Special to the Pinoy Reporter

July, 2009

By Alexander Borromeo, President

The American Recovery and Reinvestment Act (ARRA) was good news for small business. The Reinvestment Act contains an entire section dedicated to helping small business which is the backbone of the American economy.

The small business employs local citizens, injects money into the local economy, creates a thriving and successful local community, and pays a significant amount of taxes supporting the overall government structure.

The ARRA provides an enormous funding amount of $730 million to small business using the SBA as the funding distributor. Fil-Am businesses have an opportunity to leverage their economic influence and success on, not one, but two levels: as a small business and as a minority business.

The SBA is the recipient of the ARRA small business funds which are to be directed to local businesses in communities coast-to-coast. The goal of the money is to jumpstart the economy, ease the tight credit markets and enable small businesses to do much more than survive this difficult economy. This money is intended to be used to create a thriving economic foundation of small healthy businesses.

What a great opportunity for Fil-Am businesses! There is money to borrow and markets to enter or expand. The ARRA provides loan fee reductions, creates additional loan amounts, creates new programs, assists small businesses with debt payments, and provides essential technical assistance through micro-loans. There is money to refinance, expand, and develop new business.

Leveraging your business and minority status offers a tremendous opportunity to succeed even in this difficult economic climate. As a Fil-Am business, you can borrow money to invest in your business, refinance debt, bid on projects funded with stimulus money, build a new business, borrow inexpensive government-backed money, or partner with other businesses in a collaborative venture.

The small business section of the American Recovery and Reinvestment Act includes the following sections geared towards promoting business success.

• Increases SBA loan guarantees which will promote additional lending to small businesses
• Provides for stabilization loans which enable small businesses to initiate deferred payment loans to make payments on existing SBA loans
• Expands Microloan program, making more money available to low-income, women, and minority entrepreneurs
• Increases money for refinancing existing SBA loans
• Expands the Small Business Investment Companies fund loan capabilities
• Increases the amount of SBA guaranteed surety bonds

You can begin to learn more about turning promise into action by first working with the Chamber of Commerce and then the Small Business Administration.

There has never been a better time to leverage what the government has to offer the small entrepreneur. It’s all about…leveraging opportunities.

“Just as the tumultuous chaos of a thunderstorm brings a nurturing rain that allows life to flourish, so too in human affairs times of advancement are proceeded by times of disorder. Success comes to those who can weather the storm. – I Ching”

Special to the Pinoy Reporter

June, 2009

By Alexander Borromeo, President

With unprecedented numbers of foreclosures, business failures, and unemployment, it is clear the ability to adapt to changing circumstances provides an important lifeline for small businesses.

President Barack Obama signed into law the American Recovery and Reinvestment Act. The purpose of the Act is to provide the investment needed to stimulate the economy while also enabling America to reinvent itself on a number of platforms.

What is needed now is to take reinvention to a new level. It is not business as usual as owners struggle to meet the challenges of tight credit, lower consumer spending, and a contracting business climate. Instead of business as usual, it must be business as reinvented.

First re-evaluate your current business practices to determine if they are too limiting. It may have been profitable to operate the business in the past when local consumer spending was high enough to support the business. But it might be necessary to extend the business reach further by attracting new customers with innovative ways, products and services.

The market strength and contributions of small businesses cannot be ignored. It may be time to reinvent the small businesses through strategic alliances or partnering with other businesses in better positions. The micro or small business may offer the perfect complementary services to fill a gap in the larger businesses enabling them to better serve a larger market niche.

The power of networking should never be underestimated. Collaborative teaming between businesses can create synergy. Collaborative agreements between businesses are powerhouse tools for business survival and building and reinventing.

The key to surviving an economic crisis is to open your eyes and look beyond your current limitations. Business owners must use the very resourcefulness and adaptability they have relied on for success. Reinventing your business does not mean starting over. It means being innovative in finding and capitalizing on new opportunities.

In fact, it is important than ever that the Fil-Am business community increase meaningful dialogue and networking efforts with political and business groups. A business that hides its head in the sand, because times are tough, may very well find there is no business left when seeking the light of day.

You must be aware of opportunities and prepared to utilize them whenever possible. One of the best ways to stay informed and participate in the economic loop is through memberships in local business groups such as the Chamber of Commerce. You don’t want to be the last to know about programs, funding, and opportunities.

Reinventing the Fil-Am business will mean creating an even more powerful economic unit, because during a crisis, it is not business as usual.

“Just as the tumultuous chaos of a thunderstorm brings a nurturing rain that allows life to flourish, so too in human affairs times of advancement are proceeded by times of disorder. Success comes to those who can weather the storm. – I Ching”

Special to the Pinoy Reporter

May, 2009

By Alexander Borromeo, President

The Census 2010 is officially underway and it’s time for the Fil-Am community to stand up and be counted. Sure…that may sound a bit simplistic, but there is a lot at stake in terms of community funding levels and accurate representation in the political arena.  That means the Census has a direct bearing on all businesses and a double impact on minority owned businesses.

