OBDC loan recipient Rafael Castro

Rafael Castro started his custom clothing design business in 1994 after his former employer passed away. “He owed me several months in back wages. The employer’s family compensated me for the salary owed to me with the equipment that was left in the business,” Rafael explained. “From there, my own design company was born.”

Recently OBDC Business Development Officer Roberto Costa helped Rafael obtain an Oakland Micro Loan to fund the expansion of his business to a second location at 1479 Fruitvale Avenue in Oakland. “Rafael is an established business owner with a good track record,” Roberto said. “I helped him understand the loan application process and we discussed ideas to take his business to the next level.”

Rafael Castro’s Design produces custom dresses and suits for graduations, quinceañeras, weddings, and other special events. Rafael’s clients are looking for clothing that they can’t find “off the rack” in other department stores. The demand for the unique styles that Rafael designs for his clients has increased 20% since he expanded to the new location back in May 2005. Rafael intends to use the Oakland Micro Loan to purchase inventory and add working capital to his business.

“The loan service provided to me by OBDC was excellent,” said Rafael.  “As a businessperson I needed additional resources to keep up with my business growth. The Micro Loan from OBDC has helped me to expand my services and meet the demands of my customers.”

To learn more about OBDC Small Business Finance’s small business loan programs call Roberto Costa at (510) 763-4297 Ext. 103 or Roberto@obdc.com. Visit www.obdc.com to learn more about the organization and view other resources for small businesses.

Photographer Harvey Wong captured Megan Himan, Mila Roudominskaia and Roberto Costa at the Symposium

OBDC was pleased to participate as a lead organizer for Councilmember Larry Reid’s 5th Annual Small Business Symposium in downtown Oakland on September 29th. The symposium was offered free of charge to hundreds of entrepreneurs who participated in the workshops and attended the luncheon and networking events.

Managing Director Megan Himan co-presented on a workshop panel led by Erwin Reeves from Mechanics Bank on how to access business loans. “The workshop participants were extremely engaged and asked great questions,” said Megan. “All the entrepreneurs were serious about what it would take to start or expand their businesses.”

To contact photographer Harvey Wong or see more of his photos, visit www.wongpix.com.

David Stern, owner of Small Business Logic

David Stern shares tips for getting your finances organized in 5 easy steps

OBDC values its partnerships with small business accountants and financial professionals who provide needed support to our clients. David Stern, owner of Small Business Logic, shares his tips with business owners for how to get organized prior to the end of the fiscal year.

Take control of year-end in five easy steps.

1. Tax return checklist. What tax returns does your company have to file, and when are they due? The most common: income tax (state and federal, business and personal), payroll tax, 1099s, sales tax, city business tax, county property tax, and annual 401K filing. Aggressively work this punch list so you can file your returns and then focus on a successful 2006.

2. Tie up the loose ends in your books. Have your bookkeeper do a line-by-line analysis of each account. Enter all out of pocket expenses and mileage; tie out year-to-date payroll and retirement plan calculations; resolve items in suspense; and get ready for year-end inventory physical count. Prepare to close the books by February 15th, 2006, then ship them off to your CPA.

3. Tune up your paycheck. If you get a W-2 paycheck from your corporation, make sure it’s tracking toward your target levels of income tax withholding to avoid penalties, interest and an unpleasant surprise on April 15th. Check your rate of retirement plan deferral: on track to meet your target? These are all tax-smart strategies. See Financial Think #32 " Paycheck as Financial Tool" (PDF) for more information on this topic.

4. Year-end tax planning. Call your CPA if you haven’t done your year-end tax planning yet. It’s not too late to rough out your strategy and make end of year moves that combine business and personal, this year and next. Remember that in most cases, the December 31st deadline is unforgiving. Two common examples:
o To take the section 179 accelerated depreciation deduction, new equipment is supposed to be placed in service by year’s end – not just ordered or paid for.
o If your last payroll period ends 12/31/05 with checks cut 1/5/06, that money will not be included on your 2005 W-2. Gear your strategy to the actual paycheck date itself.

5. Make money. Optimize, not necessarily minimize, your income tax liability this year. Early stage entrepreneurs shouldn’t focus so much on beating down this year’s taxable income that they leave dollars on the table. Bankers and investors want to see a profit on your tax returns. Close the deal, ship the product, and work the billable hours – astute financial managers know how to make a profit year after year.

To contact David or sign up for other news from Small Business Logic visit their website at www.smallbusinesslogic.com or call (800) 889-6484.