• Micro-Business To Remain An Economic Growth
  Engine In 2008
• Tax Filers Affected By Last-Minute AMT Patch
• SBA Receives $569 Million For 2008 Program Costs
• Micro-Businesses Call For Overhaul Of Nation’s Patent System

Micro-Business To Remain An Economic Growth Engine In 2008

With another year under their belt, the self-employed will likely see more national discussions about how federal, state and local governments may best serve the needs of micro-business in 2008. “Changes in the business landscape need to be made, but the self-employed still remain the foundation of America’s economy,” remarked NASE president Robert Hughes. “Despite burdensome business regulations and other obstacles, America’s entrepreneurs continue to adapt, grow and thrive as always.” In the meantime, the NASE continues to offer an impressive number of programs and resources to help make the job of implementing that business plan for the New Year. By popular demand, the NASE made advice from its popular TaxTalk program even easier to obtain by launching a new multimedia site complete with downloadable podcasts and video. National Tax Advisor Keith Hall also fielded questions face-to-face at TaxTalk events across the country (http://news.nase.org/nase_podcast.asp). Created to provide a boost to deserving micro-businesses, the NASE’s Business Development Grant Program continued to flourish and even awarded a $30,000.00 gift to two members for their outstanding business management and growth in 2007. The NASE also offered financial assistance to the dependents of members by awarding over twenty scholarships, including the substantial Future Entrepreneur Scholarship. The NASE released a national research report on retirement (http://advocacy.nase.org/research.asp) and monthly member polls which indicated that micro-business owners still face some mighty challenges when it comes to retirement (80% cannot afford to offer retirement plans of any type for either owners or employees) and health coverage (more than one in four list cost as a top concern). Visit the NASE on the Web (www.NASE.org) for more micro-business programs and news, including information on business grants and scholarships. For a list of legislative priorities, click on the “Advocacy” tab.

Tax Filers Affected By Last-Minute AMT Patch The Internal Revenue Service is asking individuals subject to the Alternative Minimum Tax (AMT) to postpone filing certain AMT-related forms until mid-February. Prior to the holidays, Congress cleared and President Bush signed legislation that necessitated the delay in order for the IRS to properly update current software and forms. Tax paperwork including five AMT-related forms should not be filed until February 11, 2008 in order to allow for necessary updates and system checks to be performed. To find out whether the AMT patch will affect your filing schedule and to view and print updated forms, visit the Internal Revenue Service online at www.IRS.gov. Members of the NASE can also find help through TaxTalk, which offers online access to certified public accountants at no additional cost to membership.

SBA Receives $569 Million For Program Costs The Small Business Administration (SBA) will receive more than $40 million in additional funding in 2008 after Congress approved and the President signed legislation just before the close of 2007. As part of the new law, Small Business Development Centers, Women’s Business Centers and the Microloan program – all major components of SBA’s outreach and assistance efforts – will each receive a boost in funding. According to a statement released by the Senate Committee on Small Business and Entrepreneurship, the programs will receive funding in the following areas: Small Business Development Centers – Up 9 percent (from $89 million in 2007 to $97.1 million for 2008) Women’s Business Centers – Up 4 percent (from $12.5 million to $13 million) Microloan Technical Assistance Grants – Up 15 percent (from $13 million to $15 million) Microloans – Up 53 percent (from $1.3 million to $2 million in funds to leverage almost $20 million in loans -- up from $12.7 million last year) Program for Investment in Microentrepreneurs – Up 50 percent (from $2 million to $3 million) 7(j) Technical Assistance - Up 53 percent (from $1.5 million to $2.3 million) HUBZone Program – Up 5 percent (from $2 million to $2.1 million) Surety Bond Program – Up 6 percent (from $2.8 million to $3 million) Loans and Venture Capital – The SBA will be able to leverage up to $28 billion in loans and venture capital deals through the 7(a), 504, and Small Business Investment Company programs. To read more about these changes and the 2008 Consolidated Appropriations Act, visit thomas.loc.gov.   Micro-Businesses Call For Overhaul Of Nation’s Patent System While micro-businesses are known to consistently break new ground in product and technology development, the majority do not currently hold a patent or trademark to protect their intellectual property. A recent study by the National Association for the Self-Employed (NASE) found that only one in four have either sought assistance for or otherwise looked into obtaining a patent or trademark to help protect their businesses. Considered by many entrepreneurs to be complex and overwhelming, micro-businesses are weighing in on legislation that seeks to reduce poor patent quality and abuse of the current patent and trademark system, with over two-thirds calling for change. The Patent Reform Act of 2007, passed by the House of Representatives in the fall of last year and scheduled for action in the Senate early in 2008, will make necessary improvements to the nation’s patent system. When asked more to rate various proposals within the Patent Reform Act, micro-businesses took the challenge. Sixty percent favor improving patent quality by allowing experts at the Patent Trademark Office (PTO) to reconsider potentially problematic patents in a timely manner, and promote sharing of information with the PTO to improve the process and increase innovation. To see the full results of the survey and read more about what micro-businesses think of current proposals, visit http://www.nase.org/Survey/past_survey_results.asp?SurveyID=28. Washington Watch Online Visit the NASE Advocacy Web page to view archived editions of Washington Watch. While you’re there, read the latest updates from the Washington, D.C. office, write your Congressperson, and find out how you can join the fight for micro-business. Web site: http://advocacy.NASE.org.