The Fil-Am population was undercounted in Census 2000 and the US government completed a survey of Filipino-owned firms, and the numbers are impressive. On its website found at http://www.census.gov/econ/sbo/02/asiansof_filipino.html, the Census Bureau report states, “In 2002, there were over 125,000 Filipino-owned firms in the U.S., employing nearly 132,000 workers, and generating nearly $14.2 billion in revenue. These Filipino-owned firms accounted for 0.5 percent of all nonfarm businesses in the U.S., 0.1 percent of their employment, and 0.1 percent of their receipts. The number of Filipino-owned businesses grew 48 percent between 1997 and 2002, and the revenues grew 28 percent.”  The businesses included in this report are those with at least 51% ownership by Fil-Ams.

When you begin to consider the economic impact of the Fil-Am business and community on the US economy, it is clear that being counted in the next Census is critical.  The numbers reported in Census 2010 will play a critical role in decision making over the next 10 years.  These decisions will directly impact the Filipino-American business community in a number of important ways.

When the US government injects money into the economy, the funding flows in various ways.  Much of the funding is allotted to communities based on population statistics and the money is awarded as a grant.  The money flows from the federal government to the state, city, or county, and then to local organizations, agencies, and businesses.   Many times the grant funds have restrictions in them as to who is eligible to become the final recipient of the funds. 

The Census 2010 is estimated to impact over 170 federal programs and over $300 billion of spending.  The money is often distributed based on population statistics such as total population, minority population, low income population, and so on.  For example, cities get Federal community block grant funds based on city population counts and income distribution numbers. 

Fil-Am businesses stand to win a lot in the federal funding assistance programs, but only if Fil-Ams make sure they are counted.  On the other hand, if Fil-Ams are undercounted, the impact is severe on all levels including losing access to funding.  Federal grant dollars given to local communities are essential for many reasons.

·        Matching funds for business loans

·        Matching funds for new community projects

·        Special grants for area-specific needs

·        Minority business funding grants

·        Determines Congressional representation numbers

·        Housing development funds and government backed mortgages

·        Income based loans and grants

·        Job training grants

The Fil-Am community should fully participate in the Census 2010 for two overriding reasons.  The first reason is that accurate counts at the city and state level will generate local funding which Fil-Am businesses can benefit from through grants, loans, and new business generated by a thriving and healthy economy.  The second reason is to insure Fil-Am businesses fully participate in funding dedicated to Asian-American or minority owned businesses. 

In other words, by being counted in the Census 2010, Fil-Am businesses can leverage their success.  The population figures will lead to more area job development, business support, increased commercial activity, low interest loans and so on.  It is estimated that every 100 people counted equates to $1 million in federal funding over a 10 year period.

So every Fil-Am business and community member should view the Census 2010 as an opportunity to leverage success, influence, and power. 

Special to the Pinoy Reporter

April, 2009

By Alexander Borromeo, President

An expert is someone with a special skill or special knowledge. Align yourself with experts as determined by your business mission and goals. 

Experts can become advisors, mentors, partners or alliances. The expert is the person who can show how to partner with others and strategically target those business opportunities which promote inclusion and growth.

You may need to establish a relationship with an expert on marketing or someone who understands the intricacies of governmental contracting. Or you may want to establish business relationships with experts who have community standing because of their personal success in the business world. You many need to rely on advice from experts in finance or the service industries.

So how do you find and surround yourself with these experts.  There are a number of ways.  One of the best ways is to join the local business groups which promote business development. For example, the Chamber of Commerce and local area business development coalitions are comprised of experts who are anxious to create an inclusive environment for all business owners. 

Partnering with these experts can give you the introduction you need into the greater business environment.  At that point, you can establish a number of business relationships which will lead to the creation of a supportive business infrastructure within the community.

The Fil-Am business can target associations with experts that fill in gaps in knowledge or experience. These gaps may be found in developing targeted marketing campaigns, capital raising programs, government bidding practices, development of alliances with suppliers, creation of a more effective distribution system, or design of a more global based business.

Surrounding yourself with experts is an excellent success strategy.  No one can know everything. Minority businesses have traditionally relied on themselves to create successful enterprises. They have been denied access in the past to the business building resources that enable businesses to grow and expand.  That has changed in a number of important ways, and now you see organizations such as the Filipino Chamber of Commerce of the Pacific NW creating strategic alliances that provide access to experts in areas minority businesses need help in.

When you surround yourself with experts, you are able to get the right kind of advice and assistance. You can join forces with these experts in a number of ways ranging from getting sound advice to strategic collaborations which build economic strength.