Small Buisness Essays - Great Recession In The United States

Well here we go again, first we started with the Wall Street Bailout then we moved to the Stimulus package, and the government through in a few other tries with TARP (Trouble Asset Relief Program), Mortgage Relief program, PPIP (Public-Private Investment Program) and now we move to the Small Business Bill which as of September 27, 2010 is now a Law. President Obama is really pushing this bill in a statement he summed up his feelings by stating ?This is important because small businesses produce most of the new jobs in this country, they are the anchors of Main Streets. They are part of the promise of America, the idea that if you?ve got a dream and you?re willing to work hard, you can succeed. That?s what leads a worker to leave a job to become his/her own boss. That?s what propels a basement inventor to sell a new product, or an amateur chef to open a restaurant. It?s this promise that has drawn millions to our shores and made or economy the envy of the world.? The problem is that none of the fore mentioned programs or bailouts worked and yet the government is still throwing out half-baked plans at situations to try and fix them. Some of the programs were on the right path to correcting the problem, just either wasn?t strong enough or for instance with the TARP, we just didn?t have enough money to officially bailout the issues. So now we have the new Small Business Bill, on paper it look as if the program would work with one small minor detail, I will get to that later. As for the bill, the tax breaks and money the government is putting into this, small business will get a much deserved break from the economic situation that society is in. Some key points to the bill, cell phone deduction, family health care deduction for the self-employed, changes to the SBA?s (Small Business Administration) loans, and now of course the money aspect. The SBB will give $30 billion in lending and $12 billion in tax breaks. The SBB passed the Democratic Party with ease, then the G.O.P (Grand Old Party) or better known today as the Republican Party blocked it for two weeks and probably would still be that way today if two retiring Republicans wouldn?t have broken rank and voted to end the blocking maneuvers and President Obama wasn?t taking shots at the party for the blocking. President Obama made this statement in a Wall St. Journal report ?It's going to speed relief to small businesses across the country right away,? Obama said. "We've got to keep moving forward. That's why I fought so hard to pass this bill, and that's why I'm going to continue to do everything in my power to help small businesses open up and hire and expand." With the bill passed the estimated incentives could provide up to $300 billion in small business credit and a projected creation of some 500,000 new jobs. Yet in most part the SBB is in effect to help existing small business, and in a study done by Business Dynamic Statistics with data from U.S. Census Bureau, shows how the creation of new companies and not that of companies already is existents is how you produce the largest number of new jobs. Small Business Bill does have some beneficial items for the small business, as stated before, $30 billion in capital lending, new loan amounts from SBA?s to include raises in the 7(a) loan which is the basic and most commonly used type of loans. The other used loan is the 504 loan, this is the loan that is used for a long term tool to help economic development with in a community, and these loans go from $2 million to $5 million. The Express loan will rise to $1 million from the previous amount of $300,000. Small business owners can use a temporary allowance from a 504 loan to finance mortgages to avoid any foreclosures. Startup companies will get a raise of $150,000 for any expense deductions thresholds. There is also a grant pool of $2 million, in which states have to show that there has been $10 in lending for