On February 18, 2009 the much awaited and also the much needed American Recovery and Reinvestment Act was signed by President Barak Obama. This act is better known as the Economic Stimulus Bill created history in United States because the spending act is the country’s largest legislation in history and is aimed at rejuvenating the ailing economy by providing stimulus to different sectors.
Along with many other provisions, this stimulus bill also contains provisions for small business benefits. We all know the importance of Small Businesses in the country as they provide employment to more than 40% of Americans.
As the American economy is facing its worst days since the Great Depression of 1929, various sectors and a wide range of individuals have suffered the wrath of this ailing economy. Along with the big business houses, the poor economic conditions have also greatly affected the small businesses. The provisions in the stimulus package aimed at these business have been outlined below.
Small Business Stimulus Plan
Tax deduction under section 169
Under this deduction small businesses can in some occasions write off certain qualified plant and equipment purchases in a calendar realist year. Till last year this deduction was limited to only $ 128,000 and also could not be more than the income of the small business. Now the stimulus Bill will benefit the small businesses by increasing this deduction to $ 250,000 yearly beginning in 2008 tax year. However the type of equipments that a small business buys is important for receiving this deduction. It can not applicable for land, buildings and other improvements. It is only applicable for things like computers, vehicles, office equipments and like things.
Special Depreciation Deduction
Another provision included in the stimulus Bill for the benefit of small businesses is special depreciation deduction. Small businesses can apply for a special depreciation deduction for the year 2008.This will help you, for example, if you purchase a land or any property that you can not include under the section 179 deduction during 2008 then you can be able to depreciate 50% of it’s value during the financial year 2008 with the help of this provision. This will help you to utilize the remaining 50% of the value of that land or property for calculating your regular depreciation tax deduction.
Miscellaneous tax cuts
Small business owners can also enjoy certain tax cuts by showing miscellaneous expenses. The expenses for promotions directly related to a small business can be included in the miscellaneous expenditure. The small businesses can delay the payment of 3% withholding tax in goods and services to the government. Moreover, those share holders of publicly owned small businesses who are holding the shares for more than five years can receive a special capital gains tax cut.
Job creation
Those small businesses which employ workers who have been out of job for more than six months and also those students who left school six months back and are still unemployed, will receive special tax credits under this provision.
Small Business Administration Benefits
The Stimulus Package also clearly outlines the role of Small Business Administration (SBA). The SBA will ensure that the small businesses can more easily get loans and also will offer incentives to lenders who will give the loan for small businesses. This will ensure more capital flow in the market.
I own a plumbing&heating company for more than 20 years. I’m afraid
to lose my house&truck. I’ve been to unemployment&welfare no one can
seem to help me.I will be lucky to make $6,000.00 this year.
Is their any emergency money out there any where.
Looking foword for a reply.
I am a small business owner that is looking for investments, partnerships, etc. If you think that you can be of assistance and that I can assist you, let me know via email at cgegoenterprise@mailier.com
I need big help!!! I own small business named Super Dollar Store cense Juliet 31, 2008 to September 2009. I worked hard full time with my family but I didn’t get any salaire. rent was very high 40064. I didn’t find any money to paiy it because I use to make like only $ 850 a mounth so after 9 mounth I going out of businesses. So I’m sitting home waiting help and looking a job. I used credit card and persenelle loan I don’t know where I will find the money to paiy it back.please help me
I own a small heating and air conditioning company in PA. We mostly do installations in new construction homes. The biggest problem we face is collecting on our receivables. Why can’t the government buy our receivables. This would put the builders on the hook to the government instead of the small contractor who take the loss when the builder closes the corporation started for that particular job yet goes on with their other jobs as if nothing has happened. This would allow us to pay our bills and support other businesses in the supply chain.
