Tag Archives: small business

PPP Round Two

PPP Round Two: What You Need to Know

The Paycheck Protection Program is back and supposedly better than before, helping small businesses stay open during the pandemic. If you didn’t make the first cut or were confused by what was required and/or offered, here’s your second chance to get funds to help you stay afloat. Here’s what you need to know.

The Requirements

Businesses eligible for the second round of PPP loans must meet one or more of these requirements:

  • Proof of at least a 25 percent revenue deduction in any 2020 quarter versus your 2019 revenue for the same quarter
  • Proof you expended all or most of the first round of your PPP loan if applicable
  • Proof you have 300 employees or fewer

If you didn’t receive a PPP loan in 2020, the requirements differ slightly:

  • Proof you started your business before February 15, 2020
  • Prove you have no more than 500 employees
  • Proof you are still open and operating despite the pandemic

Proving the 25% Revenue Reduction

Businesses have two ways to prove the 25 percent revenue reduction, which is a requirement if you received the first round of PPP loans:

  • Prove your gross annual revenue was at least 25 percent lower in 2020 than in 2019
  • Choose a specific quarter from 2020 versus 2019 and prove the revenues decreased at least 20 percent for that quarter

How can you Use the PPP Funds?

The first round of PPP funds was limited to payroll, rent, and utility expenses.

The second round of PPP loans has looser guidelines and may be used for:

  • Operating expenses
  • Property damage costs (e.g., from public disturbances)
  • Supplier costs
  • Purchase of PPE for employees

Loan Forgiveness

The loan you receive and the amount that’s forgivable may vary. The forgiveness rules for the second round are similar to the first.

You must use at least 60 percent of the funds for payroll and your staffing level must be similar to the staffing levels before the pandemic. Any remaining funds beyond the 60 percent used on payroll must be spent on eligible operating expenses to keep the business running.

Businesses must apply for forgiveness when they expend all loan proceeds and before the loan’s maturity date. Businesses that don’t apply for forgiveness within 10 months of the covered time must make payments on the loan.

You apply for PPP forgiveness through the lender providing the PPP loan.

Ensure you Qualify Before Applying

The first PPP round was questionable as many businesses who claimed were ‘small businesses’ technically didn’t qualify for the loan.

The second round has tighter restrictions for qualifying and threatens an audit and legal trouble if the loans were taken under false pretenses.

If you’re a small business struggling and you meet the above requirements, contact your local bank authorized to offer the PPP loans and see if you qualify. It’s the best way to keep your company afloat while we navigate the rest of the pandemic throughout 2021.

Lenders Dealing with Emerging PPP Loan Fraud

PPP paycheck protection programLast month, a bank in Rhode Island bank was given an application for a $144,050 loan through the Paycheck Protection Program (PPP). PPP is an enormous federal effort that is designated to assist many small businesses that are severely affected by the Coronavirus pandemic. This PPP loan application was made on behalf of a restaurant located in Warwick, R.I. with about 18 staffs boasting an average monthly payroll of a $46,000.

Many suspicions arose after a bank official drove past the building, indicating that the restaurant had been closed before the pandemic. Many dumpsters were seen on the property, and notices ordering the halting of business were seen posted on the door and windows. This formerly popular restaurant had been shut down two years ago and federal prosecutors recently charged two men with conspiracy to commit bank fraud.

The case was the first criminal fraud prosecution related to the Paycheck Protection Program. Industry officials caution that it will likely be one of many charges related to this program. Banks are working hard to tackle misconduct in the $660 billion program, one former official calculated that fraud rates may be as high as 10% to 12%. Derek Cohen, a former federal prosecutor who currently represents white-collar defendants at Goodwin Procter, stated that the rate of fraud increases when government relief programs are assembled rapidly in response to any disaster.

A few weeks ago, many banks started accepting applications from new small business customers. Towards the end of March 2020, the Coronavirus relief law (CARES act) was enacted as the economic destruction caused by the pandemic spread. This law requires the SBA to register loans with the use of Taxpayer Identification Numbers (TINs) in order to stop the same borrower from receiving more than one SBA loan, an issue known as loan stacking.

