Small Business & Credit Act

Well it passed; yes the “Small Business & Credit Act” passed the house. So what does that mean to you? Good question.

The House’s intent is to pump in up to 30 Billion in capital to small banks that would led the leveraged funds out to as much as $300 Billion in credit to small business who then would grow and produce needed goods, services and jobs. Don’t start jumping up and down or when you walk into your band say “Where’s the money” It’s not there, yet if ever.


It’s going to take some time, maybe a long long time for the money to surface up to “We The People”. 1st the banks need to apply and quality for the program. Then (this is almost too funny for words) the regulations for the program are NOT WRITTEN YET by the Federal Banking Regulators as well as the US Department of the Treasury which are the overseers of the program.


And still, if you don’t have any credit, if you don’t have the collateral or a positive cash flow, no bank I have ever heard of is going to lend you money. It’s just not going not happen.


But let’s look at the other side of the bill, the side I like and we, you and I can use.


The legislation doubles up to $500,000 the amount of purchased assets a small business can write off in 2010 and 2011. If you can buy a piece of equipment you can now write up to $500,000 of it off this year and another $500,000 next year.


The amount of 1st year depreciation a business can claim on a new car goes up to $11,060 and $11,160 for vans and trucks.


The deduction for new business start up expenses is doubling from $5,000 to $10,000.


I’m sure there are more goodies in the bill. I just need to do a little more research and reading and taking to my CPA about it.


Larson Notes & Satire: I am a little excited here since one of my target markets is consulting with people thinking of starting their own businesses. In addition most of my work comes from small business so again I like to see tax deductions. Tax deductions are something we can all use.


As for borrowing money? I don’t like it unless absolutely necessary. Buying a major piece of equipment or a building yes. But hedging your bets on your business growth? Getting a loan for operational expenses? Go rethink your business plan. I see it as putting you under the 8-Ball to business growth. Sometimes you need to borrow, but I am a sweat equity kind of guy, small slow steady growth. But if you have the big dream and need to grow fast and hard now, do it. If you are in technology and if you don’t move fast it will become outdated, more fast! But remember these are loans you need to pay back, not grants which don’t.


If you are out of work and are thinking of starting your own business up, I will set up a free phone appointment for you. This is business planning and marketing NOT financial. If you are “Small Business” (whatever that is) Ill make you the same offer. I also have a service where (for a fee of course) I will do a monthly appointment with you to help you guide your business. Interested? Just ask.


Howard Larson
Larson & Associates
Target Marketing & Telesales Professionals for new account acquisition
Making good businesses great and great businesses even better
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howard@larsonassociates.ws
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P.S. We make telesales for small business affordable by offering programs down to only 15 hours a week. Maybe you could add telesales into your marketing mix call today and find out.
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