President Obama is expected to sign a $30 billion small business stimulus package today, a package that a small business leader in Missouri believes will help, but doesn’t go far enough.
This package allows small banks to access federal money similar to the fund established to rescue the nation’s financial sector in late 2008. Independent community banks may access the $30 billion lending fund if they agree to make loans to small businesses. It also provides $12 billion in tax cuts for small business. The Obama Administration claims the bill will create up to 500,000 new jobs.
Brad Jones, state director of the National Federation of Independent Business, calls it a bill that provides opportunity, but also a bill of opportunity lost.
“This isn’t exactly what you would call unilateral across-the-board universal help for every small business in the country,” Jones tells the Missourinet. “This bill is great if you are going to do some renovations. This is good if you’ve got health insurance and you are an employer and you want to take that deduction, but this bill will require you to do some things.”
The opportunity lost, according to Jones, came in the Senate which failed to remove a provision in the health care law requiring businesses to file 1099 forms for anyone doing $600 worth of business with the firm.
Jones also would like to see Congress extend the Bush-era tax cuts.
“We really as a small business community in Missouri can’t afford to see those tax rates jump at a time when we are in really precarious economic situation in the state,” Jones says.
Jones says small businesses need to know their fixed costs before they can make plans to expand and add jobs.