Stimulus Money to Help Small Businesses, Ease SBA Loans, IRS to Offer Tax Breaks

In an effort to ease the credit crunch which is hampering small businesses, the Obama administration announced temporary, but significant changes which will make it easier to start or expand a small business.

Redirecting a portion of the already-passed stimulus package, the Obama administration will reduce lending fees and increase the amount of the loan that the SBA will back. In addition, new rules will offer tax breaks to small businesses, including:

Write off up to $250,000 in investments in 2009
Take larger depreciation deductions within the first year of property purchases
See a 75 percent reduction in capital gains taxes for those who invest in small businesses

Many franchisors are already approved for Small Business Administration-backed loans and can assist franchisees through the process. It’s no wonder now is the perfect time to start a franchise business. Companies like CIT Business Lending specialize in SBA loans.

Many who have gotten laid off or are tired of relying on corporate America for a job have attempted franchising. But the credit crunch has slowed their efforts to start a business. This initiative should help fix that issue.

Beyond an SBA-backed loan, there are numerous other ways to finance a franchise. Obviously, seek professional tax advice to see how these new initiatives may affect your plans. Learn more about franchise financing.

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