How Obama's Plans Can Benefit Your Small Business

Can your small business beat the recession? Yes you can! Powerful words, coming from Barack Obama. And with his Plan, Barack Obama puts his administration's money where his mouth is such as new incentives for small businesses, which account for two-thirds of the nation's work force. He proposed a new tax cut for small businesses that hire in 2010 and an elimination for one year of the capital gains tax on profits from small-business investments.


Obama also proposed an elimination of fees on loans to small businesses, coupled with federal guarantees of those loans through the end of next year. His proposal for new tax breaks for energy-efficient retrofits in homes is modeled on the now-expired Cash for Clunkers rebates for trading in used vehicles for more fuel-efficient vehicles. Some administration officials have dubbed the proposed new program "Cash for Caulkers."

Here's how these initiatives will affect your business in the coming years.
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. E-commerce is one angle to consider. If you're not offering your products and services online, you're missing out on a world of market opportunities. Setting up your storefront is easier than you think—compare service providers that offer solutions such as e-commerce and credit card processing functions.
2. Elimination of Small Business Loan Fees could make the credit crunch a distant memory for small businesses. Obama intends to put five billion dollars toward a Disaster Loan Program 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 instead of wall street. The small business loan program makes more funds available to support everything from daily operations to capital improvements. Use the money to stock your inventory, revamp your web site design, or buy a new pos system.
3. 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 can help your business compete abroad too. New startup businesses such as tradeseam offer business services such as sales lead generation, business networking and advertising to help you get noticed on the world wide web.
4. Health Care Expenses may lose their standing as the #1 burden for small businesses. The president-elect promises to implement measures such as 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 call center, phone systems, and more.
Barack Obama's policies could give your small business a new lease on life, freeing up much-needed capital for overhead costs, product development, R&D, and marketing.