The small business sector has long been considered a big job creator for the United States economy. Small businesses have a long history of creating jobs and employing over half the workforce in the United States. It is no wonder then that the federal government has disburse millions of dollars to support the small business sector in Ohio. For more about this and other topics, follow the links below.
U.S. small businesses feel mixed impact from China’s economy
NEW YORK: China’s economic problems have been a windfall for some U.S. small businesses — and pose a threat to others.
A nearly 40 percent plunge in the Shanghai stock market since mid-June, a response to the country’s weakening economy, has sent Chinese investors looking for safer investments. Some are focusing on U.S. real estate, including the condos Peggy Fucci’s real estate brokerage sells in Miami. She’s sold six condos to Chinese buyers in the past month, twice what she’s typically sold in that amount of time.
“It’s the insecurity of continuing to lose your [stock market] investment,” said Fucci, CEO of OneWorld Properties.
Chinese buyers, who pay an average $1.2 million for the condos in a downtown Miami development where she’s sold some homes, want them as an investment rather than a place to live, she said. Fucci is heading to China this weekend on a sales trip, optimistic that she’ll find more buyers.
Feds give Ohio over $18 million for small businesses
Ohio has received more than $18.7 million in State Small Business Credit Initiative funds to help small businesses access capital to grow and create jobs, the U.S. Treasury Department announced recently.
To date, more than $55 million in initiative funds have been disbursed to the Ohio Development Services Agency to support small businesses and the local economy.
“Small businesses are the nation’s leading job creators, and the State Small Business Credit Initiative connects sources of capital to the small businesses that need it,” said Jeffrey Stout, director of the initiative, in a statement.
“The funds announced … will continue to support loans and investments in Ohio’s small businesses,” Stout said.
TAX TIPS: Ohio budget bill provides considerable tax savings for local business activity
Ohio’s operating budget for 2016 and 2017 calls for reductions in tax rates that could prove important to small business owners in the Buckeye State.
This summer, Gov. John Kasich signed into law the two-year Ohio budget bill that expands deductions for small businesses and reduces tax rates on business income and individuals. Kasich originally called it his “Blueprint for Ohio.”
Perhaps most significant is an exemption on a certain portion of business income for Ohio small business owners that do business as an S corporation, limited liability company or sole proprietorship.
The provision does not apply to C corporations, but any business that is structured as a pass-through entity so that its income flows directly from the business to individual shareholders for tax purposes.
