APRIL 7, 2004
SBA 7(a) Loan Program
Extended
The House, Senate and
U.S.
Small Business Administration finally came to a
consensus on reinstating the popular 7(a) small
business loans last week.
H.R. 4062, signed into law by President George W.
Bush this week, would lift the current $750,000 cap on
the loans and reinstate “piggyback,” or combination,
loans with a small fee to lenders. These changes will
allow lenders to provide larger loans to
small-business owners.
H.R. 4062 would nearly triple the loan guarantee a
lender could provide to a small business from the
current $562,000 to $1.5 million. The SBA estimates
the additional $3 billion in loan authority created by
the legislation will allow the SBA to guarantee an
additional 30,000 loans through the end of the fiscal
year, creating up to 500,000 jobs.
In addition to providing the highest loan guarantee
limit in the 7(a) program's history, H.R. 4062 would
restore the overall program to full strength, after a
temporary shutdown of 7(a) early this year. Small
Business Committee Chair Don Manzullo (R-IL) and
Ranking Member Nydia Velázquez (D-NY) originally
introduced the legislation in the
House, with Small Business Committee Chair Olympia
Snowe (R-ME) then championing it in the
Senate.
NASE Benefit Offers Same Advantages as HSA
There has been a lot of talk lately - including from the
NASE - about
the new Health Savings Accounts that were passed into law
late last
year, and what they mean to small business. As part of that
discussion, the NASE offers a benefit that has many of the
same
advantages, but at an even greater savings for
micro-business owners.
Association 105 HRA is a tremendous tool which can help
micro-businesses manage their health care costs. Medical
reimbursement plans
like Association 105 HRA are authorized under the Internal
Revenue
Code, so 100 percent of health care costs can be tax
deductible from
state, federal and self-employment taxes. Accordingly, the
cost of all
medical expenses is reduced.
By using an Association 105 HRA, health care costs can be
reduced up
to 40 percent. In fact, in 2002, the average NASE member
using an
Association 105 HRA plan saved more than $3,000.
While the NASE supported the legislation for Health Savings
Accounts,
there are limitations built into the plans that do not exist
with the
Association 105 HRA. Health Savings Accounts are an
important part of
the national health care discussion, but smart consumers
should also
look at the Association 105 HRA plan, since it will provide
a greater
benefit than an HSA.
The Association 105 HRA benefit is FREE to NASE Members
during the
first year of their membership. Call NASE today at
1-800-232-6273 to
see if the Association 105 HRA can help your micro-business
or
click here for more information.
Register Online for SBA
Expo’04, May 19th in Orlando
Online registration for the
U.S. Small Business
Administration’s SBA Expo ’04: Celebrating National
Small Business Week is now available. The annual
celebration honoring the nation’s leading small
business entrepreneurs will be held in Orlando, Fla.,
May 19-21, 2004, at the Orange County Convention
Center. Highlights of SBA Expo ’04 include the
announcement of the National Small Business Person of
the Year.
Small-business owners, business organizations, and
other individuals who wish to attend or exhibit may
now register online at
www.sba.gov/50. Complete
information on Expo events is available on the SBA’s
conference Web site and will be updated regularly.
Early bird rates will be in effect until April 17.
Special events include a business expo, a business
matchmaking event, business seminars, a town hall
meeting, and award ceremonies honoring women
entrepreneurs and state and national small business
winners. SBA Expo ’04 will also feature business
industry leaders and speakers from trade associations
and from state and federal governments.
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