Friday, December 18, 2009

House approves $125M boost for SBA

Last night, by a wide margin, the House of Representatives passed a $626 billion military spending bill. And tucked deep within that legislation — on page 149 of a 161-page document — is $125 million to resurrect the Recovery Act provisions that bolstered Small Business Administration lending.
Those provisions, which eliminate fees for the major S.B.A. loan guarantee programs and increase the guarantee for the 7(a) program to 90 percent, ran out of money in late November. According to the S.B.A., they’ve been responsible for $14 billion in loans to small businesses and have increased the weekly S.B.A. loan volume by more than 75 percent since last February. The defense bill extends them through February 2010.
The S.B.A. provisions are paid for by rescinding $128 million from the stimulus package to pay for digital television converter box coupons, a program that is now winding down.
As I mentioned, the bill passed overwhelmingly, 395-34 — no doubt in large part because the House then adjourned for the holiday last night. As National Public Radio’s Andrea Seabrook reported today, Republicans who might normally oppose such add-ons (among others: extensions of unemployment insurance and Cobra health insurance subsidies for people who’ve lost their jobs) did not object. “We think that that is perfectly acceptable,” said Bill Young, a Florida Republican. “In fact, I think it’s a good idea in some of the cases.”
In fact, more Democrats than Republicans voted against the measure — and curiously, among the 23 Democratic naysayers was one Nydia Velázquez, the mercurial chair of — wait for it — the Small Business Committee! An aide to Ms. Velázquez said she has “consistently opposed funding for the war,” but that wouldn’t explain why she voted in favor of the original defense appropriations bill, back in late July, which had much the same war funding but no S.B.A. funding.
The bill now heads to the Senate, which also passed an earlier version of the bill, and appears poised to pass this one as well. “The House is out, so essentially we have to pass the bill unamended,” said a spokesman for the Senate Appropriations Committee, noting that current funding for the Defense Department expires Friday at midnight. Look for a vote in the Senate by early Saturday morning at the latest.
With the House now on holiday, action on Mr. Obama’s broader proposals (see here and here) to bolster small-business lending will have to wait until next year.

Thursday, December 17, 2009

Are You Sure You Want a Business Credit Card?

Are You Sure You Want a Business Credit Card?
By Lee R. Phillips

I have students asking about establishing business credit. It’s a myth. As a small business, real estate investor, or general entrepreneur you don’t have a prayer of establishing “business credit.” You will always sign personally for any “credit” your business gets.

The major competitor I had in do-it-yourself asset protection packages went bankrupt a couple of years ago. (Beware! His products are still out there being sold by a half dozen groups. The products are out of date and there is no support – in spite of what you are told.) His company was a ton bigger than mine. It was doing tons of seminars, and the back end sales were huge (ruthless). He had signed personally for all of the company credit cards. That’s the only way you will ever get a business credit card. When his company went bankrupt, he was on the hook for over $10 million. NOT HAPPY! (Not a good asset protection technique either.)

You actually shouldn’t have a business credit card. They are dangerous. Just use a personal card for everything and then pay it each month the way the IRS wants you to.
Your personal credit card is governed by the Credit Cardholders Bill of Rights, but those laws don’t apply to business credit cards. BIG RED FLAG!

Business cards are subject to the whims of the credit card company. The interest rates can be raised at will, even retroactively. Billing cycles can be changed at will. The rules just aren’t the same at all. The real threat a business card represents is the liability of fraud. You lose your card, and you are toast. With a personal card you are liable for $50, but with a business card there is no liability limit. You’re stuck, as a business and personally, because I will guarantee you have signed personally for the card.

So, don’t use a business card. Use a personal card. You will charge everything (personal and business) on the one card. But wait, you can’t comingle money and expect your corporate (LLC) shield to protect you. Comingling money is the number one no no. You’re not comingling money by charging the card. How you make the payment to the card is the issue.

When you get your credit card statement, go down the list and check each charge. (You should always do that anyway.) By each charge, write whether it is business or personal. In my case there are a number of companies, so I have to designate which company the charge applies to. Then add up the business and personal charges. Enclose two checks in the payment envelope; one from your business account and one from your personal account. The credit card company will cash each check and apply it toward the monthly bill. Sometimes we write half a dozen checks and put them in the same envelope.

The IRS actually wants to see the money coming out of each account. If you do it that way, there is no question you are not comingling money. Your asset protection shield is safe. Yes, you could cut one check to the credit card company and then reimburse yourself from your company, but just do the multiple check thing. You can follow the same concept if you pay online. You now have the protection of a personal card, your asset protection shield is intact, and the IRS is happy. Don’t you love a happy IRS?

