Article Date: 01/23/11
Obama Grants For Small Businesses
President Barrack Obama took over as the President of the US in the most troubled
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economic situation. His first task was of course to ensure that the economy is back on track and people who have lost their jobs and homes get them back at the earliest. Keeping this objective in mind the Obama administration initiated a large number of schemes to ensure that the economic recovery is accelerated with help of funds infused by the Federal government as a stimulus package. As a part of this stimulus package there are several grants which can be availed for starting small businesses among the other Obama grants.
The significance of small businesses on the recovery of the overall economy of the nation has not been lost on the administration. Small businesses have the potential to kick start the recovery by activating employment and making small but positive contributions in other economic transactions. Thus if small businesses are encouraged to prosper there will not be self employment for the entrepreneur but also additional employment generated for workers who will be required to run the venture. Buying of machinery, raw material; and other allied services will automatically be boosted if more number of small businesses are encouraged to start with government aids. This is precisely what the grants for small business otherwise known as the Obama Grants hope to achieve.
The Obama grants for small business is a financial aids package that hopes to give relief to the small ventures through tax relief and a sym of more than $ 720 million is being kept earmarked for this very purpose. This money will be given out through the Small Business Administration (SBA) which is the nodal agency for all assistance to such ventures. The SBA will identify areas where the financial stimulus is most needed and after careful consideration invest the grant money in those areas to assist faster recovery.
The major aspect where the small businesses stand to gain from the Obama grants are the deductions in taxes that they will have to pay. They are allowed to purchase computers, office stationary and other required equipment which can be shown as justified expenditure for the business and hence will not be taxed. There are also provisions to include several miscellaneous expenditures. However purchase of land will not be included in such tax free acquisitions. The equipment that they buy can have up to 50 % depreciation in value for the first year which is a land mark decision as it will greatly improve the balance sheets of the small businesses. Share holders of small scale ventures that have public issues will also get tax benefits if they have been holding the shares for more than five years. This incentive will encourage private investment in small businesses. Obama grants give additional tax benefits to small businesses which employ minority workers or those workers who have been unemployed for more than six months and are hence considered extremely needy by the government.
Obama grants have come as a boon to many who were reeling under the impact of the recession and more people should take benefit of these grants to further their ventures.
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