Community Empowerment Matters

  Do you need access to proper funding to get your business off the ground? Small business owners can secure funding via loans from traditional financial institutions; however, microfinancing is another option that could be the right choice for your business. While the term “microfinance” might evoke images of rural women’s collectives in developing countries, microlending is a real option for small business owners throughout Michigan and has a long and storied history in the United States. Sometimes, a business just does not qualify for a traditional loan because it is too new or too small. In that case, microfinance can help you access the funding you need to continue your business operations. What are Microloans? Microloans are typically offered in amounts up to $50,000 and provide funding to underserved entrepreneurs, such as women, veterans, and entrepreneurs of color. They are available through certain nonprofit, community-based organizations that are experienced in lending a

  Operators of small businesses or nonprofits may experience legal disputes every now and then. Whether from a resentful employee, an injured visitor on the premises, or a disgruntled contractor, costs for these disputes can easily arise in the cost of running a community enterprise. These disputes can be frustrating, and the exorbitant legal fees required to defend the small business or organization may not be warranted. For this reason, alternative dispute resolution (ADR) has become an increasingly promising option for settling small business disputes.   ADR refers to methods and techniques used to resolve disputes outside of traditional and adversarial courtroom litigation. In addition to serving as a potential means of avoiding the expense, delay, and uncertainty associated with traditional litigation, ADR is intended to improve communication between parties. ADR allows for creative solutions to disputes that might better meet the needs of the parties.   Options for Alternative D

  Detroit Businesses could be fined if they do not accept  cash under new ordinance Published by CBS Detroit  As of 2023, the Detroit City Council instituted restrictions on businesses regarding cashless operations for the purpose of protecting consumers that do not have access to bank accounts or cashless services. This ‘prohibition on cashless operations’ primarily applies to businesses which offer consumer goods or food for sale at a physical location. For instance, a bodega, a food truck, or a restaurant. Technological advances have broadened the payment options available. The decision to accept or refuse these options can have significant consequences for small businesses and their customers. Debit and credit card payments are common, and merchants are typically charged a 1.5-3.5% fee for credit card payments . Businesses like Stripe and Square offer point of sale technologies that mitigate the physical bulk of cash registers, charging businesses 2.6%-2.9% per transaction. As

  On August 31, 2023, Mayor Mike Duggan announced a Land Value Tax (LVT) proposal, which would significantly alter the way property is taxed in Detroit. According to Mayor Duggan , “blight is rewarded and building is punished” under the current property tax system. This is not unique to Detroit. In many places in the United States, property tax systems are set up so that owners of vacant land and abandoned buildings have lower property tax bills than owners of well-kept, occupied buildings. To combat the high numbers of vacant and abandoned property in Detroit, the LVT would penalize land speculators and incentivize building and development. If the LVT is passed, “ Detroit will be one of the first big cities in the world to implement one.” Most articles that discuss Detroit’s LVT proposal look at it from the perspective of the residential homeowner, but it affects everyone who owns property, including business owners. This post seeks to expand the conversation and discuss how busi

  Introduction             For many small business owners, taking on debt in the form of a loan plays a big role in getting the business started or keeping the business running. [1] In many of these cases, the borrower, or debtor, is asked by the lender, or creditor, to put up some sort of property, called collateral, to “secure” the loan. [2] This is known as a “secured” transaction.   Although seemingly straightforward, entering into this type of relationship gives the lender certain rights, the most prominent being the right to repossess the collateral if the borrower defaults on the loan. Because a “secured” creditor has such a right, it is important for a potential debtor to understand how a secured transaction works and   the consequences of defaulting on a secured loan so they can take all factors into consideration when considering this type of financing.   What is a Security Interest? When a business owner is being asked to provide collateral for a loan, they are provi