First and foremost, Congratulations to our new President Elect, Barack Obama, may the change America voted for begin!

With Congratulations aside, lets talk about how small businesses will be affected by the new President’s policies. According to the U.S. Small Business Administration, over 99% of all employers are a small business, that’s out of the approximate 25.8 million businesses in the USA. There are many benefits that Obama and Biden are suggesting will develop such as improving access to capital and investing in innovation and development, as well as cutting health care costs.

Health Care

Most small businesses are unable to provide their employees with health care and benefits because they simply can not afford it. Health care is expensive and usually require a minimum number of employees to be qualified for any type of discounted rate, not to mention the lack of choice in providers. Typically businesses will forego investing in healthcare options in order to allow for lower administrative costs and room for paychecks and growth for their employees.

Barack Obama is planning to reduce this burden by offering a new Small Business Health Tax Credit. This is intended to help small businesses provide health care to their employees. This credit will provide a refundable credit of up to 50% on premiums paid by small businesses on behalf of their employees.

In addition, you’re provided with access to a Low-cost National Health Exchange, which means you’ll have new opportunities as a small business to buy low-cost, high quality health plans. You’re reimbursed for a portion of the costs given you meet requirements. The plans will also lower health care cost by providing innovations that improve chronic care management and increase the insurance market competition.

Tax Relief for Small Businesses

In an effort to reduce burdens on small businesses, Obama has proposed that he will eliminate all capital gains taxes on small and start-up businesses to encourage more innovation and stimulate job creation. Obama and Biden will also support small business owners by providing a $500 “Making Work Pay” tax credit to almost every worker in America.

If you’re self-employed small business owners, you pay both the employee and the employer side of the payroll tax, under the new Obama plan, you’re burdens will be drastically reduced from the double taxation.

New Loan Programs

Obama is making it much easier for small businesses to receive business loans. He has cosponsored the bipartisan Small Business Lending Reauthorization and Improvements Act, which means, the Small Businesses Administration’s loan and micro-loan programs will be expanded, providing start-up and long-term financing that normally the small business owner can not receive.

Entrepreneurs

Obama and Biden plan on supporting and creating a network of “public-private business incubators” to support entrepreneurs’ development and ideas. These “incubators” will provide help specific and critical to entrepreneurs creating start-up companies. This includes help in business plan design, actual physical space, any identity or address problems that may affect the business, advice and financial planning.

Female Business Owners and Minority Business Owners

Women own over 28% of US Businesses, however have a hard time getting loans. Obama and Biden are encouraging the investment in women-owned businesses, as well as increasing support and reducing discrimination. Also, the Women Owned Business contracting program signed into law by President Bill Clinton will be implemented by Obama.

Less than 1% of the $250 billion in venture capitol dollars has been invested in the 4.4 million minority business owners. Obama plans to strengthen the Small Business Administration programs that provide the capital to minority-owned businesses. Outreach programs will be initiated to help with loan applications will also begin.

Sources:

http://www.barackobama.com/pdf/SmallBusinessFINAL.pdf