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By Shavon Smith 13 Mar, 2024
March heralds a celebration of women's achievements, particularly in the entrepreneurial arena. With over 7 million women-owned businesses flourishing across the United States, it's evident that women are driving forces in the economic landscape. States such as Washington, D.C., and Maryland, along with cities like Detroit, proudly host significant percentages of women-owned enterprises, showcasing the rich diversity of female entrepreneurship. The collective receipts of women-owned businesses tally an impressive $1.2 trillion, underscoring their substantial economic influence. Notably, African American women-owned firms contribute significantly, generating a substantial $36.8 billion in revenue. As Women's History Month draws to a close, it's an opportune moment to shine a spotlight on the Women-Owned Small Business (WOSB) program, which serves as a gateway for women entrepreneurs to engage with the federal government. In 2012 alone, WOSBs clinched contracts totaling $16.2 billion, constituting four percent of all small business federal contracts. The potential for growth and opportunity in this sector is vast. Whether you're an established entrepreneur or just embarking on your journey, delving into this market could catalyze transformative growth for your business. Never underestimate the potential for your business to thrive in the government contracting sphere. Federal and state governments annually procure a vast array of goods and services, offering abundant opportunities for women-owned businesses to flourish. So, who qualifies for the WOSB program? The criteria are clear-cut: the business must meet the Small Business Administration's (SBA) definition of small, with at least 51% ownership and control vested in one or more U.S. citizen women. Control extends beyond mere day-to-day operations to encompass long-term strategic planning as well. Certification serves as the gateway to accessing WOSB contracts. Whether through self-certification or third-party certification by governmental agencies or approved entities, obtaining WOSB status is pivotal for participating in contract bidding. Numerous industries stand eligible for WOSB contracts, particularly those where women-owned businesses are underrepresented or substantially underrepresented. From residential construction to transportation and design, a broad spectrum of opportunities awaits women entrepreneurs. Thankfully, a wealth of resources exists to guide women business owners through the intricacies of bidding on government contracts. Organizations such as the Women's Business Enterprise National Council, the National Association of Women Business Owners Corp., and the Small Business Administration's Office of Government Contracting offer invaluable assistance and support. If you're a small business already engaged in government contracts or aspiring to secure them, legal counsel can prove invaluable. We at The SJS Law Firm, PLLC are here to offer personalized legal assistance tailored to your business's unique needs. Reach out to us at 202-505-5309 or info@thesjslawfirm.com for expert guidance on navigating the complexities of government contracting.
By Shavon Smith 15 Feb, 2024
Even though the new year is in full swing, if you haven’t already – it’s still a prime opportunity and time to assess and revitalize your business plans and objectives for 2024. Consider the following four actions to position your business for success in the New Year and beyond: Stay Informed About Regulatory Changes: Annually, regulatory agencies make decisions impacting businesses. Ensure compliance with these changes to avoid potential civil and criminal penalties. The SBA is a good place for business owners to review all relevant laws. Meanwhile, check out our quarterly update sent to client’s last fall. Evaluate Business Achievements and Challenges: Take this moment to analyze your business performance, examining whether you achieved revenue targets and improved aspects like employee relations. Review internal practices to ensure optimal business operations. Explore Growth Opportunities: After confirming compliance and updating internal management, set new business objectives for 2024. Develop strategies to achieve sales goals, enhance client satisfaction, and improve employee retention.Establishing these targets provides clear direction for your team throughout the year. Coordinate with Professionals: Schedule meetings with your attorney, insurance agent, and tax professional. Facilitate communication between these professionals to ensure comprehensive financial planning. Review tax documents, ensure adequate insurance coverage for business assets, and address any potential risks.Completing these tasks early in the new year positions your business for a successful 2024.
