Last year I watched the Congress and Senate tirelessly, hoping for them to vote on HR 5771, to allow Section 179 to be increased to 2014 levels of $500,000 for capital expenditures. Also, tied to the bill were other important small business tax breaks such as R & D credits. Well those of us waiting till the end of December for a last minute vote. Which made it too late for most small businesses to order and receive product that would qualify for the Section 179 tax write offs. Combine that with the still difficult state of lending and it turned out not to be the greatest year for Sales manufacturers, distributors and small businesses. Here’s hoping that the Congress and Senate will think about us small businesses can get to work this year helping us grow thus spurring the economy. Great news in this attached article explains H.R. 37, which was voted on with bipartisan support yesterday. This bill will help reduce some of the regulation and red tape that is continuing to impact and limit lending in the small business segment. Hopefully, the Senate and President will sign into law soon and 2015 will see some additional lending opportunities for all segments of small businesses.
If we can dream that they will vote to increase Section 179 back to $500,000 for 2015 and implement the other small business tax breaks, then we might realize a great financial year for small businesses. Stay tuned for more information on Section 179 and the small business tax credits pending for 2015.
‘The Small Business Investor Alliance (SBIA), the leading association for lower middle market private equity funds and investors, applauds the U.S. House of Representatives for passage of H.R. 37. H.R. 37, the Promoting Job Creation and Reducing Small Business Burdens Act, is sponsored by Representative Mike Fitzpatrick (R-PA).
The bill is a compilation of several bipartisan capital formation measures, including the Small Business Investment Corporation (SBIC) Advisers Relief Act. H.R. 37 passed the House last year with strong bipartisan support and was unanimously voted out of the House Financial Services Committee last summer.
“The Fitzpatrick jobs legislation reduces duplicative red tape for investors in domestic small businesses,” said Steven Hobman, a General Partner at NewSpring Mezzanine Capital and Chair of the Small Business Investor Alliance’s SBIC Committee. “Fitzpatrick’s bill really targets areas in the law that are filled with unnecessary red tape, and Congress needs to pass these provisions to move capital more freely in our financial system.”
Brett Palmer, President of the SBIA, said, “It is refreshing that small business investing is at the forefront of the agenda. Middle Market investors are being encumbered by portions of Dodd-Frank. Passage of the SBIC Advisers Relief Act is an important step towards freeing small business investors from double regulation and unnecessary regulatory burdens that distract them from their passion – growing small businesses. As the backbone of America’s economy, a healthy lower middle market is critical to overall economic growth. The SBIA will continue to work with policymakers to ensure that this bill becomes law.”
The legislation raises and reforms the triggering thresholds for SEC Investment Adviser Registration for many advisers of SBIC, venture, and other small private equity funds’.
Pamela Hewett is CEO of Professional Funding Corporation, Inc. Professional Funding Corporation offers small business loans and equipment leasing to the small to middle market industry. Pamela has over 18 years experience in finance working with both large banks such as American Express and Citicapital, and owning her own small business.