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  1. 1. Gramercy Small Business Commentary April 2010 The Latest Business News & Offering BE SAFE AND PREPARE FOR CHANGE SMALL BUSINESS MEDICAL INSURANCE LAW EFFECTS YOUR EMPLOYEES AND YOU: Merchants’ Cash Advance! You may need available cash to address the new law! Knowledge is power! PEACEFUL ACCOUNTABILITY TO THE LAW From the Communications Team of: Gramercy Capital & Business Services, Ltd. PO Box 1337, Stony Brook, NY 11790 Tel # 631-865-2901 – Alt # 347-492-2352 Fax # 347-578-8745 Email: GRAMERCYCAP@LIVE.COM WWW.GRAMERCYCBS.COM SMALL BUSINESS CONCERNS ABOUT MEDICAL INSURANCE LAW AND HOW IT EFFECTS YOU? SMALL BUSINESS MAY HAVE ADDED EMPLOYER RESPONSIBILITES ALL US CITIZENS MUST MEDICAL INSURANCE. IT MAY NOT EFFECT YOU IN 2011 JUST BE PREPARED YOU CAN’T SPEND TAX CREDITS ! No fee application - lower processing Merchants’ Accounts: Free audit CASH ADVANCE first edition April 2010 Welcome to the first edition Gramercy’s Small Business News. This newsletter is to reflect and enlighten you on how the new Medical Laws will affect your Business. What’s going on in banking? You may need additional funds to comply with the new law. I will summarize the latest news and information on the Banking and the Political posturing of the respective Administrations. Understand the new Medical Insurance is the law, all US Citizens must have medical insurance to comply with the Law1 a reality, best accept it and prepare. I would like the opportunity to propose a competitive plan to cut some of your business expenses in connection with the credit processing fees and provide a working capital back up CASH ADVANCE to opt our (Newtek partnership)2 Our Processing Services includes cash advances. We can offer other business services which will provide supplementary savings. NOTE: all present processing equipment can be used
  2. 2. and any present contractual agreements settled at our expense. Application Annexed, Information application (Credit volume, contact, formal name of concern and other non credit details of the business.) Yes this is a solicitation letter but much more we will keep you undated and informed on aspects of the small business. The effects you may have if tax and cap is approved. The new bank regulations. What effect if any will the change warrant additional cost to your business? Immigration proposed new regulations on illegal’s now in this country. Contents Section 1 Free audit for lower Merchants’ processing: 2 Section 2: Cash advance benefits vs. down side Cost: 2 Section 3: Payroll for protection: 2 Section 4: Group medical and positive tax fee coverage: 2 Section 5: Working Capital options 3 Section 6: Small Business Administration and how it may effect you………………………………………….3 Section 7: Commentary by author 3 Additional Information 3 Section 1: ALWAYS A Free audit for lower Merchants’ processing: Our partnership with Newtek Merchants’ Processing Services includes cash advances and related business products. We can offer an economical savings, all present processing equipment can be used and any present contractual agreements settled at our expense. Annexed Exhibit 1 Information application (Credit volume, contact, formal name of concern and other non credit details of the business. As the manager or owner of a small business, you are probably very much aware of what a traditional small business loan is. While small business loans can often save the day when your business finds itself short on cash, the application process can be difficult, confusing, lengthy, and full of hassles. Believe it or not, small business loans are not the only solution for securing additional cash for your company. So what is a merchant cash advance, exactly? Section 2: cash advance benefits vs. down side Cost: Today's tight credit market, a merchant cash advance is a very easy and efficient way to get funding for your business when you need it most. A merchant cash advance is a smart, safe, and simple solution to your business' immediate cash flow needs. The business advance is much easier; advances are funded within a couple of business days with no application fees, very little paperwork, and no collateral required and no
  3. 3. credit notifications. This makes obtaining a merchant cash advance more convenient than the typical business loan. It is important to understand that a merchant cash advance is not a business loan. In fact, it's not a loan at all. A merchant cash advance is what is known as credit and receivables funding which means it is the purchase of your future credit card receivables at a discounted rate. Repayment is based on the factoring of a fixed percentage of your daily credit card processing 3. The advance maturity period is usually up to 6 months. So, if you bring in less sales one day, you pay back less for that day. If you need operating capital but don't qualify for a traditional business loan because of poor or little credit or no collateral, a merchant cash advance is a viable alternative for your company with sufficient credit card sales for the last 3 months you can qualify. Section 3: aN ADDED PROTECTION - Payroll SERVICE WITH ERRORS AND OMITIONS COVERAGE: When selecting a payroll service, your options are numerous – and the ultimate price you pay will depend on your company’s needs. Our research will give you a general idea of the costs involved. We completed an online price quote, and then phoned to find out more information. The representative we spoke with wanted a lot of highly specific data on our sample company. So, we’re going with the basic quote found through the online calculator: $87.50 per payroll (not sure about the exact breakdown of fees). Paychex has 2 distinct options for payroll services: 1 option is aimed at businesses with 1-49 employees, while the other is for firms with 50+ employees. Smaller companies (option 1) have the option of submitting payroll data via phone, fax, or online. Estimated $96.75 a month Surepayroll is