Immediately after the loan has been submitted, the SBA’s E-Tran system gives a specific application number to the lender that is assumed to reduce most of the dangers of duplicate applications. Meanwhile, questions have arisen about the SBA’s system for examining taxpayer ID numbers. It is theorized that it is possible for fraudsters to manipulate the system and engage in loan stacking.

Recently, the Office of the Comptroller of the Currency held a feedback session with bankers concerning fraud in PPP. Most participants talked on condition of anonymity and stated that there remained a host of problems, such as fraudulent documents and payroll verification. In the course of securing Paycheck Protection Program (PPP) funds, small businesses have encountered difficulty, distress, and an absence of clarity on the rules of the program. The procedure was chaotic for lenders too, leaving the program exposed to fraud amidst an unprecedented SMB stimulus struggle. The urgency with which these lenders were expected to get applications and provide funding created opportunities for fraudsters to take advantage.  Time will tell how many fraudulent applications are caught and prosecuted, but while not perfect, the PPP has provided much needed relief to many small businesses.

Discover “On Us” Program Update

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Last fall we wrote about the new Discover “On Us” Program that allows merchants that are new to accepting Discover to defer the cost for a whole year. For many businesses the summer months are their “busy season” and as such this program could add up to great savings all summer long. The “On Us” program offered from discovered is brought to merchants through Host Merchant services. When a customer uses a Discover card at checkout, merchants will not be charged any fees or interchange rates, so all the revenue stays in the businesses pocket.

More Details

First, to qualify for the program, merchants must not have accepted Discover cards in the last six months or be entirely new to accepting the following cards: Discover, Diners Club International, BCcard, China Union Pay, JCB, and DinaCard. To enroll in the program there are just four simple steps merchants must do:

  1. Apply before the deadline of December 31, 2013 (the sooner you apply the more you’ll save)
  2. Confirm your enrollment with a special test transaction
  3. Update signage in your brick and mortal retail store and/or update your website for ecommerce merchants
  4. Provide training on how to communicate the benefits of using Discover to pay for transactions

 

Voila. Once Discover has verified that your business qualifies you will receive written notice and within 10 business days a welcome packet with free signage and tips on how to increase sales by accepting Discover.

 

Test Transaction Instructions

You can use the following instructions to see if your terminal is currently set up to accept Discover cards.

Test your terminal using these simple steps:

  • Prompt your terminal or point-of-sale device for a manual sales transaction.
  • For BCcard, JCB, China UnionPay, DinaCard, and Rupay enter the following test card information:

Test card account: 6555 9000 0015 9720*
Expiration date: 09/14
Transaction amount: $1.00
CID: 458
Zip code (if necessary): 43054

  • For Discover and Diners Club International cards, enter the following test card information:

Test card account: 6011 2023 0029 5223**
Expiration date: 07/14
Transaction amount: $1.00
CID: 045
Zip code (if necessary): 43054

  • A “decline” status means the test was successful and your terminal is ready.

 

Benefits of the Program

While on the “On Us” program, every time you accept a Discover brand card, you will not have to pay the normal interchange rates and fees thus keeping more of the money from the sale in your pocket. Your customers also get the freedom of being able to choose their favorite card and possibly earning cash rewards or points. Host Merchant Services can even provide you with Discover signage to increase awareness that your business now accept Discover cards as payment.

Next Steps

This incredible offer only lasts until December 31, 2013. Pick up the phone right now and give us a call at 877-517-4678 to talk to one of our knowledgeable payment experts or fill out our quick sign up form and someone will be in touch with you shortly. The Discover “On Us” program, a quick easy way for your business to save more on credit card processing.

SBA Rule

Upcoming SBA Rule Changes to Affect Small Businesses [2023 Update]

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During the events at National Small Business Week the Small Business Administration announced upcoming changes due to take effect on July 22, 2013. These changes shift what defines how “small business” is defined. The administration is increasing the size standards in 70 industries. These standards lay out the maximum size a firm can be and still be considered a small business.

This shift in classification is noteworthy because companies that do not currently qualify for this categorization will now be eligible for special SBA loans and government contracts set aside to help smaller firms. Defining much larger businesses as “small” could have costly implications for the “little guy”.

