Thursday, January 21, 2010

Stimulus Money SBA/ Sales Tax

Small Business California has been working hard on the passage of HR 4302 which will continue funding for the increase in SBA guarantees on 7a and 504 loans, waive the fees on those loans and increase the size of those loans from $2 million to $5 million.Yesterday we got word from Congressman Costa’s office that he will be cosigning HR 4302. As you will recall Congresswoman Speier and Congresswoman Richardson sign on last week.

With the election in Massachusetts and the turmoil in Washington I fear that we are again going to see funding run out at the end of February as it did in November. This clearly creates problems in the banking community because of the uncertainty and like in November we will see SBA loans plummet. If you haven’t done so already please call your Congressman and ask him/her to cosign this important bill

Yesterday Lori Kammerer our lobbyist, Skip Brown of Delta Construction and I met with 7 people in Betty Yees office to discuss the issue of charging integrated manufacturers sales tax on the cost of materials for road and concrete work. This is an issue of leveling the playing field for small contractors bidding on this work. It also would raise around, we estimate, $100 million for the state.

As a result of this meeting SB Cal will be introducing legislation this week to address this problem.

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

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