New Small Business Bill

Discussion in 'Business Operations' started by stevenf, Sep 27, 2010.

  1. stevenf

    stevenf LawnSite Bronze Member
    Posts: 1,612

    Obama signed the new small business bill which is supposed to add tax breaks and loan banks the money for small business loans(which is completely the banks decision on what to do with the money).
    Im not very good with reading comprehension so give it to me straight...
    What tax breaks do we get and how is the loan process actually going to benefit us? If at all....
  2. lawntennis

    lawntennis LawnSite Senior Member
    Posts: 415

    I am in the process of buying another business. My loan officer told me that the SBA can gurantee up to 90% of my loan and the fees on loans will begreatly reduced. He said it will save me about $4000. It was a nice phone call to get.
  3. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    No disrespect but I think if you are doing something as risky as buying a business you need to have more skin in the game. 10% is nothing and as one of the folks paying for the backing of the loan I think its a bad investment.

    Did Barney Frank move over to the SBA? This is just like the housing debacle all over again. For decades the standards were consistent and everything worked fine. The government gets involved and the whole industry goes into the tank.

    Only now it will be unemployed folks buying businesses because they can't find a job, cashing in IRA's for down payments on business that are not worth the selling price. And bought by people who have no business running a business.

    I'm usually more optimistic but I have just seen human nature at work for way too many years. The barriers to purchasing a business or borrowing money for a business are necessary to protect people from their own poor choices. If you can't cobble enough $$ together to pay a more reasonable down payment on a business you don't typically have what it takes to run the business. Of course their is always an exception to every rule but you can't set the standards based on the exceptions.
  4. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    Obummer said about a month ago. that We, small businesses will have a tax break on new hires. also large ticket items ie trucks buldings and such would be 100% tax deductable.

    I think this is what your talking about. I didn't kno it already passed though.

    this may be what your talking about. I hope so....
  5. SuperPROlawnScalper

    SuperPROlawnScalper LawnSite Member
    Posts: 60

    it's just a bunch of BS

    listen to this, he talks about it starting at 1:10 minutes

    it's hour one of mike rivero What Really Happened radio show - something i listen to everyday
    best damn radio show out there - IMO

    for those not wanting to play the show, here's his take on it

  6. Roger

    Roger LawnSite Fanatic
    Posts: 5,924

    I think this bill is badly timed, and is of little value at this point. What small business wants to add more debt in a time of turmoil and uncertainty? Costs for health care, costs for taxing structures, and costs for new finreg provisions are all unknown at this time. We are about three months away for 2011, and Congress has yet to make a decision on income tax rates. How can anybody plan with this kind of uncertainty.

    I agree with AZ... said above, this bill is not unlike the housing situation. Get low cost money to the market place, allowing people who are not qualified and shouldn't be getting the money. The C4C proved this point in a smaller scale, as well as upsetting the marketplace. Likewise with the first-time homeowner credit. Many were buying homes simply because of the credit, people who shouldn't be buying homes but were able to swing the deal because of the credits. These are the new foreclosures a couple of years downstream. Further, look what those credit programs did for the home markets. Another example is the refi program. Many (45%?) who went on the program were unable to maintain their position after only a few months. All kinds of money down the tubes as an experiment.

    The political sales of this bill speaks of tax breaks, but fails to mention the intention of adding taxes on the other end with increased income taxes. In other words, give in one pocket, take out of the other.

    This is bad stuff, and is a measure of the tornado of economic policies being tried in the past year. It is a politicians answer to a question not being asked, or a problem that is not in need of a solution at this point in time. It is what happens when few, if any, on the team know the business world, and are at war with business.
  7. AintNoFun

    AintNoFun LawnSite Bronze Member
    Posts: 1,807

    any proof that small business lending is on the rise, or is this just more smoke and mirrors?

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