The indicator that the SBA looks to for this classification is the average annual revenue of the company. The threshold that is increasing in about 25 industries will increase over 500 percent from the current $7 million to $35.5. That translates into around 17,000 U.S. businesses that will now be considered a small business.

NAICS Sectors and One NAICS Subsector

There are four NAICS sectors and one NAICS subsector that are revised in the new standards. They are:

  • NAICS Sector 71, Arts, Entertainment, and Recreation
  • NAICS Sector 52, Finance and Insurance
  • NAICS Sector 55, Management of Companies and Enterprises
  • NAICS Sector 11, Agriculture, Forestry, Fishing and Hunting
  • NAICS Subsector 213, Support Activities for Mining

There is already controversy surrounding the amount of contracts that are to be awarded to smaller firms, a mark that the federal government has missed over the past 11 years, according to an article by the Washington Post. A total of 23 percent of federal contracts are earmarked to be granted to companies with the designation from the SBA. Adding more players to the mix will surely increase competition in an already competitive process.

Going Cashless

Your Business Should Consider Going Cashless [2025 Update]

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The long-lived standard of paper and coin currency is nearing its end. The simple truth is that debit and credit cards, mobile wallets, and various other ways to pay are bringing about the beginning of the end of Washington, Jackson, and even Franklin. Businesses are going cashless.

The truth is that when businesses accept cash payments, there is a certain element of risk involved. First, you have the human element. A clerk has to take a payment and in most cases must give the customer back some change. This is assuming that the clerk has the ability to do the simple math it takes to subtract the transaction total from the amount tendered.

While the average third grader can do this, you know what your mother always told you about assuming. In addition to this oversight, bills can stick together, drop on the floor, or even be mistaken for a different denomination. Also, when employees do not have to worry about this exchange of currency they can focus on providing superior customer service.

cashless transactions

When cash is accepted as a payment it also decreases the speed of the transaction as compared to accepting credit cards. The clerk must take the extra time to count out the change and double-check to make sure it is accurate. Credit card transactions are mostly completed by the customers themselves through POS terminals and swipers. Thus freeing up time for the employee to wrap up the sale and provide the best customer service.

The next con about accepting cash payments is that it tends to not be very clean. With the average lifespan of a $1 bill being 18-22 months, you can imagine the amount of dirt, bacteria, and other generally gross germs. Decreasing the amount of cash used in transactions can help improve the overall health of the employees at your business. And may also keep your customers from getting sick too!

According to a 2009 University of Massachusetts study, 90 percent of 234 paper bank notes tested positive for traces of cocaine. Another 2001 study found traces of heroin, methamphetamine, and PCP. While these levels are very low and not enough to make someone sick, it still makes you think about what our paper money goes through.

It’s hard for anyone to deny that payments are shifting from greenbacks and coins to plastic and electronic. And while cash isn’t going to disappear overnight, it benefits merchants to adopt the technologies of the future to get ahead of the curve.

Benefits Of Business Going Cashless

Benefits Of Business Going Cashless

The shift, towards a cashless business model, has become increasingly popular in today’s landscape offering a range of benefits that go beyond mere convenience. As technology advances businesses are realizing the advantages of adopting cashless transactions. Here are some key advantages of a business going cashless;

