Category Archives: business

Congress Passes NSBA-Supported JOBS Act

Posted on March 29, 2012 by | Leave a comment

On Tuesday, the U.S. House of Representatives approved the Senate-amended version of Jump-Start Our Business Start-ups Act (H.R. 3606 or “JOBS” Act) by a margin of 380-41, addressing one of NSBA’s top priority issues. The bill, which will ease securities regulations on small businesses making it much easier for them to raise capital through public capital markets, will now head to the President’s desk to be signed into law.

The bill originally passed the House along a wide bipartisan basis (390-23) and was then approved with amendments by the Senate last week, also on a bipartisan basis (73-26.) Prior to passage in the Senate, however, an amendment offered by Sen. Jeff Merkley (D-Ore.) and supported by Sens. Michael Bennet (D-Colo.), Mary Landrieu (D-La.) and Scott Brown (R-Mass.), among others, was adopted 64-35, . This so-called “crowdfunding” amendment (S.Amdt. 1884), will insert the Senate’s version of crowdfunding legislation into the bill, and among other things, require crowdfunding intermediaries to register with the Securities and Exchange Commission (SEC). The original House-passed version of H.R. 3606 did not contain such language.

This bill was also supported by the administration.

This pro-growth, NSBA-supported legislation will positively transform the ability of small businesses to raise capital and help alleviate the disproportionate burden of compliance placed on small firms.

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JOBS Act Passes U.S. Senate, Several Amendments Opposed by Small Business Leaders

Posted on March 26, 2012 by | Leave a comment

The National Small Business Association applauded the Senate for bipartisan passage (73-26) of the JOBS Act late last week. Although not identical to the House-passed version, the amended Senate bill will, without question, positively transform the ability of small businesses to raise capital and help companies generate sustainable economic growth and jobs.

“There is a direct correlation between job growth and small-business owners’ ability to garner financing,” stated NSBA President and CEO Todd McCracken. “This is the right bill at the right time, and we applaud the Senate for moving beyond partisan politics to pass this very important legislation.

Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan issued the following statement upon U.S. Senate passage of the JOBS Act:

“Startups and high-potential businesses have been plagued by a capital chasm since the financial crises, and the JOBS Act offers several reforms to help entrepreneurial firms at their various stages of growth and development. We would prefer that the crowdfunding provision be less onerous and complex, and feel the Securities and Exchange Commission has been given to much rein from a regulatory perspective (Reed amendment). Still, the Merkley amendment to H.R. 3606 was an improved measure from the original Senate bills. We applaud President Obama for his support of this initiative, as well as the bipartisan collaboration in Congress that made this legislation possible,” said Kerrigan.

According to Kerrigan, the final product will be a powerful package with significant benefits for the small business community. Other reforms contained within the JOBS Act will help small businesses access and accelerate their growth in the public markets. Inflexible and costly rules impeding the growth of promising enterprises are properly addressed in H.R. 3606, allowing these firms to more efficiently scale up while freeing up more resources for investment and job creation.

“A strong entrepreneurial ecosystem depends on access to capital. Freeing up new sources of capital – as the JOBS Act will do – will strengthen our nation’s small business sector, and add to their job creating capacity,” added Kerrigan.

Majority Leader Eric Cantor (R-VA) said the U.S. House would vote on the Senate amended package early next week.

However, prior to the Senate vote, Kerrigan stated opposition to both the Reed and Merkley amendments for the following reasons:

“The Reed Amendment (#1931) proposes a significant policy change that will burden small businesses with new and costly Security and Exchange Commission (SEC) registration and compliance burdens. The intent of H.R. 3606 is to help jumpstart and encourage entrepreneurship, small business growth and investment – not drive up their costs. The Reed Amendment eviscerates Section 601 of the legislation for community banks, which means they would be deprived of the opportunity to raise capital. That means less lending to the communities and small businesses they serve.

