Hello Los Angeles Small Business Owners and Entrepreneurs,
Is the economic recovery here yet? Not if we look at California’s recent unemployment numbers. The jobless rate increased up from 12.3% in November as employers laid off 38,800 workers in December, capping a dismal year in which the state lost more than half a million jobs.
The state has the fifth-highest unemployment rate in the nation, after Michigan, Nevada, Rhode Island and South Carolina, and economists expect it to lag as the construction and retail sectors continue to struggle. Overall, the nation lost 85,000 jobs in December, but its unemployment rate remained at 10%.
Over the last two years, California has lost more than 1 million jobs.
The state's unemployment rate in December 2008 was 8.7%. In 2009, it jumped to double digits, where economists expect it to remain for this year. So Californians don’t expect an employment recovery any time soon, it will be a while before we return back to the days of inflated prosperity.
About LABusinessConnect.com
If you are interested in finding additional Los Angeles County small business resources, events, or filing your new Los Angeles County Fictitious Business Name/DBA, visit the Premier Los Angeles County Small Business Resource website www.LABusinessConnect.com. This website is dedicated to assisting Los Angeles County entrepreneurs and small business owners find answers to opening and operating their business locally.
Friday, January 22, 2010
City of Los Angeles Plans to Cut 1,000 Jobs in 2010 due to Lower Than Expected Tax Revenues
Hello Los Angeles Small Business Owners and Entrepreneurs,
In a blow to an already fragile local economy, the City of Los Angeles Mayor Antonio Villaraigosa announced yesterday his plans to cut city jobs in 2010 due to the lower than expected City Tax Revenues. City officials plan to shed 1,000 jobs to patch a nearly $200-million budget gap.
Mayor Villaraigosa and five council members tried to display unity Thursday by releasing a letter calling for the job cuts. The release of the letter calling for job cuts came hours after the city's top budget analyst revealed that midyear tax revenue is $186 million lower than expected. Tax revenue has declined by double digits for four straight quarters, the worst drop since the Great Depression, City Administrative Officer Miguel Santana said.
To deal with the downturn, Villaraigosa and council members have agreed to slash payroll costs by allowing 2,400 civilian employees to retire up to five years early. But the city's budget picture is so dire that Santana predicted 1,000 jobs would need to be eliminated, in addition to the 1,000 mentioned in Villaraigosa's letter, over the next two years to keep the city afloat.
City Administrative Officer Miguel Santana said hundreds of layoffs would probably be avoided if the city allowed additional employees to take early retirement. Or they could be moved to jobs not paid for by the city's general fund, which covers basic services including public safety. City leaders would also begin looking at services that can be done more cheaply by private contractors, he said.
The City of Los Angeles large operational budget of over $7 billion dollars has proved flexible in the past; however, ballooning pension payments and consistent declines in business tax revenues over the past two years has hit the city budget especially hard. Although many throughout the city do not like the idea of laying off such a large amount of employees, the recent economic decline has left City leaders with little alternative.
About LABusinessConnect.com
If you are interested in finding additional Los Angeles County small business resources, events, or filing your new Los Angeles County Fictitious Business Name/DBA, visit the Premier Los Angeles County Small Business Resource website www.LABusinessConnect.com. This website is dedicated to assisting Los Angeles County entrepreneurs and small business owners find answers to opening and operating their business locally.
In a blow to an already fragile local economy, the City of Los Angeles Mayor Antonio Villaraigosa announced yesterday his plans to cut city jobs in 2010 due to the lower than expected City Tax Revenues. City officials plan to shed 1,000 jobs to patch a nearly $200-million budget gap.
Mayor Villaraigosa and five council members tried to display unity Thursday by releasing a letter calling for the job cuts. The release of the letter calling for job cuts came hours after the city's top budget analyst revealed that midyear tax revenue is $186 million lower than expected. Tax revenue has declined by double digits for four straight quarters, the worst drop since the Great Depression, City Administrative Officer Miguel Santana said.
To deal with the downturn, Villaraigosa and council members have agreed to slash payroll costs by allowing 2,400 civilian employees to retire up to five years early. But the city's budget picture is so dire that Santana predicted 1,000 jobs would need to be eliminated, in addition to the 1,000 mentioned in Villaraigosa's letter, over the next two years to keep the city afloat.
