How the FY2014 budget will help Small Business
Last week we talked about some of the opportunities in the President's proposed new budget for FY2014. I would like to look at more of the specifics of how that might translate into something good for small business. The Office of Management and Budget issued some insight to the thinking behind the FY2014 budget. The main emphasis is, of course, to help build-up and support a strong middle class in America. These programs are seen to either support that or help Americans reach that level. The main thrusts of the budget are:
- Spur job creation by enhancing small business access to credit - this initiative has several thrusts. The budget supports development of SBA ONE which is a one stop lending platform aimed to simplify the loan process for both lenders and borrowers. Also, the budget supports $16 Billion in SBA 7(a) loan guarantees, $6 billion in guaranteed SBA lending for commercial real estate development and heavy machinery purchases, $4 billion in Small Business Investment Company (SBIC) debentures to support new businesses and new jobs through early-stage and mezzanine small business financing and $18 million in direct loans, for intermediaries to provide small loans to emerging entrepreneurs and other borrowers unable to receive credit elsewhere.
- Cut taxes to small businesses seeking to grow and expand - There are proposed tax credits for new hires as well as tax incentives for expansion in both plants and equipment.
- Boost investment in small business - A proposal to eliminate the capital gains tax on investment in small business stock.
- Promote Impact Investment in Economically Distressed Regions, for Disadvantaged Groups, and in Sections of National Significance - Provide support to investments in areas under-served by venture capital.
- Help Innovative Small Businesses Obtain Early-Stage Financing - Up to $200 million in guaranteed debentures for matching funds will be available in 2013 to investors seeking to support innovative companies ramping up their operations and creating new jobs.
- Improve Small Businesses and Exporter Access to Federal Services - Creating a "no wrong door" policy so that small business seeking help from the government feels like they are dealing with one organization, no matter what agency or resource they start with.
- Help Small Businesses Connect to Regional Innovation - $3.4 Million from the SBA to foster local business development including things like enhancing the Mentor-Protégé program.
- Strengthen Small Business Exports - The Budget proposes $517 million for the International Trade Administration (ITA) to continue implementation of the National Export Initiative.
- Double the Small Employer Pension Plan Startup Credit - The budget proposes to double the tax credit for small business (less than 100 employees) for qualified retirement plans or SIMPLE plans.
- Help Small Businesses Provide Health Insurance to their Employees - The budget proposes to expand and simplify the credit for this from the Affordable Health Care Act.
You can see more from the OMB website on some of these if you like by clicking here. Again, like we discussed last week, this is just a proposal at this point. No telling what may happen after Congress gets through with this. Stay tuned. There look like there will be some good things for small business.