Like the pot of gold at the end of the recession rainbow, Obama’s stimulus package, also known as The American Recovery and Reinvestment Act of 2009, could be the solution to businesses far and wide, small and large, in the current economic situation.
Dedicated to scientific research, energy programs, school districts, contractors and Medicaid in conjunction with creating millions of new jobs, the $787 billion economic recovery package is the stimulusupdate lunch room gossip heard throughout the country. Who is going to be eligible for the money, how does one go about bidding for it and how much would one receive are all important questions being asked by business owners.
Good news – the federal assistance is for everyone, especially business owners facing significant challenges. This is even a great opportunity for small companies to step up and compete for business with larger corporations. With the plan in place, smaller companies will have an opportunity to bid competitively where previously their capabilities may have restricted them compared to the “big boys.” Learn how to take advantage of the stimulus package via the following 7 benefits offered to small businesses.
SBA Guaranteed Loans With volcanicashnew Obama’s stimulus package on the horizon, small businesses around the country can now rest assured knowing that the Small Business Administration (SBA) will guarantee 100% of loans up to $35,000 without requiring payment for one year. With the $426,000,000 authorized to the SBA to loan out to small businesses – the stimulus package could definitely be that saving grace for you and your company.
Good-Bye to High Interest Rates For small businesses who currently have a loan that is locked in at a high interest rate, the stimulus package is of great benefit to you. The SBA will be authorized to refinance small business loans as long as they were issued before the stimulus package was passed and are less than $10,000,000.
Ability to Increase Investments Up from 300% of a company’s private capital or $15 million (whichever is less), to 300% of a company’s private capital or $150 million as the maximum amount that a small business can invest; the stimulus package allows companies the ability to invest more in their company’s future. By increasing the cap at which a company can invest, businesses can spend more in business development whatarepretzels and securing a position in the marketplace. Whether you increase professional development, heavy-up marketing efforts or reallocate funds in struggling departments, the stimulus package can help.
Procurement Opportunities With many large companies looking to also cut costs right now, outsourcing work or bidding for services are becoming popular. Many procurement offices are offering up more Request for Proposal’s or RFP’s for companies to bid on along with adding a certain percentage required to outsource to minority companies. With these opportunities opening up, small businesses and zoomthenews minority business enterprises will be able to greatly benefit from the stimulus package.
Vital Tax Breaks With this recovery package, companies will be able to immediately write off 50% of the cost (up to $250,000) of new business equipment this year. Small businesses can also make a win out of loss with this package. Any business with less than $15 million annual revenue can now carry back net operating losses for five years instead of the previous two. This means that a business who is currently losing money can apply these loses to a previous year where the business made out well and then claim a refund on those taxes paid during that specific year.
Internet Improvement Grants With 2plus2four the passing of Obama’s stimulus plan comes many different types of grants for small businesses. One of the more important is the grant to improve broadband access or online abilities. The world is becoming digital and this package recognizes that fact and sets out to aid in whatever way it can.
Construction Contractors Lucky Day From transportation projects to road construction to housing development, this is the time for all contractors to up their marketing to the government sector. With informative brochures, innovatively designed pocket folders and updated capability statements, many small construction companies have the ability to shine with the government through this new stimulus package.
However you choose to utilize the stimulus package passed by Obama this year, there is a solution for you out there.
I read the business news every day. I start with the Wall Street Journal. Once a week it’s Barrons. Mix in a few dozen magazines and periodicals on specific industries, and you’ll sample my weekly reading. Lately, I’ve noticed a shift.
A while back everyone was writing about what to buy. The best strategies to invest your money. The next great stock. That trend has given way to commentary on with the economy. Don’t buy this, stay away from that.
Tales of caution abound.
Let’s put all that aside and talk about a stock that has a bright future. Today, I want to talk to you about a great investment idea I have. But first, let me explain what I’m thinking.
Let’s start with a few simple observations.
We have a new president-elect. Senator Obama from Illinois is set to take office in January. This is only a few short weeks away. With him come a brand new administration and a refreshed congress. Their mandate is to drive the US economy.
We’re seeing it already with the president’s transition team.
His cabinet members are being appointed at record pace. His first were clearly focused on the economy. That’s no surprise. Right now, the US economy is in a slump, as is the global economy. It doesn’t take a genius to see it. Just look at the global markets. All of them are down and down big for the year.
Governments around the world are cutting interest rates trying to drive economic growth.