Most small business owners will agree that 2009 was a tough year and they look forward to a true economic turn-around in 2010. Regardless of your political leanings, most agree that an important component to the success or failure of the economy in 2010 is government policy and initiatives. So, let’s take a look at the President’s State of the Union from the small business owner’s perspective.
Below are a four of the proposals and initiatives President Obama discussed and what it means for the small business owner.
“I’m proposing that we take $30 billion of the money Wall Street banks have repaid and use it to help community banks give small business the credit they need to stay afloat.”
Access to credit is vital to the small business owner, during good and bad times. Not only does it help businesses stay afloat during tough times, but it also affords businesses the ability to take advantage of opportunities. A recession and the resulting recovery inevitably comes with it plenty of opportunity. Don’t limit yourself to the local community bank. Diversify your business debt to include long and short term loans, equipment leasing, business cash advances, lines of credit and mortgages. Use each one when appropriate and get some advice when you need to about the best type of financing to use for your project or investment.
“I’m also proposing a new small business tax credit — one that will go to over 1 million small businesses who hire new workers or raise wages.”
Hiring new workers or raising wages will typically happen after revenues begin to increase, which happens after consumer confidence rises and they begin spending money again. Small business owners may not want to hire additional staff just to get the tax credit, unless it makes financial sense. However, the idea of a proposal that increases hiring and wages is news that will hopefully help raise consumer confidence, which in the long run is good for everyone.
“Let’s also eliminate all capital gains taxes on small business investment, and provide a tax incentive for all large businesses and all small businesses to invest in new plant and equipment”
The future success of our economy not only depends on the confidence of consumers, but also of small business owners to build the confidence to begin investing again into their business. Proposals like this, if they make it through the legislative process, could help raise the confidence level of this important group.
“We’re launching a national export initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security.”
You don’t have to be a big company to take advantage of the world market we live in today. If you aren’t selling your goods and services out of the US yet, check out these resources from Business.gov on Getting started in exporting. You may be surprised to find a new market you didn’t know existed for your product or service.
Is there anything else you heard in the State of the Union that will affect your small business?
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Photo Credit: Rennett Stowe