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We are passing through the most critical time for business and finance as many analysts are predicting another economic recession is inevitable. One end-result would be scarcity of cash that will have a significant impact on Diverse Business Enterprises (DBE). 

DBEs know cash is the life force of a business. According to a US Bank Study, 82% of business failures occur either due to poor cash flow management or poor understanding of how cash flow contributes to the business. At every step, from establishing a business to operations and expansion, cash is the driving force that controls every action. But the major issue DBEs face is the reluctance and unwillingness of banks to lend them money. 

The Council for Supplier Diversity strives to facilitate DBEs securing the cash they need to sustain and prosper by connecting them with companies and financiers who have an interest in investing in small and diverse businesses. These lenders are selected based on their expertise and insight into supporting DBEs. You can keep staying at the point where you started by managing things on a day-to-day basis or you can plan big by benefiting from the Council for Supplier Diversity’s business lending services.

Take a look at the following opportunities made available to you with additional cash flow:

  1. Business Growth. Growth of any business is impossible without additional cash to spend on new possibilities. Marching towards any goal requires cash and once you have it, you are unstoppable.
  2. Bidding for new projects. DBEs thrive by winning new contracts and for bidding on new contracts you need cash to deposit before bidding. The additional cash makes it easier for you to bid on new projects.  
  3. Cover losses or emergencies. Business and losses are like day and night; always chasing each other and there is no way to survive a loss or emergency without cash.
  4. Funds marketing budgets. You offer excellent services and products but potential customers do not know about them and the only way to build a strong brand image and credibility is by launching a formidable marketing campaign that needs money. Additional cash is always handy to supplement your marketing campaigns.
  5. Inventory building. The efficiency of a business depends on always-updated-inventory but it can’t be done without cash. You can build a robust inventory to push your business towards a higher trajectory if you have sufficient funds.
  6. Equipment acquisition. Adequate equipment empowers your team to drive the business forward efficiently and effectively. You need regular upgrades to and purchase of new equipment to stay ahead in your field and you can only do it if you have cash.
  7. Reinvention and remodeling. Being stuck with the same business model brings down even the biggest of empires. Constant remodeling is essential to stay relevant and the availability of cash makes it possible for businesses to do so. 
  8. Operational expansion. Even if you are starting a business in a backyard, you would want to expand it globally. Hard-work, strategic planning, hardcore marketing and sufficient funds are what you need to realize your dreams.  
  9. Cash flow management. Nobody needs to be educated on the importance of cash flow management for a business but no matter how precise your finance team goes by, issues arise with the cash. But with additional money on your side, you can let go off all our worries.
  10. Keeps you competitive. Competition never slows down rather it intensifies with the arrival of each new player in the business and with enough money by your side, you can’t complain of not being competitive due to cash deficiency.

It suffices to say that additional cash is critical for the smooth functioning of your business. The Council for Supplier Diversity’s business lending services can be the lifeline for all the diverse business enterprises. 

The Council for Supplier Diversity can Help You Secure Lines of Credit

We can help you obtain the funding you need through our network of traditional and non-traditional lenders. Our lenders are industry leaders selected based on quality of product, and their willingness to offer special solutions to our diverse businesses. A high percentage of borrowers obtain the loans they need.

How it works:

  • Our service is FREE to registered diverse suppliers
  • All connections are based on your answers to a short survey
  • After you submit the survey, we connect you to lenders based on your profile

In addition to traditional lending, we have resources to help you regardless of industry, time in business, credit score, or most other reasons you may have been declined before.
Fill out this short form to get started – For Asset/Receiving Financing – or give us a call at (858) 537-2281.

Owning and running a business requires significant planning, resources, strategy and capital. While all the aforementioned things help you establish your business, there are certifications that will help your business stand out from your competitors, easing your journey to success. Acquiring certifications will add to the foundation of your business making you a worthy contender in the corporate world and can also improve your chances of securing a government and private sector contract.

Staying ahead of your competition may be your biggest concern, especially if they are already established in your market, leaving you to find opportunities for market share growth. Registering your business as a Diverse Business Enterprise (DBE) with the Council for Supplier Diversity and obtaining additional certifications might just give you a strategic advantage.

Here are some key certifications available for DBEs that will greatly boost your chances of growth.

  1. Small Business Administration: Apart from giving loans to small businesses, the SBA also certifies companies making them eligible to work on federal contracts.
  2. National Minority Supplier Development Council creates opportunities for minority business enterprises to connect to the hundreds of corporate members who wish to build relationships with trusted MBEs
  3. U.S. Business Leadership Network is recognized for its Disability Supplier Diversity Program. It certifies disability-owned business enterprises and, service-disabled veteran-owned business enterprises.
  4. Women’s Business Enterprise National Council is the biggest third-party platform that certifies woman-owned business in the United States.
  5. The Vets First Verification Program promotes on priority the service-disabled veteran-owned small businesses and the veteran-owned small businesses.
  6. National Veteran Business Development Council is the largest centre for veteran-owned business certification.
  7. LGBT-Owned Business Enterprise Certification from the National LGBT Chamber of Commerce (NGLCC)
  8. Most states have certification programs as well. The California Public Utility Commission is one example.

two chess pieces

How these certifications can be helpful for your business and why you should apply for them