“The Merkley Amendment (#1884) unnecessarily restricts the potential of crowdfund investing. The Amendment imposes excessive costs and burdens on small issuers, provides for unfettered regulatory activity by the SEC, and is too restrictive and complex when it comes to setting and defining investment limits. For example, audit requirements in the Amendment represent a significant barrier to entry (a “crowdfunding tax”) that many promising and eligible small businesses will not be able to afford. Why require an audit for the smallest of firms when a CPA review would do? With respect to SEC oversight, the Amendment goes overboard in granting the agency profound authority. The potential for regulatory intrusiveness is a major concern, particularly as the SEC has not demonstrated a consistent record of action in responding to the concerns of small businesses. SBE Council believes the $1 million cap in the Amendment is too low, and the caps on individuals are far too complex.”

If the amended JOBS bill is passed by the House, it is still expected more small businesses and start-ups will get the adequate funding they need, more jobs will be created, and a healthier pro-business environment will be created.

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Passage of JOBS Bill a Win for Small Business

Posted on March 19, 2012 by | Leave a comment

The U.S. House of Representatives today overwhelmingly approved (390:29) the Jumpstart Our Business Startups Act (JOBS Act), sending a strong message to small business: we support you. The NSBA-supported JOBS Act—which is a compilation of six bipartisan bills—will promote and facilitate entrepreneurship and new business formation by making it much easier to raise capital and get new ideas off the ground.

“The bipartisan efforts to move this bill forward are laudable, and ought to serve as an example of the kind of lawmaking we need,” stated NSBA President Todd McCracken. “We hope the Senate will move quickly and expeditiously on the measure.”

By providing certain exemptions from the more restrictive requirements of U.S. securities law, the JOBS Act will positively transform the ability of small businesses to raise capital and alleviate the disproportionate burden of compliance they face. Specifically, the legislation will create a crowdfunding exemption allowing a company to raise up to $2 million and provide greater leeway for seeking investment online through a preemption of state blue sky laws—a critical component to ensure the affordability of capital formation through crowdfunding.

The bill also substantially reduces the cost barriers posed by the initial move to being a public company and will therefore increase the access of smaller companies to the public securities market. The number of initial public offerings (IPOs) has declined considerably in recent years in large measure due to the increased costs of going and staying a public company.

“There is a direct correlation between access to capital and job growth—when capital flows more freely, small businesses add new jobs,” stated NSBA Chair Chris Holman, CEO of Michigan Business Network.com and President of The Greater Lansing Business Monthly. “The JOBS Act will make raising capital much easier for many small businesses, a win for small business and the U.S. economy.”

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Austria’s UAV Amendment Supports WPAFB and Local Universities

Posted on February 17, 2012 by | Leave a comment

By Congressman Steve Austria

The advancement of modern technology with Unmanned Aerial Systems (UAS) continues to play a critical role in our nation’s defense and homeland security. Wright-Patterson Air Force Base along with the University of Dayton Research Institute (UDRI), Wright State University Research Institute (WSURI) and Sinclair Community College continue to produce cutting edge technology and development of Unmanned Aerial Vehicles (UAV). However, Ohio lacks the sufficient airspace to meet the demand for testing new systems and to enable manufacturers to test fly the aircraft being built. Bringing manufacturers and defense businesses to our region to build UAV aircrafts could potentially bring new businesses and jobs to support missions at Wright-Patterson Air Force Base, the Springfield Air National Guard Base and Department of Defense. Having the necessary airspace to test fly UAVs in our region is critically important to support the research and development that takes place around the Miami Valley region for the Air Force, numerous private sector employers, and our local universities – all which are leaders in UAS technology.

In an effort to meet our region’s needs, I included language in the FAA Re-authorization bill, which establishes six new test areas for integrating unmanned aircraft systems with the necessary airspace to support the UAV research for five years. The FAA Re-authorization bill recently passed Congress and now awaits the President’s signature. Ohio and our region have already begun its work to contend for one of these new pilot programs.

In addition, Ohio has applied for temporary airspace known as a certificate of authorization (COA) with the FAA. Wilmington was recently granted a COA and the Ohio National Guard has applied with the FAA for a second COA. COAs are temporary conditions granted up to one year while the new pilot programs, in which I included in the FAA Reauthorization, allow test sites to fly up to five years.

