Monday, October 18, 2010

W2s/ Bank Lending/ Bof A Hires 1000 employees to serve small business

Last week I sent to you information on how to call into a White House briefing about the W2 requirements under the health care bill.

As you know the bill required employers to include medical insurance cost in the W2s they were filing for their employers starting in 2011.

Announced at the briefing was that the inclusion of medical cost on W2s would be delayed until 2012.Please note that these health cost are not taxable for employees.

That is the same date that employers will be required to file 1099s for all businesses they pay over $600. Small Business California and the National Small Business Association continues to oppose this and are aggressively telling lawmakers small business wants a full repeal of the 1099 requirement.

On Thursday I talked to Senator Feinstein about the problems small businesses are having getting loans and credit from banks. She indicated that she was going to contact Ben Bernanke on this and I await hearing from her office.

What I would like to know from you is - are you seeing any loosening of credit now that the Small Business Jobs bill has passed?

Bank of America indicated that it would be hiring 1000 employees to serve small business. When Sharon Bernstein of the LA Times asked if this means they will be making more loans to small business she was told they had no plans to do this. The newly hired employees would be used to forge relationships with small business and get them to use B of A for deposits, credit cards,payroll, pensions etc. At its peak B of A made 15000 loans to small businesses around the country and now makes almost no 7a and Express loans.

I don’t know about you but I don’t need another bank to take my deposits and give me overpriced credit cards and not give me a loan.

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

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