  1. Improved Efficiency and Speed;
    One major benefit of embracing a cashless approach is the enhancement in efficiency and transaction speed. Electronic payment methods like credit cards and digital wallets streamline the payment process reducing the time required to complete transactions. This not only improves the customer experience but also enables businesses to serve more customers in less time ultimately boosting productivity.
  2. Lower Operating Costs;
    Handling cash involves expenses such as security measures, cash handling fees, and the need for physical infrastructure like safes and registers. By transitioning to a cashless system businesses can reduce these operating costs. Allocate resources effectively. This aspect is especially relevant for medium enterprises (SMEs) where every saved penny contributes significantly to overall profitability.
  3. Enhanced Security;
    Cash transactions inherently carry security risks such, as theft and counterfeiting.
    Going digital with transactions helps reduce these risks because electronic payments leave a trace and often have built-in security features. Digital payment systems use encryption and authentication measures creating an environment, for both businesses and customers. This can result in a decrease in fraud and unauthorized transactions.
  4. Insights from Data Analysis;
    Cashless transactions generate data that businesses can use to analyze customer behavior and gain insights. By studying purchasing patterns and preferences businesses can make decisions about inventory management, and marketing strategies. Engaging with customers. This data-driven approach allows businesses to customize their offerings to better meet customer needs building long-term relationships.
  5. Convenience for Customers;
    In today’s convenience-oriented world cashless transactions provide customers with a seamless and hassle-free payment experience. With the increasing availability of mobile payment options and contactless cards, customers can make purchases quickly without the need, for cash. This convenience not only enhances the customer experience but also appeals to tech-savvy consumers who prefer efficient modern payment methods.
  6. Global Access;
    Cashless transactions simplify business operations by eliminating the complexities of currency conversion and cross-border transactions.
    Digital payments offer advantages to businesses operating on a scale facilitating smoother operations and unlocking new market opportunities. This is particularly beneficial, for eCommerce companies that serve customers worldwide.
  7. Advancement of Financial Inclusion;
    Embracing cashless transactions can contribute to promoting inclusion by granting individuals who lack traditional banking relationships access to banking services. Mobile banking and digital wallets act as gateways for underbanked populations enabling their participation in the economy. This fosters growth, and reduces poverty. Creates a more inclusive society.

Conclusion

cashless business

To summarize the benefits of transitioning to a cashless system extend beyond convenience. The efficiency, cost savings, heightened security measures, and data-driven insights associated with cashless transactions position businesses, for growth and success in a digitalized and interconnected world. As technology continues to advance adopting a cashless approach is not merely a passing trend but rather a strategic decision that can significantly impact a business’s performance and enhance its competitive advantage within the market.

Contact one of our payment experts today at 877-517-4678 to learn more and get setup to take payments.

National Small Business Week Guide

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At Host Merchant Services we know that while Fortune 500 companies may get the national spotlight and most of the media attention, small businesses are what really powers our communities and helps grow our nation. A recent stat showed that two out of every three new jobs created in the US is generated by small business. That is why since 1963 the U.S. Small Business Administration has celebrated National Small Business week. This year the event runs from June 17-21 and has events spanning from coast to coast to highlight the contributions of hard working entrepreneurs.

The official cities for this year’s event are Seattle (June 17), Dallas (June 18), St. Louis (June 19), Pittsburgh (June 20), and Washington, D.C. (June 21). If you are lucky enough to live in or near one of these cities it is worth your time to check out the on-site conferences. These will feature experienced speakers providing knowledge and advice to running a successful small business. There are also networking opportunities with other like-minded business owners in the area.

If you cannot make it to one of these sites in person, Google is hosting a series of online events that will cover essential business skills for keeping up with the competition in today’s competitive environment. The topics that will be covered are Getting Started with Social Media, Managing your Business’s Online Reputation, How a Mentor Can Help Your Business, and How to Get a Loan for Your Business. This wide range of topics can help anyone from just getting started to seasoned professional.

In addition to the official sites and the online events there are gatherings planned in almost all 50 states. A full list of events as well as an event map can be found on the SBA website. Business owners should also check out their site at http://www.sba.gov/ for tips and advice on starting, running, and growing your business.

In addition to these important skills for starting and managing a business it is important for every small business to be able to accept payments from their customers for whatever good or service they are providing. Host Merchant Services can help guide owners through the world of merchant services and payment processing in a consultative manner. Whether a fledgling company just getting moving or an established business with years of experience under your belt, we can help get you setup and processing payments on your way to expansion and growth.

Contact us today to get a no obligation quote for the lowest interchange plus pricing available and top tier customer service.

Merchant Website SEO [2023 Update]

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Practicing Good Merchant Website SEO

Most business owners know by know that the Internet isn’t going away, and if you want to succeed in business you need to have an online presence. Having a website is only the start, however. Without good merchant website SEO, chances are that the business website will never rank high enough in the search engines to make it worthwhile. Good search engine optimization practices can help stack the deck so even small business owners will have the ability to have their sites compete with the big boys.

