Today, in Chillicothe, Ohio Senator Obama introduced a new short term proposal to address the credit crisis of struggling small businesses. Senator Obama’s goal is to put all tools on the table to ensure that we are taking the necessary steps to help Americans who are struggling. Many small business owners can’t even make their payroll or finance their holiday inventories. Obama’s proposals are one step to help them during this time of crisis.
NEW PROPOSAL: While the financial market rescue plan is designed to unfreeze credit which will indirectly benefit small businesses, Obama recognizes that small businesses need direct and immediate access to capital now. Today he is calling for a Small Business Rescue Plan to help small firms get the loans the need to conduct day-to-day operating expenses, undertake short-term investments, and meet payrolls. The plan will use the tools we have available through the Small Business Administration to aggressively extend credit to struggling firms, while providing tax cuts for small businesses to encourage job creation. With small businesses responsible for more than two-thirds of new job creation, this plan is vital to stemming job losses and turning our economy around.
Obama’s small business plan includes:
In addition, Senator Obama has previously proposed:
Read the full press release outlining Senator Obama's plan in detail . . .
October 10, 2008
Today, in Chillicothe, Ohio Senator Obama offered steady leadership and introduced a new short term proposal to address the credit crisis of struggling small businesses. Senator Obama’s goal is to put all tools on the table to ensure that we are taking the necessary steps to help Americans who are struggling. Many small business owners can’t even make their payroll or finance their holiday inventories. Obama’s proposals are one step to help them during this time of crisis.
To review Obama’s full plan, please click HERE
NEW PROPOSAL: While the financial market rescue plan is designed to unfreeze credit which will indirectly benefit small businesses, Obama recognizes that small businesses need direct and immediate access to capital now. Today he is calling for a Small Business Rescue Plan to help small firms get the loans the need to conduct day-to-day operating expenses, undertake short-term investments, and meet payrolls. The plan will use the tools we have available through the Small Business Administration to aggressively extend credit to struggling firms, while providing tax cuts for small businesses to encourage job creation. With small businesses responsible for more than two-thirds of new job creation, this plan is vital to stemming job losses and turning our economy around. Obama’s small business plan includes:
A Nationwide Emergency Lending Facility for Small Businesses: Just as we did in the wake of 9/11, when businesses all around the country were facing economic injury, Barack Obama is calling for the Small Business Administration to directly lend to small businesses that cannot access other sources of capital. The facility will be run through the Small Business Administration’s (SBA) Disaster Loan Program, which is designed to offer affordable, fixed- rate loans to small firms to meet operating expenses, undertake needed short-term investments, or to refinance debt. Loans should be available with an expedited approval and disbursement process, so that firms can access the credit needed to meet their operating expenses immediately.
Expanding Small Business Administration Guarantees to Encourage Private Lending to Small Businesses: Obama is calling for expanding the SBA’s key loan guarantee programs – 7(a) and 504 – by temporarily eliminating fees for borrowers and lenders and increasing the guarantee rate on private loans. These steps will give lenders new incentives to lend and help unlock credit for small firms. It will send a clear signal that the government is standing with small businesses and ensuring sources of loans.
Temporary tax incentives to encourage small businesses to invest in jobs. Obama will give small businesses additional incentive to make investments and start creating jobs again by providing temporary business tax incentives through 2009. The February 2008 stimulus bill increased maximum section 179 expenses to $250,000 but this expires in December 2008. This provision will encourage all firms to pursue investment in the coming months, but will benefit small firms in particular, who generally have smaller amounts of annual property purchases and so choose to expense the cost of their acquired property.
STEPS OBAMA HAS ALREADY PROPOSED:
Zero capital gains rate for investment in small businesses. Barack Obama believes that we need to encourage investment in small businesses to help create jobs and turn our economy around. That’s why Obama will eliminate all capital gains taxes on investments made in small and start-up businesses. Unlike John McCain, who wants to give $200 billion in new tax cuts to America’s largest and most profitable businesses, Barack Obama wants to cut taxes for the small businesses that create jobs but struggling with restricted access to credit alongside skyrocketing health care and energy costs.
Cut Taxes for the Vast Majority of Small Businesses: Barack Obama believes that we need to reduce burdens on small business owners, many of whom are struggling to succeed in the midst of our economic crisis. Unlike John McCain, Obama has proposed direct tax cuts for small businesses, including zero capital gains for investments in small businesses and a new 50% tax credit for businesses that offer health care to their employees on behalf of their employees and to small businesses with no employees. (see below). Obama will provide a $1000 Making Work Pay tax credit to 95 percent of workers and their families, which will help individuals with small business income, including the country’s more than 20 million self-employed individuals. And because the Obama plan preserves existing tax rates for families making less than $250,000 a year, nearly 99 % of small business owners won’t see any tax increase under the Obama plan.[1]
Create New Small Business Health Tax Credit: Barack Obama will exempt small businesses from any requirement to offer health insurance to their employees or contribute on their behalf. Instead, he will give small businesses new incentives to provide health care with a Small Business Health Tax Credit. The Obama Small Business Health Tax Credit will provide a refundable credit of up to 50 percent on premiums paid by small businesses.
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