Small Business Assistance Program Saves 82 Jobs, Creates 12

From the CACLV. - During the darkest days of the recession, the Community Action Committee of the Lehigh Valley (CACLV) partnered with Lehigh Valley SCORE to create the Small Business Assistance Program. This joint effort was designed to provide free technical assistance and a range of professional services to local small businesses to help them survive the worst recession in decades. A recent survey of participating business owners found that the program resulted in 83 saved jobs and the creation of 12 others. Many assisted businesses anticipate the need to hire additional employees in the coming year. All have remained in business.

The program was funded by a one-time grant awarded to CACLV under the American Recovery and Reinvestment Act (ARRA). Out of 172 program applicants, 50 qualifying small businesses received vouchers for professional services in amounts up to $5,000. A total of $124,070 in professional service vouchers was distributed. The professional services were provided by other local small businesses, further stimulating the local economy. Every applicant, including those who did not receive vouchers, was offered technical assistance from trained staff and volunteers.

According to Kim Stout, Business Development Coordinator for CACLV, the business owners would have continued to struggle during the economic downturn without the assistance of the program. For example, Sam Radin of Lehigh Valley Auto Sales received $2,000 to help with the marketing of his business and get better results from his accounting system. In the follow-up survey, Radin states that his business has increased as a direct result of the services he received. His accounting system is a better management tool and he learned how to use the internet to grow his business. He has been able to stay open, his business continues to improve, and he is planning to build a garage and hire additional help in the upcoming year.

Pete Reinke, Vice President of Regional Development at the Lehigh Valley Economic Development Corporation, chaired the committee that established this program. Reinke says that he is proud to have been a part of the program and was encouraged to see that “such a small amount of assistance is what allowed these businesses to survive and move forward. They will now be able to help turn around our economy by expanding their businesses and creating more local jobs.”

Comments from other small businesses who received assistance included similar positive feedback. Many business owners indicated that they will be able to hire new employees in the near future. At least 13 additional jobs will be created as a result of the stimulus grant. Joanna Mancuso, owner of The Wonder Kids, says “[This opportunity] has encouraged me to move forward and expand my business.” The Wonder Kids opened a second location in the Borough of Northampton last October.

Blogger's Note: This all sounds great, but they refused to invest a dime in my candy business, Plopp Enterprises.

Pooley & Publius on Those Tax Cut Extensions & Charlie Dent

Families with incomes over $250,000 and individuals earning over $200,000 are the stumbling block for an extension of the Bush-era tax cuts, set to expire at the end of this year. LV Congressman Charlie Dent, like most Republicans, want them extended for everyone, including those with higher incomes. As he told The Reading Eagle, these are primarily small business owners - "the very businesses Americans will rely on to create jobs and lead our economic recovery."

On Friday, I posted Dent's position on this hot-button topic. I took no position myself because, quite frankly, I have no position. It is a complicated question in which flamethrowing, one of my specialties, is no help. But I later read, in Jeff Pooley's supposed "Dent Watch," that I "implicitly endorsed" a "slimy press statement." The good doctor goes on to claim that 98% of small businesses earn less than $200/250 thousand. It's actually 98% of all Americans who earn less than that figure. I am unable to find any clear and unbiased data telling me the percentage of small businesses under that threshold.

According to Moody's Analytics, denying everyone an extension will reduce the deficit significantly, but will also hurt economic growth and send the jobless rate soaring. Giving everyone a permanent tax cut will be great for economic growth and it will help the jobless rate, at least a little. But the deficit will soar by $4 trillion over the next decade.

There really is no real easy answer. But Jeff's polemnic just fans the flames of partisan rancor.

In addition to Jeff, a regular commenter here, called Publius, also disagrees with Dent's position on extending tax cuts for everyone. But instead of the usual name-calling, Publius gives the perspective of someone who happens to be a small business owner.

"Bernie,

"It is statements like this one from Mr. Dent that have led me to believe that he is a very good politician, but a very unfortunate choice as my Congressional Representative. Let me explain.

"I am a small businessperson, one of the people that Mr. Dent claims to be representing with his "no" vote. I have never worked for someone else. I started my first business after dropping out of grad school in 1992, sold that business in 2001, and after taking a break, have been in my current business since 2003.

"As a business owner I have never made a decision on capital expenditures, hiring, expanding, or anything else based on what my income tax rate would be. In fact, I am incentivized to reinvest in my business with a 15 or 20% capital gains rate. In the past year we have taken more space from our landlord to expand the business, and are actively looking to hire 4-6 people in the next twelve months.

"The more I invest in and grow my business, the greater the value of that business. That value is unlocked at the time of sale.