Formatting for ideal on page SEO

The way an article or web page is formatted on the site can make a big difference when it comes to ranking in the search engines. One of the worst kept secrets is that Google has hired human quality readers, and formatting a webpage to be well organized and easy to read makes a big difference now when it comes to ranking well for keywords.

This means several things for how a website owner needs to design how their page looks. Informational pages need to include plenty of subheadings, bullet points, lists, and short paragraphs. Think “reader friendly.” Pages should be easy to scan and never appear as block paragraphs.

When looking at a retail page that’s mostly products, merchant website SEO work can be a little bit more challenging. It’s a good idea to stay away from iframes, which lead to outgoing link saturation and also isn’t the best way to present a large number of products. All products should have varied descriptions to add in as much relevant and original text as possible.

Carefully using keywords

Keywords remain a very important aspect of SEO for any website. The key is to walk that fine line between making sure to use enough keywords and a good variety of related keywords versus not using too many. While the numbers vary from one expert to another, it’s generally agreed that it’s not good to go above 2% of text on any page being one keyword.

The other important way that keywords on a page of text can help increase rankings is where they appear. The main keyword the site owner wants to rank for should be located in the title of the page or article. In the text itself that means a well optimized page will have the keyword in the first paragraph, often in the very first sentence. One or two variations of that keyword phrase should be used in the middle of the text and then once again in the last paragraph.

Do backlinks still matter?

One of the strongest ways to boost website rankings is still to get backlinks from related websites. Good merchant site SEO means finding specialty blogs or related sites that might naturally link to the site. There is some controversy with the practice of backlinking because intentionally manipulating backlinks can result in the website actually losing rank.

The best way to boost SEO with backlinks is to offer a good guest blog post to a related site. Give them some quality writing, and link back just using your URL or the actual name of the website. Doing this keeps it legitimate, gives an SEO boost to the merchant site, and helps avoid any search engine ranking penalties.

NRF Opposes Interchange Settlement

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It’s been a little while since the Official Merchant Services Blog touched on the increasingly sensitive topic of the Credit Card Interchange Settlement. We first talked about the possibility of ‘The Big Cash Comeback’ when the settlement was first announced, and later we discussed the opposition to the settlement.

Seven years after the first lawsuits were actually filed against the bank card networks and some leading banks, a tentative settlement was reached on July 13 of this year.  The agreement has had many mixed reviews, and some big name retailers have come out against it, including most recently the National Retailers Foundation, the nations largest retail trade association.  The NRF’s members operate 3.6 million stores nationwide, however the organization itself is not involved in the lawsuit, which includes individual and class merchants as well as trade-group plaintiffs.

Under the proposal, the main defendants, Visa and MasterCard will pay $6.6 billion in damages and temporarily reduce interchange rates to save merchants another $1.2 billion. Merchants also will get greater freedom to surcharge card transactions and could form bargaining groups to negotiate interchange with the networks. In return, the networks will be freed from future legal challenges from merchants regarding interchange rates and merchant rules, even from merchants that didn’t participate in the current lawsuit.

I think the key points here are the temporary reduction of interchange rates as well as the fact that all merchants give up their rights to sue Visa and MasterCard upon accepting the settlement.  Merchants will most certainly be satisfied by the reduction of interchange rates, but the drop will only be temporary.  After a few months Visa and MasterCard will raise them again, and continue to collect outlandish fees for credit card transactions.  Also, not every merchant is involved in this suit. I don’t think it’s a good deal for merchants to give up any of their rights, particularly the rights to any future litigation.

The National Association of Truck Stop Operators (NATSO) released a statement on Monday, announcing their dismissal of the settlement, “We joined this lawsuit in search of real reform to a broken system, one that is shielded from normal competitive forces. This proposed settlement does not achieve this goal. It lacks meaningful fixes to a system that allowed Visa and MasterCard to set artificially high swipe fees and provided retailers and consumers with no choice except to pay.”

This statement echo’s the cries of dissenters, who say the settlement protects the status quo more than anything, and will not change the way the networks set interchange.

