Google to help small businesses go digital

Gov. Rick Scott announced a new program from his Facebook page this week that will help small businesses in Florida gain an online presence through a partnership with Google.

The program, dubbed "Florida Get Your Business Online," will bring free websites to smaller companies across the Sunshine State that don't currently have the budget or expertise to put one together.


As part of the program, Google will provide its popular Intuit Websites that include an easy-to-build design, a customized domain name and free web hosting for one year.

Florida businesses interested in participating can go to www.floridagetonline.com to get the free website as well as tools, training and resources to help their business succeed online.

Google also will be providing free workshops to small businesses in Miami on April 3 and April 4 and at the Tampa Museum of Art on April 5.

While 97 percent of Americans browse the net for products, about 68 percent of Florida small businesses do not have a website, according to Scott.

“Small businesses are the backbone of Florida’s economy,” Scott said in a statement. “This initiative is aimed to help these businesses grow in Florida.”

For the latest business updates, follow me on Twitter @JoshSalman

The economy, ice cream and commercial development

Margaret Callihan knows a thing or two about the local economy.

As the chairman, president and CEO of SunTrust in Southwest Florida, she oversees all banking operations for the chain for five coastal counties spanning from Parrish south to Marco Island.

Working with businesses, borrowers and retirees, she has a finger on the pulse of Southwest Florida's economy as much just about anyone. So when Callihan (pictured) is optimistic about the progress being made in the recovery, it's probably a good sign.

Callihan sat down with me for about an hour Monday afternoon in her downtown Sarasota office to discuss all things banking. Among the highlights, she talked about how the Federal Reserve's decision to hold interest rates low has spurred an uptick in borrowing but adversely impacted some who rely on savings interest as part of a fixed retirement income.

She also said banks are lending again, but have adopted a more cautious approach as a lesson learned from the housing crash.  

You can read the full Q&A at Bradenton.com.

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It's safe to call me an ice cream fan (especially Ben and Jerry's). So when I was asked to scout a new parlor that recently opened in the historic district on Manatee Avenue, I didn't hesitate.

The best part: I received a history lesson while there.

The walls at Bradentown Scoop are covered with old movie posters, Coke memorabilia and newspaper articles dating back decades. The display cases are filled with some of the most unique antiques I have ever seen. The shop sits in the oldest commercial building in Manatee County, dating back to 1903.

But the real highlight is the white Onyx bar and soda fountain dating back to at least 1920. The pair used to sit just across the street at an old arcade that's believed to have closed in the late 1940s.

It's a pretty cool place, especially for parents with a rug rat who has a sweet tooth and hunger to learn.

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I will be meeting with representatives at Benderson Development early Wednesday morning to discuss the developer's plans for commercial expansion in Manatee County, including the recent purchase of a Bradenton shopping plaza for $1.7 million.

Check Bradenton.com throughout the day for updates on this, as well as other business stories, and don't forget to follow me on Twitter @JoshSalman

Report shows looming housing threat

A new report shows there's 1.6 million housing units, or about six-months of supply, across the county that are seriously delinquent but have not yet been foreclosed upon or listed as a short sale.

It's a measurement often referred to a shadow inventory, and some Realtors see it as the largest threat to ongoing improvements in the market.

The 1.6 million shadow units are about the same level reported in October 2011. On a year-over-year basis, shadow inventory was down from January 2011, when it stood at 1.8 million units, or eight-months' supply, according to figures released by CoreLogic.

Currently, the flow of new seriously delinquent (90 days or more) loans into the shadow inventory has been offset by the roughly equal flow of distressed sales (short and real estate owned), the report shows.

"Almost half of the shadow inventory is not yet in the foreclosure process," CoreLogic chief economist Mark Fleming said in a statement. "Shadow inventory also remains concentrated in states impacted by sharp price declines and states with long foreclosure timelines."

CoreLogic estimates the current stock of properties in the shadow inventory, also known as pending supply, by calculating the number of distressed properties not currently listed on multiple listing services (MLSs) that are seriously delinquent, in foreclosure and real estate owned (REO) by lenders.

The agency couldn't provide local or state statistics.

