Obama orders help for small businesses

By Vicki Needham - 07/11/12 08:43 AM ET

President Obama took new steps Wednesday to boost small businesses amid election-year attacks from Republicans on his economic record.

The president announced five immediate executive actions that he said would accelerate federal payments to small businesses, reduce paperwork and make it easier for firms to access loans and tax credits.

He also called on Congress to pass legislation that would allow small firms to write off up to $250,00 in capital investments in 2013.

The White House announcements came two days after Obama renewed a fight with Republicans on taxes by calling for the expiration of the George W. Bush-era tax rates for income about $250,000. Republicans want to extend all the Bush rates, and argue the tax increases pushed by the president would hurt small business owners who are crucial to the economic recovery.

"The White House has so little to offer small businesses they've resorted to recycling, reusing, and repackaging," said Brendan Buck, a spokesman for House Speaker John Boehner (R-Ohio),

"This is no solace for small businesses facing a huge tax increase next year under the president's plan.”

The move also came the same week that Senate Democrats are pushing a small-business bill that would offer a 10 percent tax credit of up to $5 million for companies that increase salaries from 2011 to this year. It also includes deductions for companies that buy new major equipment.

Senate Democrats have been touting a report from Regional Economic Models Inc. that found the small business bill would lead to the creation of about 630,000 jobs.

Among the other executive actions announced Wednesday by the White House is one that will accelerate the disbursement of payments to small-business subcontractors, cutting the time to 15 days from 30.

The president ordered the Small Business Administration to increase access to capital by relaunching Small Loan Advantage and raising the maximum loan amount from $250,000 to $350,000. The agency was told to streamline the loan process to make it easier for lenders to provide capital to small businesses.

SBA also will move forward with “QuickApp,” which will streamline the paperwork for contractors applying for surety bonds.

Finally, there would be regulatory changes made to the New Markets Tax Credit that will make it easier for community development entities to attract private funds for investment in startups and small businesses operating in lower‐income communities.

— This story was updated at 2:25 p.m.