By Shavon Smith 13 Feb, 2024
Post-pandemic, many small businesses are still reeling from the effects of isolation, shortages, and inflation. Early studies suggest interpersonal skills have declined for Americans in the wake of COVID-19. Today’s climate is heavy for various reasons, and as a result, many business and personal relationships are suffering under that weight. But even if your small business faces challenges outside its control, this doesn’t mean you can’t take control of building and strengthening your business relationships – and as any good business owner will tell you - business is all about relationships. As we celebrate Valentine’s Day, love your business by exploring ways to strengthen business partnerships and relationships. First Date – Business Formation Just as you wouldn’t swipe right without reading a dating profile, careful consideration of business partners can make or break the success of a partnership. Many presume a common goal or complementary skill sets will make for good partners, but a business partnership is much more and can be as delicate as any romantic relationship. Remember these important steps for ensuring strong business partner relationships: Clearly define each partner’s role and responsibilities and revisit this over time – what makes sense in the beginning may change over the life of the partnership Determine how decisions will be made (e.g., vote) Determine how disagreements will be handled Determine how profits are divided Determine the percentage of ownership for each partner (e.g., 50/50 or 56/44) Determine buyout procedures or dissolution practices in the event of death or split Determine procedures for addressing disputes and deadlock - this is critical in 50/50 partnerships. Honeymoon Stage – Engaging with Your Business Ecosystem A business ecosystem includes your suppliers, distributors, and even your competition. Here are some basic principles for maintaining a healthy business ecosystem: Consider engaging with a diverse range of contacts. Is a major supplier going out of business? Keeping a broad list of contacts can help avoid foreseeable pitfalls. Use Artificial Intelligence (AI) and Data to your advantage. Spending time analyzing sales data, purchase data, and reviews can help save time and money. AI tools can further help manage data and can even make projections for sales or “what if” scenarios. Networking and attending conferences, trade shows, or events can help directly advertise your business to members of your ecosystem. There may even be a local association or special interest group for your small business to join. Keeping Things Interesting – Gaining and Retaining Clients Everyone knows the customer isn’t always right, but establishing a connection with consumers of your product or patrons of your service can help increase business. Here are some ways to connect with clients: A social media page can engage customers or clients. An active online presence can make way for positive reviews and increased business. Even negative reviews can help small companies to improve and identify areas where they fall short. Increasing ways to communicate with clients, vendors, or patrons can help your business mitigate mishaps. For instance, drafting a detailed return policy can help businesses make matters right with customers while also protecting the business from fraud and other damages. Consider establishing a mailing list or building a phone app if you don’t already have one. The more ways to communicate, the better. Send out periodic surveys to understand your client’s pain points or how they rate your goods and services. When things go wrong in any of your business relationships, seek legal counsel. Whether you need assistance forming or dissolving a small business or with policies or legal matters for an existing business, please contact us at 202-505-5309 or info@thesjslawfirm.com to book a consultation.
By Shavon Smith 12 Dec, 2023
Does your small business have a website or social media page? Are you making online sales? If you conduct online business, it may be time to consult with a lawyer regarding e-commerce policies. Adding terms and conditions to your website guides customers on how to best interact with your business. Adding a privacy policy can further help shield your small business from liabilities. Even if managed by a third party, small business websites are better protected with express policies that set forth what data is collected, how data is used, and the laws that apply in the case of illegal activity. Terms and Conditions If you sell merchandise online, having your own purchase and return policies can distinguish your business from others, improve customer rapport, and tackle unique supply chain or delivery issues. Terms and Conditions will vary depending on the type of business you operate or the service you provide. Common terms include: Return Policy - Shipping and return policies determine whether the buyer or seller is responsible for mail theft or delays and who to contact in case of a defective product or substandard service. Limitation of Liability – Any waiver of liability on the part of the business, such as for injury, including loss or theft of data or identity. Regulation of Use – This section covers terms of use of the website, product, or service provided. It sets forth what legal punishment violators will face for engaging in illegal or unpermitted activity, e.g., using robots to make bulk purchases, misusing chat forums, or submitting false claims. Intellectual Property – This clause protects the company’s trademarks, logos, and copyrighted material. Privacy Policy A unique privacy policy can help shield your small business from liability for consumer identity theft and put customers at ease about how their collected data will be used. For instance, California consumers have increased legal rights that may be specifically addressed in a personalized privacy policy. Privacy Policies must answer Who, What, When, Where, and Why. Who – Inform customers who the business is and who manages private data. Let customers know who to contact should they opt out of marketing communications. What – Inform customers what data is collected, including name, age, gender, payment method, etc. When – Inform customers of how long data is stored. Where – Inform customers where data is stored and which third parties, if any, have access. Why – Give a brief reason why the information is collected and for what purposes data will be used. As a small business owner, you set the terms and conditions for how consumers interact with your services and products. A strong privacy policy can help customers feel comfortable providing information vital to business operations. If you need legal assistance drafting terms and policies for your small business, contact us at 202-505-5309 or info@thesjslawfirm.com to book a consultation.