"By extending the tax cuts to everyone who makes $250k+/yr., we would be giving an extended tax cut professional athletes, overpaid CEOs of public corporations, hedge fund managers, etc. that would only add to the deficit and would not produce a job, or grow a small business.

"If Mr. Dent truly wants to help the small businesspeople of this country, here is what makes sense to this lifelong entrepreneur:

"1. Allow me to expense all my capital expenditures the year I make the investment, not over 5-30 years.

"2. Single-payer health insurance system. Currently the USA is the laughing-stock in every developed nation. "The Healing of America" by T.R. Reid lays out all of the reasons why we need this, as well as his experience in a number of different systems.

"3. Taxpayer funded elections. Elections are all about money and not the people who Representatives /Senators actually represent. I have a right to free speech, but my business does not. As it is now, Congresspeople are more worried about raising enough money to funds their next election than they are about the needs of the people.

"4. Back the Debt Commission's Plan. It is very reasonable and well thought out. The fact that both Dems. and Repubs. hate it makes me believe that it is the right plan to get us moving in the right direction.

"With all due respect, Mr. Dent is a professional politician who has never grown a business, taken a business risk, and receives his health insurance and pension benefits off the backs of the taxpayers. As a politician he is non-productive, yet he makes as much or more than I do, lives is a larger house, and has a better benefit package than I do. In other words, he doesn't live in the real world that I do, and his political statement and clueless reasoning deepen my beliefs.

"The reason I have what I have is a result of hard work AND the fact that I live in the USA. The taxes that I pay are the cost of keeping this system.

"Publius"

Lehigh County Gets $2 Million Stimulus Grant for Energy Efficiency

Lehigh County has received a $2 million federal Stimulus Grant to improve its energy efficiency, reduce carbon emissions and save money. This green technology project includes solar panels at the Government Center and Courthouse, energy efficient lighting, high efficiency boilers, and geothermal heating at Trexler.

County officials are predicting reduced energy costs, but utility rate caps will be coming off od provider PPL in January. It seems possible there could still be a net increase in utility costs, even with these green advances.

“Lehigh County is taking a leadership role in the green movement not just by talking about it, but actually utilizing the renewable energy technology,” said Lehigh County Executive Don Cunningham. “This not only creates construction jobs and saves money for taxpayers, but reduces our carbon footprint and is another example of environmental stewardship.”

New energy efficient lighting will be installed in eight county buildings including the Government Center, Utility Garage, Prison, Juvenile Detention Center, Inmate Work Program, Agricultural Extension, Voter Machine Storage and Parking Garage. Motion sensor lighting will be placed in restrooms, pantries, conference and break rooms to reduce usage.

“This will result in annual electrical savings of $78,160 and will reduce electrical consumption by 1.2 million kilowatts as well as carbon emissions by 786 tons,” said Cunningham.

Two natural gas high-efficiency boilers will be installed at the Prison, reducing electrical consumption by 690,000 kilowatts and carbon emissions by 851,000 pounds.

About $169,000 of the grant will be used to install 72 solar panels and a geothermal heating and cooling system at Trexler Environmental Center at Trexler Nature Preserve in Schnecksville. By replacing a traditional HVAC system with a geothermal heat pumps and constructing a “green” roof, the county expects to save an estimated 52,375 pounds of carbon dioxide a year and 25,000 kilowatts of electricity.

The Trexler Environmental Center will house county park offices, a satellite office for the state Bureau of Forestry and a community room for environmental education. The $1.3 million building is being funded with help from the Trexler Trust, DCNR and the federal grant. It’s expected to be completed by February 2010.

These projects are part of Cunningham’s plan to find ways to reduce energy consumption and position the county to meet future energy requirements.

Most recently, the county completed the first phase of an energy upgrade at its nursing home facilities. The project included changing light bulbs, replacing windows and upgrading the HVAC system. The work is expected to reduce energy consumption at Cedarbrook in Allentown, Fountain Hill Annex, Cedar View Apartments and Cedar Village. Phase two of the energy savings initiative includes the Government Center, Hamilton Financial Center, the Prison, County garage and Agricultural Center.

“The intent is to take pro-active action now to reduce energy consumption and future cost increases,” said Cunningham. “It’s the right thing to do for the environment and taxpayers.”

One idea rejected by Cunningham is the washing machine - john combo, which would have been perfect at either the Prison or Cedarbrook. Used washing machine water could easily flush a toilet bowl, providing spring breeze aromas instead of the usual. As an added benefit, if some senior forgets toilet paper, he can just grab someone's shirt or underwear right out of the machine. Fortunately, that idea is still under serious consideration in Northampton County.