Stimulus Law Aids Small Biz, But Benefits Not Easy To Find
The $787 billion recovery package that President Obama signed into law on has a little something for most small-business owners, though some complained that the law’s benefits were not easy to figure out.
“Who has time to read it?” Ethan Siegel, chief executive of Orb Audio, a maker of home theater speakers and systems, said his initial impression was that “there is nothing in here for me as a small-business owner.”
But Siegel said that as he started to dig deeper, he found a provision that would increase loan guarantees for Small Business Administration lenders. That, he said, would make it easier for Orb, whose main office is in New York, to secure a line of credit. “With a line of credit we can do a lot more with the same amount of capital,” he said, “which is exactly the purpose of the stimulus package.”
Several other items also caught his eye, including one that offers a tax credit for businesses that hire disadvantaged workers like veterans and “disconnected youth,” those who are not in school or working. That credit could be a tipping point between hiring and not, he said. “This is especially true since we build the speakers in the U.S.A., and the people with production skills can fall into these groups.”
Business owners and their tax advisers are finding that a little detective work is needed to reap the full benefits of the law, which includes tax relief for businesses and individuals, as well as spending provisions.
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Photo by The New York Times.
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