June '09 Nevada Government—Senator Harry Reid Column

Small Business Week Comes To An End

As Small Business Week comes to an end, I want to share with Nevada's small business community some important information about my efforts to put our economy back on the right track.

Supporting small business is one of the most important steps we can take to put Nevada’s economy on the path to recovery. These businesses are primary creators of jobs and keep local economies growing. Their success reflects the entrepreneurial spirit that drives innovation and makes our state more competitive. Simply put, as small businesses go, so goes Nevada’s economy.

These are businesses that need extra help during the recession. Many of the participants in a seminar my office hosted on the economic recovery package came from small businesses because they were looking for the grants and tax credits that can boost production and allow them to hire more workers. This money is starting to arrive in Nevada and it will make a difference for small business owners and the communities they serve. We also are working to put banks in a position where they will begin lending again, freeing up the capital that keeps our economy moving on a daily basis.

The economic recovery package is only one part of what we are doing for small businesses. We also authorized the Obama Administration to support small business lending programs through enhancements that make it easier for businesses to access credit. We also passed a bill cracking down on fraud to protect legitimate enterprise. We passed housing legislation that will make improvements to existing programs to support the housing market and prevent foreclosures, a significant step given the importance of the housing market to Nevada’s small-business community. Our work on health care reform is beginning, and this represents the largest cost to small business owners.

In order to help Nevadans take advantage of the Recovery Act, I assembled a Resource Guide to the American Recovery Act of 2009, which compiles information on many federal programs and funding opportunities available to individuals, communities and businesses in Nevada. You can find this Resource Guide and much more on my website. If you have questions, please contact one of my offices or visit www.recovery.gov. I understand that small businesses move our economy forward and I will continue to work with them to strengthen and create jobs in our state.

HARRY REID

United States Senator for Nevada

How the Recovery Act Provides Credit and Capital to Small Business Owners:

Provides interest-free loans of $35,000, giving small firms an immediate cash injection to cover existing debts. Entrepreneurs who take advantage of this program to pay down business obligations will have one year before they would need to begin loan repayment and up to five years before they need to fully repay the loan.
Makes it easier for small business owners to get Small Business Administration (SBA)-backed loans. Raising the amount of the government guarantee on SBA-backed loans will encourage banks to lend to small businesses again and get credit flowing to entrepreneurs.
Reduces the costs of loans for small business borrowers. Cutting the upfront costs borrowers pay, including service costs associated with loans, will make credit more affordable for small businesses.
Allows the Small Business Administration to thaw the credit market. Like other credit markets, the market for small business loans is frozen. Addressing this problem will help small businesses access the credit and capital they need to not only weather this economic crisis, but to grow and succeed.
Helps small firms raise equity capital. Many fast-growing small businesses rely on equity capital for financing. The economic recovery package expands options for small businesses seeking investment capital. For instance, the bill simplifies rules for Small Business Investment Companies (SBICs), which often invest in small firms at the earliest stages of their growth.
Creates greater access to contracts. Raising the maximum amount of contracts backed by surety bonds and providing additional funds for them will allow small businesses to access another $6.5 billion in deferral contracts. This is especially helpful to the construction industry that has been devastated by downturns in the housing market and overall economy.

How the Recovery Act Provides Tax Relief to Small Business Owners:

Extension of “Small Business” Expensing. Small businesses are allowed to immediately write-off the cost of certain capital expenditures instead of deducting these costs over several years. Certain small businesses can write off as much as $250,000 of capital expenditures in 2008. The recovery act extended this provision for 2009 to make it easier for small businesses to quickly recover the costs of their investments.
Expanded Carryback of Net Operating Losses for Small Businesses. Losses incurred by businesses may be carried back to the two previous years to recover income tax paid on earnings in those years. The economic recovery package expanded the carry back period to five years to allow certain small businesses to recapture a greater amount of prior-paid taxes.
Relief for Debt Cancellation. Cancelled debt is subject to income tax. The recovery act gives businesses temporary relief from the tax on cancelled debt by deferring full payment for up to 10 years.
Small Business Estimated Tax Relief. Taxpayers are required to make estimated tax payments throughout the year. The recovery package lowered the required payments for 2009 for certain taxpayers with more than one-half of their incomes arising from small businesses.
Small Business Capital Gains Tax Relief. Taxpayers selling certain small business stock may exclude one-half of any gain on the sale from taxable income. The recovery act increases the percentage of gain excludible to 75 percent for stock issued after February 11, 2009 and before January 1, 2011.
S Corporation Built-In Gains. Taxpayers who convert regular corporations to Subchapter S corporations must hold the corporate property for 10 years in order to avoid paying tax on the conversion. This 10-year period is temporarily reduced to seven years for sales of property taking place in 2009 and 2010.

Reid, Ensign Announce More Than $4 Million for Airport Improvements

Reno, North Las Vegas airports to receive money for ongoing projects

Nevada Senators Harry Reid and John Ensign announced grant funding from the Department of Transportation (DOT) of more than $4 million for safety and upgrade work at two major Nevada airports.

Reno-Tahoe International Airport will receive more than $2.8 million to continue its rehabilitation work, while North Las Vegas Airport will get more than $1.7 million for ongoing safety work to relocate overhead power lines to underground locations. About 3,000 feet of line will be moved as part of the project.

“The safety of our aviation facilities must always be a top priority in Nevada,” Reid said. “I’m glad we could help secure this money for the important work going on in Reno and North Las Vegas.”

“Nevada is one of the major tour destinations in the world,” Ensign said. “It is so important that we ensure that our airports have the funds necessary to keep the safety of passengers as the top priority. This grant funding will help to ensure that safety remains the top priority at two of our state’s largest airports.”