Friday, May 28, 2010

HR4213/1099s/Proposition 16

So it appears that the extender bill HR4213 filed in the House was defeated.

The Senate was expected to take this up today but clearly with no bill it appears nothing is going to happen until after recess. HR 4213 would have extended the waiver of SBA fees on SBA loans and the 90% guarantee. So that means the SBA will run out of money for the waiver and guarantee and a queue is being set up.

Keep in mind this bill was not defeated because of the SBA provisions but as usual small business gets caught in the cross fire between Democrats and Republicans over whether stimulus money should be going back to pay off the debt or if any spending can be provided without off setting revenue.

The bill had a cost of $134 billion of which our SBA funding was about $500 million. For those of you in SF this means there is no funding to continue Jobs Now.

Small Business California has been trying to get repealed the requirement that businesses file 1099s for all companies they pay $600 or more. House member Dan Lungren has introduced HR 5141 to do this. He will be holding a press conference June 2 and SB Cal will there. If you are in his district and interested in attending let me know.

We have 70 cosigners on the bill all Republicans.

SBA Administrator Mills in a letter to small business said that the IRS is working on eliminating reporting for providers of goods and services that are paid by credit card. This is a start but clearly not enough.

Proposition 16 will be on the June ballot. This would require a two thirds vote to set up public power. What are your thoughts on this - Support? Oppose? Undecided?

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

1 comment:

Steve Goble said...

Until the administration gets serious about helping start small businesses, including SBA lending, this recession will last longer than it has to. Clearly the stimulus benefited public sector jobs, but not private sector to the same extent. Small business drives the American economy.