• NASE Members Still Struggle To Find Funding, Use Personal Finances
• Small Biz Can Play Key Role In Cutting Emissions, Committee Says
• House And Senate Continue Push For R&D Tax Credit

NASE Members Still Struggle To Find Funding, Use Personal Finances

Micro-business owners are facing considerable challenges when it comes to finding capital and maintaining finances for their businesses, according to a recent online survey by the NASE. The survey showed just how intertwined business and personal money can be for small firms. Nearly sixty percent of respondents say they rely on personal finances as their primary source of funding to start up their business. That habit continues after the business is established, with thirty-six percent continuing to use their personal savings as an ongoing means of finance. These numbers remain similar to an NASE poll in 2005, which found that a majority of micro-business owners (57 percent) initially fund their businesses using personal savings, and 40 percent use personal savings thereafter. About two-thirds of respondents struggle to find adequate funding resources, a common complaint of small businesses. In addition, entrepreneurs say that one of the largest obstacles they face in gaining access to capital is their credit rating (26.2 percent), followed closely by a lack of collateral (21.5 percent). “Grant programs like those run by the NASE help encourage entrepreneurs to grow their business but these programs can’t entirely fix a broken system—that takes legislation,” remarked Kristie Darien, NASE executive director of the legislative office. “The recently introduced Access to Capital for Entrepreneurs Act of 2007 works to make financing less of a headache for micro-businesses and we hope to see it progress.” For the full results of the survey, visit http://advocacy.nase.org/membersurvey/default.asp.

Small Biz Can Play Key Role In Cutting Emissions, Committee Says The Senate Committee on Small Business and Entrepreneurship is calling on the Environmental Protection Agency (EPA) to expand their outreach to small businesses. At a recent committee hearing, an EPA official said the agency spends about $1 million per year on small business outreach and education, or about two percent of the budget for their Energy Star program. The Energy Star initiative offers cost-cutting tips for specific types of small firms, such as home-based businesses, auto dealers, and restaurants. It also includes an “energy performance rating system” for office equipment, as well as heating and cooling systems and industrial buildings. In a joint letter to EPA Administrator Stephen Johnson, Senators John Kerry, D-Mass., and Ranking Member Olympia J. Snowe of Maine asked the agency to provide its related funding and staffing allocations for the previous five years. They say past records will determine how the Administration is helping small firms cut down on greenhouse gases. The Committee pointed to research which showed that a reduction in carbon dioxide emissions could save small businesses billions of dollars each year. Visit http://www.energystar.gov/index.cfm?c=small_business.sb_index for more information on the Energy Star program’s small business guidelines. To read about the Senate Committee’s other recommendations for improving EPA communication with small businesses, visit http://sbc.senate.gov/record.cfm?id=271843. House And Senate Continue Push For R&D Tax Credit U.S. House of Representatives member Eddie Bernice Johnson, R-Texas, is the latest member of Congress pushing for a simplification of research and development tax breaks, including equity investments in small business companies who carry out this type of work. Currently, the tax credit is claimed using gross receipts. In the new method, the amount of money spent on research would be the determinant. The 110th Congress has worked to support entrepreneurs who currently work in or are looking to break into the high-tech field. An R&D companion bill was put forth by Senator Max Baucus, D-Mont., in January. Last month, the Senate Committee on Small Business and Entrepreneurship released a proposal that would increase funding for Small Business Innovation Research (SBIR) outreach programs, which was absent in President Bush’s 2008 Budget. Read about the proposals by searching the Library of Congress Web site, http://thomas.loc.gov/. Last Minute Tax Tips Tax day is fast approaching and your return is still covering the kitchen table. What now? Visit the NASE's new audio download page for advice from Keith Hall on what to do if you’re running behind, plus find out information on the home office deduction, travel expenses and more! While you’re there, enter to win an iPod Shuffle by taking our quiz. The Winner will be selected at random from all correct entries and will be announced the week of April 23, 2007.