Credit and Loan Concerns
JOBS Act Lowers Barriers to Investment in New Businesses
Earlier this month, President Obama signed into law the Jumpstart Our Business Startups Act (“JOBS Act”), which includes a number of provisions aimed at easing access to capital for entrepreneurs with the goal of ultimately creating new jobs. Crowdfunding from Non-Accredited Investors The JOBS Act eases restrictions on equity-based crowdfunding to now allow investments by all investors, not just accredited investors. Any non-credited investor can invest up to the lesser of 10 percent of annual income or $10,000. Crowdfunding investments will still need to file with the Securities and Exchange Commission (SEC), and are restricted to raising $1 million annually,. Read More.
Small Business Lending at Highest Point Since 2008
Small Business lending is up to a four-year high as of November, up 18 percent over the same period in 2010. According to the Wall Street Journal , banks are more willing to lend as the economy continues to slowly stabilize and improve. Small business owners, previously discouraged by stagnant growth and a 60-percent average loan denial rate, are planning to borrow to expand in ever-increasing numbers. Fewer small firms were falling behind in loan repayments, with delinquencies of 30 days or more down five basis points to 1.5%, and “severe delinquencies” of more than 90 days down 1 basis point to 0.39%,. Read More.
Audits Put Extra Polish on Loan, Credit Applications
The credit and loan market continues to be tight, and any small advantage could put your business ahead in a review. As the Wall Street Journal reports, an audit performed by an external certified public accountant, as opposed to the IRS, could be that advantage. Many businesses are turned away by the perceived time, effort and cost of an audit, but the benefits could offset those concerns. Based on data from more than 10,000 closely held companies—about half of which have less than 500 employees—a study by the University of Chicago Booth School of Business found audited businesses save an average of $6,900 for every $1 million. Read More.
New Small Business Jobs Act Offers Numerous Tax Incentives
On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010 , or H.R. 5297 (hereafter, “the Act”). Though many of the Act’s provisions focus on small businesses , the new law also contains tax incentives that apply to all businesses as well as new retirement savings incentives for individuals . It is important to note that some of these provisions offer taxpayers a very small window of opportunity, requiring action before the end of the year to take advantage of the savings. INCENTIVES FOR ALL BUSINESSES The Act enhances and extends a number of tax incentives that were originally included in the Economic Stimulus Act of 2008 (“the 2008 Stimulus Act”) and the American Recovery and Reinvestment Act of 2009 (“the. Read More.
What To Do If You Can’t Pay Your Taxes Now
April 15th is around the corner, and for many people that means it’s time to pay Uncle Sam what’s due for 2009. In some cases, funds will also be needed for first quarter estimated tax payments as well as the balance due on 2009 taxes. But what if you can’t pay the full amount owed by the April deadline? Should you still file your return on time and pay as much as you can or should you wait to file until you can pay it all? There is no question, to avoid penalties and unnecessary interest charges, you definitely want. Read More.
How Will the CARD Act’s Reforms Impact Your Credit Card Statement?
Many of the more significant provisions of the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 , signed into law by President Obama last May, take effect today. “For too long, credit card companies have had free rein to employ deceptive, unfair tactics that hit responsible consumers with unreasonable costs,” said Obama. “But today, we are shifting the balance of power back to the consumer and we are holding the credit card companies accountable.” A number of these changes were designed to outlaw some of the industry’s more controversial practices. USA Today summarizes some components of the new law, with a breakdown of what changes customers can expect to see. Read More.