Tag: momentum leaders 2020

What Women Business Leaders Should Know About Taxes, Loans, & Grants

Katie Roth is a writer, artist, and entrepreneur. Originally from Alabama, she now resides in the UK with her husband and two dogs, and works with clients and other business owners in Europe and the USA.

Women in business still face too many hurdles, and unfortunately 2020 has only exacerbated them. Common issues like securing adequate funding or accessing much-needed resources have been complicated by the coronavirus. COVID-19 has brought about unprecedented challenges not just for women, but for the global business community. As we all learn how to manage our new reality in 2021 and look forward to a slow emergence from the grips of the virus, it is time for people to give real thought to how they might bring about new success in business once more.

It’s with that in mind that we’re looking at some important things Alabama’s women business leaders should know regarding taxes, loans, and grants.

Taxes

Regarding taxes for business leaders, there aren’t necessarily points to make that are specifically relevant to women. However, there are some simple reminders worth keeping in mind for anyone who is starting or attempting to grow a company.

The first reminder is that Alabama is considered to be a particularly favorable state when it comes to personal tax — which can free up some funds to manage business expenses. Just this year, an article ranking state income tax rates listed Alabama in a tie for 10th place (meaning 10th lowest), with a rate of 2-5%. Given that some states have personal income tax rates of 10% or more, it’s a good idea for women to consider launching businesses in Alabama. The slight but meaningful financial cushion allows for more business investment opportunities.

Additionally, registering as an LLC can compound the benefits you get from the favorable tax situation. LLC structure in Alabama is such that a business with this sort of official standing is actually not taxed as its own entity. Instead, owners simply pay income tax on what they make from the business. This means that rather than having a hefty, separate tax on business earnings, you can simply enjoy that same 2-5% rate on business-related income. That said, LLCs are subject to something known as a “business privilege tax,” which relates to the company’s net worth. Still, it’s worth running the numbers on the idea, because particularly for a newer or smaller businesses, the net benefit of the LLC structure can be significant.

Loans

Where loans are concerned, Alabama is again an appealing state for new, small businesses. Recent years have seen lenders give out nearly $1 billion in loans to small businesses— spread out over more than 50,000 individual arrangements. These numbers, given the size of the state and the number of people working in small businesses, justify the notion that Alabama has actually been one of the better states to secure a business loan.

As for specific loan funding for women-led businesses, we’d recommend keeping an eye on a Birmingham support program known as “Upward,” which was designed specifically to help women leaders in business — particularly now as we all look to move forward from COVID. It’s just the sort of resource that has become invaluable to such leaders in communities where women in business are seizing more opportunity — offering leadership coaching, help with goal setting, network support, and more.

Grants

In the grant department, there is more business aid to be found with specific regard to the coronavirus crisis. In July, we saw the announcement of the $100 million “Revive Alabama” grant, which was designed to help fund struggling small businesses. The $100 million was pulled out of $1.9 billion that Alabama received in total from the federal CARES Act, and it was made available to businesses earning less than $5 million annually and employing no more than 19 people. The hope is that additional grant packages of this sort will be made available to small business leaders once again if and when the federal government signs off on another relief package.

There are also some more accessible grants available. Most notable among these is the Amber Grant. Launched by WomensNet, this is a $10,000 grant given out to at least one woman in business each and every month. It also involves an additional $25,000 bonus given to a single “winner” at the end of each year. It’s an excellent example of what a program meant to stimulate innovation among women entrepreneurs can look like.

Funding a business and managing its finances is difficult, but for women in Alabama looking to endure the coronavirus and thrive in business thereafter, being aware of everything discussed above can amount to a helpful head start on the financial front.

Introducing Our First Podcast Guest

We’re less than a week away from our podcast launch, and we couldn’t be more excited. The most challenging part of creating the podcast was the editing. CEO April Benetollo and civil litigator Liz Huntley had such a rich discussion on the important topics of early childhood, race, and equity that we struggled to pare it down into a digestible podcast.

Huntley shares Momentum’s goals of equity and inclusion. “We’re always better when we’re at the table with diverse opinions, diverse views, diverse experiences, diverse demographics, because when we bring all of those together it lets us be the best we can be whether it’s a company or a law firm. My biggest advice is that there’s no stopping point. The Sky’s the Limit. Follow your Passion. Do what it is you want to do.”

Momentum is a longtime admirer of Huntley. We recently awarded her a Woman of Impact award at our Vision 2020 Conference in March. She received this award based on her commitment to not only her own work as an attorney, but also as CEO of a nonprofit, The Hope Institute, that works with schools to develop character education curriculum/programs. She shared her inspirational story in More Than a Birdand she continues to share her message and story across the country through her advocacy work.

