President Obama’s Plans for the Small Business

No matter what the state of the world may be now with all of the corporations and mega-companies that are out there, it all began with the small business.

By: Roger Huff

No matter what the state of the world may be now with all of the corporations and mega-companies that are out there, it all began with the small business.  Many of these businesses are still small, entrepreneurial ventures with fewer than 100 employees.  Approximately ninety-eight percent of all businesses in this nation are small ones.  The financial crisis that has this country by throat right now is even more deadly to these small businesses.  The local owners do not have the revenue and stockpiles of money to last out a “deppressionesque” recession.  That is why we as business owners must turn to Washington for answers.  Those answers are beginning to come out.  Here is a look at some of the things that Barrack Obama has put forward to help us as small businesses. 

One thing that came about from the American Recovery and Reinvestment Act is the increase in funds to the Small Business Association (SBA).  With just under $200M added to this organization, it will now be easier to get approved for a federally backed loan.  The SBA uses these funds to help subsidize small business loans for new entrepreneurs, making it easier to get approved regardless of past personal credit.  This can help a lot of newer or start-up companies to get the funds that they need to realize their dream and open their shop.  Regardless of location, products, services, or anything else, anyone can apply for this aid and live the dream of being their own boss.  Visit the <a href:”http://www.sba.gov/”>Small Business Association’s web site</a> for more information about this program.

The Green for Green initiative of this Act is another way for the small business to get a little financial help.  Many small businesses can help each other by offering products and services to each other in trade.  Even if you can not trade, many of these green upgrades are part of normal operating expenses that can now be covered with tax credits.  By making your small business green, you not only attract more customers and good publicity, but now you can also make some much needed cash in the process.

The Restorative Refunds section can also help the small business.  This portion is specifically targeted to any business with less than $15M in gross receipts (total money received from all sources).  This extends the amount of years that you can write off operating losses as a tax break.  This will free up a lot of tax money and debt that can then be used to invest in your business.  By increasing the ability to write off operating losses, this law greatly increases the amount of assets that the owners have to spend on other needed investments.

Grants were also increased for any business that wishes to research better or new business practices. The Small Business Innovation Research (SBIR) grants and Small Business Technology Transfer (STTR) programs allow the entrepreneur to research these new methods and incorporate them into their businesses.  Not only does this save a lot of money for the small business, but it also strengthens the privately owned companies in their field.  By keeping the little guy on the cutting edge, this administration is leveling the playing field. Because of these programs, “Bob’s Bargain Electronics” can now compete with the likes of Best Buy and other electronic power houses.  It also allows for the independent business to research their own methods and advance the technologies themselves. 

There are many other benefits out there for the small business and many more are in the works right now.  It is apparent that many in Washington now understand that by helping the small business, the entire economy and job market benefits.  The more the little guy grows, the more he hires and the more we can compete on the global level.  By pushing the small companies to create the new technologies, we can once again put the United States at the leading edge of technology and innovation.  Not only will this improve our national market but the markets around the globe.  The Earth’s economy is based off the dollar and the dollar is greatly affected by the health of the small business.  By increasing the funding going to these companies, these new measures are sure to bring this country out of the hole in which we have fallen. It will be on the back of the small business that this country will emerge.  It is this logic that has driven Washington to start backing the small business.