For the latest business updates, follow me on Twitter @JoshSalman

A contest to get in with Walmart

Walmart has a pretty neat contest under way that will give three small companies an opportunity to sell their products at Walmart.com and be featured on the website homepage. One finalist is guaranteed to land on the shelves of the mega retailer.

For a small-start up with a unique idea, the financial significance of winning can't be overstated.

More than 4,000 product creators from across the U.S. entered video submission to the "Get on the Shelf" contest between Jan. 9 and Feb. 22.

After five days of public voting, the contest drew 274,000 total votes as of March 11. In the first 24 hours, which started March 7, 93 percent of contestants had received votes. An average of 55,000 votes are cast daily and an average of 92,000 daily visits are made to the contest website, according to Walmart.

People can vote once for a product using their Facebook account and text messaging every day. Votes can be cast for multiple products a day.

The first round of voting will run through April 3, when the top 10 finalists will be announced. The second round of voting will take place April 11 through April 24, after which the top three contestants and grand prize winner will be unveiled.

This is the first contest of its kind from a major retailer, Walmart said.

Some of the products trending in the initial days of voting including datil pepper salt from combat veterans; eyeglass repair kit to fix glasses in 30 seconds; and a fork specifically designed for dogs.

The top five product categories submitted to Get on the Shelf included:

• Home improvement at 11.4 percent
• Personalized products at 10.2 percent
• Health/wellness/fitness at 9.6 percent
• Fashion apparel/home at 8.1 percent
• Outdoor home at 6.7 percent

If any company from the greater Bradenton or Sarasota area has entered in the contest please call me at 941-745-7095 for a potential story.


And, as always, follow me on Twitter @JoshSalman

What about the first-timers

Foreclosures across Southwest Florida continue to take a roller coaster ride, dropping two straight months to open 2012, as I reported in my story today.

That shrinking foreclosure inventory is good news for most area homeowners because it means prices will begin to rebound, giving borrowers more equity in their homes and thus a higher net worth.

But what about first-time buyers now scouring the market?

A new study shows an overwhelming number of first-time buyers are mainly interested in distressed properties, or foreclosures and short sales that typically carry a large discount.

Despite the horror stories of drawn-out closings, offer refusals and unsettling inspecting results, many first-time homeowners are willing to navigate the cumbersome process to reap the discount, which stood at an average of more than 30 percent in Manatee in January, according to a first-time buyer survey of agents and brokers by Realtor.com.

In fact, 91 percent of first-time home buyers were interested in a distressed property in 2011, and the study expects similar results this year. Of those, 89 percent said they would choose a distressed home because they believed it was a good value, 30 percent cited the property's location as a draw, and 26 percent saw an investment opportunity.

So, the question remains, could too steep of a drop in foreclosure inventory actually work against the economic recovery by scarring away the first-time buyers, who are typically younger, and thus damaging the quality of the area's labor force? Or will more equity for those already here help the economy more, by encouraging area borrowers to spend rather than save?

This study was particularly interesting to me, aside from the fact that I'm a business writer, because my wife and I are in the final stages of the buying process with a short-sale now. It's our first home, and we have been waiting on the bank to finalize our offer since October (that's six months). While we ultimately will get a great deal, I probably would not ever buy a short sale again. It's too much hassle.

For the latest business updates, follow me on Twitter @JoshSalman

Cash mob

The Manatee Chamber of Commerce has cooked up another interesting idea to get consumers to spend their dollars locally.

I'm sure, by now, you have heard of a flash mob -- where a group will spontaneously break out in song or dance at a public place to the surprise of those around them. Well, the Chamber has its own take.

The organization will sponsor its first "cash mob" 3 p.m. March 24 at the Main Street Bazaar in Lakewood Ranch. The cash mob is a fast-paced shopping event designed to draw foot-traffic to the host location, with the idea that once shoppers get there, they will buy something.

The Main Street Bazaar was picked from a hat to house the inaugural event.

The Chamber plans to host future cash mob events in the future, with estimations that 73 percent of dollars spent at local businesses stay within the community.

“Encouraging consumers to spending their money locally couldn’t be more important than in this time of economic recovery,” Manatee Chamber President Bob Bartz said in a statement.  “Shopping in the Manatee County region saves jobs, preserves our local flavor, and reduces environmental impact and transportation costs."

So, have you ever seen a flash mob break out? Was it fun or awkward? And will the concept translate into retail sales?