Huntley has appreciated education since she was a child herself. She took comfort in reading and gained encouragement from her schoolteachers. In the books she read, she realized that people like Abraham Lincoln found their voice as a lawyer, and in this profession, they were able to make lasting changes. Her drive, along with her dedication, natural intellect, and hard work, propelled her to graduate as Valedictorian of Chilton County High School, earn a full ride to study political science at Auburn University, and graduate with a J.D. from the University of Alabama Law School, after serving as an editor for their Law and Psychology Review. 

As an advocate for children, she serves on multiple boards of directors and trustees for various nonprofits while running The Hope Institute. She believes community engagement is a powerful force. Being a game-changer is all about recognizing that moment in time where you have the ability to do something that’s really going to impact somebody’s life. It doesn’t have to be an isolated moment, although many times it can be. How you seek out those game-changing moments is through community service; that’s where they happen, in nonprofit organizations that serve families or children or whomever.” When she was a child, she participated in an early childhood education program, funded by a grant for her community, so she truly appreciates the lasting impact of programs she now offers through her organization. 

Interested in learning more about our other podcast guests? Click here to meet Myla Calhoun and Bobbie Knight.

Birmingham’s Moving Upward

It can be difficult to stay motivated as we push on toward a world without COVID. We may be biased, but we’re pretty proud of how our leaders are making a difference in our city. Our Upward program was created specifically for women in the beginning of their career to develop the next generation of talented leadership. Here’s just a few of our Upward alumnae who work diligently to create dynamic change.

  • Lauren Leach, Associate Vice President of Planning & Population Health, UAB Medicine
    • Leach has been working to coordinate unique solutions for working parents during the pandemic. After recognizing the need for childcare assistance for over 1,000 UAB employees, she helped strategize short-term relief.
  • Lee Thrash, Donor Relations Manager, United Ability
    • When United Ability closed due to COVID, she had to adapt quickly to continue promoting their cause. “…everyone had to change the way they operated. It really showed us all how amazing the participants in United Ability’s programs, the staff, and families really are – how much we all care for each other.”
  • Monica Aswani, Assistant Professor, School of Heath Professions, UAB
    • Dr. Aswani joined COVID taskforce UAB United on the Incident Command Committee to help flatten the curve of COVID cases.
  • Brenessa Lindeman, Associate Designated Institutional Official for the Clinical Learning Environment, UAB
    • Medical care is a valuable resource during the pandemic, and efficiency is of the utmost importance. Lindeman worked to introduce new technology at UAB that adds apps to patients’ electronic records so clinicians can provide improved patient care.
  • Britney Summerville, Vice President of Community Engagement, Shipt
    • Summerville founded Birmingham Bound, a program aimed at growing Birmingham’s tech community. “The organization is also ‘spreading the word across the nation that Birmingham is a tech ecosystem that should be on their radar,'” according to Summerville.

Until There Are Nine

Ruth Bader Ginsburg was notorious for her persistent fight to advocate for women, but her legacy goes beyond the work she accomplished as a Supreme Court justice, and she was not always esteemed for her fierce determination. As a student at Harvard Law School, she was criticized for “taking a man’s place,” even though she ended up tying for first in her class. Many women in the US are currently struggling to work from home while managing their children’s schoolwork. The Notorious RBG was no stranger to this dilemma. When her husband was diagnosed with cancer while they were both in law school, she took all of his notes and typed all of his papers in addition to her own, all while taking care of her newborn daughter. She faced discrimination in the workplace and had a hard time finding a job, but once she got started, she was on a roll.

Ginsburg, like most women, was also scrutinized for her personality. She was too serious, too forgiving. Too progressive, not progressive enough. Her appointment was eventually supported by feminists, but some gawked at her close friendship with the late conservative justice Antonin Scalia. Their relationship served as a reminder to the country that relationships can transcend political boundaries. They frequently traveled together, attending operas and riding elephants. However, his views did not bleed into hers, and she went on to become the leading liberal justice on the Supreme Court.

She was an expert of making the most of what she had. As a frequent member of the minority vote in the Supreme Court, she made history for her eloquent dissents, some of which eventually inspired new laws. Some of the highlights of her legacy precede her time in the Supreme Court. She co-founded the Women’s Rights wing of the American Civil Liberties Union, became the first tenured female law professor at Columbia, and co-founded the first women’s rights law journal, all during the 1970s, when most boardrooms had no room for women. In her later years, she became a pop icon, inspiring teens to become politically involved as she demonstrated her workout routine on late night television.

Ginsburg inspired men and women both through her actions and her words. As the second woman to ever be nominated to the US Supreme Court, she knew that it would take serious work for women to be effectively represented.

“When I’m sometimes asked ‘When will there be enough [women on the Supreme Court]?’ and I say ‘When there are nine,’ people are shocked. But there’d been nine men, and nobody’s ever raised a question about that.” -Ruth Bader Ginsburg

Although she is no longer with us, her story is not over. Her work continues to inspire efforts toward representation and equal pay. She persisted, and we must continue to persist.