small business

While the Tax Cuts and Jobs Act of 2017 was passed more than five years ago, many businesses seem to be just discovering the effects of one of its sections this tax season. The law stipulated that, for tax years beginning in 2022, companies could no longer choose to expense their entire “research and experimentation” costs in one year and must instead amortize those cost over five years (with a half year look-back).

The U.S. Department of Treasury has announced approval of $635.6 million in State Small Business Credit Initiative (SSBCI) funding for Texas and Washington. The addition of these two states means 48 states and three territories have had their SSBCI programs approved.

Texas

Microbusinesses (businesses with 1-9 domestic employees) spent $7.5 billion in both domestic and foreign R&D expenditures or costs in 2020, of which $6.7 billion was in the U.S. Of this total, $5.6 billion was performed by microbusinesses themselves, according to the National Center for Science and Engineering Statistics (NCSES) and data from the Annual Business Survey (ABS). The $5.6 billion performed by U.S.

SSTI has written a response to the U.S. Small Business Administration’s (SBA) proposed revisions to the Small Business Investment Company (SBIC) program, which aim to increase program participation.

The U.S. Department of the Treasury announced 11 additional states whose SSBCI plans have been approved: Alaska, Idaho, Iowa, Massachusetts, Minnesota, Missouri, Nebraska, Nevada, New Mexico, Ohio, and Utah.

Gov. Tom Wolf awarded $246.8 million to Pennsylvania local economic development partners through the State Small Business Credit Initiative (SSBCI) this week. The money is expected to help small, socially and economically disadvantaged businesses grow. The Pennsylvania Department of community and Economic Development (DCED) will distribute the funds to partners who will administer the funding to qualifying businesses.

Entrepreneurs learned more about small business funding opportunities from federal agencies with Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs during America’s Seed Fund Week last week. The $4 billion funding program, which is currently up for reauthorization, is celebrating 40 years of providing funding to small businesses each year in a variety of technology areas.

A new working paper by the Federal Reserve Bank of Philadelphia used loan-level data from two fintech lenders, Funding Circle and LendingClub, to assess how the companies’ pre-pandemic lending patterns differed from those of traditional banks. The report finds fintechs contribute to a “more inclusive” financial system, expanding credit to more companies and at a lower cost.

A research team including members from MIT and the Federal Reserve Board assessed the Paycheck Protection Program (PPP) to determine if the initiative was able to keep businesses from closing and people from becoming unemployed.

An inaugural report looking at the landscape of capital resources in Arkansas may be useful to others who are interested in examining the capital access in their state or region. The report will serve as a baseline for trends in public, private and philanthropic investments in entrepreneurship across the state and may be a useful resource as the state plans its State Small Business Credit Initiative strategy.