Stimulus Bill Offers Help To Businesses!
After a series of compromises in Congress, President Barack Obama signed a $787 billion stimulus bill into law this week, hoping to jumpstart the economy with tax breaks and government spending. The legislation, named the American Recovery and Reinvestment Act of 2009, specifically provides $730 million to the U.S. Small Business Administration (SBA). "The tax incentives and credit stimulus elements of the Recovery Act will truly help small business owners affected by the credit crunch, and will provide financing opportunities to help them create new jobs in their communities," says Acting SBA Administrator Darryl K. Hairston.
The new plan should also begin to help the flow of credit back to businesses in the U.S., a cash pipeline that has been severely crunched for the past year. The legislation will allow the SBA to guarantee a greater number (90%) of government-backed loans, offer new loans designed to help businesses cut debt and temporarily reduce or eliminate participation fees in loan programs. The additional funding will be partly used to try to unfreeze lending markets and encourage the cooperation of banks that have recently refused to extend loans. "We are going to be part of the solution, and this bill gives us specific tools to make it easier and less expensive for small businesses to get loans, give lenders new incentives to make more loans, and help restore healthy SBA secondary markets to boost liquidity," says Hairston.
The stimulus bill also provides opportunities for tax credits. For example, businesses that hire an unemployed military veteran or a high school dropout could receive a $2,400 credit per worker. Businesses can now also claim a tax deduction of up to $250,000 for equipment purchased in 2008, double the amount allowed in 2007.
The new SBA programs will only be offered for a limited time. The so-called "emergency" funding will be available through September 2010, with small businesses receiving priority status. For more information on how businesses can benefit from the stimulus bill, go to the SBA Web site at www.sba.gov.
The new plan should also begin to help the flow of credit back to businesses in the U.S., a cash pipeline that has been severely crunched for the past year. The legislation will allow the SBA to guarantee a greater number (90%) of government-backed loans, offer new loans designed to help businesses cut debt and temporarily reduce or eliminate participation fees in loan programs. The additional funding will be partly used to try to unfreeze lending markets and encourage the cooperation of banks that have recently refused to extend loans. "We are going to be part of the solution, and this bill gives us specific tools to make it easier and less expensive for small businesses to get loans, give lenders new incentives to make more loans, and help restore healthy SBA secondary markets to boost liquidity," says Hairston.
The stimulus bill also provides opportunities for tax credits. For example, businesses that hire an unemployed military veteran or a high school dropout could receive a $2,400 credit per worker. Businesses can now also claim a tax deduction of up to $250,000 for equipment purchased in 2008, double the amount allowed in 2007.
The new SBA programs will only be offered for a limited time. The so-called "emergency" funding will be available through September 2010, with small businesses receiving priority status. For more information on how businesses can benefit from the stimulus bill, go to the SBA Web site at www.sba.gov.
Add a Comment
Let's Get Growing
Diamond Member Posts
© 2009 StartUp | Report Spam and Scams |
You need to be a member of StartUp to add comments!
Join this Ning Network