"We believe small businesses are the engine of economic growth in this country." - Barack Obama
When the President took office, small business lending had
plummeted, with the number of loans dropping by nearly half in just the
last quarter of 2008. President Obama helped jumpstart business growth
and new hiring, helping those struggling under the burden of a credit
crunch created by the Wall Street meltdown.
Since January 2009 the Small Business Administration has
supported more than 150,000 small businesses with nearly $80 billion in
loans—a record for SBA 7(a) and 504 program lending.
To ensure that small businesses have access to the loans they
need, the Small Business Jobs Act provided loan guarantees and reduced
Download this fact sheet for more information on President Obama’s accomplishments for America’s small businesses.
18 Tax cuts to help businesses grow
President Obama cut taxes for small business owners 18
times, and signed into law $200 billion in tax relief and incentives to
encourage businesses to create jobs, invests, and grow. The Small
Business Jobs Act made 4.5 million small businesses eligible for a
larger tax break on new investments in equipment and machinery.
Reducing health care costs
President Obama is making employee health care more
affordable for small businesses. Obamacare’s new tax credits are
leveling the playing field with big businesses by helping small-business
owners attract and retain skilled workers.
Thanks to the new health care law, small businesses are now
eligible for tax credits to help cover the cost of their employees’
health care. This helps small businesses afford insurance for their
workers and compete with larger companies, saving an average small
business with 10 workers up to $35,000 a year, which will increase to up
to $50,000 when those tax credits expand in 2014.
Currently small businesses pay up to 18% more than large
businesses for the same health coverage. Thanks to Obamacare, starting
in 2014 they’ll have the same purchasing clout as big businesses through
new state-based affordable insurance markets, leveling the playing
field and lowering costs for millions more small firms.
The President’s Small Business Jobs Act let self-employed
workers deduct 100% of the cost of their and their families’ health
coverage in 2010 to help them weather the recession.
Download this fact sheet for more information on how the Affordable Care Act helps small businesses.
Promoting startups and entrepreneurs
President Obama is helping cultivate the high-tech startups
that keep America on the cutting edge, paving the way for the
high-growth industries of the future.
The President is promoting American entrepreneurship and
innovation with the Jumpstart Our Business Startups Act, which will help
growing small businesses access financing while keeping investor
protections in place.
President Obama partnered with businesses to launch Startup
America, giving the most promising high-growth entrepreneurs the
financing and support they need to grow their businesses and hire new
The President doubled entrepreneurs’ tax deductions in 2010 to cover startup costs as they got new businesses off the ground.
Forward: Continued support for small businesses
President Obama believes that supporting entrepreneurs and small businesses is vital to creating an economy built to last, in which
hard work pays off and responsibility is rewarded. Here are just some
of the additional plans he’s put forward:
As part of his To-Do List, the President is calling on Congress
to give small businesses a 10% income tax credit for hiring more
workers, and extend 100% expensing for new investments in 2012 for all
President Obama wants to eliminate capital gains taxes for key
small-business investments, and double the amount of start-up expenses
that entrepreneurs can deduct.
As part of the President’s framework for corporate tax reform,
he has proposed allowing small businesses to expense up to $1 million in
investments while simplifying the tax code for small businesses.
To lower costs for entrepreneurs starting new businesses,
President Obama has also proposed permanently doubling the deductible
for startup costs to $10,000 from $5,000.
Bottomline: Small Business has rebounded under President Obama. In 2009, over 701,000 new businesses were formed; in 2010, 742,000 new businesses started; in 2011, the number increased to 758,000 new businesses. The proprietors' total income increased from $941 billion in 2009 to $1.036 trillion in 2010, and grew further to $1.109 trillion in 2011. Business bankruptcies which peaked in 2009 at over 60,837, decreased to 56,282 in 2010 and further declined to 47,806 in 2011.
In summary, Small businesses continue to show signs of growth. Business births, self-employment, and proprietor’s income are rising, while business deaths and bankruptcies are declining.