For other asset protection information and articles of interest, check out my website at www.phillipsassetprotection.com.

To Your Success,

Lee Phillips
LegaLees Corporation
556 East 1400 South
Orem, UT 84097
800-806-1998

Another $1 billion in small business credit vanishes

By Catherine Clifford, staff reporterDecember 16, 2009: 5:42 PM ET
NEW YORK (CNNMoney.com) -- The small business credit crunch is still deepening: Major banks cut their small business loan balances by another $1 billion in October, according to a Treasury report released late Tuesday.
The 22 banks that got the most help from the Treasury's bailout programs have decreased their small business lending by a collective $11.6 billion since April, when the Treasury began requiring them to file monthly reports. The banks' total lending has fallen 4.3% in that six-month period, to $257.7 billion.

When loan and credit lines dry up, small businesses have trouble launching, expanding, and funding their daily operations. President Obama met Monday with CEOs from a dozen of the nation's biggest banks to pressure them to do more to rebuild the economy they helped blast apart.
"We expect some results," Obama told the bankers. "I'm getting too many letters from small businesses who explain that they are credit worthy, and banks that they've had a long-term relationship with are still having problems giving them loans."
President Obama is planning another banker gathering next week. On Tuesday, he'll host a discussion with representatives of several community banks, according to a White House spokeswoman. The White House has not yet made any additional details available about the meeting and its agenda.
'Wait till next year': Banks are beginning to respond to the heat they're getting from administration officials. Bank of America (BAC, Fortune 500), which whittled its small business loan balance down further every month since April, said Monday that it will loan $5 billion more in 2010 than it did this year.
In the past six months, the bank has reduced its outstanding small business credit balances by $2.6 billion, a 6% decline.
Wells Fargo (WFC, Fortune 500) also pledged to be more active next year.
The bank has clipped a bit more than $3 billion off its loan portfolio since April, a 4% drop. But at $73.5 billion, its small business loan balance dwarfs that of any other bank, and Wells Fargo was the top lender this year through the Small Business Administration's primary loan program.
Next year, the bank will increase its new loan originations by 25% over 2009 levels, to $16 billion, according to Marc Bernstein, a Wells Fargo executive vice president and the head of its small business unit. Wells Fargo is on track to make about $13 billion in new loan originations in 2009, he said.
Like many banks, Wells Fargo says it's had a tough time lately finding creditworthy borrowers. Sales are down for most businesses, and depressed property values means business owners have less equity to borrow against in their homes and other assets.
"It just wouldn't be responsible to lend more money to those people as they are struggling to make their existing payments," Bernstein said of his bank's shrinking loan portfolio. "We want to make as many loans as we possibly can, but we require a reasonable likelihood that it is going to be repaid."
The bank is forecasting a lending pickup next year because it's optimistic about economic recovery. "There have been very clear improvements over the last six months," Bernstein said.
JPMorgan Chase (JPM, Fortune 500) is also hopping on the bandwagon. The bank said last month that it will increase its small business lending by up to $4 billion in 2010 -- though much of that may come through its new Ink line of small business credit cards. The bank said it will hire 325 additional small business specialists to work with customers and source new business.
Other efforts in limbo: President Obama's administration has been trying all year to revive the small business credit market. Most of the initiatives are currently either stalled or out of gas.
In October, Obama unveiled a collaborative effort between the Treasury Department and the Small Business Administration to make capital cheaper for community banks. The administration wants to use the Treasury's Trouble Asset Relief Program (TARP) funds to make ultra-low-interest loans to banks that will use the money to expand their small business lending.
But nearly two months after Obama's announcement, the Treasury is still hashing out the details. "We expect the program to kick off very soon," Treasury spokeswoman Meg Reilly said.
Meanwhile, a popular Recovery Act measure to boost the Small Business Administration's loan programs has run out of money and awaits Congressional action to replenish its funding pool. More than 700 SBA loan applications, totaling $390 million, are in the queue and on hold.
Washington's policymakers are attacking the lending problem from multiple directions, but haven't yet gained traction.
"This is a very hard problem to solve," Treasury Secretary Timothy Geithner said at a small business lending forum in Washington last month. Speaking to a room filled with small business owners and lenders, Geithner was candid about the struggle.
"It's not something we can easily fix," he said. "It takes a coordinated mix of different strategies and policies."

Wednesday, November 18, 2009

First-Time Homebuyer Credit UPDATE!