By Shavon Smith 28 Nov, 2023
Even during tough economic times, the winter holiday months are marked each year by increased sales and consumer spending. Small businesses can take advantage of this time by seeking a small business loan to help keep operations thriving. The US Small Business Association (SBA) offers three main types of loans to businesses that meet certain size requirements for their industry , are creditworthy, and have exhausted traditional lending options. Three main types of SBA loans include:  Microloans – Small loans up to $50,000. SBA Microloans are provided by intermediary lenders that usually require a personal guarantee and collateral. 504 Loans – Large, long-term loans for equipment and existing real estate. 7(a) Loans – Loans from guaranteed lenders best for working capital. 7(a) can be used to purchase real estate, furnishing, supplies, and equipment. 7(a) loans can also be useful for refinancing existing business debt. Maximum interest rates and repayment terms vary, but a key benefit of an SBA loan is that they are guaranteed by the government, which covers 85% of a defaulted loan up to $150,000 and 75% for loans greater than $150,000. Documents you may need for your small business loan application: In addition to a business plan, articles of incorporation, copies of contracts with other businesses, and leases, SBA lenders may require a verifiable personal background statement. Keeping organized personal and business tax records when applying for a small business loan is always beneficial. It is also essential to keep balance sheets and detailed accountings of profit and loss. Seeking an SBA Loan during the holiday season can be an excellent opportunity to revitalize your small business for the next fiscal year. If you need legal assistance and want to know whether your small business is eligible for an SBA loan, contact us at 202-505-5309 or info@thesjslawfirm.com to book a consultation.
By Shavon Smith 14 Sep, 2023
The Small Business Administration (SBA) 8(a) Business Development Program is halted due to a recent court ruling. The program was designed to award at least 5% of annual federal contract funding to small, disadvantaged businesses for up to 9 years. On July 19, 2023, the United States District Court for the Eastern District of Tennessee issued a ruling that could affect the eligibility process for minority-owned businesses applying for the SBA’s 8(a) program. In Ultima Servs. Corp. v. Dep’t of Ag. (E.D. Tenn.), the court held that utilizing certain racial preferences when awarding governmental contracts violates constitutional equal protection guarantees. This case appears to extend the reach of the ruling handed down by the United States Supreme Court in Students for Fair Admissions (SFFA) v. University of North Carolina and Students for Fair Admissions (SFFA) v. Harvard to the governmental contracting sphere. Though the injunction has temporarily suspended applications pending review and created possible revisions to the application process, SBA Administrator Isabella Casillas Guzman stressed that the agency “remains committed to supporting this crucial program and the small business owners who have helped drive America’s strong economic growth.” The SBA’s Business Development Program eligibility was not limited to minority individuals. Individuals not expressly falling into a minority group were simply required to show that a social disadvantage negatively impacted their entry into or advancement in the business world. Nonetheless, it was the presumption that individuals of certain minority ethnic groups, including Asian Americans, Native Americans, Black Americans, and Pacific Islanders, are automatically subject to social disadvantage that failed to pass muster in the Tennessee District Court. Equal Protection requires all government actions using classifications on the basis of race to undergo strict scrutiny, a form of judicial review that requires a rebuttable presumption and a compelling government interest. The court determined the SBA’s rebuttable presumption that members of minority ethnic groups are socially disadvantaged violates the Equal Protection Clause under the 14 th Amendment. So, what does this mean for my small business? The fact remains that minority-led business have historically experienced discrimination and failures at the hands of various industries. However, these experiences were not proven in court to be connected to being excluded from participation in the 8(a) program. As the United States enters 60 years since the Civil Rights Act of 1964, 160 years since the Emancipation Proclamation, and approaches 250 years since its inception, much remains to be done to formally ameliorate the social and economic barriers encountered by women, members of minority ethnic and other minority groups, and veterans. Surely one day lawmakers will enact enduring laws that ameliorate business barriers for individuals who are socially and economically disadvantaged. Further, perhaps policy changes to programs like The Business Development Program will be made to ensure that members of minority groups are not systemically immobilized by social and economic barriers. In the meantime, minority-led business considering 8(a) contracts should brace for lengthier applications and increased eligibility requirements. This ongoing legal precedent is likely to change forever how minority-led businesses seek governmental funding. Additional Links: SBA Suspends 8(a) Applications Following Federal District Court Injunction SBA Releases Interim Guidance to 8(a) Program Participants in Light of Lower Court Ruling The post The End of SBA 8(a)? appeared first on The SJS Law Firm, PLLC.