City Administrative Officer Miguel Santana said hundreds of layoffs would probably be avoided if the city allowed additional employees to take early retirement. Or they could be moved to jobs not paid for by the city's general fund, which covers basic services including public safety. City leaders would also begin looking at services that can be done more cheaply by private contractors, he said.
The City of Los Angeles large operational budget of over $7 billion dollars has proved flexible in the past; however, ballooning pension payments and consistent declines in business tax revenues over the past two years has hit the city budget especially hard. Although many throughout the city do not like the idea of laying off such a large amount of employees, the recent economic decline has left City leaders with little alternative.
About LABusinessConnect.com
If you are interested in finding additional Los Angeles County small business resources, events, or filing your new Los Angeles County Fictitious Business Name/DBA, visit the Premier Los Angeles County Small Business Resource website www.LABusinessConnect.com. This website is dedicated to assisting Los Angeles County entrepreneurs and small business owners find answers to opening and operating their business locally.
Friday, January 15, 2010
Los Angeles and Long Beach Port Traffic Grows in December 2009
The ports of Los Angeles and Long Beach reported today the first increases in monthly container cargo numbers since the recession hit.
Imported cargo at the port of Long Beach increased by more than 13 percent in December compared with a year earlier, and exports jumped by more than 30 percent. Los Angeles port officials said total container traffic was up 0.35 percent.
Imported cargo at the port of Long Beach, mostly consumer goods, reached 232,586 TEUs (twenty-foot equivalent container units) in December. Export cargo, generally raw materials, reached 123,084 TEUs.
Los Angeles reported 562,990 TEUs of import cargo and 153,836 TEUs of export cargo. Port officials did not break out an import percentage increase, but said loaded container exports rose 40 percent.
The container traffic increases in the ports of Long Beach and Los Angeles is a good sign for the local economy. The positive container traffic increases might be an early sign of a potential economic recovery in the Los Angeles region.
If you are interested in finding additional Los Angeles County small business resources, events, or filing your new Los Angeles County Fictitious Business Name/DBA, visit the Premier Los Angeles County Small Business Resource website www.LABusinessConnect.com. This website is dedicated to assisting Los Angeles County entrepreneurs and small business owners find answers to opening and operating their business locally.
Imported cargo at the port of Long Beach increased by more than 13 percent in December compared with a year earlier, and exports jumped by more than 30 percent. Los Angeles port officials said total container traffic was up 0.35 percent.
Imported cargo at the port of Long Beach, mostly consumer goods, reached 232,586 TEUs (twenty-foot equivalent container units) in December. Export cargo, generally raw materials, reached 123,084 TEUs.
Los Angeles reported 562,990 TEUs of import cargo and 153,836 TEUs of export cargo. Port officials did not break out an import percentage increase, but said loaded container exports rose 40 percent.
The container traffic increases in the ports of Long Beach and Los Angeles is a good sign for the local economy. The positive container traffic increases might be an early sign of a potential economic recovery in the Los Angeles region.
If you are interested in finding additional Los Angeles County small business resources, events, or filing your new Los Angeles County Fictitious Business Name/DBA, visit the Premier Los Angeles County Small Business Resource website www.LABusinessConnect.com. This website is dedicated to assisting Los Angeles County entrepreneurs and small business owners find answers to opening and operating their business locally.
Thursday, January 14, 2010
Small-business bankruptcies rise 81% in California
Hello Los Angeles Small Business Owners and Entrepreneurs,
the latest data shows small-business bankruptcies up 81% in the state of California for the 12 months ended Sept. 30, compared with the previous year. Filings nationwide were up 44%, according to the credit analysis from Equifax Inc.
The actual number of small businesses in trouble is probably higher, experts said, because many owners file for personal bankruptcy rather than seek protection for the business.
Over the last year, the Los Angeles, Riverside/San Bernardino and Sacramento metropolitan areas have led the nation in small-business bankruptcy filings, said Tim Klein, a spokesman for Equifax.
About 19,000 small businesses filed for bankruptcy in California during the 12 months ended Sept. 2009, up from 10,500 the previous year.