an online solution targeting small businesses. They offer one comprehensive package that includes direct deposit and tax filings. Estimated 87.50 per month intuit assisted payroll: $37.94 per payroll, or $82.21 per month. Note: set fees combined with other offered services will be modified or waived. Section 4: Group medical coverage: Group health, life, disability and related entitlements can be deducted. Our partner is licensed in all 50 States and their combined resources will benefit you and your business with the best legal coverage available. Additionally, related notices and/or forms will be prepared to protect you/your business from any Local, State or Central Government penalties. There will be no additional fees and you can have peace of mind in connection to these new mandates. At this point, mandate medical Insurance Government Law, on interstate competition for medical coverage were not detailed or defined. We have a close watch on any news or changes in connection competitive. We do have current facts on many potential savings that may be acceptable and appear, for your benefit, in the future. We at Gramercy have no alliance to any insurance group. We are consultants working in concert with our licensed partner for your benefit. Again there is no obligation or cost to do any elevation for your special requirements. We work with your current insurance professionals. We respect allegiances. We may just provide your present professional relationships with some insights in connection to Government provisions We at Gramercy are not insurance agents, lawyer or accountants. We provide the donut hole a new Government term, to fill gap. Lawyers for the most part defend actions and/or documents as instructed and accountants’ count the beans and you other professionals general provide the necessary coverage. Section 5: Working Capital options New ad campaign publicizes the banks plans to lend $10 billion to small businesses this year. Other banks, also say they’ll extend more small-business loans. Bold promises, for sure. Just don’t expect to know many details on how they’re delivered. Forget searching for “small business loans” on the banks’ Web sites to get specifics on the progress of these new programs. Same goes for digging into the banks’ finances, because
  4. 4. you aren’t going to find this segment broken out in one spot. Small businesses have been among the hardest hit by the tightening of credit over the last two years. Banks have dramatically curbed loans to startups, those losing money or anyone with risks in their business profile. Some 11 percent of the 2,114 small-business owners surveyed in National Federation of Independent Business4 said that they couldn’t get their borrowing needs met, a record high. On February by the flip side, only 27 percent were able to get the loans they needed, a record low for the survey since it started in 1983. Then there’s the ambiguity of what could count as a new loan under these programs. The answer varies from bank to bank. So don’t expect much change. Section 6: government Small Business Administration GUARANTEES programs and how it may AFFECT you. The Gramercy is in partnership with a Nationally recognized Corporation NEWTEK helping entrepreneurs achieve their business goals. NEWTEK has been designated as a Preferred Financial services company by SBA. This provides potential borrows to have loans processed more quickly and efficiently than many others. NEWTEK is presently associated with 1,600 banks thought the country. There are a number of advantages to an SBA loan, including longer terms, no points at this time (Up for review September 2010), and no balloon payments. Who is Eligible for an SBA Loan? Most for-profit small businesses are eligible for an SBA guaranteed loan. This includes manufacturers, wholesale, retail and service businesses as well as independent or franchise businesses. Loan Qualifications Retail and service businesses with sales (3-year average) not exceeding $6 million to $20 million, depending on the industry. Since last year, the SBA received Recovery Act money to make it easier for small businesses to borrow money to expand or to simply stay afloat. Weekly loan approvals were up by 87 percent last year and the agency approved $13.6 billion in loans. Earlier this month, the White House approved an extension of breaks that make the loans great deals for those who qualify. There’s already a line of applicants waiting to use that money which runs out at the end of the month. The White House is urging more money go to sweetening SBA offerings for both banks and borrowers. Whether or not that happens is up to Congress. Nevertheless, there’s still pie on the plate, but applying for a piece takes time, knowledge and quite often, a banker who’s willing to serve it. Lots of exciting things are happing except no one is lending. Just a handful of local banks that offer SBA loans admit that several clients have had to look outside of the area for willing lenders. The biggest problems are the smaller loans. The ARC program under the SBA is intended to give struggling businesses money to pay off debts and stay up and running. While 5,100 loans were approved throughout the country, local bankers, business owners and advisors uniformly call the program a failure. Many banks shied away from the loans for fear that the reporting and bureaucracy involved would not make them worth their while. That’s despite the fact that the loans are 100 percent guaranteed by the government. Struggling business owners who have to show a profit within the past two years also are turned off by criteria and paperwork that make the money seemingly untouchable. The program runs until September. So for the immediate needs on working capital a merchants’ cash advance can play a big part in securing a SBA under the ARC program with reasonable rates. Call it a modified bridge for low interest long term money. We have the know how and the financial placement for your needs.
