The “Jobs Bill” that President Obama signed Monday may have sounded like another “stimulus” boondoggle, but it really has a lot of important goodies for the machining world.
The section of the bill that has immediate impact for the machine tool business is the expensing provision. The current rule was scheduled to expire by the end of 2010, which would have reduced the write off from $250,000 to $25,000. The new law pushes up the expensing provision to $500,000. For smaller companies making profits, this provision, which extends through 2011, will mean better cash flow and less money for Uncle.
Other provisions in the bill backstop the Small Business Administration with major new resources to lend to small business. With banks so frightened to find loans and credit lines, this major infusion of guarantees by the Feds should get the bank examiners off the backs of the loan officers.
The ability to use losses for five years to offset profits should also start to lubricate the economy.
The Administration and Congress finally appear to be starting to “get it” as far as small business is concerned. Funny, how an election can focus people’s minds and even gather a consensus across party lines.
It was nice to see Brad Ohlemacher, president of EMC Precision of Elyria, Ohio, a third generation screw machine guy of all things—attending the signing ceremony. To quote the illustrious Rodney King, “Can’t we all just get along?”
Question: Does a law like this actually change business people’s minds regarding expansion and hiring?