This is a guest post from Kimberly A. Porrazzo at Wobwire. Be sure to check out this great site for Women Owned Business.
Earlier this week President Barack Obama signed into law the Small Business Jobs and Credit Act 2010 (H.R. 5297). The bill aims to boost small business – the sector most agree is the economic engine of this country – by providing incentives and tax credits. Good news for most small businesses, although some say the bill is just another hit to our already strained budget.
Whatever your position, the new legislation has some hard-to-ignore benefits. They include:
– $30 billion in funds that will be funneled to community banks to lend to small business, thus easing the credit crunch
– Higher loan limits for SBA loans and loan fee waivers
– 100% capital gains tax exclusions for those investors that fund small business ventures
– Double the allowable deduction for startup expenses, from $5K to $10K
– Allows self-employed individuals to deduct their own health insurance costs
It’s time to get your tax accountant involved because there are more technical tax incentives than this blogger can adequately explain (or understand!).
So, what do women business owner think? How will this impact their businesses?
Kira Bruno, president, Fortis Resource Partners
“There is not much in this Act for me as a small business owner of an employee intensive business,” says Bruno. ” Companies that are more asset intensive will have a greater benefit from this new tax law. The cell phone is a small benefit, but most people have been disregarding the listed property rules anyway. The new equipment, etc. rules will help companies that buy assets to grow their businesses.
On another note, and something that is not part of the new federal law, my company gains the greatest benefit from hiring individuals that have been out of work more than 6 months; we get a new employee tax credit on the federal side and if we have net greater wages as a result of new employees on our total payroll over prior year we gain a tax credit on the state side.”
Cathy Daugherty, owner, Trademark Insurance
Cathy Daugherty suggests those that are impressed with the increase in SBA loan limits should check the latest statistic about the amount of SBA money NOT taken currently because of the strict bank regulations. She calls this ” … a frequent PR opportunity” by the Feds to raise the amount offered to the SBA. ” It really does not matter,” she says.
Second, Daugherty stresses that while credit may be easier to obtain, “I still need to consider paying it back with current business volume (which is) very unstable.”
If you’re a woman business owner, what are your thoughts?