The MBPA SPD Agreement is an All-Inclusive Document Covering All Lines of Health and Welfare Benefits.
To help your clients reduce their employee benefit costs, the Associations are providing complimentary services such as Summary Plan Descriptions and Section 125 Plan documents to all dues paying members.
Summary Plan Descriptions (SPDs)
ALERT: The Employer Retirement Income Security Act (ERISA) guidelines make it mandatory for all businesses with 2 or more employees to provide employees with a Summary Plan Description (SPD).
We continue to take a leading role in informing and helping our members meet their obligations under ERISA. We offer SPDs at no charge to our members. Types of benefits covered by Summary Plan Descriptions include: Medical, Long Term Disability, Short Term Disability, Life and AD&D and freestanding Dental/Vision.
The adoption agreement is now a compliant document reflecting ALL the Health Care Reform Law changes as of January 2012. These documents are FREE to our members. NOTE: The cost for non-members will be $50 starting May 1st. The Benefits SPD adoption agreement is one compliant document rather than 5 different forms.
Let us complete your All-Inclusive SPDs for your clients!
To request an SPD:
Simply contact our office and our team will work with you or your client.
Download the documents from our secured Agent Pavilion, complete, and return to the Association office.
The completed Agreement should be emailed in WORD format to info@michbusiness.org for processing.
The Association will send the completed agreement to you or your client.
Section 125s
To request your Section 125 for your clients:
Simply contact our office and our team will work with you or your client.
The Section 125 Plan has a separate adoption agreement.
Please follow the same submission instructions as with a SPD.
The completed Section 125 Plan and supporting documents are normally returned in 2-5 business days.
Contact a Member Service Representative today to learn more or to get started at 1-888-277-6464 or 1-586-393-8800.
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“Wellco does much more than provide corporate health and wellness programs. Wellco fixes health and wellness programs. As a result, we have decreased our medical costs by more than 15%. Wellco’s systems and guidance are the best and most effective in the industry by far.”
Carol Gatewood, President, AJ Danboise
HealthHammer
As the first and only Zero Trend Appraisal system to help you reduce your health costs faster than ever before, HealthHammer hits the nail on the head by measuring the top 15 avoidable health costs and conditions. It is the first system of its kind to integrate avoidable costs, paperless health risk appraisal, and biometrics (the measurement of biological in one powerful tool that offers instant scorecards without any delay for lab processing or reports to be mailed.) That means the health of your employees and your bottom line can begin improving faster than ever before. HealthHammer is available both onsite and online and can even be used with your current wellness program and provider.
TrendMender Speaking and Consulting
TrendMender programs are the first to say “The emperor has no clothes” and that a disturbing amount of attention is given to costly programs that should be the last resort. TrendMender is infused with startling first-hand insights packed with takeaway tips for organizations of all sizes, types and budget.
Unbelievable Pricing for Association Members
HealthHammer online: $27/employee
HealthHammer medical: $47/employee (includes secure medical login for wellness provider)
HealthHammer onsite: $107/employee* (includes onsite biometric measurement & coaching)
Trendmender: $1,497*
(* + Reasonable travel expenses from Southeast Michigan).
Contact a Member Service Representative today to learn more or to get started at 1-888-277-6464 or 1-586-393-8800.
https://michbusiness.com/wp-content/uploads/2023/08/MichBusiness_logo_horizontal.png00michbusinesshttps://michbusiness.com/wp-content/uploads/2023/08/MichBusiness_logo_horizontal.pngmichbusiness2012-05-29 16:00:502015-10-08 00:00:00Check Out Our Wellness Program With Wellco Corp. – Delivering Wellness ROI Systems
Agents are Your Groups Looking to have Control of their Billing and Extend their Cash Flow? New BCBS eBilling is now Available!
Starting June 12, 2012, if you or any of your customers require support with accessing or using eBilling or requests for training, you must complete the eBilling support request form (ZIP) and submit it to eBillingSupport@bcbsm.com. Include any supporting screenshots if applicable.
