As the economy slowly begins to bottom out, opening the way for improvement, there is one major point that seems to be being proven again and again: small businesses will be a major part of that recovery. Without an emphasis being placed on the smaller businesses that have suffered for years under the dominance of large (and often corrupt) banks and businesses, the job market will continue to slow, and the annual revenue will once again decline on a country-wide basis.

Because of this fact, those who watched President Obama’s address may have noticed that small businesses were a main focus of the direction of the way forward. Several plans have been put into play that will help small businesses once again prosper and become more focused in a new era of the job and business market. However, the opinions of how much these plans will help are mixed, with some feeling as though it will not be enough, and others saying that something is better than nothing. But what will it mean for you, the small business owner?

The changes are set to be fairly large ones

First, there will be the matter of funding. This is possibly the element that will effect you the most, and provide the most ample opportunity for those looking to expand, or to start out for the first time. Obama has proposed a $30 billion spending budget for banks, which would go purely to lending for small to medium sized businesses run by the average taxpayer. This is a full $11 billion more than the total amount given during the time of the economic stimulus package, and will be spaced out over the course of the year. This means more for lending from banks, for small businesses, in a short period of time.

This will be an enormous help to many. The Discover Small Business Watch has said that more that forty percent of businesses will be forced to seek out funding in order to keep their businesses from filing for bankruptcy. The main concern at this point for this plan is the banks’ willingness to take federal money for the lending, and so you may be forced to go to another bank if your own does not offer itself as a part of this plan.

Another option may be the plan that would wave a great deal of the fees involved with SBA loans, and would give a 90% guarantee, eliminating much of the risk. It would also offer tax cuts on expenditures and eliminate capital gains on investments in small businesses. While this is a small gesture, it is one that is expected to create some help, and may help to bring in more investments for your business.

If you are one of the small businesses lucky enough to have the revenue to hire on more employees, you will be given a $5,000 tax credit for each new person hired on. You will also be given a full six point two percent Social Security tax reimbursement if your wage increases exceed current inflation. The main problem with this tends to be the fact that many small businesses cannot afford the wages for new employees, and so the benefits would not be enough to offset the cost. But if you are in a position to take someone on, you should do so, as there will be some great payback for your company.

In the end these are all small steps that the government is taking to help small businesses flourish, but they are steps nonetheless. If you are a small business owner you will be able to take advantage of them, as well as the new wave of thinking which will put you on a higher priority than in the past within the market. With your help, and with the benefits you will receive, we will all hopefully be able to improve things on a personal, and a country-wide scale.

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