I am confident that our region will remain at the forefront of UAS development and can competitively pursue one of these new pilot programs. If selected, it would allow areas near Wright-Patterson Air Force Base and the Springfield Air National Guard Base the much needed airspace and certainty for industry development, training, and commercial manufacturing of UAV’s to provide incentive to relocate and invest in Ohio, potentially bringing hundreds of new jobs to our area.

Department of Defense Faces Tough Budget Constraints

Last month, Defense Secretary Panetta provided a preview to the FY2013 Defense Budget, which included a request for military base closures. I know many of you have expressed to my office your anxieties about base closures in our area. Wright-Patterson, the largest single-site employer in the state, remains critical to the Air Force and to the economic success of our region. Along with Wright-Patterson, other military facilities located in Ohio’s 7th Congressional District include the Springfield Air National Guard Base, the Air and Army National Guard Bases and the Navy Reserve Center at Rickenbacker International Airport, and Defense Supply Center Columbus (DSCC).

In the next two weeks we will receive more details from the Defense Department on its proposed FY2013 budget, specifically with regard to any potential Base Realignment and Closure Commission (BRAC) series as it directly affects our region. Some consolidations may be an opportunity for the consolidation of additional jobs at Wright-Patterson and our region. As the sole member from the Ohio delegation on the House Appropriations Military Construction (MILCON) Subcommittee, which oversees all funding for BRAC, I intend to work very closely with the Defense Department to strongly advocate for Wright-Patterson, the Springfield Air National Guard Base, Rickenbacker and the DSCC to assess the impact of BRAC closures on our region.

(Note: For perspective, see Attorney John Whitehead’s article Dawn of the Drones on the development and use of unmaned drones in America.]

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Future IMAX Theaters To Be Exclusively Powered By Barco

Posted on February 9, 2012 by | Leave a comment

Barco, a worldwide leader in the Digital Cinema industry, announced today that it has been selected by IMAX Corporation as the exclusive, worldwide projection technology partner for its IMAX® theaters for the next seven years. Through its selection of Barco’s Guinness World Record winning Xenon lamp-based digital projectors, IMAX will immediately enhance The IMAX Experience® in its global cinema network. In addition, IMAX theaters will benefit from a new generation of high-performance, laser-based projectors, which are expected to be deployed in 2013.

Over the years, IMAX has established its reputation as the leading provider of awe-inspiring, immersive cinema experiences. In Barco, it has found an industry acclaimed technology partner that is able to further differentiate and maximize The IMAX Experience®. In the first phase of the partnership, the parties will integrate an enhancement of Barco’s existing Xenon-based projectors for use in IMAX’s current backlog and new system signings. This solution will be available in the second half of 2012. Simultaneously, Barco and IMAX will co-develop leading-edge laser technology – benefiting from Barco’s unique laser innovations and IMAX’s licensed Kodak IP. The companies will work together exclusively to manage the transition from Xenon-based to high-performance, laser-based projectors, which are expected to be deployed in 2013.

“Being selected by IMAX as the exclusive supplier for the world’s most immersive cinema experience is a strong endorsement of our leadership in the Digital Cinema projection business,” explains Wim Buyens, Senior Vice President of Barco’s Entertainment Division. “This partnership will strengthen our position as the premium provider of state-of-the-art cinema technologies that provide the perfect match for every screen, whether small or large. What’s more, it will enable us to further ramp up our manufacturing scalability and to continue setting the standard for future technologies.”

“As we continue to expand globally, it is critical that our technology partner keeps pace with our ambitions around innovation and growth,” said IMAX Chief Business Development Officer Robert D. Lister. “Barco is that partner. A leader in advanced digital and laser technology, Barco is well-known for its quality and integrity. We believe the result of this collaboration will further differentiate The IMAX Experience® for consumers, strengthening our value proposition for studios and exhibitors.”

Todd Hoddick, Vice President for the Barco Entertainment Division in North America, adds: “We are honored to have been selected by IMAX as their worldwide and exclusive digital projection technology partner. We are both excited and committed to bring the full weight of Barco’s operational excellence, integrity and ability to deliver on the ideals of the IMAX brand. Together we are determined to redefine the immersive cinema experience.”

