Stimulus Opportunities for Small Businesses

The federal Recovery and Reinvestment Act passed in February offers a lot of help for small business owners during these trying times. It includes provisions for businesses that need financing, ones that posted net operating losses and for those looking to expand.

Are you looking for funding? The Small Business Administration has been allocated an additional $6 million to microlending. It has also been authorized to temporarily eliminate or reduce fees on its loan guarantee programs, and to increase the amount of the guarantee to 90% for qualified loans. Click here for more information about changes to SBA's lending and investment programs that will help small businesses. The Recovery Act also has incentives for investors to put money into your business, including a measure that will exclude 75 percent of the capital gains for investors in small businesses who hold their investments for five years from taxation.

If you lost money, you may be able to deduct your net operating loss (NOL) from your taxes, carrying them back up to five years. The Pennsylvania Small Business Administration has more information on what to do and if you’re eligible, including this article.

For businesses looking to expand, the stimulus bill provides money for equipment and tax credits for hiring new employees. There is a $250,000 new equipment write-off through 2009 for qualifying companies. Also, businesses can receive a $2,400 per worker tax credit for hiring workers who fall into a select group of disadvantaged individuals and 40% tax claim on the first $6,000 in wages paid to these workers.

For more detailed information on all stimulus provisions for small businesses, visit www.pasbdc.org. Click here for a checklist for recession survivals for small businesses.