A big sigh of relief is in order for entrepreneurs now that the SBA Shutdown Crisis of 2015 is over and lending can resume for the SBA’s flagship 7(a) program. As of July 27, 2015, Congress has officially raised the lending cap for the program by $4.75 Billion, to $23.5 Billion. This follows a suspension on July 22 when the SBA announced it reached its 2015 Loan Guarantee Program limit of $18.75 billion two months short of the governments fiscal year end (September 30).
There is little wonder why some small business owners are concerned when reading headlines such as: Unfortunately, the articles are misleading and are causing undue fear and concern, often where none is warranted. The articles are addressing two Tax Court cases (Peek and Ellis) that deal with the misuse of Self Directed IRA’s and do not pertain to “Rollover as Business Startups” (ROBS) arrangements. Benetrends’ founder and Chairman Len Fischer, the architect of ROBS arrangements, states, “The rules are very different for self-directed IRAs. The ROBS community is not affected by (the) court decision(s).”
How Will The Government Shutdown Affect SBA Loans?
Summary of the Family and Business Tax Cut Certainty Act of 2012
Businesses can enjoy a variety of tax credits. On August 2, Congress passed the Family and Business Tax Cut Certainty Act which extended some of the existing tax credits for small businesses. Listed below are some of the often-overlooked credits that may come in handy for reducing your tax liability:
IRA prohibited transaction in self-directed IRA issue is significantly different than the Benetrends ROBS qualified plans.
This case emphasizes the importance of using experienced professionals to assure that the process is compliant.