Fax machines died for many industries a while back, but for the Internal Revenue Service they are still alive and kicking. And it’s making the process of getting a loan more difficult for small business owners.
While many banks have invested in speeding up the underwriting process, the process of getting a tax transcript from the IRS remains a burden, and that burden leads well qualified borrowers to turn to higher cost funding options that allow them to secure funds in a matter of days. Two house representatives, however, recently introduced the IRS Data Verification Modernization Act. This would require the IRS to accept electronic transmission of the tax transcript, which could speed up the lending process by days.
Two of the Small Business Administration’s biggest loan programs are getting new names. The SBA 7(a) program, their most popular loan program, will now be called the SBA Advantage Loan Program. The 504 program is being rebranded as the SBA Grow Loan Program. An SBA district office director says this will better reflect what these two programs are.
Read here about the difference between these two programs.
Linda McMahon is on the list of candidates being considered for the position of head of the Small Business Administration. McMahon and her husband, Vince McMahon, developed WWE and were key to its success. She served as president and CEO of WWE and later entered the political arena with two bids for Senate.
Although not as high profile of a position as many of the cabinet picks currently being announced, the position of head of the SBA is key to the success of small businesses and economic development.
SmallBizDaily takes a look at the newly released North American 17 Consumer Trends Report, a report conducted by Mintel that predicts upcoming shifts in consumer behavior. Among the trends that are pertinent to small business owners are: (1) the rise of division between individuals, who live in a “bubble” where they are only exposed to views and beliefs with which you already identify, and (2) a desire for the experiential (think virtual reality hardware). For businesses, this means that two ways to get ahead in 2017 include: (1) maintaining flexibility to connect with a diverse group of consumers, and (2) enhancing your brand by showing, rather than telling, your story.
This article was originally written on December 2, 2016.