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St. Joseph’s breaks ground on 181,100-square-foot expansion
SYRACUSE — St. Joseph’s Hospital Health Center led off a new expansion phase with a groundbreaking ceremony this morning at the corner of East Laurel
Unemployment steady, state gains jobs
The number of jobs is up across New York, while the unemployment rate stayed stable in March, according to the state Department of Labor. From
New York to require life insurers to cross-check rolls
New York state will issue a mandate requiring life insurers to cross-check their policy rolls against a federal list of recent deaths after a state
Students take home awards in Panasci competition
SYRACUSE — A website launched in Syracuse in October that now has more than 4,000 users won the first place $25,000 prize in the annual
Prepare for a Capital Raise with Crowd Funding
Small businesses and entrepreneurs have been given a very big opportunity. On April 5, 2012, President Obama signed into law the JOBS (Jumpstart Our Business Startups) Act. Among its aims: to permit small businesses to use the Internet to solicit investments and raise capital. Title III of the JOBS Act is entitled the “Capital Raising
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Small businesses and entrepreneurs have been given a very big opportunity. On April 5, 2012, President Obama signed into law the JOBS (Jumpstart Our Business Startups) Act. Among its aims: to permit small businesses to use the Internet to solicit investments and raise capital.
Title III of the JOBS Act is entitled the “Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure Act of 2012” or CROWDFUND Act. The act gives small businesses and startups access to a vast amount of capital resources available online by exempting certain limited offerings of their equity from the registration requirements of federal securities laws. About 98 percent of businesses, which until now had no real access to large-scale capital raises, are now permitted to publicly solicit certain equity investments without being subject to U.S. Securities & Exchange Commission (SEC) registration and reporting requirements.
For the past 79 years, the capital-raising landscape of the United States has been dominated by the Securities Act of 1933, which prohibits a company from selling securities that are not registered with the SEC. Before the CROWDFUND Act, there were exceptions to the registration requirement, but none that were particularly helpful to small businesses or startups looking to harness the power of online marketing. The exceptions included:
1) Section 4(2), which exempts transactions in securities not involving a public offer or sale;
2) Rule 504, which allows a capital raise of up to $1 million to an unlimited number of investors provided there is no public solicitation or advertisement; and,
3) Rule 505, which allows a capital raise of up to $5 million to an unlimited number of “accredited investors,” and up to 35 unaccredited investors, again provided there is no public solicitation or advertisement and provided that the unaccredited investors are given the same type of information as provided in an SEC registration statement; and
4) Rule 506, which allows an unlimited capital raise to an unlimited number of accredited investors and up to 35 “sophisticated investors,” again provided that there is no public solicitation or advertisement and that the sophisticated investors are given the same type of information as provided in an SEC registration statement.
The exceptions themselves are complicated and their lines are in some cases blurry. Each exception, however, has the same drawback — no public solicitation is allowed. Thus, under those exceptions, while a business owner could offer friends or relatives the opportunity to invest in his or her business, that same business owner could not place a general solicitation on a website, on message boards, on a Twitter feed, Facebook account, or LinkedIn profile. That type of broad advertisement would be tantamount to a public solicitation for the sale of securities and would require a full-fledged SEC registration process which, for a small business, would be cataclysmically expensive.
Consequently, prior to the CROWDFUND Act, the only businesses able to acquire new equity capital were those which could afford to pay for it. This put small businesses at a severe competitive disadvantage. And, in an economy where small businesses are responsible for more than half of new job growth, a lack of access to capital was not only devastating to the small businesses, but also to the economy as a whole.
The CROWDFUND Act is the remedy. It doesn’t go so far as to permit unfettered solicitation through Facebook, but it does allow a small or start-up business to publicly solicit investment and raise capital on a previously unprecedented scale. A business may now present its business plan not just to a single lender or small group of well-funded investors, but to the entire online community, through a broker or a registered “funding portal.” Individuals in the online community can then decide whether they want to invest in the business. If 1,000 individuals contribute $50 each, a business raises $50,000 in new equity capital. Ostensibly, convincing a multitude to make a small investment is easier than convincing a few individuals to make a large one.
Because the CROWDFUND Act amends the Securities Act of 1933 and the Securities Exchange Act of 1934, its core purpose must be to protect investors. Therefore, it places caps on the capital raise available under the CROWDFUND exemption. During any 12-month period, a business would be limited to raising $1 million via crowd funding, and each individual investor’s contribution would also be limited. An individual with an annual income or net worth of less than $100,000 would be limited to investing the greater of $2,000 or 5 percent of such income or net worth. An individual with an annual income or net worth greater than $100,000 could invest 10 percent of such net worth or annual income, up to $100,000.
