Small Business Finance News

Small Business Tax Credit Not Enough To Encourage Hiring

Written by Jenna Weiner
Published: 2/26/2010

Small businesses believe that the $5,000 tax credit for hiring is not adequte incentive to make new hires as they continue to struggle with payroll.

Small businesses struggling to pay employees believe that the $5,000 tax credit part of the recently ratified jobs bill is not enough of an incentive to expand their workforces.

Entrepreneur Business Trend Up

Businesses looking to expand have instead turned to small business loans and cash advances. However, in the case of loans, many government funded programs will likely cease lending the coming months as funds diminish.

BusinessCashAdvance.com has experienced increased business recently and expects the trend to continue for the remainder of the year.

Bank lending is at its lowest levels since 1945, and a National Small Business Association survey reported recently that 39 percent of small business owners stated in December 2009 that they failed to find financing.

Some banks have announced substantial lending initiatives, but throughout the United States, lending is still down.

Until small businesses are able to secure lending again, overall jobs numbers will likely remain static or sink to even new lows. The Small Business Association reported recently that 64 percent of new jobs in the last 15 years came from small business growth.

Share this article

 


About Our Entrepreneur News

Our small business journalists publish news articles for entrepreneurs five days a week. Our small business news articles review trends in business management, analyze the impact of new government policies, monitor key economic indicators that impact small business, and cover many other topics of interest to small business owners.


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary