When I first heard about the proposed small business bill, I actually got excited thinking that finally I may get an opportunity to grow my business and expand. This may not be the case.
“The legislation – slated for a House vote Thursday – would establish a $30 billion government fund to help Main Street banks lend to small businesses.” “It also would cut their taxes and boost Small Business Administration loan programs.” “The new loan fund would be available to community banks to encourage lending to small businesses, such as factories with 500 workers or less.” “Supporters say banks should be able to use the fund to leverage up to $300 billion in loans.” “This legislation would also aid lending by lowering Small Business Administration loan program fees and raising loan guarantee and lending limits.” “The small business tax cuts in the bill include breaks for restaurant owners and retailers who remodel their stores or build new ones.” “Larger businesses could more quickly recover the costs of capital improvements through depreciation.” “Long-term investors in some small businesses would be exempt from paying capital gains taxes.” “And loan caps under the Small Business Administration’s chief lending program would be significantly raised.” “The measure also would allow small business owners to deduct the costs of health insurance for themselves and their families from self-employment taxes but only for the 2010 tax year.” “While there are lots of exceptions, the government defines a small business as 500 workers or less for most manufacturers and $7 million and under in annual sales for most non-manufacturing industries.” (Taylor, Andrew, 9/23/2010, Associated Press, Congress to send small business bill to Obama, Retrieved from firstname.lastname@example.org).
I say that it may not be the case based on tuning in to Keith Olbermann from Countdown yesterday and learning about all of those huge companies calling themselves small businesses. It is my belief that the majority of the funds in this bill will go to them and not a “real” small business like mine. I believe that it will go to those who have 500 workers first before mine. I believe that it will go to those businesses with $7 million in annual sales before mine. I believe that it will go to friends and family before mine. I wanted to believe that the true engine of economic growth were those small mom and pops businesses who wanted to expand and grow but it appears that it is more about those large Wall Street small businesses who may benefit instead. I wanted to believe that it would finally be time for those small businesses that may not have the perfect credit or pedigree to get our chance to reach for that golden ring but it appears that there may not be any opportunity available. There are “real” small business owners out there who would borrow, invest, hire and spend but as long as lending institutions only care about those huge small businesses, the bill may not ever reach us.