Quite literally, the CROWDFUND Act will allow funding by the crowd or money from the masses. It will stand in contrast to the traditional small-business model of relatively few, well-capitalized owners contributing large sums, a model that prohibited a start-up company or entrepreneur from infusing a business with adequate capital unless he or she was independently wealthy or had connections who were wealthy. The prior registration exemptions will still exist and will continue to be utilized on a large scale. The CROWDFUND Act, however, will go a long way toward leveling the playing field for small businesses and will clear the way for growth, jobs, and increased market competition.
Douglas J. Gorman is a corporate and banking & finance practices attorney at the law firm of Hancock Estabrook, LLP. Contact him at dgorman@hancocklaw.com
AIDS Community Resources offers new programs
SYRACUSE — AIDS Community Resources (ACR) added several new programs last year to its established set of services. And this year, the organization is traveling down a greener path. Although ACR already catered to the youth community through programs like the Teens AIDS Task Force and Q Center, in 2011 it established a Youth Services
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SYRACUSE — AIDS Community Resources (ACR) added several new programs last year to its established set of services. And this year, the organization is traveling down a greener path.
Although ACR already catered to the youth community through programs like the Teens AIDS Task Force and Q Center, in 2011 it established a Youth Services Division. Created in response to strong growth in participation, the Youth Division reaches about 6,800 young people.
ACR also launched three other programs last year. The Syringe Exchange Program, approved and funded by the New York State Department of Health, provides syringes to people who use needles, including illegal drug users. Community Health Advocates is a new group of educators who will explain all health-insurance options to anyone interested. And the new Criminal Justice Initiative provides comprehensive HIV, STD, and hepatitis prevention programs for inmates in eight New York State correctional facilities.
Case management remains ACR’s primary service. At any given time, the nonprofit has a caseload of about 250 clients, says Michael Crinnin, executive director of AIDS Community Resources. It’s possible, however, that ACR isn’t reaching all the people in the area that need help. One reason is that AIDS is still a sensitive issue, and people won’t ask for help, but also because of the way the disease is tracked. Since day one, the disease has been counted in the county of diagnosis, so Crinnin says it’s hard to know an exact number of those with the HIV/AIDS in the area.
However, the most recent data from the state’s HIV/AIDS Surveillance Annual Report showed that in 2009, 76 individuals were diagnosed with HIV and 64 with AIDS in the nine-county area that ACR serves. Nearly 2,900 individuals in the nine-county area were living with HIV or AIDS as of December 2009, according to the data.
Another factor affecting the exact number of those in the area with HIV/AIDS is people migrating. One thing Crinnin has noticed since he started as executive director in 1989 is that many individuals with HIV/AIDS moved to this region from bigger cities because their families live here. Some also come here because the area has better health services.
Protecting the environment
One goal ACR has for 2012 is to “go green” and it has two staff members, Lisa Mulcahey and Ekrem Berbatovci, spearheading this initiative. “If we do our homework, we ought to be able to do this,” says Crinnin. “It’s something we should have done a long time ago.”
Though still in its beginning stages, Mulcahey and Berbatovci have attended training sessions that advise business on how to go green and have discussed green office products with supplier W.B. Mason. “We’ve also been in contact with OCCRA to discuss recycling needs as well as being registered with TerraCycle which will allow us to recycle cookie packaging, drink pouches, candy wrappers, and snack food wrappers in exchange for money-back with their point system,” says Mulcahey, executive administrative assistant for AIDS Community Resources.
TerraCycle is a global company that creates recycling programs for previously non-recyclable or hard-to recycle waste.
While ACR’s green endeavor was not initially about money, Crinnin says it might allow the nonprofit to win grant funds for organizations that are certified green.
For its last fiscal year, ending June 30, 2011, ACR’s revenue totaled $3.8 million. Government grants provided more than 60 percent of the revenue, with special events, donations, Medicaid, and community grants making up the remaining sources of revenue. The current budget for the 2011-2012 fiscal year is $4.4 million. Seventy-five cents of every dollar goes to ACR’s support, prevention, and youth services.
The nonprofit employs 77 full-time individuals and has six office locations, providing services to nine counties. It rents the 9,000-square-foot building that houses the main office at 627 W. Genesee St. in Syracuse. ACR also rents the 3,600-square-foot building next door that is home to the Q Center.
AIDS Community
Resources, Inc.
