Thursday, May 27, 2010

Perlmutter Introduces Incentive and Tax Credit Plan for Small Businesses

Washington , DC —Today, in recognition of National Small Business Week, Rep. Ed Perlmutter (CO-07) introduced the Incentives for Successful Small Businesses Act of 2010.

This bill provides job training tax credits for successful small businesses who hire and train new U.S. employees as well as financial incentives to lenders who get credit to small businesses who establish and implement long-term plans for growth in the United States .

“In grocery stores, walking the neighborhoods and at town hall and individual meetings, I’ve heard first hand from small business owners in the 7th Congressional District about the difficulty they face starting or expanding their operations,” said Perlmutter. “This is another important bill that will make sure U.S. businesses can hire, train and retain U.S. workers.

“We know we have to work our way out of this recession and small businesses are the engines of our economy that will help rebuild Main Street and put the people of our district, state and nation back to work so our neighborhoods grow and prosper,” Perlmutter continued.

Key provisions of the “Incentives for Successful Small Businesses Act of 2010” include:

* Provides a job training credit for training of a U.S. employee with a valid social security number within 4-weeks of the hire date.
* Providing financial incentives to get credit to small business to establish and implement long-term United States growth plans;
* Defines successful small business as a U.S. company with 5-500 U.S. employees that maintains a growth plan which meets the criteria established by the Secretary of Treasury and would have qualified for a certain level of loan as of June 1, 2008, but cannot currently access the loan because of the tight credit markets;
* Provides an 80% loan guarantee to small businesses at the lowest collateralized rate available.

Perlmutter stated, “I continue to work through my committee and with other members of the Colorado Congressional delegation, to get credit flowing to these small businesses so we can put people back to work and rebuild our economy.”

Access to capital is a widespread challenge for small businesses. While credit markets remain historically tight, there are signs of improvement. Below are some key benefits currently available to small businesses supported by Rep. Perlmutter. For more information, please view Perlmutter’s Small Business Resources Center here:

* Sponsor of HR 5249, the Capital Access for Main Street (CAMS) bill. This bill will temporarily allow small banks to amortize their losses on commercial real estate over time. As a result, these small community banks, which provide many of the loans to our small businesses, will have more liquid capital available to make responsible loans for businesses to use to hire and retain workers.
* Supports Tax Cuts for Small Businesses: All totalled, Congress enacted more than $800 billion in tax cuts to help families and businesses across the country and inject consumer demand into the economy and spur business investment and job creation. Tax cuts include:
o Small Business Expensing: Extends small business expensing, doubling the amount small businesses can immediately write off their taxes for capital investments and purchases of new equipment made in 2009 ($125,000 to $250,000).
o Buying Back Debt: Provides assistance to companies looking to reduce their debt burdens by delaying the tax on businesses that have discharged indebtedness, which will help these companies strengthen their balance sheets so they can invest in job creation.
o Small Business Investment: Spurs investments in small businesses by cutting the capital gains tax on investors in small businesses who buy stock (in the next two years) and hold it for more than 5 years.
o Jobs for Recently Discharged Unemployed Veterans and Disconnected Youth: Creates jobs with business tax credits for hiring recently discharged unemployed veterans who have been out of work or youth who have been out of school for 6 months prior to hire.
* Co-sponsored HR 5297, the Small Business Lending Fund Act of 2010: This bill will help ensure small businesses can get loans from the small banks and help rebuild Main Street . The small business lending fund will ensure competition among our community banks and incentivize them to increase lending to small businesses.

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