Issue Position: Investing in Ohio's Small Businesses
Investing in Ohio's Small Businesses
There can be no economic recovery in our state or our nation without a thriving small business sector. But too many small businesses -- which create more than 64 percent of jobs in our nation -- lack access to the capital they need to survive and create jobs. We must ensure that small businesses have the resources they need to rebuild our economy and promote economic development around Ohio.
SBA Funding Through the Recovery Act
The American Recovery and Reinvestment Act provided $730 million for the Small Business Administration to administer a combination of loan guarantees and tax incentives. This critical funding is helping to unlock the small business lending market to get capital flowing again to small businesses.
Since the Recovery Act passed, my office has held a dozen SBA workshops across Ohio -- in New Philadelphia, Chillicothe, Toledo, Akron, Youngstown, Cleveland, and Columbus -- to connect more than 1,000 small businesses with opportunities to access credit, develop new business plans, and to do business with the federal and state government.
But more needs to be done to invest in Ohio's small businesses so they can hire new workers and increase business. In December 2009, President Obama signed a U.S. Department of Defense appropriations bill that the SBA estimates will support an additional $4.5 billion in small business lending. And to help unfreeze the small business lending market, I introduced the Small Business Emergency Loan Relief Act, legislation that would raise the cap on popular SBA loan programs to unleash the innovation of our small businesses -- especially manufacturers, who face higher capital costs. My proposal has been adopted by the Senate Small Business Committee and I am working with other members of Congress to include these changes in a broad small business lending bill this summer.
Health Care Tax Credits for Small Businesses
We can't have a full economic recovery if businesses can't compete due to rising health care costs. Small businesses are the engine of our economic growth, but too many small businesses are being crushed by rising health costs -- forced to lay off employees or cut back on coverage.
Health insurance reform provides tax credits to help small businesses continue to offer insurance to their employees, or to offer it for the first time. It will also enable small businesses to band together in regional purchasing pools so they can secure large group rates.
Export Opportunities for Ohio's Small Businesses
Ohio's entrepreneurs and business owners have what it takes to compete in any market, anywhere. As an appointed member of President Obama's Export Council, an advisory panel of congressional representatives, cabinet secretaries, and the private sector, I am committed to connecting Ohio small businesses with exporting opportunities.
The U.S. Export Import Bank, which assists American businesses with financing exports and services to international markets, can provide small businesses with numerous export resources. Please visit www.export.gov for more information.
New Incentives to Hire New Workers
Under the recently enacted Hiring Incentives to Restore Employment Act (HIRE) Act, there are two new tax benefits available to employers who hire unemployed or part-time workers. Employers may qualify for a 6.2 percent payroll tax incentive if they hire an unemployed worker in the period between February 3, 2010 and January 1, 2011. Additionally, businesses can claim a general tax credit of up to $1,000 for each worker retained for at least a year.
The HIRE Act also extends a provision from the Recovery Act that allows small businesses to deduct up to $250,000 of the cost of qualifying property in the year it is purchased, rather than waiting to recover their costs through depreciation deductions over a number of years. This incentive assists small businesses that purchase equipment by cutting their tax bill.
For more tax information relating to the HIRE Act, please visit the IRS website.
And please feel free to contact me, if my office can be of assistance to help you learn more about federal loans, export programs, and other small business resources.
My staff and I have held several workshops in conjunction with the Small Business Administration (SBA). For those of you could not attend one of these workshops, I've provided copies of some of the presentations below.
If you have any questions please contact my office. My staff and I can help you learn more about federal loans, export programs, and other small business resources.
* IRS HIRE Act presentation
* SBA Doing Business with the Federal Government presentation
* SBA Loan Programs presentation
* USDA Rural Development presentation
* U.S. Dept. of Transportation presentation
* U.S. Export Assistance Center presentation
* IRS Small Business Jobs Act Presentation
My staff also held a seminar in conjunction with the Small Business Administration (SBA) and others on exports. For those of you could not attend one of this seminar, copies of some of the presentations below.
* U.S. Commercial Service presentation
* U.S. Commercial Service Canada presentation
* Export-Import Bank of the U.S. presentation
* International Trade Assistance Center presentation
* Ohio Department of Development presentation
* SBA Export presentation