For the latest business updates, you can follow me on Twitter @JoshSalman

Insurance bill is dead

A measure designed to bring some stability to Florida’s insolvent home insurance industry by reducing the size of Citizens Property Insurance Corp. will not advance this year, according to bill sponsor Rep. Jim Boyd, R-Bradenton.

The proposal, which swept through the Florida House last month, aimed to downsize the mega state-run insurance carrier by transferring some of its policies to secondary “surplus lines,” which aren’t controlled by the Office of Insurance Regulation like the state’s primary carriers, as I reported in my previous story.

Although most House lawmakers supported the bill, it also drew strong opposition for some industry stakeholders who fear it would open the floodgates to companies that have no barriers when upping rates on unsuspecting policy holders.

The Senate ultimately caved by revising the legislation this week, and Boyd (pictured) declined to move forward with the amended version because it stripped the bill of its primary intent, according to state records.

He says the measure ultimately is essential to restoring competition and protecting customers now covered by Citizens -- a financial ticking time bomb.

“The size of Citizens is a huge financial burden hanging over every Floridian’s head,” said Boyd, who also owns an insurance company. “One day we’ll have to pay for it.”

Under the bill some Citizens policy holders will be automatically passed onto surplus lines unless they opt out within 30 days. The new coverage must be similar to what’s currently provided by Citizens, and consumers unhappy with their new carrier can return at any time.

Surplus lines looking to pick up new policy holders also must carry at least $50 million in surplus capitol, a strong industry rating and enough resources to survive two hurricanes, the measure states.

Opponents argue that’s not enough.

“This is a bad bill,” said Sean Shaw, founder of Policyholders of Florida, an industry watch association. “A lot of people will get this notice in the mail, and because of all the negative attention about Citizens, they’ll think it’s a good thing. Then, when it comes time for a new policy, the rates will go through the roof. These are very dangerous deals. I don’t think people know what they’ll be signing.”

It's unclear if Boyd plans to introduce the measure again next year.

Foreclosures process may see changes despite sales success

Florida's foreclosure process may soon see some changes at a time when demand for depressed housing is high and fewer borrowers are losing their homes.

The Florida Senate is pushing forward with a controversial bill that would expedite the lengthy foreclosure process -- which now takes more than 800 days from start to finish in Florida -- by offering fewer hearings and testimony before final judgment.

Recession-battered homeowners argue the proposed measure takes away their only avenue for recourse, and right to defend their case.

Florida is one of a few states that rely on the judicial process to settle foreclosures. The process has put a burden on the courts to the tune of 21,230 new cases in Manatee alone over the past five years, according to the clerk of court.

The GOP-driven bill also swept through the Florida House this week, but it still has several steps to go before it becomes law.

In the Senate, that means a final vote that will take place before the session closes March 9.

Because demand for foreclosed properties runs high, lawmakers say anything to expedite those efforts would only benefit the economy. More lenders and borrowers also are turning to short sales instead anyway.

Foreclosure sales across Southwest Florida rose during the fourth-quarter, according to a new report released Wednesday.

Manatee County saw its foreclosure sales activity rise just over a percent from the third-quarter to reach a total of 449 between Oct. 1 and Dec. 31.

Despite the late push, the 1,932 total foreclosures in Manatee last year remained 19 percent behind the pace of 2010 -- when the confusion from reported robo-signings stalled the entire process, according to RealtyTrac.

Foreclosures that changed hands in Manatee carried an average price tag of $130,092.

The numbers were similar in Sarasota, where the 669 fourth-quarter foreclosure sales were up 17 percent from the same time the year before. The 2,708 foreclosures over the year, however, were down 15 percent from 2010.

Foreclosures in Sarasota last year sold for an average price of $121,017.

Increased willingness by lenders to approve short sales has helped curb those numbers and will likely continue to do so this year, the report shows.

“We continued to see a shift toward pre-foreclosure sales, or short sales, and away from REO sales in the fourth quarter,” RealtyTrac CEO Brandon Moore said in a statement. “That trend will likely show up in more local markets in 2012 as lenders recognize short sales as a better option for many of their non-performing loans.”

So what do you think about the proposed changes? Does Florida's foreclosure system need a fix? And should it be up to lawmakers to get involved?