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Posted on Tue, 02/7/2012 - 04:30 PM by
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President Obama is urging Congress to support legislation to expand tax cuts for small businesses and free up capital for startups.
His proposed “Startup America Legislative Agenda,” would eliminate taxes on capital gains in investments in small businesses and provide a 10 percent income tax credit on for new hires or to spur job-creation, double the deductions a startup business could take from $5,000 to $10,000, and extend 100 percent first-year depreciation for qualified property. The President will offer details of his proposals in the fiscal 2013 budget that will be submitted to Congress on February 13. In an election year in which the economy will likely be the determining factor, both Democrats and Republicans will want to be seen as supporting small business, and cutting taxes is always popular with the electorate. The White House sees small business growth as a primary driver of the economy. In fact, my company has been providing data on loan approval rates at big banks, small banks, credit unions and other alternative lenders to the President’s Council of Economic Advisers for the past several months. While the economy has risen above the dark period in early 2009 when the country was in a tailspin, the recovery is far from complete. Credit markets are still tight for entrepreneurs, and big banks, in particular, are making it more and more difficult for startups. For example, many ask for three years’ worth of financial data before granting loans. How can a startup provide such numbers? Therein lies the challenge. President Obama is positioning himself as an advocate for entrepreneurship and innovation. It is a good platform for reelection. Recently, he elevated Karen Mills, head of the Small Business Administration (SBA), to be a member of his cabinet. The President called this decision: “A symbol of how important it is for us to spur entrepreneurship, to help startups, to move aggressively so that we can assure more companies that create the most jobs in our economy.” The SBA has been instrumental in getting funding for startups, particularly during a period when financial institutions have been reluctant to lend. The agency’s 90 percent loan guarantee program was very successful, and only a very small percentage of SBA-backed loans defaulted. Although it is admirable that the President is trying to be innovative, I believe the government’s most effective vehicle to help small companies has been the SBA, which was created by President Eisenhower almost 50 years ago. Ironically, it has been the Republicans who have called for the scaling back of the agency. President Obama has repeatedly bolstered the SBA, and its loan programs have helped countless businesses get the funding they need for growth. President Obama Photo via Shutterstock MORE NEWS FROM SMALL BUSINESS TRENDSNominations Are Open for the Small Business Influencer Awards!Does a special person or company come to mind when you think of someone or something important in the world of small business? Perhaps you think of a client of yours. Or maybe a favorite vendor or supplier, or a software app that has transformed your small business or made it more profitable. Or perhaps you think of a favorite journalist who covers issues important to small businesses. G8 Leaders Call for Growth: Six Things You Can DoLeaders the world over including those at this week’s G8 Summit are calling for economic growth, not just budget tightening, in an effort to combat world market instability and speed recovery. But for all the talk in policy circles, this growth will ultimately come from the private sector and especially here in the U.S., from small to medium sized businesses that create many of the jobs and employ many of the workers already in our economy. Here’s a look at the economic growth G8 leaders are calling for and six things you can do to promote growth in your business today. Can a Gas Tax Fuel Clean Energy Innovation?With gas prices already reaching nearing $4 per gallon in many places, most business owners don’t relish the idea of them rising even further. Yet, some people are still calling for the government to deliberately increase them – by raising the gas tax. What Job Are You Helping Your Customers Do?Marketing is often described in terms of a product life cycle. The development, the launch, continued support, and finally, discontinuation all have specific marketing efforts associated with them. From social contests to reduced prices and giveaways, the emphasis is nearly always on the product or service provided. However, this does not take into account the way that customers actually search for and find products. Small Business Loans and Small Loans to BusinessA few weeks ago, I wrote about the decline in “small loans to business” during the Great Recession and economic recovery that followed. Now I am back to tell you that data on “small business loans” paints an even worse picture of the small business credit markets. RELATED SMALL BUSINESS NEWSHow Ads on Your Site Can Affect SEO (Video)Your search rankings could be suffering if there are a number of advertisements above the content on your website. ... SBA Seeks to Boost Small-Dollar Loans With New Push (Video)The SBA is looking to increase the number of smaller loans in underserved communities with a new push. ... You’re the Boss Blog: A Start-Up Wants to Help You Cut Through the Clutter and Noise OnlineOne concern: the pitch could have done a better job of discussing the potential for competition. ... First State Bank Of Nebraska Recognized As Community Lender For 2012The First State Bank of Nebraska has been recognized as the Rural/Community Lender of the year 2012. SBA has recognized the bank for its efforts in Nebraska. State Bank Nebraska has served the community in a number of ways. Want the Right Stuff? Start With Your Help-Wanted AdA top-performing team starts with writing a thorough and accurate job description. Consider these five tips. ... |
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