By Calvin W. Goings, Assistant Associate Administrator, U.S. Small Business Administration

As Assistant Associate Administrator of the U.S. Small Business Administration, I travel throughout Washington and meet with small business owners.  Many small businesses don’t realize that 17 small business tax cuts have already been signed into law and an additional five small business tax cuts are proposed for 2013. These tax cuts are available to all types of small businesses, from main street shops to high growth startups.

 How can your business benefit THIS YEAR in tax breaks?

Are you an investor in a small business?

• Some capital gains have been fully eliminated on certain small business stock, which provides an incentive for financiers to invest in qualified small business. Capital gains on investments held more than 5 years in qualified small businesses are 100% exempt for the 2012 tax year.

Are you a start-up?

• Start-up entrepreneurs can deduct $5,000 for start-up expenditures.

Are you a small business owner that has purchased new equipment?

• If you have bought new equipment, you can write-off a larger portion of the cost of that new equipment this year rather than depreciating the cost over time. The maximum amount a small business can expense on new equipment has been raised to $560,000 in 2012, up from $250,000 in 2009.
• Businesses can also write-off the cost of their equipment purchases more quickly by allowing up to 50% bonus depreciation in the first year of an investment.

Are you a small business owner that provides health care to your employees or to yourself?

• Tax credits are available for starting or continuing to provide health insurance coverage for your employees, and this applies even if you are self-employed.

Have you been in business for up to 5 years?

• You may “carry back” your business credit up to five years to offset taxes and assist in difficult economic times.  Businesses can apply their 2011 credits to previous tax payments going back to 2006.

Are you a small business owner that uses a cell phone?

• Starting in 2010, the process for deducting the cost of your cell phone and monthly bills was vastly simplified.

As you can see, there are a lot of tax cuts that small businesses can benefit from this year. Please be sure to stay tuned to what the SBA is doing to assist small business, helping them start, grow and create an economy built to last.  Follow us on Twitter www.twitter.com/SBAPacificNW and on Face Book, www.facebook.com/SBAPacificNorthwest or contact the local district office in Washington at www.sba.gov.

Every January, Americans look ahead with the desire to start the New Year with fresh ideas and hopes to improve.  The U. S. Small Business Administration is doing the same thing – regularly meeting with lenders and resources partners to get feedback on ways to improve our loan programs and services.  And, this past year, the SBA engaged over 150 community lenders in all 50 states to provide comments on ways that the SBA’s CAPLines Program could work more effectively for both SBA lenders and small businesses, as this program has been underutilized. 

SBA’s CAPLines Program helps small businesses meet their short-term and cyclical working capital needs.  The SBA provides up to an 85 percent guarantee. There are four loan programs under CAPLines:  Seasonal Line of Credit Program, Contract Loan Program, Builders Line Program and Working Capital Line.

These are the key benefits of the program:

• The SBA no longer requires small business owners without building or equipment to use their personal assets as collateral to secure working capital.
• Small businesses can pledge accounts receivable, inventory, contracts, and purchase orders in order to secure an SBA revolving line of credit.  For example: when fulfilling a purchase order request, the same order can be used as collateral to obtain an SBA-guaranteed line of credit to hire more workers and buy more materials.
• Small business subcontractors can obtain an SBA-guaranteed line of credit to finance their work on a contract with a federal prime contractor.
• Small businesses working on a contract that requires surety bonding can obtain an SBA-guaranteed line of credit.

Overall, the improved CAPLines Program provides business owners with the working capital they need to take advantage of new opportunities, as they continue to grow their business and create jobs in the new year.

Small businesses that use CAPLines will benefit from the increased SBA 7(a) loan limit of $5 million, effective as a result of the Small Business Jobs Act.  For those small businesses looking to vie for bigger contracts, this will help them financially prepare to compete and win.

Whether you are a startup, currently in business, or a business that is experiencing difficulties, SBA has programs to help you.

As you take the time to evaluate your business needs and set goals for the New Year, remember to reach out to SBA resource partners such as SCORE, Small Business Development Centers and Women’s Business Centers.  They provide counseling and can assist you with developing or updating a business plan, marketing plan, or a loan package to take to a lender.  To locate resources in the state of Washington or to contact your local SBA office visit:  www.sba.gov/localresources.

“Bruland exhibits her traits as an entrepreneur by staying ahead of the curve.  To position the company for future growth, in 2009 Bruland used an SBA 504 loan from Ameritrust CDC and Wells Fargo Bank to purchase a commercial building and property, expanding from 3400 square feet to a building space of 7200 square feet on 2 acres,” said SBA Seattle District Director Nancy Porzio.

An independent panel of judges selected the winners based on several criteria, including; staying power, business growth, increase in employees, response to adversity, innovation, leadership and contributions to the small business community, and evidence of community-oriented projects.  “Janelle Bruland exhibited strength in all areas,” said SBA Regional Administrator Calvin W. Goings.  As the state winner, Janelle Bruland will compete with 53 other winners from across the country for the National Small Business Person of the Year Award in Washington D.C.

The Washington state SBA Small Business Awards’ Event – A Big Night for Small Business – will be held in Seattle on April 8^th at the Marion Oliver McCaw Hall at Seattle Center.  In addition to celebrating Bruland’s outstanding accomplishments, the award ceremony will honor the following state and regional winners (regional winners competed against state winners in AK, ID, OR and WA):

×           WA state & Region 10 – Small Business Exporter of the Year – Leonard Felix, CID Bio-Science, Inc., Camas;

×           WA state & Region 10  – SBA Young Entrepreneur of the Year – Dan Price, Gravity Payments, Seattle;

×           WA state & Region 10 – Family-Owned Business of the Year– Scott Tate, Tate Technology , Inc., Spokane;

×           WA state  & Region 10 – Home-Based Business Champion – Cheryl L. Sesnon, Washington CASH, Seattle;

Also featured will be 5 (five) state SBA Champion award winners who support and advocate on behalf of small businesses and entrepreneurship.

×           WA state SBDC Service Excellence and Innovation Award – John H.  Rodenberg, WSU/SBDC, Tacoma;

×           WA state –  Financial Services Champion – Lynda M. Hamilton, Heritage Bank, Tacoma;

×           WA state – Minority Small Business Champion – Christine Chen, Chen Communications, Seattle;

×           WA state – Veteran Small Business Champion – Jerrod C. Sessler, HomeTask.com, Seattle;

×           WA state – Women in Business Champion – Carole A. Butkus, Washington Business Center, Seattle;

“Our winners remind us that the entrepreneurial spirit is alive and well in Washington state,” said Porzio, “and we look forward to honoring their success in Seattle in April”.

For information about SBA’s National Small Business Week 2010 celebrations in Washington, D.C., go to http://www.sba.gov