Also effective June 12, BCBSM will no longer accept any eBilling support inquiries to the MOS Command Center email box. All eBilling support requests must be submitted via the request form.
Groups currently on the Michigan Operating System platform have access to eBilling, an application that allows them to view and print billing information. Please Note: Groups that are billed directly by BCBS instead of a third party administrator can also pay their invoices online using eBilling.
You can view and print billing information using eBilling for your book of business currently available in MOS.
Upcoming eBilling webinars:
BCBS scheduled several question-and-answer webinars for you and your customers. Subject matter experts will be on hand to answer your questions.
You can register for a session at MOS_News_BCBSM@bcbsm.com. You’ll receive a confirmation email with the call-in information. The webinars also will cover information on the new membership system, eMVP.
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The Best & Brightest Wellness Champions is an innovative initiative that recognizes and celebrates quality and excellence in worksite and health promotion. The program highlights companies and organizations that promote a culture of wellness, and those that plan, implement and evaluate efforts in wellness promotion. This is the premier awards symposium that celebrates organizations that are making their business, their employees and the community a healthy place to live and work.
Criteria and Award Selection Process
The Best and Brightest Wellness Champions uses the WellCompanies assessment, created and administered by Wellco, the nation’s leading wellness systems firm. The process is reviewed by the Board of Directors and the Event Board of Advisors to ensure all criteria is adhered to. Modern statistical analysis is used to examine each application.
Organizations are nominated.
The company’s wellness coordinator is required to complete an extensive survey on workplace wellness initiatives.
Each survey is examined statistically for quantitative and qualitative data by Wellco. All applications are examined on a point system; those receiving the highest points in all categories are selected as the winners.
Organizations are provided a Basic Assessment with feedback for each category based on their survey results.
Organizations are announced as winners and honored at the awards celebration and symposium at the MSU Management Education Center in Troy, MI on September 25, 2012.
Elite Award Winners are announced at the symposium.
Winners are highlighted in a media campaign including the event media partner – Corp! Magazine’s 2012 special Wellness issue.
Participation Benefits
Complimentary Assessment Report:
The Best and Brightest Wellness Champions uses the WellCompanies assessment, created and administered by Wellco, the nation’s leading wellness systems firm. Participating companies receive a complimentary assessment report which summarizes how organizations compared to other participating organizations.
Comprehensive Assessment Report
The in-depth comprehensive assessment report that shows actual data for each of the questions asked. This is a vital component in benchmarking and shows where the company stands out as a “Wellness Champion” and where improvements can be made.
Education
On event day, the program will include leading edge educational sessions designed to educate and enlighten senior level managers and executives on Wellness trends and issues. The topics are developed and presented by key corporate leaders and wellness experts. Wellness Champion Webinars provide companies with valuable information that can be immediately implemented to help businesses reach the next level of success. Companies attending will gain insight directly from today’s leadership experts.
Winner Media Campaign
Winners are highlighted in a media blitz that includes: press releases sent to PR News Wire and local news media; a winners list advertisement in a major publication; announcements on a major news radio station; links on the 101 Best and Brightest website. A congratulatory e-blast will go to over 20,000 companies. Winners will also be featured in Corp! Magazine reaching over 31,000 business owners and C-suite executives.
The 101 Best and Brightest Wellness Champions in Partnership with Corp! Magazine
Winners also have the opportunity to contribute articles in the Corp! Everything Health & Wellness special e-publication.
Winners have the opportunity to showcase their healthy practices.
We will celebrate the winners and special accomplishments at the event on Tuesday, September 25, 2012 at the MSU Management Education Center in Troy.
Three convenient ways to nominate: Phone – 866.321.1822; Fax – 800.971.8803; or visit www.101bestandbrightest.com
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Health care reform expands ERISA’s disclosure requirements by requiring that a “summary of benefits and coverage” be provided to applicants and enrollees before enrollment or re-enrollment. The summary (referred to as the SBC) must accurately describe the “benefits and coverage under the applicable plan or coverage.” The SBC requirement applies in addition to ERISA’s SPDs.
