There is an overabundance of retirement financial groups all over the United States. For a small business owner a retirement solution for them and their employees is necessary and much needed. What are the retirement options a small business owner can have? The options are many according to financial planners all over the United States, the option is up to you and what you want to accomplished by retirement age.
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Retirement plans for small business owners
There are a lot of choices so figuring out what you need is crucial to ending up with the best strategy.
Americans ages 55 to 64 are fast becoming entrepreneurs. In fact, the share of new entrepreneurs in that age group grew from 14.3% to 23.4% from 1996 to 2012, according to the 2013 Kauffman Index of Entrepreneurial Activity.
And if you’re among that group of entrepreneurs who are trying to save for retirement while building your business there’s a plethora of plans from which to choose, including SEP-IRAs, SIMPLE-IRAs, SIMPLE 401(k)s, small-business owner 401(k)s, traditional 401(k)s, money purchase plans, profit-sharing plans, and defined benefit plans.
But which retirement plan might be best for you?
Small Business Administration Committing More Cash to SBIC Program
The U.S. Small Business Administration, which provides capital to private investment funds to back small businesses through its Small Business Investment Company program, is opening its wallet a bit wider these days.
The SBA plans to increase its annual commitment to the SBIC program to $4 billion, up from $3 billion, said Javier Saade, associate administrator for the Office of Investment and Innovation of the SBA. Launched in 1958, the SBIC program is designed to help private investment firms augment capital raised from private sources to back small businesses. A popular format of the SBIC program calls for the administration to match each dollar of equity capital that funds receive from private investors with two dollars of public funding in the form of debt.
Another Sign Your Next Small Business Loan Won’t Come From a Bank
Here’s more evidence of the growing market for alternative small business loans: OnDeck, an online lender that makes term loans up to $250,000, generated $65 million in revenue in 2013, Chief Executive Officer Noah Breslow said yesterday. He noted that’s up two and a half times from the year before. The increase comes after a report earlier this year estimating that nonbank lenders including OnDeck loaned about $3 billion to small business owners in 2013.
In a press release today, OnDeck said it received four times as many loan requests from residential construction contractors in 2013 compared with the year before, echoing research from Experian (EXPN:LN) and Moody’s Analytics (MCO) that’s highlighted a connection between rebounding housing markets and small business growth.
