting started. This is considered to be the most flexible type of business loan program available through SBA as it covers a wide range of business types. The 4 types of 7(a) loan programs are as follows: Express Programs - These loans have a turn around rate of 36 hours and typically are good for $25,000 of less. Export Loan Programs - Given to companies that are able to export goods and need extra capital for export sales. A loan maximum of $2,000,000 applies to this program and a 500 employee limit to the company is also mandated. Rural Lender Advantage Programs - This gives small lenders in rural areas guaranteed backing for business loans in rural area, particularly agricultural loans. Loan amounts available will depend on the factors of credit, property size, and business growth possibilities. Special Purpose Loans Programs - This program is designed to help businesses affected by NAFTA

“The Nonprofit Finance Fund, which provides loans and access to grants to nonprofits, urged organizations to team up with

Communications plan to help Goldman Sachs reach goal of helping 10,000 small businesses increase their revenue and change their local economies.

The version related to nonprofits is described as “an agreement between a business and a nonprofit to raise money for a particular cause. The company expects to profit from this arrangement by selling more products and by enjoying the halo effect of being associated with a respected nonprofit or cause” (Fritz, 2016). Accordingly, nonprofits benefit from cause-related marketing, since, companies provide financial and promotional supports. Lately, cause-related marketing has grown in different forms, such as, product sales, licensing of the nonprofit's assets, logo, brand, purchase plus and others. However, cause-related marketing has disadvantages. Nonprofits run the risks to disrupt its reputation, therefore, the organization should ensure the agency’s values by choosing trusty associations as partners. Nonprofit organizations may lose trustworthiness; it may be confused with for profit corporation’s business. The public may misplace interest for the nonprofit (Mason,

Bank of America purchased Security Pacific Corporation, and with that purchase Bank of America became the first bank to offer coast to coast operations. In the early 21st century bank of America was operating more than 5000 bank branches in the U.S. and conducting investment banking in multiple countries around the world. In 2004, Bank of America expanded its credit card business when they obtained National Processing, which is a transaction processing firm. To receive a high position in the wealth management business, Bank of America gained U.S Trust Corporation, a firm that manages investments in for high net worth clients.

Most nonprofits have multiple streams of income. Nonprofit income sources include: charitable donations, fees, government funding, investments, and cash converted from goods and services donated. The diversification of a nonprofit’s portfolio differs based on the size of the organization and the financial health. It is critical that the management overseeing the organization’s accounting finds a strategy that will allow the organization to develop the income mix that best achieves its social mission. The strategy should include a diverse mix of incentives, donors, customers, and government affiliates that will provide the income needed to fund the organization’s cause (Young, 2007).

The weaknesses of the Coastal Bend Day of Giving entails the alienation of donors that do not use the computer or are uncomfortable with placing their card information online. In addition to the above weakness, donors cannot see how their contributions helps their particular nonprofit that received their donations. This can deter previous donors from participating in the future. Another weakness relates to the lack of social interactions with donors within the current social media sites. Engagement is key in social media marketing to increase word of mouth communications on the charity

Nonprofit organizations survive essentially on the various resources they are able to obtain. Money is obviously an enormous resource, as any organization needs money to survive. Money can come from various sources such as state and federal government funding and/or grants, donor cash, fundraising methods, donated products or services, and most importantly: volunteers. Volunteer labor makes up a total of one-third of the national income attributable to nonprofit organizations in the United States (Young, 2007).

As for the U.S economy today, small business has the main roles to contribute significantly in a whole gross domestic product (GDP). In the purpose to motivate and encouraging small business performs efficiently, the U.S government provides a couple major resources, the Small Business Administration, and the SNBC as the guidelines to address business concerns and other matters related. According to entrepreneur.com, small business represents over 6 trillion dollars in total economy outputs, and account over 3% as a franchisee. (sba.com, 2004).

Small businesses can be expanded in many ways. This can help attract more customers, increase sales and market share. It can also help you to stay ahead of your competitor.