New Legislation
New legislation, the Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:
Extends deadlines for purchasing and closing on a home.
Authorizes the credit for long-time homeowners buying a replacement principal residence.
Raises the income limitations for homeowners claiming the credit.
Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.
People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.
Several new restrictions apply to homes purchased after Nov. 6, 2009.
Purchasers must attach a properly executed settlement statement to their return.
No credit is available if the purchase price of the home exceeds $800,000.
The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
A dependent is not eligible for the credit.
The new law gives the IRS broader authority to deny first-time homebuyer credit claims, without having to first audit a taxpayer’s return. Known as math error authority, this authority applies, retroactively, to credits claimed on original and amended 2008 returns, as well as to claims yet to be filed.
Additionally, there are new benefits for members of the military and certain other federal employees:
Members of the uniformed services, members of the Foreign Service and employees of the intelligence community serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit.
In many cases, the credit repayment (recapture) requirement is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community.
More information on these new benefits for the military, Foreign Service and intelligence community serving outside the U.S. is available.
General Information
Homebuyers who purchased a home in 2008, 2009 or 2010 may be able to take advantage of the first-time homebuyer credit. The credit:
Applies only to homes used as a taxpayer's principal residence.
Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.
The credit is claimed using Form 5405, which you file with your original or amended tax return.
For 2008 Home Purchases
The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.
For 2009 Home Purchases
The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1. However, the new Worker, Homeownership and Business Assistance Act of 2009 has extended the deadline. Now, taxpayers who have a binding contract to purchase a home before May 1, 2010, are eligible for the credit. Buyers must close on the home before July 1, 2010. [Added Nov. 12, 2009]
For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.
First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options.

Wednesday, November 11, 2009

U.S. House Abandons Small Business in Midnight Vote

FROM NFIB:

Late Saturday night, the House of Representatives passed H.R. 3962, "The Affordable Health Care for America Act," a deeply flawed attempt at healthcare reform.Lawmakers who voted "yes" for the bill supported Washington politics at the expense of supporting the small businesses in their communities.Click here to see how you member of Congress voted on H.R. 3962The bill fails to lower costs, increase choice or provide real competition for America's small businesses. Instead, this bill will actually make things worse, not better.Susan Eckerly, senior vice president at NFIB, said, "H.R. 3962 will punish small employers with mandates, payroll taxes and a new government-run insurance program paid for on the backs of small businesses."Read our statement on how the U.S. House Voted 'NO' on lower costs and 'YES' on higher taxes for small business.Spread the Word: H.R. 3962 fails Small BusinessGovernment mandates are a common theme in the Affordable Health Care for America Act. Download and share our H.R. 3962 worksheet to see if your small business passes the government's "healthcare test."What's next for Small Business? The healthcare debate now moves to the U.S. Senate. We must remain vocal and demand that the Senate address our needs for responsible insurance market reforms and increased competition in the small group and individual private market.As the stakes grow higher and debate becomes more intense, stay tuned for updates on how you can stay involved and make a difference.Sincerely,
The Solutions Start Here TeamP.S.
Read more on how the small business community reacted to the passage of H.R. 3962 in a recent Wall Street Journal article.

Friday, September 18, 2009

We Are HAPPY!

September 16, 2009, 4:38 pm — Updated: 6:35 pm -->
The Self-Employed Are the Happiest
By Catherine Rampell
Peyri Leigh
Business owners are the happiest workers in America, according to Gallup-Healthways Well-Being Index poll data collected from January to August. Transportation and manufacturing workers have the lowest overall well-being.
Definitions for each of the job categories can be found here.
Some other observations:
The three occupations with the highest levels of well-being are those with the highest household income.
Self-employed workers also work the most hours per week.
Farm workers, fishers and forestry workers exhibit the healthiest habits — good diet, frequent exercise and low smoking rates.
Construction workers and managers/executives score the best on overall health, as determined by measures of chronic illnesses.
Now the question is: How happy are transportation and manufacturing workers in Hawaii?
Copyright 2009 The New York Times Company

Monday, September 7, 2009

Together We Can Do It!

Let’s work together to boost entrepreneurialism

By Michael Gaiss

Michael Gaiss is a Senior Vice President at venture capital firm Highland Capital Partners. The opinions expressed here are his own.

More than ever, entrepreneurship will continue to play an instrumental role as geographic regions and small businesses contend with today’s rocky business landscape. While the entrepreneurial fire may be well lit, there are opportunities to better coordinate and amplify it into a raging inferno.