  5. 5. • Use of Proceeds Other Credits Considerations • Commercial real estate (purchases, construction, or refinance) 90% with other considerations for closing expenses. 504 program up to 25 years. • Improvements 90% 7a 7 to Leasehold 12 Years. • Business expansions 90% 7a • Machinery, equipment, furniture or fixtures 90% 7a • Business acquisition 90% 7a and assist on a combine 504. • Working capital (offered in conjunction with some of the above) • Start-ups (ALL Franchises, Motels, Restaurants Gas Stations and C-Stores) 90% with advances maximum $100,000.00 • Economic assistance to supplement working capital and to bring current present obligations. Guarantee 100%, present limit $45,000.00 • Business must have adequate historic cash flow to cover the proposed debt or a reasonable forecast to justify the loan. • Business debt to net worth must meet industry averages within reason. There must be evidence of owners’participation. • Borrowers must be actively involved in the day-to-day operation and business. Personal guarantees and collateralize agreement from husband and wife will be expected. Your business your risk and sincerity. • Satisfactory or explained personal credit histories are required for all principles and guarantors. Understand this is a guarantee program from the government. Stretch consideration is granted to assist banks to make loan outside of their charters. ANOT HER CONSIDERATION FOR SMALL BUSINESS: Rule 504D, which provides an exemption for non-reporting companies unless they are “blank check” issuers or certain “shells”, stipulates that: The sale of up to $1,000,000 of securities in a 12-month period is permitted provided that there is no general solicitation, the securities sold are restricted securities and cannot be resold except pursuant to a registration statement or exemption, and a notice must be filed with the SEC within 15 days after the first sale. Rule 504 does not provide an exemption under any state laws. In certain limited circumstances where an offering is conducted under state accredited investor exemptions, securities offered under Rule 504 may be freely transferrable. Additional Information and Commentary GSB Commentary This News letter will be offered monthly with upcoming events, small business news, ideas, and notice of new business services and free options for business development. The publication will offer information on those who shape public opinions and turns to be first for in-depth analysis of National politics, banking news opts, local and national economics that effect the small business owners. It will offer foreign affairs opts, social policy, culture, and the need information and modernization to stay completive, as well as for reviews of current local and national issues which will effect your business. The News letters will be a forum for freethinking debate about the most pressing issues of the day. This Business News Letter is offered to bring attention to the needs of the small business owners’: With the Assist of our business owners’ participation, input, local and national political assistance, this publication may in time be
  6. 6. 1 Starting in 2014, the new Medical Insurance law will require nearly all Americans to have health insurance through an employer, a government program or by buying it directly. All US citizens will be forced to have health insurance coverage considered acceptable by the US Government or else pay a fine of $95 in 2014, $325 in 2015, $695 in 2016 (capped at 2.5% of AGI). All of the fines are per person per year except for families have a cap on the total fine of $2,250 and the fine amount for children is half of the adult fine. Businesses with 50 or more employees will face a fine of either $2,000 or $3,000 per employee for not offering health insurance coverage. The proposal includes part-time workers in the calculations, counting two part-time workers as one full-time worker. 2 A National Market Company NASDAQ: NKBS - 3 Example on Cash advances: Add up your monthly processing statements for the last 6 months. Put your total down and divide by 6 = Advance. Your can get 80-120% of that amount. 4 The National Federation of Independent Business (NFIB) is a lobbying organization with offices in Washington, D.C. USA, and in all 50 state capitals. NFIB claims a membership base of about 350,000, down from an excess of more than 600,000 members. NFIB's lobbying efforts are focused on the impact of current and proposed legislation on businesses and professional practices at all levels of government, but primarily at the federal and state level. Lobbyist really! 5 The Hiring Incentives to Restore Employment (HIRE) Act of 2010 (H.R. 2847) A law in the 111th United States Congress to provide payroll tax breaks and incentives for businesses to hire unemployed workers. Often characterized as a "jobs bill,"[1][2][3] the Democrats in Congress insist that it is only one piece of a broader job creation legislative agenda, along with the Travel Promotion Act and other bills. The Senate passed the bill on February 24, 2010 by a vote of 70-28. The House of Representatives followed on March 4, 2010, passing an amended version (in compliance with new pay-as-you-go rules) by a vote of 217-201. On March 17, the Senate agreed to the House's amendment by a vote of 68-29, and sent the bill to President Barack Obama, who signed the bill on March 18, 2010.[4]