In conclusion, the settlement still faces harsh criticism, and Visa and MasterCard have not had much to say to those who oppose it.  Only time will tell if the plaintiffs decide to accept the deal, or push back for a settlement more in their favor.  Host Merchant Services will keep you informed of all the latest news involving this legal battle between the merchants and the card-issuing giants.

Starting A Business in Tough Economic Times

Starting A Business in Tough Economic Times [2023 Update]

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You’ve been thinking about starting your own business for years. The opportunity to step out on your own and launch the business has finally come — but wait. The macro-economic conditions are so severe that your business seems doomed to failure even before it starts. Should you make the leap and launch your business during tough economic times?

Starting New Venture

While business decisions like this are always difficult, and every sector is unique in its competitors and profit margins, the true stories and insights of entrepreneurs who have started businesses in tough economic times may give you some guidance.

One important fact to consider is this: the economy is not standing still and goes through cycles of boom and bust with relative regularity. As evidenced by the excellent Wikipedia article on Recessions in the United States — one can view the dates of recessions since the ‘Panic of 1797‘ through to today’s ‘Great Recession’. These business cycles are highly unpredictable, making the chance that your business will face a tough macro-economic situation during its life very likely.

Rather than try to “time” your business launch, experts agree that having sufficient capital to survive regardless of the economy around you and a sound business strategy are the real prerequisites for getting a successful new business off the ground.

Consider the actions of serial entrepreneur, Neil Heuer, who has founded a new business right in the teeth of the most severe economic downturn since the Great Depression and chose to compete in the decimated Florida real estate and remodeling sector. Mr. Heuer started Grand Woodworking in Naples, Florida in June of 2011. Specializing in Naples custom cabinetry and unique high end custom designed woodworking for South Florida’s affluent homeowners, Grand Woodworking competes by producing hand crafted wood designs of exacting specifications and uncompromising quality.

Mr. Heuer explained his reasoning for starting his business during the Great Recession, ”We think now is an excellent time because people are looking to remodel their homes instead of just buying new. People are trying to make their current home new to them. Also technology is moving quickly and people are looking to re-house their glass big heavy CRT televisions with nice flat panel televisions for watching movies. Now is also a good time because people are cost conscious when making decisions investing in their home and we are convinced we can build an excellent quality product for the best price and be able to put the Grand Woodworking name on it.”

When further asked for what advice he would give now to a potential business owner about starting a business during an economic downturn, Mr. Heuer commented, ”First believe in your product. You must believe you are the best by doing what you plan on doing. Mediocrity isn’t acceptable to customers want more. They expect more but most importantly they deserve more. Consider it more like being partners with your customers. Work with the the customer and understand their needs and what they want the end result to be. Get the customer to depend on you.”

Another successful entrepreneur who founded a company during a volatile economic period is Daniel Foster. In the year 2000 Mr. Foster and co-founder Stuart Melling began an Internet business selling web hosting services to developers and small business in and around Manchester, United Kingdom. They named the company after their apartment address and 34SP.com was off and running. Today the company specializes in a variety of hosting products including UK website hosting and business web hosting.

Host Merchant Services asked Mr, Foster about his startup experience and what advice he would give today’s potential business owners, ”We started 34SP.com on graduating from university in summer 2000, just after the peak of the dot com boom. It seemed that anyone with any idea could start a company and one thing they all needed was somewhere to host their website. We started without any borrowing, so it was important to be cash flow positive from day one. I’d recommend this approach to anyone starting a small business, even if it means starting with relatively modest targets.

You can always beat your own targets but if you have to reach goals set by lenders, the consequences soon become obvious. Also, I’m not sure there is a best time to start a business. If you have a good idea, give it a go! Starting 34SP.com and being my own boss was one of the best decisions I ever took, and I can’t imagine working any other way. 34SP.com was started at the start of a recession, so with the economy hopefully now on the mend, now is surely the best time possible to run with that idea you’ve been thinking about for years!”

So there is some great advice from two people just like yourself who started businesses when economic conditions were less than perfect and have persevered despite the odds. Keep your eye on that dream of owning your own business, and don’t be afraid to take actions to make your dreams a reality.

