Small Business and Credit: How Small Business Uses Bank Credit, Trade Credit or No Credit
"Today the Office of Advocacy released a study examining the type of credit utilized by small business. Bank Credit, Trade Credit or No Credit: Evidence from the Surveys of Small Business Finances, by Rebel A. Cole, compares firms that use credit (leveraged) with those that do not (unleveraged). The study also looks at which kind of credit leveraged firms use–bank credit (loans or lines of credit) trade credit (from suppliers) or both. The study found that the two types of credit (bank credit and trade credit) used by small firms are complements, with many small firms using both types of credit simultaneously.
“Access to credit is one of the most important issues facing small business today” said Acting Chief Counsel for Advocacy Susan Walthall. “A study that provides a better understanding of the credit used by small business is invaluable to policymakers, small business and their suppliers.”
The study finds that small firms that use no credit are significantly smaller, more profitable, more liquid, and have better credit quality; yet they hold fewer tangible assets. The study also finds that those firms that use credit are larger, and the amount of credit used as a percentage of assets is positively related to the firm’s liquidity. In addition, three-fifths of the small firms that use credit use trade credit..."
View full report
Showing posts with label small_businesses. Show all posts
Showing posts with label small_businesses. Show all posts
Wednesday, July 7, 2010
Tuesday, April 6, 2010
Fact Sheet: Small Business Health Care Tax Credit
"ealth reform legislation signed by President Obama includes a Small Business Health Care Tax Credit to help small businesses afford the cost of covering their workers.
Key Facts about the Small Business Health Care Tax Credit
The tax credit, which is effective immediately, can cover up to 35 percent of the premiums a small business pays to cover its workers. In 2014, the rate will increase to 50 percent.
The Congressional Budget Office estimates that the tax credit will save small businesses $40 billion by 2019.
Both small for-profit businesses and small not-for-profit organizations are eligible.
Key Elements
Available Immediately. The credit is effective January 1, 2010. As a result, small businesses that provide health care for their workers will receive immediate help with their premium costs, and additional firms that initiate coverage this year will get a tax cut as well.
Broad Eligibility. The Council of Economic Advisors estimates that 4 million small businesses are eligible for the credit if they provide health care to their workers. Qualifying firms must have less than the equivalent of 25 full-time workers (e.g., a firm with fewer than 50 half-time workers would be eligible), pay average annual wages below $50,000, and cover at least 50 percent of the cost of health care coverage for their workers.
Substantial Benefit. The credit is worth up to 35 percent of a small business’s premium costs in 2010. On January 1, 2014, this rate increases to 50 percent.
Firms Can Claim Credit for Up to 6 Years. Firms can claim the credit for 2010 through 2013 and for any two years after that.
Non-Profits Eligible. Tax-exempt organizations are eligible for a 25 percent tax credit in 2010. In 2014, this rate increases to 35 percent.[1]
Gradual Phase-Outs. The credit phases out gradually for firms with average wages between $25,000 and $50,000 and for firms with the equivalent of between 10 and 25 full-time workers.
Premium Cost Eligibility. To avoid an incentive to choose a high-cost plan, an employer’s eligible contribution is limited to the average cost of health insurance in that state..."
"ealth reform legislation signed by President Obama includes a Small Business Health Care Tax Credit to help small businesses afford the cost of covering their workers.
Key Facts about the Small Business Health Care Tax Credit
The tax credit, which is effective immediately, can cover up to 35 percent of the premiums a small business pays to cover its workers. In 2014, the rate will increase to 50 percent.
The Congressional Budget Office estimates that the tax credit will save small businesses $40 billion by 2019.
Both small for-profit businesses and small not-for-profit organizations are eligible.
Key Elements
Available Immediately. The credit is effective January 1, 2010. As a result, small businesses that provide health care for their workers will receive immediate help with their premium costs, and additional firms that initiate coverage this year will get a tax cut as well.
Broad Eligibility. The Council of Economic Advisors estimates that 4 million small businesses are eligible for the credit if they provide health care to their workers. Qualifying firms must have less than the equivalent of 25 full-time workers (e.g., a firm with fewer than 50 half-time workers would be eligible), pay average annual wages below $50,000, and cover at least 50 percent of the cost of health care coverage for their workers.