The initial SBC must be distributed to participants and beneficiaries who enroll ore re-enroll during an open enrollment period that begins on or after September 23, 2012. For newly hired employees and special enrollees who enroll in coverage other than during an open enrollment period, the SBC must be distributed on the first day of the plan year that begins on or after September 23, 2012.
What Types of Plans Must Distribute a Summary of Benefits and Coverage?
The obligation to furnish an SBC applies to a group health plans and insurers. A plan that offers “excepted benefits” is not required to distribute an SBC. This would generally include a standalone dental or vision plan and most health flexible spending arrangements.
Grandfathered group health plans must comply.
Disclosures for a health FSA that is not an excepted benefit depend on whether it is integrated with other major medical coverage. If the health FSA is integrated with other major medical coverage, features of the health FSA can be included in the SBC for the major medical coverage. If the health FSA is not integrated with major medical coverage then it is required to furnish an SBC.
A health reimbursement account (HRA) must comply.
A health savings account (HSA) is not a group health plan and is not required to furnish an SBC. However an SBC for a high deductible health plan can mention the effects of any employer contributions to an HAS that can be used for deductibles, copayments, coinsurance or other services not covered by the high deductible health plan.
Who Must Provide the SBC?
Both the health insurance issuer and the plan administrator of a group plan are required to furnish an SBC to plan participants.
If the group health plan is self-insured, the obligation to provide an SBC lies solely with the plan administrator.
If the plan is fully insured, the obligation to timely provide an SBC lies both with the plan administrator and the insured.
When Must the SBC be Distributed?
A health insurance issuer that offers group health insurance must provide an SBC to the plan or plan sponsor as follows:
Within 7 business days after receipt of an application for health coverage.
By the first day of coverage; if there are any changes in the initial SBC.
If written application for renewal is required, no later than the date the written application materials are distributed.
If renewal is automatic, at least 30 days before the beginning of the new plan or policy year.
What Types of Information Must be Included in the Summary of Benefits and Coverage?
Uniform definitions of standard insurance and medical terms so that consumers may compare health coverage and understand the terms of their coverage.
A description of the coverage, including cost-sharing, for each category of benefits identified by the agencies.
Exceptions, reductions and limitations on coverage.
Cost-sharing provisions, including deductible, co-insurance and co-payment obligations.
Renewability and continuation of coverage provisions.
Coverage examples.
Contact information for questions and obtaining a copy of the plan document or policy.
An internet address for obtaining a list of network providers and information on the prescription drug formulary.
An Internet address for obtaining the glossary of health coverage and medical terms.
Is the Summary of Benefits and Coverage Required to be Provided in a Uniform Format? Yes. The SBC must be provided in the form issued by the Departments using prescribed language. The information must be presented in the order shown in the SBC template, must be in 12-point font and cannot exceed for pages. The template, instructions, the information necessary for the coverage examples, the uniform glossary and a sample completed SBC are available at: www.dol.gov/ebsa/healthreform or http://cciio.cms.gov/resources/other
https://michbusiness.com/wp-content/uploads/2023/08/MichBusiness_logo_horizontal.png00michbusinesshttps://michbusiness.com/wp-content/uploads/2023/08/MichBusiness_logo_horizontal.pngmichbusiness2012-05-29 16:00:352015-10-08 00:00:00Summary Of Benefits And Coverage – Important Information
The Michigan Business and Professional Association (MBPA), along with its sister group, the Michigan Food and Beverage Association (MFBA), want to keep you up to date on the federal healthcare law and how it will affect you and your clients.
As we are patiently awaiting the Supreme Court’s ruling on whether or not our national healthcare law will be upheld, split up with some pieces staying and some pieces going, or being eliminated all together, we still need to move forward and prepare. This is the law of the land and we need to proceed accordingly. Thus, our team has been compiling a list of frequently asked questions (FAQ’s) that we want to share with you and/or your clients. Feel free to contact our team if you have some FAQ’s of your own.
Will everyone have to buy health insurance?
