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The American Recovery and Reinvestment Act of 2009 …
… Is the official name of what is known among the general population as Obama’s Stimulus Package, occasionally called “The Stim” by various news talking heads – the ones who are clever, that is.  An Obama Small Business plan does not appear to be in the works, but even critics acknowledge that the Obama Stimulus Plan contains a number of “good news” elements for small business owners, especially in certain sectors.  The entire package totals $787 billion, and this amount is arrived at by combining the value of tax cuts, direct cash infusions, and loan guarantees over and above those that already exist.

Barack Obama’s Stimulus Package – Obama For Small Business
In numerous stump speeches during the 2008 election process, Barack Obama consistently came out in favor of locally owned businesses.  That concern has carried over to his presidency.  Here are some elements of the Obama Stimulus that directly benefit small businesses:

• Larger loan guarantees – The U.S. Small Business Administration (SBA) will now guarantee 100 percent of all loans up to $35,000, while placing a one-year moratorium on payments.  A total of $426 million has been specifically set aside for this program.
• Lower interest rates – Where existing small-business loans were written with high interest rates, the SBA is authorized to negotiate their refinancing at a lower rate.  This is valid for any loan taken out before Obama’s Stimulus Package was passed and so long as the principal amount is less than $10 million.
• Major tax breaks – Any company acquiring new business equipment in 2009 will be permitted to write off 50 percent of the purchase price, up to $250,000.  Furthermore, a company that has less than $15 million in annual sales can carry back net operating losses for five years, rather than for two years as was previously the case.
• New financial grants – Among the various grants that are part of Obama’s Stimulus Package, two specifically relate to small businesses.  The first allows companies to improve Internet access through broadband upgrade grants.  The second is aimed specifically at people who operate a small business out of their homes, where homeowners can be eligible for up to $50,000 in grant money.

Three High-Profile Obama Stimulus Opportunities
One of the major purposes of the Obama Small Business Plan was to accelerate the creation of jobs across America.  Three business sectors are especially well positioned to take advantage of this infusion of capital.

• Highways and Bridges – Most federal and state officials agree that the country’s infrastructure has taken a severe beating over the past several decades.  The collapse of the I-35 Bridge near downtown Minneapolis is perhaps the most dramatic evidence of this, but by no means the only evidence.  A total of $29 billion has been set aside for the construction of new infrastructure items as well as maintenance of existing elements.  Businesses that stand to benefit from this portion of the plan include everything from surveying and mapping companies to construction and engineering firms, as well as any business that sells products or services in support of them.
• Electronic Medical Records – A prime factor in the anticipated reform of the nation’s healthcare industry is the digitization of medical records.  Turning millions of paper files into digital representations will be a massive task, but the outcome will result in saving millions of dollars a month in retrieval costs.  Also, the safety factor cannot be overstressed.  Once a person’s medical history can be accessed online, emergency rooms around the country will be able to view a patient’s health records safely and accurately.  Jobs ranging from computer programming to administration will benefit from the money being spent on this initiative.
• Power Grid Improvements – Few people would argue that the U.S. power grid – notably electric transmission lines and power plants – is in serious need of an upgrade.  Just ask anyone who was caught in the massive blackout in August 2003 that affected close to 50 million people in Canada and the United States.  Creating something called a “Smart Grid” involves the merging of existing power distribution systems with advanced IT thinking, cutting operational costs and allowing for better control when demand for electrical power in a particular area exceeds supply.  Most experts agree that the adoption of electric-based transportation (both private automobiles and mass transit) cannot occur without a serious overhaul of the entire delivery system.  The companies most likely to benefit from this portion of Obama’s Stimulus Package include electrical engineering firms and IT consultancies, but others may not even exist just yet.  This is perhaps the one area where innovation and brainpower may create all those “green” jobs everyone is talking about.

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