New proposals to assist small businesses through not only financial incentives but small business loan opportunities are hoped to bring about more job creation opportunities and business growth as both SBA loans to target specific areas or companies and potential opportunities for businesses to avoid paying capital gains taxes are being reviewed as a way to potentially put companies in a more advantageous position to begin combating high levels of unemployment.
President Obama mentioned in weeks past that the potential elimination of capital gains taxes in certain areas for small businesses could go a long way in helping these companies find more affordability in their operation costs and could allow them to set themselves in a financial position where hiring more workers is an option. Unemployment is one of the main drains on the economy that is still plaguing businesses and individuals, but as many companies have been hesitant to hire new workers, there are ways which are being explored to aid small businesses through the use of various incentives and tax breaks so that these companies may be able to begin the process of growing and expanding in a way that necessitates more workers.
However, small business loan opportunities, like those from the SBA, are hoped to provide more capital to businesses in areas where access to funds may be limited and causing stagnation in the local job market. Reports indicate that the lenders who can offer loans through the new SBA Small Loan Advantage Program are to begin approving these loans on February 15, 2011. It’s hoped that this Small Loan Advantage Program from the SBA will provide more borrowing opportunities and access to capital for companies in underserved areas as many small towns or communities have been particularly affected by economic troubles and may not be in a position to either establish or grow businesses as a result.
While some of these methods for assisting small businesses are still in the proposal phase, it’s hoped that with new initiatives being set forth to aid small businesses by creating environments where they can either grow to add more workers or new companies can be established and create new jobs across the nation. Solutions to combat the unemployment rate and the need for jobs is blatantly apparent as individuals who are still either without a job or have taken a job well below their qualifications are still finding troubles in their personal financial life and this has led to difficulties in not only the housing market, but in areas like retail and banking as well.
There are indications that areas of the economy are beginning to improve, as more consumers are using credit again, banks are reportedly loosening their lending practices, and private sector jobs are being added to the job market, but it’s hoped that with new initiatives to spur small business growth, more individuals will find the job opportunities they need and, as a result, will be able to set themselves on a firmer financial ground in their personal lives.