Starting in 2014, most people will be required to have health insurance or pay a penalty if they don’t. Coverage may include employer-provided insurance, coverage someone buys on their own, or Medicaid.
What happens if they don’t?
Several groups are exempt from the requirement to obtain coverage or pay the penalty, including: people who would have to pay more than 8% of their income for health insurance, people with incomes below the threshold required for filing taxes (in 2009, $9,350 for a single person and $26,000 for a married couple with two children), those who qualify for religious exemptions, undocumented immigrants, people who are incarcerated, and members of Indian tribes.
How will people prove they have health insurance?
Health insurance plans will provide documents to people they insure that will be used to prove that they have the minimum coverage required by law.
The penalty for people who forego insurance is the greatest of two amounts: a specified percentage of income or a specified dollar amount. The percentages of income are phased in over time at 1% in 2014, 2% in 2015, and 2.5% starting in 2016. The dollar amounts are also phased in at $95 in 2014, $325 in 2015, and $695 beginning in 2016 (with annual increases after that). The Congressional Budget Office projects that 3.9 million people will pay the penalty in 2016. The total penalty for the taxable year will not exceed the national average of the annual premiums of a bronze level health insurance plan offered through the health insurance Exchanges.
How are small businesses affected by health reform?
The health reform law includes a number of provisions that reform the insurance market and encourage small businesses to offer health insurance. Coverage offered in the small group market and in the exchanges established for small business to purchase insurance, must meet minimum benefit standards; allow premiums to vary only by age, tobacco use, and geographic location; be subject to reviews of premium increases; and comply with other consumer protections.
The provisions to encourage small firms to offer coverage apply only to firms under a certain size.
Fewer than 25 Employees:
Beginning in 2010, business with fewer than 25 full time equivalents and average annual wages of less than $50,000 that pay at least half of the cost of health insurance for their employees are eligible for a tax credit. The full credit is available to employers with 10 or fewer employees and average annual wages of less than $25,000. The credit phases-out as firm size and average wage increases. The credit is capped based on the average health insurance premium in the area where the small business is located.
The tax credit will be introduced in two phases. For tax years 2010 to 2013, eligible employers may receive a tax credit of up to 35% of the employer’s contribution toward the employee’s health insurance premium. For tax years 2014 and later, eligible small businesses that purchase coverage through the state Exchange may receive a tax credit of up to 50% of the employer’s contribution toward the employee’s health insurance premium. Employers are eligible to take the tax credit for two years. Tax-exempt small businesses meeting these requirements are eligible for tax credits of up to 25% of the employer’s contribution toward the employee’s health insurance premium for tax years 2010 to 2013, and up to 35% for tax years 2014 and later.
Fewer than 50 Employees:
Businesses with fewer than 50 employees are exempt from penalties faced by larger employers that do not offer coverage. The penalties for larger employers (50 or more employees) do not go into effect until 2014.
Fewer than 100 Employees:
Small businesses with fewer than 100 employees will be able to purchase coverage through Small Business Health Options Program (SHOP) Exchanges beginning in 2014. These state-based exchanges are intended to allow employers to shop for qualified coverage and more easily compare prices and benefits. In 2017, states will have the option to allow businesses with more than 100 employees to purchase coverage through the SHOP Exchanges.
How does the new law apply to companies with self-funded plans?
Self-funded plans–those where the employer accepts the risk for the health benefits it providers, rather than buying coverage from an insurance company–are generally exempt from state insurance regulations and are instead regulated by the Employee Retirement Income Security Act (ERISA). The new health reform law contains many provisions that apply nationally to both self-funded plans and fully insured plans. Some of these provisions include the extension of dependent coverage until age 26, no cost sharing for preventive services, the limit on waiting periods to no more than 90 days, and no lifetime or annual limits on coverage. However, it appears that self-funded plans will not be subject to meeting the minimum essential health benefit requirements, such as limits on deductibles.
Will employees be taxed for the portion of the health insurance premium that is paid by the employer?
