U.S. Treasury Bolsters Secondary Market for Small Business Loans

A new plan by the U.S. Treasury and the Federal Reserve to improve market conditions for asset-backed securities – including those composed of SBA-backed small business loans – is welcome news to credit-hungry small businesses across the country.

The plan establishes the Term Asset-Backed Securities Loan Facility, or TALF, to breathe new life into a secondary market that essentially ground to a halt in October. The TALF would make loans to investors who purchase asset-backed securities made up of small business loans guaranteed by the SBA.

About $4 billion in securities backed by SBA-guaranteed loans are bought and sold in the secondary market each year, with the total outstanding amounting to about $15 billion. At present, a share of the current year’s volume of loans securitized by lenders – estimated at up to $3 billion – is essentially frozen. The resulting lack of liquidity hampers the ability of some of SBA’s lending partners to make new SBA-backed loans.

The loans that investors will receive from TALF through this new action can be used to purchase these securities from brokers.

In other words: This new plan will encourage thousands of banks to lend more money to small business owners and entrepreneurs like me and you - even during a bad economy.

Source: www.SBA.gov/news

Where Do Professional African Americans Go To Network?

African Americans have quite a few choices when it comes to professional networking events and activities. Groups who meet regularly include First Fridays and Second Thursdays, and also local chapters of organizations such as the NAACP and the Black MBAs.

Many college organizations such as the AKAs, Deltas, and Kappas have monthly local get-to-gethers, and so do many alumni groups, churches, etc. There are even popular annual conferences such as the Black Enterprise Entrepreneurs conference, George Fraser's FraserNet conference, and many others.

Truth, be told there are thousands of different networking events - local and national - for Black professionals to attend. The problem is that none of them allow you to continue networking within that group before or after their events.

To solve that problem, my company Lee Moss Media has recently launched www.AfricanAmericans.net - an online community where African Americans professionals can meet and interact with each other every day - all day long.

Free to use, the site is a social network (comparable to LinkedIn or Facebook) that allows users to communicate with each other as if they were in the same room. They can sign each others' guest books, and read and post relevant news, blogs, and events. They can even upload/view videos, and can join/create groups.

For more details about the site or to join for free, visit:
www.AfricanAmericans.NET

Why Most Black Web Sites Don't Get Real Traffic

People ask me all the time why they can't build up the traffic to their sites. Here's my answer: Because you don't spend the money, energy and time that's needed.

Too often, people believe that passing out flyers and business cards with your web site on it is enough. What they fail to realize is that's the easy route that yields no results.

If you want results, you have to take the hard, tedious and somewhat expensive route. Most importantly, you must learn to be consistent with it and patient about it.

Here are two major suggestions:

1) Invest In Pay-Per-Click Advertising
Million of businesses use this method to increase their web traffic. Its costly, but it can still be affordable. My favorite service to use is Google Adwords. However, there are several out there including Yahoo Search Marketing, Adbrite.com, and most recently - FaceBook Ads and Myspace Ads.

The concept of pay-per-click advertising is simple. You bid on keyword search terms, and decide how much you want to pay whenever someone clicks on your ad. Typically, the rate is anywhere from $.10 to $.50 per click, but it can go much, much higher for certain keywords.

I personally use this method to build traffic to my network of my web sites, and take my word: it works!

2) Learn The Ropes of Content Marketing
You and your web site should be a resource to industry professionals. The best way to establish yourself as a resource is to supply content. This can be done by writing a book or hosting free seminars, but more relevantly by writing and distributing columns and articles to the online media.

Mainstream newswire services like PRweb.com and PRLeap.com, and African American newswire services like BlackPR.com are excellent tools to help you do this.

When writing your article, be sure to include your web site address. This will help readers to easily access your site, and it will also help you with higher organic search engine ranking. In other words, your site will be more likely to come up first when people search for related keywords.

I highly suggest that you write and distribute content on a weekly basis. If not, at least do so every other week or monthly.


Remember, that the process of building web traffic can be time-consuming and tedious. Like anything else worthwhile, it does require some effort.

