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Most of the time when a state or local government is facing a budget shortfall, it ends up raising fees or taxes to make up for the difference. But cuts in Hernando County, Florida, may actually make it easier for entrepreneurs to do business, the St. Petersburg Times reports.

Workers have recommended that the government change or remove several regulations that the county doesn’t have the resources to enforce. Among those laws, the paper reports, is a county zoning law that prohibits the operation of home-based businesses.

The removal of that regulation would give many entrepreneurs – who can’t afford traditional office space – the ability to start a corporation and, over time, create additional jobs in the area – which has seen high levels of unemployment.

Millions of entrepreneurs have had great success after starting out as a home-based business, including those who founded Apple, Hershey and Ford. According to statistics from Business.gov, home-based companies make up more than half of all small businesses currently operating in the country.

In an effort to help encourage the growth of entrepreneurs who form an LLC, several members of Congress are proposing a federal tax break for angel investors who give funding to eligible technology startups.

Under the proposed bill, angel investors would get a credit of up to 25 percent of their equity investment in companies that also qualify for the government’s Small Business Innovation Research program.

"Clearly there is a big appetite for this around the country," Maryland Representative Chris Van Hollen told the Washington Business Journal. "I think it’s going to be very well received because it’s targeted at areas that need a boost right now and can add significant value."

The individual tax credits would be limited to 50 percent of the startup’s SBIR grant amount, and the program would have a $500-million national cap. Lawmakers are now looking for a way to balance the increased spending with cuts to other programs.

Many states have also taken similar steps to encourage small business growth. In recent months, Ohio, Minnesota and several other states have enacted legislation giving angels a 25-percent take break for their eligible investments.

The City of San Diego has launched a new program that will give small and minority-owned businesses priority when awarding contracts, the San Diego Union-Tribune reports.

The new Small Local Business Enterprise program will reserve all public works contracts under $500,000 for smaller companies, and also give them an advantage in applying for larger projects – giving entrepreneurs interested in starting an LLC a better chance at finding work. The Union-Tribune reports that those contracts could distribute $25 million in revenues to more than 100 companies.

"If we can get the opportunity to do more business with the city it’ll help boost the economy for the city as well," Miguel Boggiano, the owner of a cleaning company, told the paper. "It will help generate more jobs and more business for everyone."

The program aims to help bring diversity to a contracting process that has shown a startling lack of it in recent years. According to the paper, companies owned by white men were awarded more than 97 percent of construction contracts in 2009.

Across the country, there are a growing number of minority-owned businesses. Statistics from the U.S. Census Bureau show that from 2002 to 2007, the number of new minority-owned companies rose 46 percent to 5.8 million.

A modified loan program in Salt Lake City is helping entrepreneurs get needed financing – regardless of whether the loan is big or small.

Last month, city officials changed a small business loan program to allow for much smaller loan amounts and give assistance to more entrepreneurs looking to start an LLC. While the old program gave out loans from $100,000 to $250,000 for major projects and expansion, the program’s new design allows it to give out loans as small as $5,000 to enable small business owners to accomplish smaller projects, such as paying off a credit card or buying a new sign.

"It was definitely a void that needed to be filled," says Lisa Harrison Smith, a spokeswoman for the city’s mayor. "We see the progression of this as something that will benefit the growing small-business community."

The program – which currently has interest rates of 3.25 percent – has taken off since the changes were put into place. Officials said the program had given out roughly four loans per year, but that number has now jumped to 20 since last year.

A recent study by the U.S. Department of Commerce – praising steps taken by the State of Tennessee to help entrepreneurs looking to start a company or form an LLC – was the subject of a recent roundtable discussion among many of the state’s business leaders.

The report praised steps like the creation of the states’ Jobs Cabinet, which it said was a unique approach to help companies cut through the "red tape" that was holding them back. In addition, officials praised the state’s many business tax credits and business investment programs, such as TNInvestco.

"I believe a key part of Tennessee’s success is the state’s willingness to take partisanship out of the equation when it comes to job creation," Governor Phil Bresden told the Daily News Journal.

Officials say that in the last year, the state brought in more than $4 billion in new investments in the automobile, solar and clean technology sectors, which are expected to create an additional 3,000 jobs.

The $120-million TNInvestco program was created in 2009 as a way to increase funding for early-stage companies in the state. The program gives venture capitalists tax credits, which they can sell to insurance companies to generate investment capital.