During September alone, 2,229 small businesses filed for protection, up from 1,503 filings in September 2008, the firm reported.
The small business sector is feeling the damage of the recent recession. As the economy stagnates small business bankruptcies will continue to rise. Many businesses are closing because of the lack of access to capital in order to continue financing operations. In order to offset this future effect additional financing is greatly needed.
If you are interested in finding additional Los Angeles County small business resources, events, or filing your new Los Angeles County Fictitious Business Name/DBA, visit the Premier Los Angeles County Small Business Resource website www.LABusinessConnect.com. This website is dedicated to assisting Los Angeles County entrepreneurs and small business owners find answers to opening and operating their business locally.
the latest data shows small-business bankruptcies up 81% in the state of California for the 12 months ended Sept. 30, compared with the previous year. Filings nationwide were up 44%, according to the credit analysis from Equifax Inc.
The actual number of small businesses in trouble is probably higher, experts said, because many owners file for personal bankruptcy rather than seek protection for the business.
Over the last year, the Los Angeles, Riverside/San Bernardino and Sacramento metropolitan areas have led the nation in small-business bankruptcy filings, said Tim Klein, a spokesman for Equifax.
About 19,000 small businesses filed for bankruptcy in California during the 12 months ended Sept. 2009, up from 10,500 the previous year.
During September alone, 2,229 small businesses filed for protection, up from 1,503 filings in September 2008, the firm reported.
The small business sector is feeling the damage of the recent recession. As the economy stagnates small business bankruptcies will continue to rise. Many businesses are closing because of the lack of access to capital in order to continue financing operations. In order to offset this future effect additional financing is greatly needed.
If you are interested in finding additional Los Angeles County small business resources, events, or filing your new Los Angeles County Fictitious Business Name/DBA, visit the Premier Los Angeles County Small Business Resource website www.LABusinessConnect.com. This website is dedicated to assisting Los Angeles County entrepreneurs and small business owners find answers to opening and operating their business locally.
Tuesday, January 5, 2010
Northrop Grumman Corp. Leaving Los Angeles
The recent news of Northrop Grumman Leaving Los Angeles and moving its corporate headquarters to Washington, D.C., is a blow to the Southern California business community.
Northrop joins a list of other major corporate companies who have left Los Angeles in recent years, including Hilton Hotels Corp. of Beverly Hills and Computer Sciences Corp. of El Segundo.
The company said it will move its entire corporate staff to the Washington, D.C., area by summer 2011 to be closer to its key customer the U.S. government. Northrop will be taking with them about 300 employees from its corporate office in Century City.
Although corporate operations will be moving to Washington D.C., Northrop management maintains that California remains a significant location for its operations with about 30,000 employees located in Southern California.
Still, Northrop will now lose its distinction as the last major aerospace firm based in Southern California -- once home too many of the nation's largest military contractors, including Lockheed Corp., General Dynamics Corp. and Rockwell International.
Northrop History
Northrop was founded in 1939 in Hawthorne. During World War II aircraft manufacturing boomed in California, with factories running around the clock. The industry was so robust that communities such as Lakewood were spawned to house workers.
But by the late 1980s, aerospace manufacturing in the Southland had peaked. The end of the Cold War triggered a major retrenchment that led to consolidation of the industry.
Northrop reported $33.9 billion in sales in 2008. Among military firms, it is second in sales behind Lockheed.
Impact on Southern California
In addition to losing a long established stable of the Los Angeles County business community, California will feel the economic impact. With the recent economic declines in California tax revenues, the departure of Northrop will be felt by the state with losing such a high sales grossing California corporate operation.
If you are interested in finding additional Los Angeles County small business resources, events, or filing your new Los Angeles County Fictitious Business Name/DBA, visit the Premier Los Angeles County Small Business Resource website www.LABusinessConnect.com. This website is dedicated to assisting Los Angeles County entrepreneurs and small business owners find answers to opening and operating their business locally.
Northrop joins a list of other major corporate companies who have left Los Angeles in recent years, including Hilton Hotels Corp. of Beverly Hills and Computer Sciences Corp. of El Segundo.
