In terms of the fashion industry this information is not only relief but inspiration. With a new bill set out to increase the arts and a watchful eye on the banks, it looks like an independent fashion business has the chance.
If you are starting out new, prepare all of your planned over head costs. Decide how many employees you will be able to take on. This might be the time to keep it all in house instead of outsourcing PR, marketing, accounting etc. By showing the newly liquid banks what your 5 and 10 year goals are financially they will be able to get an idea of how your success will better the economy in your specific city.
With 70 percent of new jobs given to people through the American small businesses in the last decade, it is evident that this is the first area that can immediately prosper from the bail-out.
Treasury Secretary Timoth Geithner said “as small businesses prosper, the nation does, a critical element to any economic recovery.”
With Treasury Secretary Timothy Geithner by his side, Obama said the nation has small businesses to thank for many of the new jobs, roughly 70 percent in the last decade. Geithner said as small businesses prosper, the nation does, a critical element to any economic recovery.
The White House announced a series of moves to get credit flowing to small businesses. The measures include boosting bank liquidity with up to $15 billion aimed at unfreezing the secondary credit market, reducing lending fees and increasing loan guarantees, and easing the tax burden. The administration also announced that the 21 largest banks receiving government money must report monthly on how much lending they do to small businesses.
The goal is to help those businesses make payroll, buy equipment and maintain or even expand employment as the nation's economy is bleeding jobs.
Geithner made a direct appeal to community banks to start lending again.
"When banks individually pull back out of a sense of prudence and caution, the collective impact of those actions will make the economy weaker and make each individual bank worse off," Geithner said. "By pulling back on credit, you push businesses to pull back, and this dynamic can feed on itself."
Geithner also ordered the Internal Revenue Service to issue a series of new rules for temporary but significant tax breaks, meaning that small businesses:
- That earn up to $15 million will be allowed to claim losses for the past five years in the current tax year;
- May write off up to $250,000 in investments this year.
- Can reduce estimated tax payments to 90 percent of the previous year's filing.
- Are allowed to take larger depreciation deductions within the first year of property purchases.
- And will see 75 percent of capital gains excluded for those who invest in small businesses.
For more information watch the video of Obama's Speech.
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