Advancement of the Small Business Community
The importance of the Small Business Community in today’s economy is indisputable, as small businesses account for approximately half of the private workforce’s employment. Congressman Hank Johnson seeks to strengthen this community by providing information and essential resources. Through various initiatives Congressman Johnson seeks to increase awareness and support for this business segment among educators, community/economic development specialists, local leaders, and community members.
Access to capital and pathways to contracting with the federal government are the most common issues for small business community leaders. In the past, Congressman Johnson has hosted a series of roundtables and "Think Tank" events that allowed for groups of business leaders to directly address governmental agency representatives with questions that are directly tailored to specific situations.
PPP For ONLY Small Businesses
Recently, the White House announced changes they are making to ensure the smallest firms have access to the 2021 round of PPP funding. As many of you know, many of our small- and minority-owned businesses were passed over for these critical funds during the previous administration. I wanted to make everyone is aware that the Biden Administration, through the Small Business Administration (SBA), is proving a period through March 9 where only businesses with fewer than 20 employees are eligible to apply for PPP.
During this period, the SBA is rejecting any new applications of businesses with 20 or more employees. Please note, each employee counts as one regardless of full-time, part-time, or seasonal status. All applications submitted to the SBA before the start of the exclusivity period will still be processed.
These simple, progressive steps by the Biden-Harris Administration demonstrate their commitment to racial and gender equity, reaching low- and moderate-income, rural, urban, and other underserved areas. The SBA is:
• Establishing the exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees;
• Allowing sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants;
• Eliminating an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal;
• Eliminating PPP access restrictions on small business owners who have struggled to make federal student loan payments by eliminating federal student loan debt delinquency and default as disqualifiers to participating in the PPP; and
• Ensuring access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP.
The current round of funding expires March 31, 2021, leaving three additional weeks for all PPP loan applications to be submitted after this exclusivity period ends March 9. Again, to apply see the First Draw PPP loan application or Second Draw PPP loan application as well as the SBA Lender Match tool. You can also visit the SBA for more details.
If you need additional information or assistance, please contact my Director of External Affairs Xeron Pledger at 770.987.2291 or by email at firstname.lastname@example.org. Please share this with you friends, neighbors and family members who own small businesses. Thank you!
The Tax Cuts and Jobs Act of 2017
The Tax Cuts and Jobs Act of 2017 made sweeping changes to individual and business taxes. It hands large corporations a permanent tax cut and, according to the Congressional Budget Office, will cost the federal government $2.3 trillion. Yet, pass-through entities and individuals face an expiration to their provisions.
WHAT ABOUT SMALL BUSINESSES?
Small businesses face increased complexity, steep competition from large companies, and a 20% deduction on pass-through business income that does not apply equally to all. And, unlike the permanent tax cut for large corporations, the 20 percent deduction expires in 2025.
WHAT’S THE PROBLEM?
• The 20% deduction on qualified business income for pass-through entities picks winners and losers. It penalizes small business owners’ based on their chosen professions by imposing greater limitations on providers of “specialized services.”
• It also raises more questions and creates confusion with complex formulas and undefined terms. Unfortunately, regulations still haven’t been released.
• On average, corporate tax breaks give corporations a larger benefit and put small firms at a competitive disadvantage as they bear the cost of the law.
• The new tax law may not translate into significant savings for small businesses, many of which will incur the additional cost of accountants and tax lawyers in order to navigate and satisfy their tax obligations.