Contractor No Work - What Would You Do?

[Chris S.]

I was working w/ a general-ish contractor, but paying for the subs myself.  He hired a guy he knew for the electric and signed a contract with him, then gave him one of our checks for $1000 as a down-payment.  He didn't get the permit to go through for a while, we ended up cutting ties with that general contractor and the electrician still has our money and did not do any work.  I called 5 days ago with no return call.  He is licensed and has something to lose.

What would be your next steps of action?  Small claims court, collection agency, lawyer note, etc.

Thanks for any help you can give!