Starting for the 2012 tax year, W-2 forms provided by employers (in the beginning of 2013) will show employees how much their health insurance costs. However, the reporting is for informational purposes only; employees will not be taxed on this amount. The requirement was originally set to go into effect for the 2011 tax year, but implementation was delayed by the Internal Revenue Service.
A separate provision of the health reform law creates a new tax on so-called “Cadillac” insurance plans provided by employers. Beginning in 2018, plans valued at $10,200 for individual coverage or $27,500 for family policies will be subject to an excise tax of 40% on the value of the plan that exceeds these thresholds. The tax will be levied on insurers and self-insured employers, not directly on employees.
The threshold amounts will be increased for inflation beginning in 2020, and may be adjusted upwards if health care costs rise more than expected prior to implementation of the tax in 2018. The thresholds are also adjusted upwards for retired individuals age 55 and older who are not eligible for Medicare, for employees engaged in high-risk professions, and for firms that may have higher health care costs because of the age or gender of their workers.
MBPA/MFBA will continue to keep you up to date. As always, please contact us with any questions or comments. We enjoy your feedback.
Please visit our website for more and detailed information. Contact our Government Relations Team with questions/comments at: bbochniak@michbusiness.org or by phone at: 517-374-9128.
The Michigan Business and Professional Association (MBPA) and the Michigan Food and Beverage Association (MFBA) are supportive of the gradual elimination of our state’s personal property tax (PPT) liability. The PPT is a double taxation on our already over-burdened business community. By eventually eliminating this tax liability, Michigan will become more competitive with our neighboring states and most importantly, keep our existing businesses “open for business.”
Small Business
Proposed legislation that has recently passed the Senate does offer benefits and much relief for the small business community. In summary, this package of 8 bills would amend various acts and create a new act to provide tax exemptions for commercial personal property, industrial personal property, and new and previously existing manufacturing personal property; retain specific taxes and existing property tax exemptions for manufacturing personal property until it became eligible for a new exemption; and require the reimbursement of local taxing units for revenue lost as a result of the personal property tax exemptions.
We are specifically very supportive of Senate Bill 1070 which states that beginning December 31, 2012, eligible personal property would be exempt from the collection of taxes under the Act. “Eligible personal property” would mean personal property that meets both of the following conditions:
— It is classified as industrial personal property or commercial personal property under the Act.
— The combined taxable value of all industrial personal property and commercial personal property owned by or under the control of the owner claiming the exemption is less than $40,000 in that local tax collecting unit.
An owner of eligible personal property would have to claim the exemption by filing an affidavit with the local tax collecting unit in which the property was located and with the Department of Treasury by May 1 each tax year. The affidavit would have to require the owner to attest that the combined taxable value of all industrial personal property and commercial personal property owned by or under the control of that owner was less than $40,000 in that local tax collecting unit. If an affidavit claiming the exemption were filed, the owner would not have to file a statement of personal property otherwise required under the Act.
Loss of Revenue for Local Government
Personal Property Tax Reimbursement Fund – The Fund would be created in the State Treasury. The Department of Treasury could spend money from the Fund, upon appropriation, only to reimburse local taxing units and tax increment financing authorities for any reduction in revenue resulting from the exemption of certain personal property from the collection of taxes under the General Property Tax Act.
The State Treasurer could receive money or other assets from any source for deposit into the Fund. The Treasurer would have to direct the investment of the Fund and credit to it interest and earnings from investments. Money in the Fund at the close of the fiscal year would remain in the Fund and not lapse to the General Fund. The Department would be the administrator of the Fund for auditing purposes.
Issue of Contention
As previously mentioned MBPA/MFBA is 100 % supportive of a gradual elimination of the PPT, but we are not supportive of one particular new aspect of this package of bills. An amendment was proposed and adopted into the Senate’s version of the bills that states that the PPT repeal would be nullified if promised replacement revenues were not provided. While we understand the rationale for proposing this safeguard, we also know it is difficult for a business to plan ahead and make investments if there is a chance their tax liability might be reinstated the following year.