The agreement with IMAX underscores Barco’s commitment to offer exhibitors the most comprehensive suite of products and solutions to create a premium movie experience in their auditoriums at the lowest cost of ownership. This is exactly what has made Barco a valued technology leader, – as illustrated by its long list of industry firsts and its Guinness World Record for the brightest projector – as well as a global market leader – reflected in the company’s 40% worldwide market share, market leadership in China and a strong global customer base.

Being appointed as the exclusive supplier of projection technology for the largest screens in the industry is a new milestone for Barco’s Entertainment Division, which has a long history of providing high-quality equipment to the Advertising, Rental & Staging, Branding & Retail, Sports, Digital Cinema and Corporate AV industry. In these markets, Barco continues to innovate with a full portfolio of pioneering imaging and sound products that optimize productivity and range from compact, reliable projectors for mid-sized businesses to the most powerful projectors, LED displays and image processors for operation in a broad spectrum of entertainment venues and outdoor events.

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Court Rules Against Dayton-Based Investment Firm In Fraud Case

Posted on February 3, 2012 by | Leave a comment

An agreed preliminary and permanent injunction was approved yesterday between the Division of Securities and Wayne T. Essex and his companies (Essex and Associates, Inc. in Dayton, Essex HR & Associates, Inc. in Beavercreek, and HR Reconciliation, LLC in Dayton.) The injunction prohibits Essex and his companies from:

– selling or offering to sell securities in violation of the Ohio Securities Act
– selling or offering to sell securities without prior approval of the court
– engaging in any deceptive, fraudulent or manipulative act.

Montgomery County Common Pleas Court Judge Mary Wiseman signed the injunction. In December 2011, Judge Wiseman issued a temporary restraining order against Essex and his companies. The judge also appointed as receiver James Swaim of the Dayton law firm of Flanagan, Lieberman, Hoffman & Swaim. The receiver is working to recover Essex’s business assets for distribution as approved by the court.

The Division of Securities initiated the action based on allegations that Essex sold promissory notes in the Dayton Small Business Capital Fund, which he told investors would be invested in Dayton-area small businesses. Twenty investors purchased approximately $1.1 million in the fraudulent investment from July 6, 2010 – November 23, 2011. Essex never made loans to or investments in small businesses with the money, the State charged.

The Division’s investigation found that Essex sold securities without a license, sold unregistered securities and engaged in securities fraud. The Division also found that Essex commingled investor funds with his business and were used to support his personal lifestyle, including out-of-state travel.

Essex did not tell investors that he was not licensed to sell securities and that the securities were not properly registered. Essex told investors that their funds were guaranteed and that they would receive annual returns of five, seven or 10 percent – with higher rates to those who invested larger dollar amounts.

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Rutherford Institute Urges U.S. Supreme Court to Hold Corporations Accountable for Human Rights Abuses in Keeping with the Rule of Law

Posted on January 5, 2012 by | Leave a comment

(WASHINGTON, DC) — The Rutherford Institute has filed an amicus curiae brief with the U.S. Supreme Court in a case that will determine whether U.S. courts are open to persons who are victims of human rights abuses by international corporations. The Institute’s brief in Kiobel v. Royal Dutch Petroleum Co. asks the Court to reverse a federal appeals court ruling that corporations are not subject to liability under the Alien Tort Statute (ATS), a 200-year-old law that allows victims of violations of the law of nations to recover damages from the persons responsible for the violations.

In their brief, Institute attorneys argue that U.S. courts should do all they can to prevent and remedy human rights abuses and that it is contrary to established principles and the rule of law to allow corporations to escape responsibility for heinous crimes that violate established international standards simply because they are not “natural” persons. The Rutherford Institute’s brief in Kiobel v. Royal Dutch Petroleum Co. is available at www.rutherford.org.

“Permitting corporations to escape civil liability for crimes against humanity is a fundamental departure from the constitutional theory of the rule of law upon which the U.S. Constitution rests,” said John W. Whitehead, president of The Rutherford Institute. “We have operated too long under a double standard that favors corporations, recognizing them as persons for the purposes of profit but failing to hold them equally accountable for their abuses. The Supreme Court needs to rectify this discrepancy and ensure that corporations are not given carte blanche to operate above the law.”