Don’t Overlook Small Business Saturday

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For the past couple of weeks The Official Merchant Services Blog has been preparing you for the Holiday Shopping Season. We’ve discussed a lot of different strategies and services that merchants can use to boost their businesses on Black Friday and Cyber Monday. Much of what we’ve covered also applies to going forward through the entire shopping season.

Today we’re going to focus on a new “day” that’s been added to the rush and crush. Sandwiched in-between Black Friday and Cyber Monday is a new kid on the block: Small Business Saturday. Since Host Merchant Services has many small businesses in its customer base, we wanted to take a moment to spotlight this newer day of shopping focus and frenzy.

The Basics

First of all, what is Small Business Saturday? It is a shopping holiday created by American Express, held on the Saturday after Thanksgiving during one of the busiest shopping periods of the year. It’s not that old. It was first celebrated on November 27, 2010. Small Business Saturday is designed to be a counterpart to Black Friday and Cyber Monday –– which feature big box retail and e-commerce stores respectively. Small Business Saturday encourages holiday shoppers to patronize brick and mortar businesses that are small and local.

How it Did Last Year

One of the key elements of the campaign last year was its social media push. Small Business Saturday has a Facebook page –– found here –– and last year AMEX bought advertising inventory on Facebook that it gave to its small merchant account holders for the purpose of promoting them and the event. The Social Media buzz generated 1.5 million likes on Facebook, as well as getting 13p public and private organizations and 41 politicians involved in supporting and publicizing the effort.

The bottom line? The event did indeed boost sales. According to AMEX executive Mary Ann Fitzmaurice Reilly, the event provoked “a 28 percent rise in sales volumes for our small business merchants versus the same day in 2009.”

What’s 2011 Bring To S-B Saturday?

The most basic perk to the Small Business Saturday campaign is that it gives money back to consumers for shopping at local small businesses. As defined by American Express at their Small Business Saturday Link Here: “You can receive a one-time $25 statement credit when you register any eligible American Express® Card and use that Card to make a purchase of $25 or more at a small business on November 26, 2011.”

Merchant Services logo for Small Business Saturday

There are multiple ways to obtain the savings:

  • Register your American Express Card here.
  • Sync your Foursquare account to your American Express Card here.

FedEx this year also gave away 40,000 $25 gift cards, which have all already been claimed.

Also, AMEX continues its robust social media marketing through the event, giving $100 in free Facebook advertising to 10,000 qualifying merchants.

Why You Should Get Involved

A survey by American Express  found 93% of consumers believe shopping at small businesses is important, and are backing that sentiment up by spending about a third of their discretionary income at local small businesses. This prompted AMEX to initiate the campaign in the first place. And if you are a small business merchant, AMEX is going the extra mile to get you involved in the perks and promotions of this holiday.

Even if you are a late-comer to this event and have missed out on the free Facebook ads or the free gift cards from FedEx, there is still quite a lot of value to be had from participating in Small Business Saturday. The $25 credit program applies no matter what else you do. But there’s also these amazing resources still available:

  • From AMEX you can get free in-store signage, and a free online marketing kit.
  • You can use AMEX’s Go Social app to create mobile-based deals for your American Express card-wielding customers.
  • A joint venture from Google and YouTube offers up My Business Story which lets you create custom videos using YouTube’s editing tool to entice your customers.
  • YourBuzz –– a tool that allows users to read and respond to customer reviews and online mentions in one location –– is offering $200 in free advertising credits on LinkedIn Ads ($100 for 6,500 business owners) and Facebook ($100 for 10,000, which is all used up).
  • FedEx offers a 20% discount on printing for  Small Business Saturday-related promotional materials through Nov. 26.

Too Early To Tell?

So what do you think? Will Small Business Saturday catch on? Cyber Monday seems to be gaining some traction, fueled by the rapid growth in online shopping and e-commerce, and standing on the precipice of a predicted boom in mobile payment business. Black Friday is still going strong, with big chains like Toys”R”Us and BestBuy fueling it year in and year out. Is there room for Small Business Saturday? Are you a small business merchant and have you participated in this event last year? Will you be doing it this year? Feel free to share you thoughts and insights on this bold campaign from AMEX. I know I’m particularly interested in hearing about what kind of use you’ve gotten out of the social media marketing tools AMEX is providing with this.