By Shavon Smith 15 Aug, 2023
Entrepreneurial rest is an important part of business ownership, yet it is often overlooked. According to this study , in the U.S., lack of sleep leads to around 1.23 million lost working days annually due to illness or attempting to work even while sick. Another 2019 study from the Harvard Business Review found that exhaustion negatively affected an entrepreneur's ability to evaluate ideas and created obstructions for various business tasks. The study further found that business owners who operated on less sleep struggled to evaluate complex structural alignments, often key determinants of a business’s commercial success. Stepping away creates the distance necessary to gain clarity, brainstorm new ideas, and avoid burnout. Here are five steps to help you prepare to rest this summer. Look for a slow period. Take time to review your schedule and find a block of time that has the least number of deliverables, reschedulable meetings, and other priorities, and set that time aside for your getaway. Inform your team. Reach out to your team, delegate tasks to ensure projects are being completed, and equip them with solutions to any foreseeable issues. Tell your clients. Reach out to your clients, let them know you will be out of the office, and provide them with whom to contact in your absence. Set vacation boundaries. If needed, schedule brief moments where you allow yourself limited time to check in on your business so you can remain fully present during your vacation. Have fun. Take this time to really relax and enjoy this well-deserved vacation. This rest will recharge you, and the positive effects will carry over to your team in the ways you can show up when you return. Remembering why vacation and reset is important will help you relax and enjoy your vacation. Optimize your business's profitability and growth by maximizing your efficiency, increasing your productivity, and heightening your decision-making by taking time to rest! If you need legal assistance , contact us at 202-505-5309 or info@thesjslawfirm.com to book a consultation.
By Shavon Smith 21 Jul, 2023
President Biden recently expanded federal protections for pregnant and nursing employees through the Pregnant Workers Fairness Act ( PWFA ) and the Providing Urgent Maternal Protections for Nursing Mothers Act ( PUMP ). The law went into effect on June 27, 2023, and extends the requirements of the American Disability Act (ADA) by requiring employers with fifteen or more employees to provide reasonable accommodations for known limitations related to pregnancy, childbirth, or related medical conditions, unless the accommodation will cause the employer an “undue hardship.” PWFA does not specify the types of reasonable accommodations that may be required nor stipulates the types of conditions that will be considered a “known limitation.” The Act directs the Equal Employment Opportunity Commission (EEOC) to issue regulations to “carry out” its provisions within one year of the law’s enactment, but some of the examples include the ability to sit or drink water; receive closer parking; have flexible hours; receive appropriately sized uniforms and safety apparel; receive additional break time to use the bathroom, eat, and rest; take leave or time off to recover from childbirth; and be excused from strenuous activities and/or activities that involve exposure to compounds not safe for pregnancy. Under the PWFA, covered employers are prohibited from: Requiring a qualified employee to accept an accommodation without a discussion about the accommodation between the employee and the employer; Denying a job or other employment opportunities to a qualified employee or applicant based on the individual’s need for a reasonable accommodation; Requiring a qualified employee to take leave if a reasonable accommodation can be provided that would allow the employee to continue working; Retaliating against a qualified employee for requesting or using a reasonable accommodation for a known limitation related to the employee’s pregnancy, childbirth, or related medical condition; Retaliating against an individual for opposing or reporting unlawful discrimination under the PWFA or otherwise participating in a PWFA proceeding (including investigations into violations); or Interfering with any individual’s rights under the PWFA. The PUMP Act expands existing employer obligations under the Fair Labor Standards Act (FLSA) to provide an employee with a private place and reasonable break time to express breast milk for the employee’s nursing child for one year after the child’s birth. The EEOC will begin accepting discrimination charges for incidents occurring on or after June 27, 2023. Employers should look for forthcoming EEOC regulations within one year of the passage of the PWFA and the Pump Act. Employers should also review their existing accommodation procedures to ensure they comply with the new law. If you need assistance reviewing or drafting an addendum to your employee policy, contact us at 202-505-5309 or info@thesjslawfirm.com to book a consultation.