Never Check E-Mail In the Morning

I was recently in a book store, and saw a business book by Julie Morgenstern entitled Never Check E-Mail In The Morning. I didn't even need to pick the book up because it instantly dawned on me why that is a very good idea.

Checking email in the morning can wear you down before your day has even started. If you're like me, you get over 100 emails every single day. The problem is that reading and scanning emails not only can wear on your mind, but also on your eyes.

Doing this in the beginning of the day only inhibits any activities that you planned to do in the afternoon and evening. By then, you've already sucked up your brain's juice - so to speak.

Even more, reading and replying to email these days can take an hour or two or more - and before you know it you've wasted the whole morning doing this. For most of us, the whole morning can be half of our day.

The better idea is to check email in the late afternoon. This way you can use your morning energy on more productive activities such as sales calls, brainstorming, enhancing your company's services or products, strengthening your relationships with existing clients, and more.

Facebook Vs. LinkedIn - Which Is Better For Business?

Can I be blunt? I hate when my business contacts want to interact with me on Facebook. To me, Facebook is simply not a business environment. In my opinion, its an entertainment social network.

Don't get me wrong though. I'm a huge fan of Facebook; I log in every other day or so. However, I use it only to interact with my friends and family members.

LinkedIn, on the other hand, is a professional social networking tool. In my opinion, this is clearly the better site for business. LinkedIn was designed to connect people with others so that they can either advance their careers or their companies - or both.

Users can find new partners, new clients, and even new vendors. Furthermore, LinkedIn strengthens and extends your existing network of trusted contacts.

I'm sure some people believe that Facebook is just as useful for business networking, but I just don't see how it fits. Trying to do business on Facebook is like handing out business cards or brochures at a family or class reunion. Not very classy!

5 Misconceptions About Business Grants

Business grants have been accessible to business owners in the United States for decades. Annually, hundreds of millions of dollars in grant money are disbursed to individuals to help them start or expand an existing business. Despite this, every year several myths and misconceptions resurface discouraging entrepreneurs from taking advantage of such opportunities.

Here are the top 5 misconceptions and why you should completely ignore them:

1) Business Grants Aren't Real
Of course, they're real. This can easily be verified by going to www.Grants.gov - a government sponsored web site that reveals all the federally funded grant opportunities available. Even more, you can check with your local (state, county and city) officials to find out about their grant opportunities. Business grants are very real!

2) Business Grants Are Only Given To People With Business Degrees
This couldn't be further from the truth. Very few grant opportunities require that you have a business degree. In fact, many of them don't even require that you have business experience.

3) Business Grants Aren't Given To Minorities
Wrong again. There are tons of grants that are designed for minority-owned businesses. Even more, women are considered minorities too - and there are plenty of grants for women.

4) Business Grants Are Too Hard To Get
Obtaining a business grant does require some work, and definitely some patience. It can involve a lengthy application, some tedious modifications to your business plan, and even some face-to-face meetings. However, many agree that its nothing close to rocket science.

5) Funding For Business Grants Has Been Drastically Reduced
Reduced, yes. Drastically, no. What funding doesn't get reduced in a bad economy? Despite this, there are still tons of opportunities available. So stop making excuses, and go get them.

The National Institute of Business Grants (www.Business-Grants.com) provides free tips, advice, and frequently asked questions pertaining to business grants.

Blacks in Computer Science: The Secrets of Their Success

In the near future, there may be a noticeable increase of Black-owned technology companies that offer computer and/or engineering services.

After years of being labeled an "underrepresented minority" in computer science, African Americans in the U.S. are on the brink of leaving that category, with Bachelor's degrees in hand.

According to the Federal Government's National Center for Education Statistics, Black students received 12.4 percent of the baccalaureates in computer and information sciences awarded by U.S. colleges and universities in 2005-06. That's nearly equal to the percentage of blacks in the U.S. population (12.8 percent).

For advocates of minority participation in science, technology, engineering and math (STEM), reaching this milestone is cause for celebration, especially since diversity in engineering remains stagnant. Black students received only 5 percent of the nation's bachelor's degrees in engineering awarded in 2005-06.

