A small business forum held in Ohio saw President Obama and his cabinet members meet with 100 small business owners. Access to Credit has remained one of the top issues of discussion. Obama spoke with several entrepreneurs who disclosed their successful attempts in securing capital.
Collateral shortage is one major reason for small businesses to be affected more by credit crisis than larger firms. This has been reiterated by Obama in his discussion with entrepreneurs present during the forum. Small businesses’ access to capital is tough as the value of the assets they offer as collateral has declined. The president says, “if those asset values have declined, that makes it that much more difficult.”
Phil Davis, the owner of a microwave-oven manufacturing firm in Cleveland, suggests elimination of capital-gains taxes on investments. Obama reacted saying “That is such a good idea that we actually implemented it last year.”
The zero-capital gains proposal passed in September later on got extended. Investors are also hoping for a permanent measure. Answers on financing also took place as Obama participated in an online session and answered questions on Facebook. He answered about ways of finding Short Term Commercial Loans too. The president also touted several programs as implemented by SBA that includes ‘loan-guarantee initiative’, in-order, to fill in the gaps. The President said that a tax credit for angel investor will be created soon.
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