By Shavon Smith 26 Jun, 2023
The Consumer Financial Protection Bureau (CFPB) recently issued a final rule implementing Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act to help combat discrimination and promote investment. Consistent with Section 1071 and to foster accountability, this ruling imposes data collection and reporting requirements on small business creditors, including banks, credit unions, online lenders, and a wide range of lending products that originate at least 100 loans of any amount annually. CFPB Director Rohit Chopra said many small businesses, defined as an entity with gross revenue under $5 million in this last fiscal year, failed during the COVID-19 pandemic because they struggled to access credit under the Paycheck Protection Program. This small business loan census will be the key to collecting data broken down by race, ethnicity, gender, and sexual orientation of business owners, ensuring banks and non-banks are serving small businesses fairly. The credit application information will be compiled in a comprehensive, publicly available database to help policymakers, borrowers, and lenders better address economic development needs and adapt to future challenges. The final rule is effective 90 days after publication in the Federal Register, and lenders will follow a tiered compliance date structure starting: October 1, 2024, for lenders originating at least 2,500 small business loans annually April 1, 2025, for lenders originating at least 500 small business loans annually January 1, 2026, for lenders originating at least 100 small business loans annually According to National Community Reinvestment Coalition (NCRC), the langue of Section 1071 requires the collected data to include the following: The number of the application and the date on which the application was received. The type and purpose of the loan or other credit being applied for The amount of the credit or credit limit applied for, and the amount of the credit transaction or the credit limit approved for such applicant The type of action taken with respect to such application, and the date of such action The census tract in which is located at the principal place of business of the women-owned, minority-owned, or small-business loan applicant The gross annual revenue of the business in the last fiscal year of the women-owned, minority-owned, or small business loan applicant preceding the date of the application The race, sex, and ethnicity of the principal owners of the business Any additional data that the CFPB determines would aid in fulfilling the purposes of this section This ruling will provide business owners with insights into the cost of business loans which will aid in more informed decisions about financing options, and also ensure that small businesses are not unfairly discriminated against when applying for loans and provide greater regulatory oversight of the lending market. Read the final ruling here . The CFPB has also created several resources to assist with implementation (e.g., executive summary, fact sheet, etc.), which are located here . If you need assistance navigating your requirements under this policy, contact us at 202-505-5309 or info@thesjslawfirm.com to book a consultation.
By Shavon Smith 25 May, 2023
Last November, OpenAI released ChatGPT, a generative artificial intelligence (AI) chatbot specifically trained to respond to human input in real-time. The chatbot works by piecing together responses based on a large amount of data which results in a human-like reply. Unlike other types of AI, ChatGPT is generative which means it has the ability to create or “generate” new content. Up until now, search engines like Google have allowed us to search and receive answers. But, generative AI like ChatGPT can write up the answers. This introduces new legal issues about privacy, plagiarism, intellectual property ownership, copyright, threats of cybercrime, fraud, a host of ethical concerns and more. This June, the Supreme Court will decide in Gonzalez v. Google, whether section 230 of the Communication Decency Act, a U.S. law that protects technology platforms from legal responsibility for content posted by their users, also applies when companies use algorithms to target users with recommendations. With ongoing debates about who actually owns the content, codes and images created and distributed by generative AI, the case also questions whether AI chatbots, like ChatGPT, could qualify for immunity, alongside search engines, from civil claims under Section 230. What SCOTUS decides could influence emerging laws and regulations of generative technologies. If you are interested in using ChatGPT in your business, here are a few tips to keep in mind. To mitigate privacy issues, when using online resources in general, be sure to remove personal identifying information before passing the data through the tool. Remain aware of the evolving regulations and legal opinions on the IP ownership and copyright protection of AI created content, codes or images. Be familiar with whether your geographical location requires you to explain to clients how AI made a decision that affects them. Technology as well as the laws and regulations that govern it are rapidly changing. Staying up to date on these ongoing issues, debates, and legal opinions is vital in your ongoing business strategy and communication with your clients. Also consider reaching out to an attorney to discuss drafting company policies and employee guidelines regarding the use of generative AI. Acceptable use policies should require company notice and authorization as well as encourage employees to adhere to local, state and federal laws governing data privacy, fair and nondiscriminatory practices, and avoiding IP infringement. If you are interested in creating an AI policy for your business, contact us at 202-505-5309 or info@thesjslawfirm.com to book a consultation.
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