Small Business Owners Rebounding under President Obama
- 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 fees.
- 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.
- 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 workers.
- The President doubled entrepreneurs’ tax deductions in 2010 to cover startup costs as they got new businesses off the ground.
- 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 businesses.
- 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.
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.