The November/December 2008 issue of NSBE Magazine presents an in-depth look at these important happenings, in a feature article titled, Blacks in Computer Science: The Secrets of Their Success.

To download the PDF, visit:
http://national.nsbe.org/LinkClick.aspx?fileticket=YsNdVlXt/08=&tabid=98&mid=447

2009 Black Enterprise Conference Comes To Detroit

The Black Enterprise Entrepreneurs Conference + Expo is back — taking place May 17-20, 2009 at the Marriott Renaissance and COBO Convention Center in Detroit, Michigan. This year's theme is Shifting Gears: New Markets, New Opportunities.

Hosted by General Motors, the three-day business conference and expo offers an opportunity for business growth and development which attracts the largest black-owned business leaders and professionals from around the nation.

Attendees can network with thousands, attend stellar sessions, discover new products and services, and learn the best tried and won strategies.

I will definitely be there, possibly with a booth for my company. Last year's event in Charlotte went extremely well, and I'm a huge fan of anything that Black Enterprise is doing.

For more information, visit www.BlackEnterprise.com/beec or call 800-209-7229.

Magic Johnson Talks Business

As a young man, Earvin “Magic” Johnson admired his father and other small-town entrepreneurs who created jobs and served as leaders in his Midwestern community. He worked for them, watched them, and his interest in building communities through economic development grew even while his basketball career flourished. His fame as an NBA star gave him access to some of the most successful business leaders in the country. It was Johnson’s own entrepreneurial spirit that inspired them to serve as his mentors.

Johnson made the transition from great athlete to greater entrepreneur through hard work and by avidly pursuing opportunities. He recognized that densely populated urban communities were ripe for commercial and residential development. He partnered with major brands like Starbucks, 24 Hour Fitness, and T.G.I. Friday’s to lead a major economic push in these communities. The success of his businesses proved that ethnically diverse urban residents would welcome and support major brands if given the opportunity. Johnson continues to be a leader of urban economic development that provides jobs, goods, and a new spirit of community.

His new book 32 Ways to Be a Champion in Business will inspire and enlighten readers who wish to make a similar impact with their careers and business endeavors.

I've already flipped through the book and love the chapter where he talks about how he was the first NBA player ever to have an exclusive license contract to sell his own jerseys and T-shirts - and keep all the profits.

To order the book, visit www.Amazon.com

Were You Broke When The Economy Was Good?

Many people were struggling financially when the economy was booming, but are still struggling now. Suddenly though, they feel very comfortable blaming their situation on the bad economy.

Conduct an honest self-evaluation. Are you broke because of the bad economy or because of the following other reasons?

1) Mismanaging Money

Problem: Some people are very guilty of overspending on unnecessary items. Others have no idea what a budget is.

Solution: Write down all your transactions, and total them up at the end of the month. It sounds tedious, but in two months you'll realize how much money you waste. $300 on fast food, $250 on video games, $500 on clothes. You'll be a changed person forever.

2) Mismanaging Your Personal Credit

Problem: Many have ruined their credit with unpaid bills and loans, late payments, bankruptcies, and more. Now they can't even buy a car (let alone a house) without paying 20% interest rates.

Solution: Get a copy of your credit report and a calendar, and come up with a 3-5 year plan to fix your credit. Call your lenders and tell them you are serious about paying them back, and ask them to reduce what you owe. Many times, they will comply. Remember that just $50 a month for 4 years can pay off $2,400 worth of debt.

3) Not Learning A Trade Or Skill

Problem: Many never took advantage of the opportunity to attend college or learn a trade. Now, they are stuck with minimum wage jobs and no expertise to start a company of their own.

Solution: Discover what skills you are naturally good at, and teach yourself more. Find the right books, take an online class, earn a certification if possible, and get rolling. Its never too late to start.

4) Not Saving Money

Problem: Too often, people don't put money away. Many don't even have savings accounts, let alone a retirement plan.

Solution: It may be sunny for a while, but one day it will rain. Hard times are inevitable. Put as much money as possible away, so that when you need it - it will be there. Think about it: Had you done this 5 years ago, you'd probably have a little bit of money to get you through this bad economy. Open up a savings account today, and use it.