| Can Your Business Cash in on The Stimulus? |
What's in it for me? That's the question many small businesses are asking these days. The Stimulus Bill of 2009 aims to pump money into the economy to get things going again, but its effect on most small businesses is spotty.
Most of the $700+ billion is headed towards state and local government entities for "shovel-ready" infrastructure projects or to financial institutions and the auto industry.
Still, there are tax-saving and loan opportunities in the legislation that can help small businesses, along with ways for your small business to cash in on some of the projects that are being funded. Here are some places to look:
- Shovel-Ready Projects. If your business is involved in construction or offers services to the construction industry, you need to be checking regularly with federal, state, and local agencies for opportunities for your business to bid. If you're a subcontractor or business providing products or services to the construction industry, aim marketing efforts toward bidders on these infrastructure projects.
- Real Estate Opportunities. Small businesses involved in real estate may benefit from current low prices and low interest rates. Other businesses can re-negotiate leases or move to new, lower-priced. In some cases, lower prices may make buying business property, rather than leasing, a viable choice.
- New SBA Loan Guarantees. If your company would benefit from getting some help paying past business loans, the Small Business Administration may issue or guarantee loans of up to $35,000 to help businesses repay existing loans. Interest on these loans will be subsidized by the SBA and repayment will be delayed for a year. Details are still sketchy, but check with your lender and the SBA. Funds for these loan guarantees will be limited, so they'll go quickly. In addition, the SBA gets up to $3 billion to guarantee other small business loans. This may help free up lending. Check with your lender about loan availability.
- SBA Microloans. The SBA can also loan up to $35,000 to your business, but only through nonprofit community organizations. To find organizations making these loans, contact your SBA District Office. www.sba.gov/localresources/index.html
- Accounting and Tax Options. The loss accounting opportunities from 2008 have been extended to the 2009 tax year. That means that your losses for 2008 and 2009 can be carried back for two to five previous years, or forward up to 20 years. This may result in substantial refunds.
- Expensing Equipment. Businesses may deduct up to $250,000 of 2009 vehicle, machinery, and computer purchases as an expense. This can reduce tax liabilities dramatically for the 2009 tax year.
- Hiring Incentives. Tax credits of up to $2400 are available for hiring unemployed military veterans and high-school dropouts. Veterans who left the military within the past 5 years and who have been on unemployment for four months, and dropouts who have collected unemployment are eligible.
- Investor Incentives. People who invest in small businesses can get a break on capital gains taxes by excluding up to 75% of gains after five years of ownership. You may be able to attract new investors in your firm based on these incentives.
In the end, it's tough to get cash directly from the federal Stimulus program. There are ways you can benefit, but all take research. Visit the SBA's web site talk to your lender or call us to find ways you can turn the Stimulus into help for your business. |
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| Contact Us |
Paul Metzkes
Paul Metzkes, CPA, P.A.
561-202-9166
paulmetz@tax-cpa.com
http://www.Tax-CPA.com |
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