NEW SBA LOAN COULD HELP YOUR BUSINESS

SBA ARC Loan Program

If you are having trouble with expenses during these economic times, the SBA has a new loan program that could help.

SBA’s America’s Recovery Capital Loan Program can provide up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship to help ride out the current, uncertain economic times and return to profitability.

Each small business is limited to one ARC loan. You will need to contact your bank to see if they are participating in the program.

ARC loans will be offered by some SBA lenders for as long as funding is available or until September 30, 2010, whichever comes first.

Here is a link to the SBA website.
http://www.sba.gov/recovery/arcloanprogram/index.html

JUST WHEN YOU THINK THEY HAVE TAXED EVERYTHING - A PROPOSED TAX ON SODA

(Wall Street Journal) -- The Wall Street Journal reports that "Senate leaders are considering new federal taxes on soda and other sugary drinks to help pay for an overhaul of the nation's health-care system." The paper notes that "the taxes would pay for only a fraction of the cost to expand health-insurance coverage to all Americans and would face strong opposition from the beverage industry. They also could spark a backlash from consumers who would have to pay several cents more for a soft drink."

According to the article, a Washington-based watchdog group "plans to propose a federal excise tax on soda, certain fruit drinks, energy drinks, sports drinks and ready-to-drink teas. ... Excise taxes are levied on goods and manufacturers typically pass them on to consumers."

See the story at <http://online.wsj.com/article/SB124208505896608647.html>

IDEAS ON HEALTHCARE REFORM

Just in case you missed it, Senator Johanns of Nebraska has requested that I sit on a panel to inform him of small business challenges as it relates to health care reform. I am gathering information for my presentation. I welcome any ideas that you have on this issue. If you could email me your thoughts, I would certainly appreciate it. lkopsa@kopsaotte.com

Larry Kopsa

QUOTE OF THE WEEK

"When one door closes, another opens.
But we often look so regretfully upon
the closed door that we don't see
the one that has opened for us."
~Helen Keller

SALON BENCHMARKS

Larry, I've been looking for some salon benchmarks. Do you have any information that you could pass along to me?

Ruth

Ruth, benchmarks vary depending on different things such as your location. But, here are some numbers from the Salon Today Top 200 that may be of help to you.

Percentage of Total Salon Expenses

• Labor 47%
• Supplies 11%
• Profit 7%
• Taxes 5%
• Owner Comp 4%
• Ad/Mkt 3%
• Benefits 2%
• Insurance 2%
• Utilities 2%
• Prof Svs 2%
• Comm 1%
• Other 6%

Services Breakdown Percentage of $

• Color 32%
• Cutting 31%
• Retail 16%
• Skin 12%
• Nails 6%
• Chemical 3%

Average stylist - $47,640

NONCUSTODIAL PARENTS

Can you give me any advice? My divorce decree says that I can claim my children even though they live with my ex. Now my ex says she is going to claim the children and that I should suck rocks. What can I do?

Alan

Alan, make sure the rocks are clean. There is bad news on claiming dependency exemptions. If your ex will not sign the Form 8332 to waive her right to the exemption you are out of luck.

For divorces before July 3, 2008, a signed divorce decree awarding the exemption to the noncustodial parent was OK in lieu of the 8332. But now, the Service says that it will reject signed decrees that have conditions, such as requiring payment of a settlement, that must be satisfied before the noncustodial parent gets the break.

So even if you have documentation showing the condition of the divorce decree, you cannot claim the children.

The only thing that you can do is discuss with your attorney to determine if it is worth the effort to take her back to court to honor the contract. In reality, probably not worth the cost.

Good Luck.

Larry Kopsa CPA

QUOTE OF THE WEEK

“The world stands aside
to let anyone pass who knows
where he is going.”
David Starr Jordan