627 W. Genesee St.
Syracuse, NY 13204
Phone: (315) 475-2430
www.aidscommunityresources.com
Key Staff
Michael Crinnin Executive Director
Wil Murtaugh Deputy Executive Director
Carrie Large Director of Development
Wenona Wake Director of Prevention
Alissa Viscome Director of Support Services
Mary Doody Director of Volunteers
Jean Kessner Director of Public Relations
Board of Directors (Officers)
President
John H. King KeyBank
Vice President
Suzanne Kondra-Defuria Potter Perrone Heating & Plumbing
Treasurer
Kim J. Rieppel Old Navy, DeWitt Commons
Secretary
Gina M. Tonello KeyBank
Board Members
Jerena Barkins University Dialysis Center
Jason J. Centolella Bousquet Holstein PLLC
John King KeyBank
Suzanane Kondra-DeFuria Potter Perrone Heating & Plumbing
Andrew London Syracuse University
Cari McAvoy WPBS Television
Laura Murgia Upstate University Hospital
Kim Rieppel Old Navy – Dewitt Commons
Gina Tonello KeyBank
Kelly Wheeless Excellus BC/BS
Mission:
The Mission of AIDS Community Resources is three-fold:
• To prevent the spread of HIV and other sexually transmitted diseases;
• To provide support services to those who are living with HIV/AIDs; and
• To promote sexual literacy and improved medical outcomes.
Programs and Services:
HIV support services, HIV/STD prevention, youth services, LGBTQ youth programming, Q Center
Recent Organizational Highlights:
• Syringe Exchange Program, Community Health Advocates, and Criminal Justice Initiative — all started in 2011
• Replaced computers in the David Bohnett Cyber Center
Planning/Fundraising Outlook for 2012:
• Fundraising: Sled For Red, Heart To Heart Tennis Tournament, Syracuse Stage: Caroline or Change, AIDS Hike For Life (Hamilton College), AIDS Walk/Run (Beaver Lake), First Frost AIDS Walk/Run (Watertown).
• Will endeavor to “go green” in 2012
Service Area:
Nine counties — Cayuga, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, and St. Lawrence
Revenue Sources
Contributions & Grants $2,721,721
Program Services $863,605
Investment Income $412
Other $238,191
Total Revenue $3,823,929
Expenditures
Salaries & Employee Benefits $2,533,961
Other $1,239,966
Total Expenses $3,773,927
Surplus for the Year $50,002
This 2012 Presidential Campaign Is All About Women
Suppose you run for the White House. And, suppose one evening during the campaign you address 10,000 voters. Your advisers tell you that maybe 60 percent of them are women. What types of issues do you suppose you will choose to talk about with this group? And, do you suppose you might make sure a
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Suppose you run for the White House. And, suppose one evening during the campaign you address 10,000 voters.
Your advisers tell you that maybe 60 percent of them are women. What types of issues do you suppose you will choose to talk about with this group? And, do you suppose you might make sure a lot of women are on stage with you?
Will you use boxing analogies in your talk? (“We need to deliver a knockout blow!”) Or military analogies? (“We’re attacking with all guns firing.”)
Or will you instead use softer language? Will you speak of what is “fair” and “unfair”? Because such words tend to resonate more with women than with men. Will you — like the brilliant campaigner Bill Clinton — tell the voters you feel their pain? If the group was all men, I bet you would not. Men are more likely to feel you should, “suck it up.” More likely to feel winning is more important than fairness.
The candidates face an electorate that is about 60 percent women. Women outnumber men by several million. And, a higher percentage of them vote.
So guys, if you don’t want to see Obama and Romney pander to women in this campaign, don’t turn on your television. These guys will focus on women, women, and women.
Consider the propaganda flung at you in the last few weeks. Rush Limbaugh insulted a woman. The president pounced on it. The White House released a big report titled “Keeping American Women Moving Forward.” One woman writer called it a 70-page
campaign flier.
Headline: Obama White House pays women less than men. Another: Both parties count women’s vote. Another headline: Truth about war on women. Another: Obama campaign runs from Democrat strategist’s insult on Ann Romney. (The strategist said Ann Romney had never worked a day in her life. Romney’s campaign pounced on that and sent out old photos of Ann and her five boys.)
We had the duel between the president and a Roman Catholic cardinal. Over whether Obamacare could force Catholic institutions to cover contraception for their employees. Hmm… A president standing up for contraception for women vs. a celibate guy in a ball gown. His church protected priests who preyed on small boys. And cloistered women. I think the president’s advisers rolled the dice on this, knowing the dice were loaded.
