Banks urged to lend
President Barack Obama today announced a plan to help get “the heart of the American economy” beating regularly again. Much of the effort is aimed at encouraging banks that received bailout money to give small business loans.
Why small businesses?
Obama stressed that small businesses were responsible for 70 percent of the new jobs that were created in the past decade. That’s why, he said, the White House is dedicating $15 billion toward unfreezing the secondary credit market and giving small businesses tax breaks.
Obama said the administration will also require the 21 largest banks that got bailout money to report on long- and short-term loans and other credit they give to small businesses.
Tax cuts in the works
Treasury Secretary Timothy Geithner outlined the tax help that small businesses will be eligible for. He said small businesses:
- That earn up to $15 million will be allowed to claim losses for the past five years in the current tax year.
- May write off up to $250,000 in investments this year.
- Can reduce estimated tax payments to 90 percent of the previous year’s filing.
- Are allowed to take larger depreciation deductions within the first year of property purchases.
- And will see 75 percent of capital gains excluded for those who invest in small businesses.
More help on the way
The money for the mall business aid comes from the economic stimulus package and costs a total of $730 million. The plan also includes reducing lending fees for small businesses.
In addition, the government will guarantee some loans through the Small Business Administration to the tune of 90 percent.
Parting words
Obama discussed the plan in a speech at the White House today. The small audience was mostly made up of small business owners.
“As president I will continue to do everything in my power to ensure that you have the opportunity to contribute to your community, to our economy and to the future of the United States of America,” Obama said.
Super firms are failing now!
All the super huge firms that now are receiving bailout funding for executive bonuses, all started as small businesses. All the most successful enormous firms began small – John Rockefeller, richest man EVER, began as an accounting clerk, Microsoft started in Bill Gates’ garage – today’s small business is tomorrows’
It’s about time small businesses were recognized for their value.
Small businesses are the backbone of America. All the super huge firms that now are receiving bailout funding for executive bonuses, all started as small businesses. All the most successful enormous firms began small – John Rockefeller, richest man EVER, began as an accounting clerk, Microsoft started in Bill Gates’ garage – today’s small business is tomorrows’ enormous multinational, which is why small businesses need more protection than irresponsible and self important laughingstocks such as AIG.