Marketing can help this along by playing a key role in nurturing innovation and entrepreneurship. For regions looking to weather the downturn, help small businesses get off the ground and improve their positioning in the long-term, here are a few tips to consider:

1) Connect and enable the next generation of entrepreneurs. Much can be learned from those who have already done it. Barriers preventing the next generation from connecting with the existing entrepreneur community, as well as each other, need to be removed. Gatherings and one-on-one mentoring can be orchestrated to bring entrepreneurs of all stages together to better enable the free flow of ideas and advice. The challenge is to leverage existing institutions such as associations, universities, venture and angel networks, and relevant service providers to get these off the ground, while encouraging the organic emergence of new networking & mentoring platforms over time. As entrepreneurship evolves, what started as forums for sharing insight and advice matures into a vibrant and proven support ecosystem that entrepreneurs can rely on to help get their startups off the ground.

2) Enhance the supporting infrastructure. People and ideas are key pillars of the entrepreneurial foundation. But access to capital, talented employees, and a supportive business environment are what help many to succeed. Creative programs for facilitating the flow of early capital and/or company-building expertise to entrepreneurs and small businesses can be essential through business development initiatives, active angel networks, and seed capital programs. Of course, not everything should be “just about the entrepreneur.” Top talent is continually needed to fuel the realization of the entrepreneurial dream, but to also propagate the exchange of “entrepreneurial DNA” and best practices to prime the pump with qualified entrepreneurs and employees for future endeavors. Open houses, job fairs & boards and proactive initiatives to recruit and retain talent in a region – both on a permanent and internship basis – are imperative.

3) Celebrate and brand success. Success breeds success. Fortunately, we’re not starting from ground zero here. Today’s young generation has grown up with entrepreneurial “hero” figures around them. Bill Gates, Steve Jobs, and Michael Dell have inspired for decades. Sergey Brin, Larry Page, and Mark Zuckerberg are some of the more recent examples of individuals who are showing the way. Putting the spotlight on entrepreneurs, startups and new innovative products is a good thing and must be more prevalent. Regionally focused PR and media can play a big role here. Word of mouth is also essential by bringing additional awareness and credibility for inspiring and encouraging the next generation.

People want to be part of the next big thing. The challenge is to capitalize and best channel this. Breaking down barriers, implementing a stronger supporting ecosystem and branding help to attract the best talent to entrepreneurial initiatives and better position small businesses for success, both now and in the future.

Tuesday, September 1, 2009

Quote for the Day

In life and business, there are two cardinal sins.. The first is to act precipitously - without thought - and the second is to not act at all."
-Carl Icahn

Monday, August 31, 2009

Is Your Business Ready for the Flu?

