According to the latest Intuit Inc. Small Business Employment Index, April saw a 0.33 percent growth in small business employment, equaling a 4 percent total annual growth rate. While 0.33 percent sounds like next to nothing, it equates a 4 percent total annual growth rate and means approximately 66,000 new jobs in April alone, adding up to a total of 300,000 new small business jobs since June 2009. According to the Intuit Small Business Employment Index, June 2009 marked the beginning of an upward trend in small business jobs, a market that had been in decline since 2007.
The monthly Small Business Index is a relatively new effort from Intuit Inc. who in the past has only released annual reports. In order to formulate the monthly Index, Intuit Inc. collects data from roughly 55,000 small businesses (less than 20 employees) that use the Intuit Online Payroll system. While the information collected through this process is not 100% accurately representative of the market, the month-to-month data are recorded and seasonally-adjusted to simulate the economy as a whole.
In addition to increases in small business jobs, the data also shows increases in hours worked and compensation, two other areas that have remained relatively flat since fall 2008. In April alone, both hours worked and compensation were up by 0.5 percent. On average, the employees of the businesses that use the Intuit Online Payroll system worked 105.7 hours and were compensated $2,607 in April as compared to 105.1 hours and $2,595 in March. April’s numbers translate to a 24.4-hour average work week, and $31,300 in annual compensation.
In response to April’s report, Dr. Susan Woodward, the nationally-recognized economist and key founder of the Small Business Employment Index, said “Small businesses are looking healthier. Every trend we measure — employment, hours worked, and monthly compensation — is showing signs of a recovery. Last month the national figures finally began to show a recovery for larger businesses and the entire economy, but for small businesses, the recovery has been underway for more than half a year.”
Vice president of Intuit’s Employee Management Solutions division, Cameron Schmidt, said “It’s heartening to see that not only are small businesses hiring but they are also increasing hours worked and compensation.”
Source: Credit Card Builders
This is an interesting article about the Small Business Lending Enhancement Act I recently read.
“New York Senator Charles Schumer is one of a growing number of people that believe that an increase in the amount credit unions can lend to small businesses will make a difference to the economy as a whole. As a result, he is co-sponsoring a bill to allow credit unions to make more small business loans. Credit unions are currently limited from lending to small businesses in excess of 12.25% of their assets. The new bill, titled The Small Business Lending Enhancement Act, would raise that cap to 25% of total assets and increase the minimum business loan subject to the cap from $50,000 to $25,000. The new bill reportedly has bipartisan support in both the U.S. House and Senate, and is currently being reviewed by both chambers.
Over the past 15 years, nearly two-thirds of all new jobs created in the United States were generated by small businesses. Yet throughout the recent economic crisis, small businesses have struggled to find the credit they need to expand. Due to the broadness of the financial crisis, many banks have been forced to tighten their lending, leaving a gap to be filled by credit unions that are frequently unable to fill the gap as a result of current lending restrictions. These are the issues that the Small Business Lending Enhancement Act is intended to confront.
“Our focus must be on increasing the lending to small businesses, which are the lifeblood of our economy. They have not only been a casualty of the ongoing credit crisis, but have unduly felt its impact,” Sen. Schumer said. “The situation facing these businesses right now is much worse than a matter of them simply being denied new loans. They are being strangled by having existing lines of credit pulled. A threat like this to small businesses could upend the livelihood of millions of workers and be catastrophic for the larger economy.”
Some sources indicate that the bill still faces opposition from the Independent Community of Bankers of America, a trade association that specializes in small banks, who feel that the proposal does not fit the tax-exempt mission of credit unions. They argue that credit unions have not even come close to hitting the existing limits, so the new bill provides no promise of a brighter future.
Opinions will continue to differ, but the real question remains: How much impact will this bill have on small businesses? Yes, there are businesses in need of credit, but is the extent of the credit problem an issue that truly requires new legislation?”
Source: Credit Card Builders
How to invest in Real Estate with low risk and great ROI
Investing your money these days can be quite overwhelming. The market place changes daily, if not every hour: Companies being bailed out, government reducing interest rate (directly affecting ROI in all or almost all investments), big and (once) reliable firms and banks going out of business… There are options, but most of them may seem like gambling and you do not want to “play” with your assets and future, right?
