How is the Stimulus Plan affecting small business?

The Federal Stimulus Package (TALF, TAF, TARP, FSP, EESA, FDIC, TLGP, ARRA, etc.) is intended to stabilize and stimulate our economy by enhancing liquidity to get markets moving, consumers spending, increase residential lending, or increase commercial capital access. On the capital access side, financial institutions will have more regulatory ability to finance and purchase expanded categories of bonds used for business financing. The SBA has implemented lower fees for 7A and 504 loans, increased the 7A guarantee to 90%, is working on guarantees for pools of conventional loans, is permitting some refinancing in the 504 program and is increasing SBA micro lenders, and has introduced the ARC loan- 100% guaranteed $35,000 loans for businesses. It remains to be seen whether the implementation of these initiatives increases the availability of money for small business. On the "indirect" capital access side, there are numerous tax cuts and credits including extended carry back periods for losses, enhanced equipment write-offs and employer tax credits. If a business can save money which would otherwise be spent on taxes, it provides working capital. Tax cuts/credits for individuals will help consumers have more spendable money which will put money into the businesses from which they buy. The investment in our nation's infrastructure will help small businesses. For every government project, there will be subcontract opportunities for small businesses. So, has the stimulus package positively affected our small businesses by stabilizing or stimulating our economy? The jury is still out. Stay tuned... Roslyn Goldmacher is the president and CEO of the Long Island Development Corp. (LIDC) and the Greater New York Development Co. (GNYDC), Bethpage, N.Y.