The government has announced that it will infuse $15 billion into the loan market for small businesses. This will make it easier for small businesses to obtain Small Business Administration (SBA) loans.

Applications for SBA guaranteed loans are made through regular banks. Certain banks specialize in SBA loans.

Besides more money being available through SBA loans, the fees involved in generating loans will be waived until the end of 2009. Furthermore, the SBA will guarantee 90% of those loans known as 7a Loans. This is up from 75%. The waiving of fees will only apply until the end of this year.

While there is more money available for SBA loans, the requirements for qualifying will not change. It will be essential to provide a detailed business plan showing how you intend to repay the loans.

The Department of Homeland Security is serious about employers ensuring that their employees are authorized to work in the United States.

From April 3, 2009 there will be strict compliance requirements in the completion of I-9 forms and other aspects of hiring employees. The U.S. Citizenship and Immigration Service has published a 65 page booklet which explains the requirements an provides photographs of documentation establishing work authorization. This booklet is available free here.

 There are certain advantages to incorporating in the state of Delaware, but many of these advantages are lost to corporations that intend carrying on business in California.

You do not have to be in business in the state of Delaware to be registered there. However, if you carry on business in the State of California, you will still have to pay the usual California corporate tax, because your Delaware corporation must be registered in California.

The Corporate Franchise Tax can be as low as $60 (USD), in Delaware but if the corporation is doing business in California you still must pay the California Franchise Board.

The state of Delaware claims to be pro-business, because many business and corporate issues are decided by their Chancery Court, which reaches decisions without jury trial. The judges also concentrate on business law so they are more familiar with business issues.

It is necessary to have a registered agent in Delaware.

Other reasons to incorporate in Delaware:

• Shareholders can act in writing without the need to hold meetings. People who are not shareholders may serve on the Board of Directors.

• Notwithstanding the number of shareholders, one person can act as the only officer and director of the corporation. Note: In California, the same is possible if there is one shareholder.

• There is no Sales or Personal Property Tax in Delaware.

• If you wonder why so many banks are registered in Delaware, it is because that state has given them a wide birth on the interest rates that they may charge. So if your interest rate is sky high, you can be sure the corporation is registered in Delaware.

• Before insisting on setting up a Delaware corporation, it is a good idea to refer to legal counsel to determine whether there is a real benefit for you in having a Delaware corporation doing business in California.