Small business owners are all full of spark these days as President Obama has finally paid heed to their demands. Earlier when Bush and Obama Administrations offered tax payer loans they completely ignored the small businesses.
The financial assistance provided to the large businesses did not in any way affect the small businesses in a beneficial manner. This was a source of great distress and disappointment for the small business owners. Since small businesses are an integral element for growth of American economy they also require the same ‘mega help’.
President Obama finally agrees with the fact that small businesses are important when it comes to playing a part in America’s economic recovery. The new Law passed by the president now allows increase in size and number of loans to small businesses from the U.S. Small Business Administration (SBA).
SBA has increased its lending by 70 percent
Hence, U.S. Small Business Administration (SBA) has now increased its lending amount by 70 percent on approval by the president. This has raised new confidence among the small business owners who play a very important role in developing the American economy.
The $30 billion Small Business Lending Fund
Further the $30 billion Small Business Lending Fund has helped provide funding to smaller banks which has in turn helped them in providing loans to their small business clientele.
“In addition, Obama has begun to provide the needed tax cuts to small businesses, granted, woefully not enough, but he has laid a path for wider tax relief for small businesses than had ever been offered before during the downturn.” (Source Washington Post)
The needed tax cuts to small businesses, granted are mainly focused on
• Hiring of new workers,
• To new investments,
• Capital gains,
• Health care and
• Even tax cuts for start-up businesses.
“The jobs bill pushed by the president is just one foot forward for small business and now we need to get the administration’s other foot squarely planted to continue supporting small business initiatives.”
In America Support for small business in a much needed affair, because it is not a one day thing but an ongoing process towards growing economy.
“The recent 2011 Year-End Economic Report by the National Small Business Association estimates that small businesses are thinking less about a full economic recession and more like an economy that has at least flattened or has the potential for growth in coming months.”