Substantial Benefit. The credit is worth up to 35 percent of a small business’s premium costs in 2010. On January 1, 2014, this rate increases to 50 percent.
Firms Can Claim Credit for Up to 6 Years. Firms can claim the credit for 2010 through 2013 and for any two years after that.
Non-Profits Eligible. Tax-exempt organizations are eligible for a 25 percent tax credit in 2010. In 2014, this rate increases to 35 percent.[1]
Gradual Phase-Outs. The credit phases out gradually for firms with average wages between $25,000 and $50,000 and for firms with the equivalent of between 10 and 25 full-time workers.
Premium Cost Eligibility. To avoid an incentive to choose a high-cost plan, an employer’s eligible contribution is limited to the average cost of health insurance in that state..."
Tuesday, February 10, 2009
SBA Quarterly Indicators, 3rd Quarter 2008
Selected statistical indicators from the U.S. Small Business Administration
Selected statistical indicators from the U.S. Small Business Administration
Tuesday, January 13, 2009
Firm Size Data(Small Business Adm.)
"This website provides data on businesses with and without employees. These are referred to as “employer firms” and “nonemployer firms.” Employer firms have the lion’s share of receipts and payroll, while nonemployer firms are far more numerous.
The U.S. Census Bureau provides Advocacy with data on employer firm size in the Statistics of U.S. Businesses (SUSB). In these data, a firm is defined as the aggregation of all establishments owned by a parent company (within a geographic location and/or industry) that have some annual payroll. A firm may be located in one or more places..."
"This website provides data on businesses with and without employees. These are referred to as “employer firms” and “nonemployer firms.” Employer firms have the lion’s share of receipts and payroll, while nonemployer firms are far more numerous.
The U.S. Census Bureau provides Advocacy with data on employer firm size in the Statistics of U.S. Businesses (SUSB). In these data, a firm is defined as the aggregation of all establishments owned by a parent company (within a geographic location and/or industry) that have some annual payroll. A firm may be located in one or more places..."
Saturday, November 22, 2008
Small Business Profiles for the States and Territories
"A reference guide to current data on small business activity in the
states and territories prepared by the U.S. Small Business."
"A reference guide to current data on small business activity in the
states and territories prepared by the U.S. Small Business."
Thursday, November 13, 2008
Immigrant-Owned Businesses Contribution To The Economy Detailed In New Report
"Immigrant-owned businesses generate approximately 11.6 percent of all business income in the United States. Moreover, immigrants own 11.2 percent of businesses with $100,000 or more in sales and 10.8 percent of all businesses with employees. These figures are contained in a report released today by the Office of Advocacy of the U.S. Small Business Administration.
“This report is the first time that immigrant business ownership rates and immigrant-owned businesses contributions to the economy have been studied in detail,” said Dr. Chad Moutray, Chief Economist for the Office of Advocacy. “These findings can make a significant contribution to public policy debates,” he added.
The report, Estimating the Contribution of Immigrant Business Owners to the U.S. Economy, written by Dr. Robert Fairlie with funding from the Office of Advocacy, analyzes data from the 2000 Census five percent Public Use Microdata Sample, the 1996-2007 Current Population Survey, and the 1992 Characteristics of Business Owners."
"Immigrant-owned businesses generate approximately 11.6 percent of all business income in the United States. Moreover, immigrants own 11.2 percent of businesses with $100,000 or more in sales and 10.8 percent of all businesses with employees. These figures are contained in a report released today by the Office of Advocacy of the U.S. Small Business Administration.
“This report is the first time that immigrant business ownership rates and immigrant-owned businesses contributions to the economy have been studied in detail,” said Dr. Chad Moutray, Chief Economist for the Office of Advocacy. “These findings can make a significant contribution to public policy debates,” he added.
The report, Estimating the Contribution of Immigrant Business Owners to the U.S. Economy, written by Dr. Robert Fairlie with funding from the Office of Advocacy, analyzes data from the 2000 Census five percent Public Use Microdata Sample, the 1996-2007 Current Population Survey, and the 1992 Characteristics of Business Owners."
Subscribe to:
Posts (Atom)