The company said it will move its entire corporate staff to the Washington, D.C., area by summer 2011 to be closer to its key customer the U.S. government. Northrop will be taking with them about 300 employees from its corporate office in Century City.
Although corporate operations will be moving to Washington D.C., Northrop management maintains that California remains a significant location for its operations with about 30,000 employees located in Southern California.
Still, Northrop will now lose its distinction as the last major aerospace firm based in Southern California -- once home too many of the nation's largest military contractors, including Lockheed Corp., General Dynamics Corp. and Rockwell International.
Northrop History
Northrop was founded in 1939 in Hawthorne. During World War II aircraft manufacturing boomed in California, with factories running around the clock. The industry was so robust that communities such as Lakewood were spawned to house workers.
But by the late 1980s, aerospace manufacturing in the Southland had peaked. The end of the Cold War triggered a major retrenchment that led to consolidation of the industry.
Northrop reported $33.9 billion in sales in 2008. Among military firms, it is second in sales behind Lockheed.
Impact on Southern California
In addition to losing a long established stable of the Los Angeles County business community, California will feel the economic impact. With the recent economic declines in California tax revenues, the departure of Northrop will be felt by the state with losing such a high sales grossing California corporate operation.
If you are interested in finding additional Los Angeles County small business resources, events, or filing your new Los Angeles County Fictitious Business Name/DBA, visit the Premier Los Angeles County Small Business Resource website www.LABusinessConnect.com. This website is dedicated to assisting Los Angeles County entrepreneurs and small business owners find answers to opening and operating their business locally.
Sunday, January 3, 2010
2009 Los Angeles County SBA Small Business Lending Declines
Hello All,
The number of loans backed by the U.S. Small Business Administration made to Los Angeles County area companies greatly declined in 2009 for the second straight year, underscoring businesses’ complaints that it’s extremely difficult to get a loan. What’s more, the lack of lending is raising concerns about the prospects of an economic recovery.
According to data recently released by the SBA, the number of loans made in the L.A. district office (Which covers the Los Angeles and Ventura Counties) in fiscal 2009 fell by 53 percent to 1,747.The dollar amount dropped by 34 percent to $674 million.
Those drops are from 2008, which itself saw big drops from the previous fiscal year, which ends in September.
2009 SBA loan volumes declined for many of the areas previous top lenders. Ranked in 2008 among the largest lenders JPMorgan Chase & Co. and Capital One Financial Corp did not make a single Los Angeles County area SBA loan in 2009.
Even the top local lender, Wells Fargo & Co., originated 15 percent fewer SBA loans in 2009 than in the previous year. Also, two years ago Bank of America was the largest local SBA lender, originating more than 1,000 loans for a total of about $40 million. In 2009, however, the bank made just 24 SBA loans in Los Angeles for a total of less than $1 million.
The reasons for the decline in SBA lending are disputed. Some bankers blame the economy, which has shrunk the pool of creditworthy companies. Business owners say banks, which are still on the hook for a portion of nonperforming SBA loans, have tightened their standards. Others point to the secondary market for securitized SBA loans, which ground to a halt for a time.
Whatever the reason, the landscape for small business financing has shifted dramatically.
The Purpose of the SBA (Small Business Administration)
The SBA was created to help small businesses receive financing when they might otherwise struggle to obtain a traditional bank loan. Two of the administration’s programs – the 7(a) loan program for entrepreneurs to start and grow their businesses and the 504 fixed-asset financing program for the purchase of land and equipment – account for the bulk of loans originated.
Shifting Priorities
Indeed, several major lenders have shifted the focus of their small business lending away from SBA. Capital One, which was the sixth largest SBA lender in Los Angeles in 2008 with 161 loans, did not make a single local SBA loan in 2009. Some banks are now focusing on loan programs with the highest profit margins, which would not likely include the typically small SBA loans.
Cause for Concerns
Some lenders and borrowers are worried that loan applications could drop considerably in the coming months. A pair of provisions in the government’s stimulus package meant to encourage SBA lending recently ran out of funding in October 2009. The provisions, credited with increasing SBA lending in recent months, raised the amount the government will pay the bank in case of default from 75 percent to 90 percent of the loan value and eliminated certain fees.
