Economists at U.S. Small Business Administration (SBA) believe that the U.S. economy needs a greater bounce than is possible from the compromise tax cuts extension legislation that is being considered by Congress now.
Lead economists at SBA believe that this move is going to lower unemployment by 1/2 percent. But this is going to be a little comeback. What the US need to do is get 10 million people back to work.
Half of Americans work for small businesses as defined by SBA and these have less than 500 employees. Such businesses constitute around 5 million against the 18,000 businesses comprised of more than 500 employees.
The $30 billion jobs bill that passed in late September has helped community development banks find the required money. “Those loans are making a difference. They’re going to businesses that really needed money and those businesses are hiring people,” said Zoltan Acs of the SBA Office of Advocacy.
To cut the unemployment number, businesses will have to be created at a fast pace, says, Acs. There is immense growth potential for nano-technology and materials technology.
Short-term fixes such as reduced payroll taxes on employers, and reduced FICA payments are necessary to create jobs and to help the economy find the required boost.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to