I’ve been reading a range of coverage related to President Obama’s credit plan for small businesses, announced March 16. The Associated Press offered the following bullet points summarizing the plan — but I wonder: Will managed service providers (MSPs) and VARs benefit from the strategy?
According to AP, the small business plan aims to get small business credit flowing by:
- offering $15 billion in federal funds to ease credit
- reducing lending fees
- Increasing loan guarantees
- Easing tax burdens
Also, under the programs, the AP says businesses may:
- Claim losses for the past fie years in the current tax year (for businesses with up to $15 million in earnings)
- Reduce estimated tax payments to 90 percent of the previous year’s filing
- Take larger depreciation deductions with the first year of property purchases
- See 75 percent of capital gains excluded for those who invest in small businesses
Of all the items above, I particularly like the last bullet: I think entrepreneurs and those who invest in small businesses should be rewarded for their efforts. But it’s a tricky situation: Not all small businesses will survive, and some small business plans are full of holes — so should entrepreneurs be rewarded with tax breaks for investing in pathetic businesses?
Another area I’d like to hear more about: Health care in small businesses. I’m not seeking government handouts, but health care costs often prevent small businesses from (A) making new hires or (B) investing in other areas, such as R&D.
I remain convinced that innovative entrepreneurs — with or without the government’s help — are going to lead the US out of the recession. And frankly, I’ve learned to focus on our business plan rather than government assistance plans.
But I’m curious to know if MSPs and VARs are keeping tabs on President Obama’s small business credit plan.
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The feds can try anything they like to help small businesses but ultimately responsible consumers and creative entrepreneurs are the people who are going to lift the USA out of this mess.
The government should have alloted more money to small businesses. Over the last 20 years, 70% of job growth has come from small businesses. They are just throwing money away giving it to failing corporations and banks, who are not lending out their new reserves.
Jerry: As a small-business co-owner, I do worry about how the potential health care policy changes will impact our company costs.
On the one hand, I remain an optimistic American because our company has the freedom to innovate, create and compete. But on the other hand, mounting government debt will increasingly impact businesses and consumers… …. …