We will continue to keep you updated as this legislation moves through the legislative process. It currently has passed the Senate and has now moved onto the House Tax Policy Committee for its review. As always, please contact our government relations team with any questions or concerns.
The Michigan Business and Professional Association (MBPA) and the Michigan Food and Beverage Association (MFBA) support the Business Leaders for Michigan (BLM) and their dedication to making Michigan a “Top Ten” state for job, economic and personal income growth. We look forward to partnering with them to achieve these goals.
Each year, the BLM develops a work plan outlining the steps they will take to advance the Michigan Turnaround Plan. Please see below for 6 steps in this year’s updated plan.
2012 work plan includes the following actions:
Step 1: Responsibly Manage Finances
Set clear spending priorities
“Price” the cost to comply with proposed legislation
Memorialize sound fiscal management practices in legislation or policy
Reduce debt levels to achieve AAA bond rating
Step 2: Efficiently & Effectively Provide Public Services
Improve the cost and productivity of the state workforce
Reduce corrections costs to the Great Lakes average
Improve the efficiency of state government
Improve return on investment from 0-12 education system:
Enable improvements in local service delivery:
Advocate that local governments adopt best practices and “fix the basics”
Step 3: Create a Competitive Business Climate
Benchmark business costs to Top Ten states
Create a responsive, collaborative regulatory system
Provide a seamless, one-stop process for business growth
Strengthen Michigan’s workforce
Increase capital availability
Step 4: Strategically Invest for Future Growth
Increase the percent of the Michigan workforce with post-HS education
Connect Michigan with the global economy through strategic investments in infrastructure
Step 5: Accelerate the Economic Growth of Cities & Metros
Accelerate redevelopment of Michigan’s largest cities & metros with special emphasis on Detroit
Support metros’ efforts to improve delivery of basic public services
Step 6: Leverage Assets to Grow the New Michigan
Champion strategies that leverage Michigan’s unique assets to accelerate long-term growth
Build support among key stakeholders for growth strategies that transcend election cycles
Support a strong foundation of entrepreneurship, innovation and manufacturing
Raise awareness of progress made toward building a New Michigan
For more information or questions on their plan, see contact information below. Phone: 313.259.5400
E-Mail Address: info@businessleadersformichigan.com
https://michbusiness.com/wp-content/uploads/2023/08/MichBusiness_logo_horizontal.png00michbusinesshttps://michbusiness.com/wp-content/uploads/2023/08/MichBusiness_logo_horizontal.pngmichbusiness2012-05-22 16:00:502015-10-08 00:00:00The 2012 Michigan Turnaround Plan
The Michigan Secretary of State’s Office is issuing a new version of its enhanced driver’s licenses and state identification cards.
Please note the following:
The new format will begin circulating in both the enhanced horizontal and vertical versions in February 2012.
Existing horizontal enhanced licenses and state ID cards will be phased out of circulation by 2016. However, the current vertical enhanced Graduated Driver License will still be in circulation as late as 2017.
Existing enhanced licenses and state ID cards will remain valid until their expiration dates. They will be reissued in the new format at renewal or if a replacement is needed.
For more information, please call the Michigan Secretary of State’s Office at 888-SOS-MICH (767-6424).
Effective: February 2012
New Features
Laser-perforated abbreviation “MICH” is cut into card and can be viewed from either the front or the back.
Card stock and laminate are slightly thinner than on previous enhanced licenses and ID cards.
A new revision date of 02-01-2012 is printed on card to reflect these latest changes.
Sample Enhanced Horizontal License
(21-and-older format)
Sample Enhanced Vertical State ID Card
(Younger-than-21 format)
NEW: The card features the laser-perforated abbreviation “MICH,” which can be viewed when held up to a light.
NEW: Card stock and laminate are slightly thinner than on previous enhanced licenses and ID cards.
NEW: A new revision date of 02-01-2012 is printed on card to reflect these latest changes.
“Under 18 until MM-DD-YYYY” and “Under 21 until MM-DD-YYYY” is printed as applicable.
