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State to air small businesses' policy ideas

SMALL BUSINESS

November 03, 2008|Cyndia Zwahlen, Zwahlen is a freelance writer.

* AB 32/energy: The caucus group acknowledged the differences in opinion on how the California Air Resources Board should implement AB 32.

To address concerns that the cost to small businesses will be disproportionately high, the group recommended that the board identify financing programs to help firms alleviate those costs.


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* Access to capital: This discussion group came up with 15 recommendations covering state outreach to small businesses, debt restructuring, equity funding and lender incentives.

Suggestions included proposing legislation to cover payment of the Small Business Administration's guarantee fee for loans that would meet certain job creation requirements, as well as tax incentives for angel investors.

Other proposals would boost micro-businesses by creating a new office in the state's business agency, enlarging micro-loan pools and creating a new type of small-business loan within public agencies.

* Entrepreneurial encouragement: Tax incentives, investment programs, education and support programs and state-assisted entrepreneur networks were covered in 19 recommendations.

Proposals include a state-managed seed fund for early-stage businesses, funding for small business development centers to support technology entrepreneurs and the state-assisted formation of computer databases that match investors and start-ups. For more information on the conference, go to sba.ca.gov.

Bailout panned

About half of small business owners -- 53% -- say the $700-billion federal bailout meant to free up credit will have no effect on their businesses, while 18% said it would hurt their businesses, according to a report released last week by Discover Financial Services.

The report also showed that 57% of the 1,000 small business owners polled disagreed with the economic rescue plan.

The October Discover Small Business Watch, which measured economic confidence among businesses with fewer than five employees, highlighted the economic gloom many small firms are feeling.

* Two in three, or 64%, rated the economy "poor" compared with 57% in September;

* 74% thought the economy was getting worse, up 1 percentage point from September;

* 69% were "not very" or "not at all" confident the federal government could address their business needs.

The data were compiled by Rasmussen Report.

Students in business

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