With supporters pushing Congress to renew the programs, industry observers and Los Angeles County small business owners are hopeful that SBA lending could return to pre-recession levels.
If you are interested in finding additional Los Angeles County small business resources, events, or filing your new Los Angeles County Fictitious Business Name/DBA, visit the Premier Los Angeles County Small Business Resource website www.LABusinessConnect.com. This website is dedicated to assisting Los Angeles County entrepreneurs and small business owners find answers to opening and operating their business locally.
The number of loans backed by the U.S. Small Business Administration made to Los Angeles County area companies greatly declined in 2009 for the second straight year, underscoring businesses’ complaints that it’s extremely difficult to get a loan. What’s more, the lack of lending is raising concerns about the prospects of an economic recovery.
According to data recently released by the SBA, the number of loans made in the L.A. district office (Which covers the Los Angeles and Ventura Counties) in fiscal 2009 fell by 53 percent to 1,747.The dollar amount dropped by 34 percent to $674 million.
Those drops are from 2008, which itself saw big drops from the previous fiscal year, which ends in September.
2009 SBA loan volumes declined for many of the areas previous top lenders. Ranked in 2008 among the largest lenders JPMorgan Chase & Co. and Capital One Financial Corp did not make a single Los Angeles County area SBA loan in 2009.
Even the top local lender, Wells Fargo & Co., originated 15 percent fewer SBA loans in 2009 than in the previous year. Also, two years ago Bank of America was the largest local SBA lender, originating more than 1,000 loans for a total of about $40 million. In 2009, however, the bank made just 24 SBA loans in Los Angeles for a total of less than $1 million.
The reasons for the decline in SBA lending are disputed. Some bankers blame the economy, which has shrunk the pool of creditworthy companies. Business owners say banks, which are still on the hook for a portion of nonperforming SBA loans, have tightened their standards. Others point to the secondary market for securitized SBA loans, which ground to a halt for a time.
Whatever the reason, the landscape for small business financing has shifted dramatically.
The Purpose of the SBA (Small Business Administration)
The SBA was created to help small businesses receive financing when they might otherwise struggle to obtain a traditional bank loan. Two of the administration’s programs – the 7(a) loan program for entrepreneurs to start and grow their businesses and the 504 fixed-asset financing program for the purchase of land and equipment – account for the bulk of loans originated.
Shifting Priorities
Indeed, several major lenders have shifted the focus of their small business lending away from SBA. Capital One, which was the sixth largest SBA lender in Los Angeles in 2008 with 161 loans, did not make a single local SBA loan in 2009. Some banks are now focusing on loan programs with the highest profit margins, which would not likely include the typically small SBA loans.
Cause for Concerns
Some lenders and borrowers are worried that loan applications could drop considerably in the coming months. A pair of provisions in the government’s stimulus package meant to encourage SBA lending recently ran out of funding in October 2009. The provisions, credited with increasing SBA lending in recent months, raised the amount the government will pay the bank in case of default from 75 percent to 90 percent of the loan value and eliminated certain fees.
With supporters pushing Congress to renew the programs, industry observers and Los Angeles County small business owners are hopeful that SBA lending could return to pre-recession levels.
If you are interested in finding additional Los Angeles County small business resources, events, or filing your new Los Angeles County Fictitious Business Name/DBA, visit the Premier Los Angeles County Small Business Resource website www.LABusinessConnect.com. This website is dedicated to assisting Los Angeles County entrepreneurs and small business owners find answers to opening and operating their business locally.
Saturday, January 2, 2010
Hello Los Angeles County Small Business Community
My name is Ruben Sanchez, Founder of LABusinessConnect.com. We specialize in providing the top Los Angeles County Small Business services, resources, news, events, tips, advice, and much more online. I will be posting two weekly blogs concerning the Current Small Business Environment in Los Angeles County. Please, feel free to post a comment concerning specific small business topics you would like to learn about or discuss. I look forward to working with all the small business owners and entrepreneurs in Los Angeles County.
Thank you and Have a Great New Year!
Ruben Sanchez
Founder
LABusinessConnect.com
www.labusinessconnect.com
Thank you and Have a Great New Year!
Ruben Sanchez
Founder
LABusinessConnect.com
www.labusinessconnect.com
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