City council members in Annapolis, Maryland, have now approved legislation to create an independent corporation that will help make the city more friendly to entrepreneurs looking to form an LLC or other business entity, the Capital reports.

The bill will use $400,000 in city funds to create the Annapolis Economic Development Corporation, which will advocate for changes to make the state more business-friendly.

"We need to do a much better job to make Annapolis a more livable city, to make it better to live here, work here and play here," Annapolis Mayor Josh Cohen told the paper.

The panel will replace the city’s existing Department of Economic Affairs. Officials said that the group’s independent nature would help it stay out of city politics and be more focused on its mission. The paper reports that the group will begin operating this fall.

While entrepreneurs in Maryland have a number of advantages, there are also areas in which the panel could work to make significant progress. A recent CNBC ranking of the best states for business listed Maryland as 43rd in terms of the cost of doing business.

Small business lending is picking up, Federal Reserve Governor Elizabeth Duke told CNBC – giving entrepreneurs and small business owners the credit they need to start an LLC.

She told the news provider that banks are slowly eliminating their collection problems, and are adding new loans as the economy recovers and business confidence continues to grow. She also said that the Federal Reserve has had more than 40 meetings about the topic, and is continuing to do whatever it can to spur further lending.

Duke added that many banks are also reviewing loan applications that may have been rejected for promising business opportunities.

"Banks are trying to dig deeper than purely credit scores," she told the network. "They are looking at cash flows. They’re looking at prospects."

Business leaders are increasingly confident about the future of the economy. Recent index data from Vistage representing more than 1,600 CEOs from small and medium-sized companies found that just 15 percent expected the economy to worsen over the next year – the index’s sixth straight quarter of improvement.

Despite continued debate over its budget for next year, the state of New York has created a $50-million small business loan fund, which officials say will encourage entrepreneurs interested in forming a company and give existing companies funding to expand their operations.

The loan fund will be open to any small business located in the state that has fewer than 100 employees. Startups will be able to receive funding if they provide collateral and a credible business plan. Priority will also be given to women- or minority-owned firms.

"A more diverse and competitive business climate will mean more jobs and more money in the pockets of hardworking New Yorkers," said New York Governor David Paterson.

The state will contribute $25 million to the fund, while private funds from lenders will provide the other half of the money.

The program already has the endorsement of business associations in the state. Last month, BALCONY – the Business and Labor Coalition of New York – said that the $50 million would be enough to help more than 1,000 small businesses.

The Federal Reserve is planning a forum for next week to discuss how to give entrepreneurs increased access to small business loans to help them start a corporation.

Small business leaders, banks and trade organizations will be among the many groups present at the July 12 meeting. The Federal Reserve has also hosted a number of smaller, regional meetings regarding the issue.

While many business owners have complained that the credit markets are tight, some financial institutions have responded by saying that demand for small business loans is down, the Associated Press Reports. Reserve chairman Ben Bernanke has said that it has become difficult to tell which situation is more to blame.

Lawmakers had hoped to pass a bill containing a number of small business measures before the July 4 holiday, but the Senate has yet to vote on it.

Many small business owners who have been rejected for a bank loan are now turning to unconventional sources of financing. Earlier this week, Sam’s Club – a division of Wal-Mart – announced it would be starting a new small business loan program that would give discounted rates to members of the store.

In a move intended to help increase funding available to small businesses, the Community Loan Fund of the Capital Region says it will make $3 million in funding available to Albany-area small businesses and nonprofit organizations, the Albany Business Review reports.

The fund, which is a nonprofit corporation itself, works by pooling funds raised from investments and donations. The money is then re-lent to area entrepreneurs looking to start a corporation or local nonprofit organizations for community development, according to the organization’s website.

The latest company to make a contribution to the fund was HSBC, which gave the organization a $22,000 grant. That money will be specifically purposed to give startup companies capital they need and help grow existing micro-businesses in the local area.

Since it was founded in 1985, the fund has provided more than 500 loans worth more than $25 million dollars to entrepreneurs and nonprofits in New York’s capital region. Those loans have been turned into investments worth more than $100 million, and have helped create or expand more than 150 small businesses.

Michigan’s Adrian College is helping entrepreneurs and small business owners get the help they need to get their new businesses off the ground with a three-day business "boot camp" at the school’s Institute for Entrepreneurial Studies.