Businesses weigh steps to shield staff, customers
By TUX TURKEL, Staff Writer August 30, 2009
FLU ADVICE FOR BUSINESSES
• Encourage workers to get vaccinated.
• Get out the word about proper hand washing, cough and sneeze etiquette (into the sleeve).
• Clean and disinfect workstations, doorknobs, other high-touch surfaces.
• Set up and communicate a plan for how to operate with high absentee levels.
• Protect workers at high risk of complications from the flu.
• Allow sick workers to stay at home, without fear of losing jobs.
CDC FLU GUIDANCE for businesses:
www.cdc.gov/h1n1flu/ business/guidance/
At Hannaford Bros. stores, antiseptic cart-wipe dispensers are being refilled more regularly, a basic step the supermarket chain is taking to help protect customers and workers from the potential spread of H1N1 influenza.
Behind the scenes, Hannaford has contingency plans that could outfit workers with gloves and masks, so they could keep stores open during a pandemic.
"We're not near that threshold, and no one's contemplating that will happen," said Michael Norton, a Hannaford spokesman. "But we're an important public institution, and we'd be prepared to do what we need to do."
Hannaford's actions show how, in small and big ways, Maine employers are gearing up to do business this fall and winter under the threat of H1N1 flu. They are contemplating how to deal with high absentee rates, reviewing sick leave and return-to-work policies and taking measures to keep employees and customers from spreading the virus.
No one knows how the swine flu threat will unfold, but a report released this past week for the White House said that half the U.S. population could be infected. That means that, beyond schools and child care centers, workplaces need to be prepared, especially those that provide essential services.
The need is being magnified by the lingering economic downturn, which has led companies to cut staffs and delegate more functions to remaining workers.
The cleaning crews at Kennebunk Savings Bank are doing a more vigorous job disinfecting door handles and ATM keypads. And the bank recently tested its pandemic planning, which would let it consolidate operations in a few branches, expand Internet banking and serve customers at drive-up windows.
"Customers want their money, and they need to have comfort that we'll be there for them," said Dennis Byrd, the bank's chief operating officer.
Much of the planning, not surprisingly, is being done by large employers with more resources. What's unclear is the preparedness of small businesses, those that depend on a handful of workers to keep operating.
"For a lot of small businesses, I suspect it's going to be a slow process," said David Clough, state director of the National Federation of Independent Business. "It may seem pretty theoretical and abstract to them."
COMMON-SENSE STANCE FAVORED
Workplaces of all sizes got some guidance this month when the federal Centers for Disease Control and Prevention released new recommendations for businesses. Many adults spend at least part of their day in the workplace, so public health officials want to focus on reducing the spread of the virus among staff members and protecting higher-risk workers, such as pregnant women, while maintaining business operations.
Specific measures include:
• Encouraging workers to get vaccinated.
• Improving hygiene and surface cleaning.
• Keeping sick workers at home and asking employees who get sick at work to go home.
• Being prepared for workers to be absent while tending to family members or responding to school or day-care closures.
The guidelines are based on a flu outbreak similar to the one last spring. If conditions worsen this winter, the CDC recommends additional measures, including screening workers each day for signs of illness, letting employees work from home and increasing "social distancing" in the workplace – keeping people at least 6 feet apart at most times.
The guidelines are meant to provide a framework that employers can adjust to suit their needs, says Dr. Dora Anne Mills, who directs Maine's Center for Disease Control and Prevention.
"We can tell everyone in society, 'Stay 6 feet away, wear a mask and stay home,' but it's almost laughable," she said. "It would just be too disruptive. So it's a matter of figuring out what makes sense."
L.L. Bean, which has 5,000 employees, 4,000 of them in Maine, is seeking that balance.
The Freeport-based company already offers seasonal flu shots and expects to offer the H1N1 vaccine when it's available. The occupational health department has active programs in customer service and distribution areas to remind workers to wash their hands and cough into their sleeves. Hand sanitizers are scattered around the workplace.
L.L. Bean has paid sick leave, which applies to workers who have to take care of family members. If the flu season is a bad one, the company plans to tailor the policy to cover situations in which ill workers might otherwise be penalized for staying home.
At the same time, Bean doesn't want sensational media reports and misinformation to guide decisions. So it plans to ramp up communication and educational efforts to keep workers updated.
"We're trying to look at it realistically and avoid any hysteria," said Carolyn Beem, a company spokeswoman.
Hannaford is leaning on its team of wellness professionals, supermarket managers and in-store pharmacies to provide information and find the right balance between protecting workers and maintaining operations.
It has 9,200 workers and 54 stores in Maine, and it plans to follow the latest CDC guidelines for sick workers: Anyone who appears to have flu symptoms should be separated from workers and advised to go home until at least 24 hours after their body temperature is below 100 degrees.
"We don't want anyone back unless they're fever- and symptom-free for 24 hours," Norton said.
Kennebunk Savings plans to let some people work from home through secure Internet connections, if necessary. All U.S. banks are now required to plan for operations during natural disasters and pandemics.
Kennebunk Savings got some real-world practice last spring, when the flu outbreak prompted schools and day-care centers in Kennebunk to close.
"The communication piece is key," Byrd, the chief operating officer, said. "It's like a snow day."
BIG CHALLENGE FOR SMALLER FIRMS
The CDC guidelines will be harder to follow for small businesses. Many don't have paid sick leave, which puts extra pressure on some workers to show up, even if they're not well or a child is sick at home, said Clough, the small-business representative.
"The issue for smaller companies is, there's a job that's got to get done," he said. "They don't want to let down other employees or customers, so they'll come to work, unless they're too sick."
That's a concern for Mary Allen Lindemann, co-owner of Coffee By Design in Portland. The company has 40 workers in four locations and can't afford paid sick leave.
She doesn't want sick employees to come to work, however, and is reviewing plans for well workers to swap shifts and cover for sick ones. In a worst-case scenario, she could limit hours at a coffee house, or even close one for a time.
Last spring, Lindemann posted public health signs circulated by Portland's Downtown District that told workers about the need to wash hands and other hygiene tips.
She posted them in restrooms and may put new ones on coffee house bulletin boards – a message for both employees and customers.
"It's definitely on our radar screen," she said. "We want to do what we can as a business so our people can stay healthy."
Staff Writer Tux Turkel can be contacted at 791-6462 or at:

