New Bill Proposed to Help SMBs
Posted by Shannon Suetos on April 29, 2010 in Business Financing, Business Management, Business News [ 1 Comment ]
We all know the economy is still no where were anyone would like it. The unemployment rate is still too high, and people are still struggling to find jobs. With that being said, Obama and other officials are finding new creative ways to help small business owners. Earlier this year Obama asked large banking institutions to start giving back to the small business owner. Now Obama is pushing for a new piece of legislation that would give tax breaks to SMBs so they can attain more money to hire employees.
“The tax break would apply only to individuals, such as the “angel” investors who take early stakes in fledgling, privately held companies. To qualify for the tax break, a small business needs to be a C corporation with assets of less than $50 million. Additionally, the investor must buy the stock at “original issue,” meaning it’s purchased directly from the company, and has to hold it for at least five years, ” reports CNN.
The House of Representatives has already pushed the legislation through, and it is now up to the Senate to pass. Although on paper this legislation seems to be promising, it is leaving out quite a few industries including:
- hospitality (i.e. restaurants and hotels)
Only time will tell how this legislation will pass, but if you do qualify it could be a much needed break to help attain capital.