The courses will be taught by school faculty and various local business leaders, and will help area entrepreneurs network with established business leaders and better understand the issues that may be keeping them from forming a company.

The program – which is supported by the Lenawee Economic Development Corporation – will also serve to provide small business owners with mentors, who can help give them advice about running their businesses, even after the program ends.

"It doesn’t necessarily mean they will have answers to the problems," Oded Gur-Arie, business professor at Adrian College and director of the institute, told the Daily Telegram. "Just to have a mentor would be a (boost)," he said.

The cost of the program is $100 – which also covers the cost of meals for all three days – compared to the thousands of dollars the school says traditional training sessions can cost. The school can also provide housing for entrepreneurs who don’t want to commute every morning.

As part of its budget for next year, the Simi Valley City Council will hire a management analyst, who will help business owners looking to relocate their companies into the area or smooth out the business application process, the Ventura County Star reports.

City officials are also considering a "business roundtable," which would bring various city officials together to discuss the issues or constraints that may affect a local small business owner looking to start a corporation, according to the paper.

"It comes down to streamlining the process for business expansion, which creates jobs, and more jobs creates a better local economy, our tax revenues go up and we have a better city budget," Councilman Steve Sojka, who serves as chairman of the city’s small business advisory committee, told the paper.

The move comes as most cities in the area are dealing with severe budget issues. The Pacific Coast Business Times reports that 25 cities in the Tri-Counties region are dealing with a combined $73 million in budget cuts for next year.

The organization known as Tulsa’s Young Professionals has launched a new business center to help speed up the development and ensure success of startups in the area, according to Area Development Online.

The business center – called The Forge – has been in development for five years, according to the site, and will serve as a place entrepreneurs can meet to discuss their business ideas. This will allow them to lean on experienced professionals for advice.

"When you create a place like The Forge where raw innovators are given the support, resources and know-how they need to build successful, sustainable companies, you revolutionize the business community," Don Walker, 2010 Tulsa Metro Chamber chairperson and Arvest Bank president and CEO, told Area Development Online.

The site says that while the current location of the center is only temporary, it has enough space for nine tenants, and already has one client signed up.

The center is just one of the contributions Tulsa’s Young Professionals has made to the community. According to the organization’s website, its current community initiative – Junior Achievement of Eastern Oklahoma – works to introduce students to the business world and give them hands on experience in terms of preparation, entrepreneurship and financial planning.

Despite proposals that it be eliminated, New Jersey Governor Chris Christie’s initial state budget for next year does include funding for a number of small business assistance centers, according to the Star-Ledger.

The New Jersey Small Business Development Centers are a network of 11 entrepreneurship centers across the state that provide mentoring and financial planning assistance to new small business owners interested in forming a company.

"We have come a long way since the governor’s proposed state budget in mid-March," said Brenda Hopper, state director of the organization, in a statement to the paper.

The Star-Ledger reports that the organization has seen its state funding drastically shrink over the past few years. In 2007, the organization received $1 million per year in state assistance – an amount that has since been reduced to $250,000.

According to the organization’s website, the centers counseled more than 5,000 entrepreneurs and helped create or retain more than 12,000 jobs in 2007. The program has also helped facilitate $197 million in financing since its inception in 1977.

Business leaders in Florida’s Space Coast region are counting on the development of young entrepreneurs to bring the area back out of the recession, Florida Today reports.

"Small business is where most of the economic activity occurs in good times or bad, and most of the truly successful ones tend to be driven by younger professionals in their 20s and 30s," said Chester Straub, executive director of the Technological Research and Development Authority. "Having a pool of young, enthusiastic entrepreneurs is very important here."

The paper says many entrepreneurs have been helped by business incubation programs such as the one at Brevard Community College – which helps small business owners develop their business plans and growth strategies.

A recent survey by the Kauffman Foundation for Entrepreneurship found that 37 percent of youths said they saw forming a company as a real possibility.

The Space Coast region – located mostly in Brevard County on Florida’s eastern coast – has seen a steady rise in unemployment since 2006 – when the area’s jobless rate was below 3 percent. It now sits at 11.4 percent – more than 2 points higher than the national average.

After what some legislators described as "months of collaboration," Rhode Island Governor Donald Carcieri has signed a package of small business assistance programs into law.

