Top Stories
Employee Retention Credit (ERC) scams surge, IRS issues warning to small business owners
A wave of Employee Retention Credit (ERC) scams has hit the U.S. and it’s prompting an official warning from the Internal Revenue Service. The program was introduced during the COVID-19 pandemic to help companies pay their staff, but now the IRS says scammers are targeting companies that have yet to apply for the credit. IRS commissioner Danny Werfel warned that scam artists can “pocket handsome fees while leaving those claiming the credit at risk of having the claims denied.” Read More
Startup launches tool to help businesses find their ideal generative AI solutions
Have you heard of the new artificial intelligence startup called Arthur? The company has developed software that helps business owners find the right generative AI model for their needs. The new service, called Arthur Bench, can compare results from tools such as ChatGPT and Google Bard to give managers a better idea of which product they should choose. The tool is one of the first to compare generative AI models and has already discovered major differences in how platforms respond to identical commands. Read More
SBA hopes to spur small business investments with improved SBIC program
The U.S. Small Business Administration has expanded loan access for entrepreneurs by streamlining its lending process. The SBA is a crucial source of funding for U.S. entrepreneurs, providing 25.7 billion dollars to startups in 2022. Now the agency has made it easier for lending partners to approve applicants by loosening restrictions and cutting paperwork. Han Nguyen, a spokesperson for the administration, noted that the reforms were, “Critical to addressing persistent capital access gaps, particularly for rural and minority-owned small businesses.” Read More
SBA expands loan access for entrepreneurs with streamlined lending policies
The SBA has also updated its lending policies to encourage capital investments in small businesses and startups. Since the 1950s, the organization has loaned money to venture capital funds, with the aim of encouraging investments into startups. However, attracting investors proved to be challenging since the SBA only offered loans with variable interest rates. Going forward, the administration is offering a new type of loan with a fixed rate, allowing interest to be paid upfront. Read More
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