If you opt to play safe, your Return on Investment would probably be low, very low, 2 to 5% on average. Furthermore, when you consider inflation, you are actually getting NOTHING, NO return whatsoever. Honestly, you are receiving a negative ROI as inflation can easily beat the 5% return.
Fascinating, don’t you think?
However, if you want to take risks and try for a more appealing ROI, you would probably be up all night wondering what will happen with your money as the economy turns.
You also have the option to learn how to invest in the stock market, real estate, etc. You can buy pretty much everything to learn how to invest in different areas but again, how long is it going to take in order for you to master it and feel comfortable enough to invest?
It’s going to take time, money and hard work for you to be able to have enough knowhow to make good decisions and make the best out of your money. Of course you can always hire someone, an expert to guide you through, but again you’ll find yourself spending money before even getting any.
What can we do to protect our assets and make the best out of the current economy while being able to sleep at night? Why should you follow the Conventional Lending Process when you want to Maximize Profits and minimize risks?
Contact us for more information on how we can help you maximize your investments.
Email us: customerservice@crs-buy.com
Will Inquiries On My Credit Report Hurt My Score?
During the period of time of your Lease purchase contract (usually 1 to 3 years), it is important to work to increase your credit score in order to qualify for a bank loan at the end of the option term.
Did you know whenever a credit inquiry is done, your score goes down? Getting financing can be challenging if you have a low fico score. However, there are ways to delete inquiries from your credit report before the normal 2 year time period. Whether any negative information is on your account or not it does not matter. The most important question is, can the item be verified?
A Soft Inquiry (i.e. whenever you request a copy of your own credit report) does not impact your credit score negatively. So, it is always a good idea to check your credit report to verify where you stand.
Inquiries that can hurt your score are called “hard inquiries” and they do impact your fico score and all creditors can view it. If you have a lot of hard inquiries (when you request and authorize a creditor to pull your credit report) you will probably have a hard time getting loans or other type of financing.
You can learn how to remove inquiries from your credit report before you apply for any financing. A important step to start repairing your credit is by ordering all three of your reports. Each bureau report will include an inquiry section, and each one will include two types of inquiry, soft and hard.
Take your time to identify the items you want to challenge. Then, start writing ”dispute letters” in order to remove the negative credit from your report. Once the bureau receives your dispute letter they will investigate the item. The bureau has to respond to your request in timely manner, so it is important to send your letter via registered mail. The confirmation is a legal proof you have against them. According to the “Fair Credit Reporting Act” congress passed to protect the consumer, bureaus must investigate and remove inaccurate or unverifiable item.
Other facts that will affect your credit score are: 35% is made up of payment history, 30% is based on your current debt, 15% is made up of how long your credit history is (the longer the better), 10% is made up of new credit applications within the last 2 years (hard inquiries), 10% of made up of the types of credit in use (home loans, credit cards, auto loans etc.) The more diverse, the better.
Bottom line: keep your inquiries in check. Dispute them, if needed. It can save you thousands.
How can I buy a home when I have bad credit?
How can I buy a home when I have bad credit? You can’t through conventional lenders, but you can look into some owner financing programs or by creating Rent-to-Own situations to help improve your credit over time. When you enter into a ”Lease to own” program, you have the exclusive right to purchase the house you are renting at a later date. It gives you the time you need to save up for a larger down payment, time to clean up past credit problems, time to sell another home, and also time to try out the neighborhood before buying. Normally, 100% of your option fee/down payment is credited toward the purchase price of the home, plus you may be eligible to receive a monthly credit towards the purchase price every time you pay your lease on time.
Usually, to be approved to a Rent to Own program, you would need to put down a Option Fee/Down payment (normally 3% to 5% of the purchase price) and show proof of income. Your ability to make reasonable monthly payments and your desire to be a homeowner now is what is really important to get you qualified.
For a Owner Financing program, you would need 10% of the purchase price as down payment. You can choose to pay more and that will lower your monthly house payment. You can receive all the benefits of homeownership NOW without the hassle of bank financing. You get to deduct interest payments and property taxes from your income taxes. This lowers your income taxes and allows you to increase your deductions.
Look into serious and responsible companies registered with the Better Business Bureau, when applying for these fantastic ways to buying a home and Good Luck!!
