Summary of Obama's State of the Union Address: New Initiatives to Benefit Small Business

President Obama

During his first State of the Union address, President Obama outlined several key initiatives aimed at supporting the growth of small business in the States. Among the proposals he made that would help small business community were a new jobs bill, and taking $30 billion from the Wall Street bailout to help community banks increase small businesses lending. He proposed legislations to eliminate capital gains taxes on investments in small businesses, tax credits for business owners hiring new employees, and tax breaks for investment in new facilities and equipment.

In his speech, Obama stressed the importance of small business for job creation. He called for the new job bill saying that jobs must be the biggest priority in 2010. Recognizing that lending market for the small businesses is still in the poor state, and that funding is one of the biggest struggles for a small company, Obama highlighted the need for government to assist small companies by providing them better conditions for growth and hiring new workers. His words on this issue were:

„Financing remains difficult for small business owners across the country, even those that are making a profit. So tonight, I’m proposing that we take $30 billion of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat. I’m also proposing a new small business tax credit — one that will go to over 1 million small businesses who hire new workers or raise wages. While we’re at it, let’s also eliminate all capital gains taxes on small business investment, and provide a tax incentive for all large businesses and all small businesses to invest in new plants and equipment.“

President Obama next set a goal of doubling exports in the course of next five years, which would improve exporting opportunities for small businesses, and support two million American jobs. “To meet this goal we’re launching a national export initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security.” Obama said.

On health care, the president stressed that health insurance reform is still needed. He said that “It would give small businesses and uninsured Americans a chance to choose an affordable health care plan in a competitive market. It would require every insurance plan to cover preventive care… Our approach would preserve the right of Americans who have insurance to keep their doctor and their plan. It would reduce costs and premiums for millions of families and businesses.”

All these initiatives would help the development of small businesses in the States, since they suffered the massive blow during the recession and many of them felt like they were left out of the government’s plan to renew the economy. President Obama put the spot light on the small business issues during his State of the Union address, and gave important promises to help them grow. It is yet to be seen if this news will be received without skepticism among small business community, but it surely left many small business owners hopeful to see a positive shift in this year.