Thursday, August 20, 2009

Employer Sponsored Vegetable Garden - Cool Idea

**It's a little late for us to do it this year - but next summer, maybe!

Vegetable Gardens Help Morale Grow

By RAYMUND FLANDEZ
Some small companies seeking an extra benefit for their employees are turning to their backyard for inspiration: a vegetable garden.
After laying off an employee, cutting hours and discontinuing raises, Sheryl Woodhouse-Keese, owner of Twisted Limb Paperworks LLC in Bloomington, Ind., invested $600 last fall to create a 1,500-square-foot garden outside the recycled paper-products company's office. Now, her four employees can take home their pick of 10 herbs and 22 vegetables.
Haberman
Fred Haberman with his son, Clayton, at his company's vegetable garden in Minneapolis.
"The garden really is a nice benefit, saving them on their food bills," said Ms. Woodhouse-Keese, who estimates the garden has meted out $2,400 in produce this season, from tomatoes to potatoes.
Employer-sponsored gardens can be a cheap and easy way to boost workers' morale, relate better to certain customers and expand a company's health and wellness program. It is unclear how many businesses have them, although the National Gardening Association projects a 19% increase in food gardening this year, as the recession motivates households to trim grocery lists.
For a small employer, a garden can encourage camaraderie among co-workers and become "a valuable asset the organization is offering," said Paul Teslak, a professor of organizational behavior and human resource management at the University of Maryland's Smith School of Business. It requires relatively few resources, can help in recruiting and differentiate a small business from its competitors, he said.
That has been the case for Haberman, a public relations and branding company in Minneapolis, which invested about $10,000 this year to set up a garden for its 30 employees. The company hires part-time help to tend the garden but its employees can work the soil and reap the benefits of beans and beets.
"It's creating that water-cooler effect," said Fred Haberman, the company's co-founder and chief executive. "People have a greater excitement [about] working at Haberman." The company has numerous clients in the organic-food industry, so time at the ranch also helps employees connect with them, he said.
For Lundberg Family Farms, a producer of rice products in Richvale, Calif., the two-year-old employee garden is part of the company's wellness program, which also includes health screenings, daily morning stretches and free flu shots. "We think that it's incumbent upon us to make our employees as healthy as we can," said Rhonda Turner, a human resources manager. "Employees that are healthier use their insurance less."
But it takes time and broad support from employees to make a garden live up to its potential.
Autumn Blum, chief executive of Organix-South Inc., of Bowling Green, Fla., learned that first-hand when an employee who took charge of the garden left the natural health-products company.
Weeds have sprouted. Her employees miscalculated planting time this summer season and had to pull rotting squash and tomatoes after three weeks of rain.
Ms. Blum has already invested about $1,000, and wants to continue the project, which started a year and a half ago. She's sought help from local gardening clubs. "We have to catch up and learn a little bit more," Ms. Blum said.
Write to Raymund Flandez at raymund.flandez@wsj.com

Wednesday, August 5, 2009

Tax Credits - Energy Efficient Home Improvements

Who says you can’t get a break when buying green? The American Recovery and Reinvestment Act may give you the break you’re looking for – tax credits for certain energy efficient home improvements and electric vehicles.

Here’s what you can do to get a 30 percent tax break of up to $1,500. Add insulation, energyefficient exterior windows, doors or skylights, or heating and cooling systems. You also get a 30 percent tax break with no dollar limit for alternative energy equipment like solar water heaters, geothermal heat pumps and small wind turbines. And to spruce up your driveway or garage, youcould get a tax credit for buying certain electric vehicles. See how you can make your home more green and save some green in the process.

Visit www.IRS.gov/recovery

Wednesday, July 29, 2009

United Way Needs You!

Week Of Caring

United Way of Butler County is accepting applications for its Week of Caring, in September.

This effort mobilizes volunteers to complete hands-on projects that benefit the non-profit community.

Last year, over three hundred volunteers completed seven projects by providing more than $31-thousand in free labor.

Non-profit groups, parks, schools, churches and municipalities can get applications from the United Way. The deadline is July 31st.

Free Legal & Financial Help

Get Help Now
Butler News

Free legal advice on certain financial matters is available, Tuesdays and Thursdays from one to six, at the Butler County Bar Association office.

That office is in the Cornerstone Commons building, at the corner of Cunningham and Main streets, in Butler.

The counseling is part of the "Get Help Now Pennsylvania" program.

For more information about the program, call 1-888-799-4557 or visit pa.gov.