Thanks
How and wear can I go to get help fo my small bussiness. Need help in finacnceing money so can advertise my Lawn care ,and Handyman services! I don’t have pc at this time and half to go to library. Wear can go here in Minneapolis,Minnesota to get funds help me business out but need grant if possible. Heard that is money avaliable but don’t know wear I have to go. Do have my bussiness name registored with State. Minnesota. Tom’s Lawn Care and handyman Services! Get my bussiness up going get enuff clints can start hireing for extra help in services! tom
After talking to alot of people.I really think that Goverment dont care about the working people.They love the taxes money.But as WE THE PEOPLE.ha,ha
It seems we are just that MONEY.
For ever long we manage to stay on the board.Good luck!
We here in this small company.we stay.god willing.
Im not sure the goverment believe in god any more any ways.
I am a small business owner, looking for funding from the Obama stimulus money to stay open…Attleboro City hall denied this small business owner a grant. Attleboro City hall, Salvado A. Pina, Community Development Director said, they have the grant money available, but theyre not giving it to anyone….what’s up with this….
What help are small business getting except going out of business?
The business is called, jahadabotanicals & Company….it’s an all natural body product company. Unfortunately without any City help, July 2010 this small minority, woman own business will go out of business. Folks with disabilities is employed in the store, they will lose their jobs as well…who out there is really helping the people with all of this so call money to keep small business open…who qualifies?
We have been in business for 3 years, only to struggle since the downturn of the market. Prior to the blowout, Hills Shoes earned $450K annually, selling high-end men’s shoes. Previous owner developed a business that has withstood every downfall for 75 years. We assumed this business would be prosperous and take care of our family. Wrong, we open the doors to pay the rent, cannot afford supplies, employees, and keep the heat off to save on energy. Therefore we work in winter coats here in California due to the drastic weather change. We can look at it another way, “LOOK AT HAITI”, however we are in AMERICA the greatest country in the world.
PLEASE HELP: All we need is a small loan $100K no hand-outs.
I am a small drywall, metal framing contractor that has been in the trade for more than 20 years, and have owned my company now for 2 years. We have averaged 1.2 million in labor alone for those two years. I have a great deal of contracts signed at this moment, and need a financial backer to help me grow and to help with my overhead, such as payroll capital, and to pay my suppliers when bills are due. I’ve exhusted all the money I have and Im paying by credit card until checks come in, but it takes up to 60 days at times to receive funds due. Please if there is anyone who is interested in backing a hard driving, hungry to succeed person, please email me at tommy.sfcsi@gmail.com. Thank You Tommy Watson Southern Florida Construction Services Inc. 941-650-6482
I live in a small town and i would like to start a small business and i need help in doing this i have been on hard times in life and would like to do something for this community that i live in. there is not a place for the kids to go they walk the streets all day long and get into truble i would like to take over a bar/hall or open a new one for this community and i need the help this would also bring in more jobs for this area
what do i do to get help or grants ecet to do this please help
any ideas on what ican do please email stagecoach3@charter.net
thanks
I am a small business owner of a Medical Billing Agency for 19 years. I currently have 6 employees all of them have a family responsability. My business for 19 years now is currently not doing well at all. last Year alone I lost a lot of money due to the fact, some of my clients are forced to work for a Medical group or take a full time job in a hospital. This year, I am so worried about my business because I don’t have the money to market my business to get more clients or to compete with my competitors. It’s hard-wrenching for me to let go my workers because some of them are single moms and have a house to pay their mortgages. So, they will be forced to go to unemployment or facing foreclosure. I would like to know if there anyone out there, that can tell me where to go to benefit to the President’s stimulus plan for small business. Or if I can find a community Bank that can assist me on working cash so therefore, I can keep my business running until the economy gets better. and keep my workers that I have no mean of income than unemployment or welfare. Please help me to find a Bank or invester for microloan or maybe as a small business owner I can probably benefit for the new plan that President Obama just past for small business. Myself, I can face foreclosure as well if i can’t make it work for my business. Please I need help desperately and I do not have credit at all nor for my business. Please reply to it if you know good link. I do not wish to get those internet advertising that ask for me to apply for money. Because I do not have.
Please note, my office is in the suburb of New York . Suffolk Count.
Awaiting for help desperately,
Patricia