The front laminate of the cards includes the full-color shape of a Great Seal, viewable using a standard off-the-shelf black light, and a tri-color optically variable image of a bridge and the word “Michigan” that appears and disappears when viewed from different angles.
The 2D bar code includes the cardholder’s full legal name, date of birth, date of issue, expiration date, address, gender, driver’s license or state ID number, issuing jurisdiction, card design revision date, and an inventory control number.
The 1D bar code has the cardholder’s driver’s license or state ID number, date of birth, expiration date and a two-digit manufacturing number.
The magnetic stripe has the driver’s license or state ID number, date of birth and expiration date.
Source: MI.GOV/SOS
https://michbusiness.com/wp-content/uploads/2023/08/MichBusiness_logo_horizontal.png00michbusinesshttps://michbusiness.com/wp-content/uploads/2023/08/MichBusiness_logo_horizontal.pngmichbusiness2012-05-22 16:00:452015-10-08 00:00:00Michigan’s Enhanced Driver’s License and State Identification Card Have Changed
Purpose
This study, using data from the 2007 U.S. Survey of Business Owners, attempts to complete the picture on immigrant entrepreneurship and addresses questions such as the following: What hurdles do they face accessing capital? How do they use capital? The importance of immigrant entrepreneurs to the U.S. economy has been very well documented in Advocacy-sponsored research and elsewhere in the economic literature. They contribute greatly to the economy, have high business formation rates, and create successful businesses that hire employees and export goods and services. Lacking, however, was a thorough look at the financial picture that would complement what we know of them.
Overall Findings
Immigrants are found to have higher business ownership and formation rates than non-immigrants. Roughly one out of ten immigrant workers owns a business and 620 of 100,000 immi-grants (0.62 percent) start a business each month.
Immigrant-owned businesses start with higher levels of startup capital than non-immigrant-owned businesses. Nearly 20 percent of immigrant-owned businesses started with $50,000 or more in startup capital, compared with 15.9 percent of non-immigrant-owned businesses.
Roughly two-thirds of immigrant-owned businesses report that the most common source of startup capital is personal or family savings. Other commonly reported sources of startup capital by immigrant businesses are credit cards, bank loans, personal or family assets, and home equity loans. Overall, the sources of startup capital used by immigrant businesses do not differ substantially from those used by non-immigrant firms.
Highlights
Businesses owned by immigrants have an average sales level of $435,000, roughly 70 percent of the average sales level of non-immigrant firms.
Immigrant-owned businesses are slightly more likely to hire employees than are non-immigrant-owned firms; however, they tend to hire fewer employees on average.
Immigrant-owned businesses are more likely to export their goods and services. Among immigrant businesses, 7.1 percent export compared with only 4.4 percent for non-immigrant businesses.
Entrepreneurship increases with maturity, and married people are more likely to start a business.
More generally, there is a U-shaped relationship between entrepreneurship and education. Entrepreneurship rates are lower for high school graduates than for high school dropouts, but entrepreneurship rates are similar between those with some college and high school graduates. College graduates have higher rates of entrepreneurship, and those with graduate degrees have the highest rates of entrepreneurship.
Among immigrants, 52.1 percent owned a home compared with 70.8 percent of non-immigrants.
Scope and Methodology
The 2007 Survey of Business Owners (SBO) and the 1996-2010 Current Population Survey (CPS) are the two sources of data that enabled this study. The analysis of immigrant business finances would not have been possible without the data from the 2007 SBO.
This report was peer-reviewed consistent with Advocacy’s data quality guidelines. More information on this process can be obtained by contacting the director of economic research by email at advocacy@sba.gov or by phone at (202) 205-6533.
https://michbusiness.com/wp-content/uploads/2023/08/MichBusiness_logo_horizontal.png00michbusinesshttps://michbusiness.com/wp-content/uploads/2023/08/MichBusiness_logo_horizontal.pngmichbusiness2012-05-22 16:00:402015-10-08 00:00:00Immigrant Entrepreneurs And Small Business Owners, And Their Access To Financial Capital