I could cite another dozen headlines regarding the candidates and women’s issues. Just from the past few weeks. Here are two more from the last few days: Senate Democrats fundraising pitch: Republicans have been waging a war on women. Nancy Pelosi says Republicans are waging a war on women’s rights.
What lies ahead? Hundreds more such headlines and features in your television news. Candidates kissing the hems of women who have television shows. Candidates in the kitchen. Candidates talking about childcare and problems working moms suffer. And, talking about single-mom problems. And, education. And, equal pay for women. And, talking about whatever issues researchers tell them will excite women.
Every major speech will be vetted through women’s lenses. Every talking point for the debates will be tested with panels of women. Every line the candidates rehearse for debates will be viewed from women’s points-of-view. So will the ties they wear. And, the colors and fit of their slacks. The photos that the campaigns release will mostly have women in the background or surrounding or hugging the candidates.
I could go on and on. But, I don’t have to, because the campaigns will.
Women, this campaign is for you.
From Tom…as in Morgan.
Tom Morgan writes about financial and other subjects from his home near Oneonta, in addition to his radio shows and new TV show. For more information about him, visit his website at www.tomasinmorgan.com
Dangerous Labor Ambush Set for Struggling Small Employers
“If the people don’t want to come out to the ballpark,” baseball’s Yogi Berra once misquipped, “nobody’s going to stop them.” Labor bosses must feel the same way about wage and salary workers who are avoiding union halls these days. According to the Bureau of Labor Statistics’ latest union membership report, only 6.9 percent of
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“If the people don’t want to come out to the ballpark,” baseball’s Yogi Berra once misquipped, “nobody’s going to stop them.”
Labor bosses must feel the same way about wage and salary workers who are avoiding union halls these days. According to the Bureau of Labor Statistics’ latest union membership report, only 6.9 percent of private-sector workers carried cards in 2011, which is a historically low rate for the private sector.
After failing to ram its “card-check” unionization ploy through Congress recently, big labor sees no future in playing by the rules. That’s why bosses have turned to their friends at the National Labor Relations Board (NLRB). No longer a non-partisan, fair-handed government agency concerned with balancing labor relations in the workplace, the NLRB is only too eager to help reverse union members’ rush to the exits.
Now dominated by former labor lawyers, the agency is scurrying to rewrite federal regulations before the polls open in November. Its latest gift to labor is an “ambush” rule designed to speed up union elections by shortening the period between petition filing and voting to less than 20 days. The rule would remove a critical 25-day waiting period to give small employers time to seek counsel and talk with their employees.
But U.S. Sen. Mike Enzi of Wyoming, ranking member of the Health, Education, Labor and Pensions Committee, is rallying colleagues to block the rule’s April 30 implementation. He’s getting strong support from the National Federation of Independent Business (NFIB), which played a key role in thwarting labor’s card-check assault.
NFIB is ramping up a nationwide grassroots effort among its 350,000 small-business-owner members to build momentum for Enzi’s resolution. Concerned that some employers mistakenly believe narrowing the petition-to-filing window might give them an advantage in union elections, the business organization warns the reverse is true: If this change were bad for unions, would they be working to promote it?
Fortunately, the unions have a more-than-able, and powerful, opponent in the small-business community. For example, NFIB was the only business group to legally challenge the constitutionality of President Obama’s mandated health-reform law, ensuring it would be reviewed by the Supreme Court.
Unions already win more than 70 percent of their elections, says Enzi, thus there is no justification for ambushing employers with elections in 20 days or less. He said this regulatory reversal could limit businesses’ free speech and other legal rights, calling it a transparent attempt to increase unionized workplaces.
If the NLRB’s ambush rule takes effect, small employers will have little time to educate their employees so they could make informed decisions in union elections. And since small firms typically lack labor-relations expertise and in-house legal departments, their disadvantage would be even greater. Add that to employers’ inability to compete with professional union organizers who can secretly campaign and unfairly promise workers high wages and better benefits, and small businesses would be easy pickings.
Labor and the NLRB must play by the rules. This attempt to ambush job-creating entrepreneurs who are already struggling to survive is a dangerous game, especially when the legs of our economy have yet to regain their strength.
Dan Danner is president and CEO of the NFIB, which represents 350,000 small-business owners in Washington, D.C. and every state capital.
Vets institute, Whitman win grant
SYRACUSE — The Institute for Veterans and Military Families and the Martin J. Whitman School of Management at Syracuse University (SU) won a grant of
Enable names executive director
SYRACUSE — The nonprofit organization Enable has promoted Prudence York, its former director of community services, to executive director. York has worked at Enable since
Stay up-to-date on the companies, people and issues that impact businesses in Syracuse, Central New York and beyond.