< :: June, 2010 :: >
| S |
M |
T |
W |
T |
F |
S |
| 30 |
31 |
01 |
02 |
03 |
04 |
05 |
| 06 |
07 |
08 |
09 |
10 |
11 |
12 |
| 13 |
14 |
15 |
16 |
17 |
18 |
19 |
| 20 |
21 |
22 |
23 |
24 |
25 |
26 |
| 27 |
28 |
29 |
30 |
01 |
02 |
03 |
|
|
The Stimulus and Small Business: What's In It For Us?
We've had a number of small businesses wondering how the recent passing of the stimulus package will ultimately affect their bottom line. Based on our preliminary research, the following seems to be of importance for small business owners.
1. If you lost money. Some small businesses will be able to use monetary losses to their tax advantage. To qualify your gross receipts have to fall at $15 million or under. You can use your losses to alleviate your tax bill for two years prior to the loss and 2 years following the loss. Ask your accountant about this important change to the tax regulations.
2. Money for equipment. A business can normally write off up to $125,000 in spending for equipment such as vehicles, machinery and computers. In 2008, that amount was temporarily increased to $250,000. The stimulus package maintains the $250,000 level through 2009. However, if you already spend more than $800,000 on these types of capital expenditures, the deduction is phased out. For this reason it is geared more toward small business spending.
3. Hiring tax credits. You can receive a $2,400 credit per worker on your taxes providing you hire a worker who falls in a targeted group of disadvantaged individuals. The Work Opportunity Tax Credit allows a 40% tax claim on the first $6,000 in wages paid to such a worker. Two new categories of disadvantaged workers have been added to the new package. These include veterans who have been unemployed for at least 4 weeks and left the military within the past 5 years, and disconnected youth, with disconnected being defined as between the ages of 16-25 with no formal education and no work in the past six months.
4. Increased SBA Microlending. An additional $6 million is allocated to microlending, loans of $35,000 or less, through SBA sponsored non-profit lending organizations.
5. Increased guarantees for 7(a) loans. The SBA has also been authorized to temporarily eliminate or reduce fees on their loan guarantee programs, and increases the amount of the guarantee to 90% for qualified loans up to $150,000
Although there is alot more to the stimulus package than these items above, we feel that the impact of what is left does not affect ALL small businesses, but may be geared toward certain industries and certain types of businesses. The above four points affect ALL small businesses.
As the new details of the stimulus get known, we will keep you updated.
For training and counseling needs for small businesses and entrepreneurs, please visit our website www.MTSACSBDC.com
To read a very good article on the full package from Forbes, click here.To read a very good article on the full package from Forbes, click here.
AMERICAN RECOVERY AND REINVESTMENT ACT
A QUICK REFERENCE GUIDE
On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act into law designed to get our economy back on track. The Act contains elements that will help to unlock credit markets and begin economic recovery for the nation’s small business sector. Following is a brief summary of the elements of the act, pertaining to the U.S. Small Business Administration.
• BUSINESS STABILIZATION LOANS
Creates new SBA loan program providing deferred-payment loans up to $35,000 to viable small businesses to make payments on an existing, qualifying loan for up to six months. Loans will be 100 percent guaranteed by SBA. Repayment begins 12 months after loan is fully disbursed. Bill provides $255 million for this new program.
• MICRO-LOANS
$50 million more for third party lenders and $24 million for the technical assistance they provide. This program focuses on loans up to $35,000.
• LOAN GUARANTEES
$255 million to allow the SBA to raise, temporarily, its guarantee to as much as 90% for 7(a) loans, excluding SBA Express loans. Maximum guarantees are now 75% for loans of more than $150,000 & 85% for loans of $150,000 or less.
• FEES
$375 million to temporarily waive or reduce fees in the 7(a) and 504 loan programs. Small-business borrowers have priority, followed by lenders with less than $1 billion in assets, then by large lenders. This will lower loan costs for borrowers and lenders.
• INVESTMENT PROGRAM
The bill helps SBA-licensed Small Business Investment Companies (SBIC's) by increasing the leverage of the capital they use to invest in small businesses by setting maximum levels of funding up to 3 times the private capital raised, or $150 million, whichever is less.
• SECONDARY MARKETS
To help unfreeze the secondary market in which third-party investors buy SBA 7(a) loans that banks have sold to broker-dealers; the bill allows the SBA to make loans to broker-dealers and guarantee as much as $3 billion of existing debts in loan pools that are currently not guaranteed. This is crucial, as the secondary market froze in the face of the sub-prime mortgage crisis. A secondary market is also to be created for the 504 loan program.
• SURETY BONDS
$15 million for the SBA's surety bond revolving fund and a temporary increase in the SBA guarantee limit on surety bonds to a maximum of $5 million from $2 million and in some instances $10 million. This will assist construction companies in acquiring the necessary bonds required for contracts.
For any updated information, contact the San Gabriel Valley SBDC at 626-337-2101 or visit
www.SanGabrielValleySBDC.com
03/09/2009 01:29 PM - 1985 - 03/02/2009 03:48 PM |
|
|
 |
|
Print
eMail