Among the ideas included in the bill is the creation of a $125-million loan guarantee program, which will help improve access to credit for existing small business owners and those looking to start a corporation.

"I have never seen leaders come together so fast to embrace something they knew would be good for Rhode Island," Secretary of State A. Ralph Mollis told Providence Business News.

The legislation also provides an increase in funding for workforce training programs at the Community College of Rhode Island and creates a program to help Ocean State businesses win valuable government contracts.

Rhode Island has seen consistently poor unemployment figures over the last few months, especially among younger workers. As PBN reports, a recent study by Northeastern University found that while the state’s overall unemployment rate stood at 12.3 percent last month, the jobless rate among 18- to 24-year-old workers was approximately 18 percent.

Last year, the city of Philadelphia pumped $2 million into a number of city programs to help spur small business growth. The Philadelphia Business journal reports that those efforts are now showing results and helping entrepreneurs start a corporation – and keep it running.

"When I look at each one of the companies we helped with the city’s money I think we fulfilled our obligation to create good, quality retail in neighborhoods and to create jobs," Patricia Blakely, executive director of the Merchants Fund, told the Journal.

The ReStore retail program has shown especially strong results, according to the paper. The program funneled more than $900,000 into 23 businesses to help them refit their store locations. That funding helped bring in more than $4 million in private investment, and created nearly 300 jobs.

The paper reports that the Women’s Opportunities Resource Center is using its $100,000 in funding to give female entrepreneurs microloans to buy equipment or make other purchases. At the same time, the Philadelphia Development has taken advantage of a city contract to give support and advice to entrepreneurs interested in forming a company.

A recent Conexus report says that Pennsylvania has a number of factors which make it a positive environment for business. The report gave the state an A grade in terms of its skilled workers, and a B in four other categories.

A new proposed tax cut would allow business owners to deduct 50 percent of the cost of a new equipment purchase made through the end of the year.

"This tax cut provides a double benefit by creating an opportunity for small businesses to purchase new equipment while also helping the companies that manufacture and sell equipment to small businesses," Montana Democrat Max Baucus said in a statement.

This kind of tax break- called bonus depreciation – can make it easier for companies to purchase the equipment they need to start a corporation.

An identical tax cut had been in place in 2009 – after being included in the federal stimulus bill – but it expired at the end of the year. The measure also has bipartisan support on the Senate finance committee from Baucus and Iowa Republican Charles Grassley.

The tax cut is expected to be added to the much larger small business legislation. Lawmakers in the house passed their own small business bill last week. Reuters expects that the Senate will continue its work on the bill over the next couple of weeks.

BALCONY, the Business and Labor Coalition of New York, is urging lawmakers to approve the state’s proposed 2010-2011 budget, which contains a $50-million small business loan fund.

The group says that the fund would provide enough loan capital to help 1,000 small businesses and give encouragement to entrepreneurs interested in forming a company.

"Providing small businesses with access to capital in New York State is critical," said Bruce Ventimiglia, co-chair of BALCONY and chairman and president of Saratoga Capital Management. "Not only would the fund encourage growth in the small business sector, but it would also create badly needed jobs for New Yorkers."

BALCONY says that small businesses with fewer than 100 employees make up 98 percent of all New York companies and are responsible for half of all jobs in the state.

The state’s budget has been stalled since lawmakers missed the original budget deadline of April 1. Since then, lawmakers have used a series of one-week spending bills to keep the state government running. Governor David Paterson has set a June 28 deadline for budget negotiations.

Democrats in the U.S. House of Representatives passed their second small business bill in as many days last week after pushing through a $30-billion loan fund aimed at helping community lenders get loans to entrepreneurs looking to start a corporation.

The loan fund was first proposed by President Barack Obama earlier this year. Massachusetts Representative Barney Frank has said that the bill could unlock up to $300 billion in loans.

To access the fund, community lenders would issue preferred stock to the Treasury Department, and pay back the money they take over the next ten years.

The government would also collect dividends from the stock, but those dividends would be reduced for banks which lent more to small businesses – giving them a financial incentive to channel the money to entrepreneurs.

According to the Associated Press, Republicans have argued that the incentive is too weak, and doesn’t do enough to guarantee the money will actually help small business owners.

The loan fund will be combined with other small business tax breaks which passed the House earlier in the week. The Senate should begin debate on the package soon.