Morning Mix: States Struggle to Support Small Business, Embryonic Stem Cell Research Banned

Tough times for state small business programs: With states in dire budget straits, their programs aimed at boosting small businesses are facing similarly tough times. (CNN)

Philly aims to tax bloggers: Bloggers who have turned their hobby into a business, even a very small one, better look out if they’re in Philadelphia. The city wants to collect taxes from anyone who makes money on a blog. (Reuters)

Embryonic stem cell funding banned, again: One of the most potentially promising, lucrative, and politically divisive areas of research in biotech has been dealt a setback. A Federal judge has put a hold on federal funding for embryonic stem cell research. (New York Times)

Egg recall pushes restaurant changes: The far-reaching recall of eggs for fear of Salmonella is changing the way small businesses like diners and restaurants serve the staple. (Boston Globe)

Dell aims to up 3Par offer: The bidding war for data storage firm 3Par is likely to heat up in coming days, as Dell Inc. prepares a new offer to compete with Hewlett-Packard. (The Street)

“Tax Lady” in trouble: California officials have sued attorney Ronnie Lynn Deutch, who advertises herself on television as the tax lady, for $34 million, alleging she defrauded clients. (Los Angeles Times)

TPG setting up China fund: Private equity firm TPG Inc. is joining Blackstone Group and Carlyle Group in setting up a fund designated in Chinese currency. TPG’s aim is to build a fund worth $740 million in the Chinese currency. (Bloomberg)

More business intelligence from Portfolio.com

No accounting for fraud: Philadelphia's Third Circuit Court of Appeals ruled that auditors can't be held liable if their clients cook the books. What, then, is the point of having them?

Factoring in future profits: Many small businesses are looking beyond banks and turning to alternative financing methods including factoring—which sells their future invoices to a third party at a discount for immediate cash.

Banking crisis hits home: Sonoma, California, is in many ways a model for small-town small-business participation in the global economy. But now the negative trend of small banks failing has hit this town too.