Can your small business survive the great recession? Yes you can! Powerful words, coming from Obama during his presidential campaign. And with his Small Business Rescue Plan, Barack Obama puts his administration’s money where his mouth is. Here’s how these initiatives will benefit your small business:

1. Tax Cuts will come as music to the ears of small business owners looking to squeeze as much as they can from every dollar. Barack Obama intends to cut taxes for small businesses earning less than $250,000 after expenses. Self-employed filers such as freelance consultants can also count on a break from Uncle Sam. And to reward innovative companies, the Obama administration plans to exempt startups from paying the capital gains tax. These tax incentives are designed to encourage entrepreneurship, which will be the key to this nation’s economic recovery. Reinvest your tax savings in your business, and you might find new sources of revenue.  If you’re not offering your products and services online, you’re missing out on a huge business opportunity. Setting up your storefront is easier than you think–service providers offer e-commerce solutions including shopping cart and credit card processing capabilities.
2. Low Interest Small Business Loans could make the credit crunch a distant memory for small businesses. Obama intends to put five billion dollars towards Small Business Loans administered by the Small Business Administration (SBA.) These loans offer a deal that can’t be beat on the open market: interest rates capped at four percent and thirty-year repayment terms. The SBA’s loan program targets Main Street. The small business loan program is similar to a business cash advance,  making more funds available to support everything from working capital to capital expenses. Use the money to stock your inventory, revamp your website design, search engine marketing or buy new equipment.
3. R&D Investment should take off under Obama, specifically in the areas of clean tech, alternative energy and health care information systems. The plan is to invest $150 billion over ten years on clean energy initiatives, $10 billion a year for five years on health-related IT development, and an unspecified amount on other environmental and biological research. If your small business supports scientific or technical innovation, you could be eligible for a federal contract. IT Professionals, database analysts, engineers, lab researchers, and field scientists are just some of the professionals who could see an expanded market for their services in the coming years. Freelance contractors may even build their solo operations into a research lab, with funding and loans for hiring scientists as well as facility and office equipment leasing.
4. Fair Trade policies will help to level the playing field for U.S. small businesses struggling to compete with companies sourcing from abroad. Obama plans to increase environmental and labor protections, raising the standards by which goods are produced internationally. Once everyone has to pay a fair wage and uphold environmental safety standards, U.S. small businesses may see the gap between their production costs and offshore companies’ costs begin to narrow. Global business is a fact of economic life, even for local small businesses. Establishing an internet presence using online sites like Tradeseam can help your business compete abroad too. Online solutions include services such as search engine optimization to help your professional website design get noticed on the world wide web.
5. Health Care Expenses may lose their standing as the #1 biggest burden for small businesses. President Obama’s plan offers a fifty percent tax credit to offset rising health care premium costs. Adding this carrot allows Obama to remove the stick: small businesses will no longer be required to provide health care benefits. Saving on health care can help your small business invest in essential overhead costs such as voip, call centers, and more.

President Barack Obama’s policies could provide your small business with a lifeline, freeing up much-needed working capital for stocking up on  inventory, product development, R&D, and marketing. Political rhetoric is nice. Executive policies that help your small business stay competitive in today’s merciless market are priceless.

Tags: small business, Small Business Loans

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