The case involves a lawsuit by residents of the Ogoni Region of Nigeria, where Royal Dutch Petroleum and its subsidiaries have been involved in oil exploration since 1958. The residents alleged that Royal Dutch, in cooperation with the Nigerian government, began a campaign of repression and terror after residents organized to protest and resist the exploration efforts because of its environmental effects upon the region. According to the complaint, the campaign involved the shooting and killing of Ogoni residents, attacking Ogoni villages, and beating, raping, torturing and arresting residents and destroying or looting of property by Nigerian military forces, allegedly with the aid and assistance of Royal Dutch and its affiliates.

Several Ogoni residents filed suit in a New York federal district court in 2002 under the Alien Tort Statute, which was enacted in 1789 by the First Congress and which provides federal courts with jurisdiction over “any civil action by an alien for tort only, committed in violation of the law of nations or a treaty of the United States.” Insisting that only natural persons are subject to federal court jurisdiction under the ATS, the corporate defendants filed a motion to dismiss the case, which the district court denied. On appeal, the Second Circuit Court of Appeals reversed the ruling, holding that corporations and other “juridical” entities, while considered “persons” under the law of the United States, are not considered persons under the ATS. However, a federal appeals court ruling in another, unrelated, case held that corporations are subject to the ATS.

In light of the conflict between the circuits, the Supreme Court agreed to hear Kiobel v. Royal Dutch Petroleum Co. In weighing in on the issue, attorneys for The Rutherford Institute are urging the Supreme Court to “affirm the foundational principle that corporations are not above the rule of law and are not available as a vehicle to circumvent domestic or international laws that punish participation in egregious human rights violations.”

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Men Using Women’s Fitting Rooms Appears to be a Common problem at Macy’s

Posted on December 21, 2011 by | Leave a comment

(Orlando, FL) – Another Macy’s employee has contacted Liberty Counsel and shared about repeated issues with men using the women’s fitting rooms. This individual asked to remain anonymous out of fear of losing her job. The employee said she constantly has to ask men to leave the women’s fitting rooms. In addition, she has been asked numerous times by mothers who have daughters in the fitting rooms to please ask the men to leave the women’s dressing rooms.

With the Christmas shopping season in full swing, customers around the country are sending Macy’s a message that such a bizarre policy is not acceptable. One woman posted on Macy’s Facebook page that her family normally spends $2,000 at Macy’s and she is planning to boycott the store. Others are shredding their Macy’s credit cards and closing their accounts. The chorus of voices opposing Macy’s disturbing dressing room policy is growing louder as more troubling incidents are coming to light. The message will become increasingly clear that the majority of the American people are not in line with the radical Lesbian Gay Bisexual Transgender (“LGBT”) agenda.

This story of Macy’s LGBT policy which allows men to use the women’s fitting rooms came to light when Macy’s fired Natalie Johnson from its San Antonio store after she politely told a clearly identified man that he could not re-enter the women’s fitting rooms.

Mathew Staver, Founder and Chairman of Liberty Counsel said, “Macy’s policy that allows men to use the women’s fitting rooms makes no sense. This policy has put at risk every woman shopper who enters one of these rooms. While attempting to cater to a radical LGBT agenda, Macy’s has alienated almost the entirety of its customer base.”

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Thanksgiving Economics

Posted on November 22, 2011 by | Leave a comment

Because of the lingering effects of the recession, Thanksgiving 2011 will not be as great an economic boom as before, but reports indicate increased spending is expected.

For example, an “American Farm Bureau Federation study claims the cost of turkey and other related Thanksgiving food items costs 13 percent more this year. Their estimate was based on a sample meal consisting of turkey, stuffing, peas, pumpkin pie, rolls, sweet potatoes, fresh cranberries, and other items. The total cost of the family meal was $49.20. Let say, the average family meal will consists of 8-10 member and/or friends. The total cost of a food on Thanksgiving will be no less than $16.6 billion.

