Senate Passes Small Business Jobs and Credit Act
September 21, 2010
Last week the Senate passed the Small Business Jobs and Credit Act of 2010, a bill written to cut taxes and provide loans for millions of small business owners across America, many of which include those in the glass and glazing industry. The Small Business Jobs Act would give small businesses $12 billion in tax cuts; help them create 500,000 new jobs; incentivize and increase small business lending; help small business owners access private capital to finance an expansion and hire new workers; reward entrepreneurs for investing in new small businesses; and help Main Street businesses compete with large corporations.
Some glass and fenestration industry organizations are optimistic about the potential of the legislation.
“The American Architectural Manufacturers Association (AAMA) supports legislation that provides special lending assistance to both homeowners and businesses during economic downturns. This form of assistance is particularly welcomed by AAMA small business members, who can utilize the financing to sell more products into remodeling or new construction projects,” said Rich Walker, president and chief executive officer of AAMA. “Health insurance premium deductions can also serve as another relief valve for business owners to withstand periods of depressed construction activity. While AAMA small business members prefer to stand on their own, prolonged and deep recessions tax the resources and viability of even the strongest enterprises. Adding in the non-discretionary, non-productive activity of ever-increasing government compliance and taxation exacerbates the stiff challenges faced in a downturn. As the economy continues to struggle to maintain a sustainable growth rate, AAMA will continue to inform our members of regulations and legislation that has an impact on their businesses.”
However, some glass companies have spoken out and are not as optimistic.
"As a true small business, these tax cuts, like the previous tax cuts, do not apply to me because we do not have the cash flow it takes to buy thousands of dollars worth of equipment in order to get it,” says Danya L. Rosales, chief financial officer with A Better View Glass & Mirror in Yorktown, Va. “We do not have the cash flow to hire ten more employees nor do we have the cash flow to expand. Once again, we shall see if the small business lending actually helps the ‘small business’ or if it continues to help the larger companies with contractual fraud and endless loopholes."
The Senate's version of the Small Business Jobs Act must now go back to the House, which passed its own version of the bill earlier this year. The bill must pass the House before President Obama can sign it into law.
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