Business owners turned to commercial lenders and increased their investment in equipment last month, reflecting renewed confidence in economic prospects, according to a report released this week by the Equipment Leasing and Finance Association. ELFA's Monthly Leasing and Finance Index shows overall new business volume climbed to $5.1 billion last month, up 21 percent from the same period in 2011. Volume was down 53 percent from December, but analysts were quick to point out that a lull in equipment financing is typical for the beginning of the year. Equipment financing tends to serve as a barometer for wider market sentiment, as it reflects business owners' feelings about incurring debt, expanding their operations and hiring new workers. ELFA also reported gains in credit quality … [Read more...]

Small business owners appear more optimistic about the prospects of their own companies, but they remain skeptical about the overall economy, according to a survey released this week by Union Bank. High unemployment, weak consumer demand and tepid access to credit are among some of the top concerns facing the sector. This sentiment is reflected in a number of recent reports. Earlier this week, Gallup released a survey showing a mere 27 percent of small business owners expect to have an easier time finding a traditional small business loan over the next year, compared to 38 percent of respondents who expect such credit conditions to worsen. While this trend has put a damper on many entrepreneurs' hiring and expansion efforts, it has driven many savvy owners to seek out alternative … [Read more...]

This week, the White House unveiled a proposal to lower the U.S. corporate income tax rate from 35 percent to 28 percent while simultaneously eliminating dozens of loopholes and simplifying documentation for small businesses. While the proposal is sure to vex large corporations such as Boeing and GE who have managed to avoid paying income tax due to various loopholes and deductions, small businesses may actually benefit. "We want to cut taxes on investment in and by small businesses, and we want to simplify the tax system for small businesses so that they can devote more of their earnings to investment and job creation and less to tax compliance," said Treasury Secretary Timothy Geithner at a congressional hearing. CNBC reports that the plan will allow small companies to expense … [Read more...]

Changing economic conditions demand modifications to lending and credit standards, and the U.S. Small Business Administration appears to be taking steps toward that end. The government agency recently reported it has updated its definition of "small business" across a number of industries, thereby opening the door for more startups and small enterprises to obtain SBA loans. Specifically, the SBA released 37 updated revenue-based size definitions of small businesses across 34 market services sectors. The new size standards will go into effect March 12. SBA officials weighed trends in inflation, recent economic stagnation, market competition, federal contracting activity and average company size in drafting the new definitions. Despite its effort to spur private business lending … [Read more...]