A recent AAA survey shows 38.2 million Americans plan on driving an average of 706 miles to their destination. They won’t be traveling by pink elephant either. Nearly 3.4 million will fly by plane, according to the American Automobile Association (not American Alcoholic Anonymous) survey. American traveler expected to spend an average of $554 each. That totals over $23 billion. Along all of the greasy turkey, fattening dressing, and calorie boosting pie, that is a lot of gas, especially at over $3 a gallon.

Some might want to extend their trip to play in the Turkey-Lurky Bowl, which is held in New York City. It would be a great way to work off some of the excess blubber, relieve some of the pent up holiday pressure, and enjoy Central Park.

If you bit more lazy like me, you could entertain yourself by watching My Life As A Turkey, a PBS documentary about Joe Hutto experience with turkeys. Or, if you happen to be bored out-of-your-gourd, you could take Kipliner’s
Thanksgiving IQ quiz. (That is giving thanks that one’s still has an IQ after stuffing oneself life a crazy person on Thursday and vowing never to do it again on Friday.)

Speaking of Friday, Kiplinger’s Money Magazine reports Black Friday spending is expected to top $45 billion. One possible reason is many retailers intend to start on Thursday at midnight. According to the International Council of Shopping Centers, the expected amount in sales will account for about 21% of retailers annual sales.

For at least two Minnesota turkeys, they are counting more than economic blessings, according to the Associated Press. I’m certain they are thankful for a royal trip to see the President of the United States as well as for being pardoned. I’m not sure from what sin crime turkeys may be pardoned but like all of us inheritors of the Puritan Thanksgiving tradition they can be thankful to God for escaping the eternal axe. That’s what Puritans used to call the economy of God’s grace.

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Posted in business, economy, family, Holidays, news, retail, Thanksgiving

The Five Rules of Entrepreneurship

Posted on November 21, 2011 by | Leave a comment

By Brian Tracy

Entrepreneurship is the art of finding profitable solutions to problems. Every Successful entrepreneur, every successful businessperson, has been a person who has been able to identify a problem and come up with a solution to it before someone else did. Here are the five rules for success.

1. Find a Need and Fill It
Human needs and wants are unlimited. Therefore, the opportunities for entrepreneurship and financial success are unlimited as well. The only constraints on the business opportunities available to you are the limits you place on your own imagination.

2. Find a Problem and Solve It
Wherever there is a widespread and unsolved customer problem, there is an opportunity for you to start and build a successful business.

Once upon a time, before photocopies, the only way to type multiple copies of a letter was with carbon paper places between sheets of stationary. But a single mistake would require the typist to go through and erase the mistakes on every single copy. This was enormously clumsy and time consuming.

Then a secretary working for small company in Minneapolis began mixing flour with nail varnish in order to white out the mistake she was making in her typing. Soon, people in other offices began asking for it. The demand became so great that she quit her job and began working full-time manufacturing what she called “Liquid Paper.” A few years later, the Gillette Corporation came along and bought her out for $47 million cash.

3. Unlimited Opportunities
There are problems everywhere. Your job is to find one of these problems and solve it better than it has been solved in the past. Find a problem that everyone has and see if you can’t come up with a solution for it. Find a way to supply a product or service better, cheaper, faster, or easier. Use your imagination.

4. Focus on the Customer
The key to success in business is to focus on the customer. Become obsessed with your customer. Become fixated on your customer’s wants, needs, and desires. Think of your customer all the time. Think of what your customer is willing to pay for. Think about your customer’s problems. See yourself as if you were working for your customer.

5. Bootstrap Your Way to Success
Once you have come up with a problem or idea, resolve to invest your time, talent, and energy instead of your money to get started. Most great personal fortunes in the United States were started with an idea and with the sale of personal services.

Most great fortunes were started by people with no money, resources, or backing. They were started by individuals who came up with an idea and who then put their whole heart into producing a product or service that someone else would buy.

Brian Tracy, international business success expert, has built his own business from the ground up. It’s now a multi-million-dollar business that spans the globe.

Source: Small Business Entrepreneurship Council (SBEC), November 18, 2011.

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