  1. “Big fish eats little fish”, is a common instance in the corporate world. You certainly need some sort of connections to survive the competition and as a certified DBE, you get that protection.
  2. Certifications will establish your company as a preferred supplier for a network of thousands of corporate entities looking for diverse business enterprises for vendors.
  3. The federal government allocates 5% of its total budget for awarding contracts to small and disadvantaged businesses that hold specific certifications.
  4. Certifications increase your credibility with buyers while establishing your business as a trusted partner.
  5. Business diversity certifications make your business eligible for unique financial assistance opportunities. This assistance is available for companies that are in the start-up stage and those that are established. Additionally, as a minority, disabled, veteran and women-owned business, you are eligible for getting low-interest loans, grants and fiduciary benefits that greatly aid your business success and help you grow at a faster pace.

black coffee mug sitting on a desk that reads "you can win if you want"

The Council for Supplier Diversity can certainly help you do the heavy lifting

Certifications are one additional way you can differentiate yourself from your competitors as a diverse business enterprise. Remember to renew these certifications every year and do not forget to take advantage of the perks these certifications bring along.

Contact us to learn more:

  • (858) 537-2281
  • info@councilforsupplierdiversity.org
  • www.councilforsupplierdiversity.org

Research, innovation and development of new products and services have a valuable impact on US society. However small or big, every company has a role in boosting the nation’s economy. In the United States, small- and mid-sized businesses are responsible for 12% of the country’s total research and development.

Recent stats have also shown small businesses in the United States create two-thirds of new jobs. With 22 million Americans filing for unemployment in the last 30 days alone, small businesses will continue to play a vital role in the growth and resurgence of the economy.

What are R&D Tax Credits and Incentives?

The federal and state government offer numerous tax incentives to small and large businesses alike, called R&D tax credits. They’re aimed at providing cash credits and incentives to businesses so they continue developing innovative products and services that help boost the US economy. R&D tax credits act as a 10-15% return on capital invested in research and development.

Two men writing on a paper

These particular tax incentives to uplift businesses were introduced by congress in 1981 during the Reagan administration. Then in 2015, the R&D tax credit and incentive policy was made permanent by the federal government. It also decreased the eligibility bar to benefit small- and mid-sized businesses.

Now, businesses with less than $50 million in gross tax receipts can claim the credit and reduce their tax liability. Despite the longevity and benefits of the credits, many diverse business owners aren’t aware that they exist. Only 5% of small businesses claim the credit while 95% of large businesses take advantage of the benefit.

Covid-19 Business Relief Aid

With the present situation of COVID-19 in the US, the federal government has passed a bill of $2.2 trillion incentives for the aid, relief and economic security of the country. Out of this, $500 billion is set for large businesses while $377 billion is for the small business sector. This aid will help businesses pay their employees and continue running their organizations after the stay-at-home restrictions are lifted. This time seems like a great opportunity to claim your business R&D tax credits and use the money to research, innovate and develop business processes and functions.

woman working on computer leaning against the wall

The COVID-19 aid is in addition to R&D tax credits and incentives depending on your day-to-day business operations. Did you know:

  1. Impact from small- and mid-sized businesses: Only 5% of small businesses claim these credits even though the government favors small businesses given they create two-thirds of new jobs every year and are a major factor in boosting the US economy. Tax credits reduce a businesses’ tax liability and this money can be put back into the business for further research, innovation and development.
  2. State governments pay as well: Apart from the federal government, 36 state governments in the US, including California, also reward businesses with R&D tax credits.
  3. Claim for the last 3 years: Companies can claim the unclaimed tax credit incentives for the past 3 years if they haven’t already.

Your business qualifies for R&D tax credits if it:

  • Conducts research activity, innovates and develops processes, products, patents, formulas, software and prototypes,
  • Enhances or redesigns existing products and services,
  • Hires scientists, designers, engineers and/or other staff

Industries that qualify are

  • Manufacturing
  • Construction
  • Engineering
  • Textiles
  • Agriculture
  • Automotive
  • Financial Services
  • Software
  • Consumer Products
  • Entertainment & Media
  • Food Processing
  • Doctors
  • Dentists
  • Chiropractors
  • Medical Devices
  • Fashion Designer
  • Oil & Gas
  • Consulting
  • Chemical & Plastics
  • Telecommunications
  • Website Development
  • Paper & Forest Products

Tax Asset Recovery Program with the Council for Supplier Diversity

The state and federal government have both created numerous business tax incentives and credits over the years. However, many small and large diversity businesses have not taken advantage of these programs. In partnership with one of our diverse businesses, we now offer the Tax Asset Recovery program that can be of tremendous value to your company.

Most business owners are not aware and are entitled to these incentives. Recently a general contractor received back a profit recovery of $128K hundred thousand and a home health/hospice $1.1M million dollars. This could be the difference between staying in business and losing your business.

Many companies leave tens of thousands of dollars on the table every year because they are simply unaware of this program. We can help you learn more about the R&D Tax Credit, and why you may be qualified. Don’t let the word “R&D” stop you from thinking you don’t qualify, you just have to have a creative element to what you do.

Submit your information to learn more about Tax Asset Recovery through the Council for Supplier Diversity.

About the Council for Supplier Diversity

The Council for Supplier Diversity, established in 1999, is a nonprofit organization. The Council for Supplier Diversity represents the corporate outreach to the Diverse Supplier community. It is our purpose to facilitate business opportunities and market share growth for minority, woman, and service-disabled businesses through interaction with our corporate members.

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Council for Supplier Diversity
Shane R Cummiskey, Marketing Director
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