Vetwork Your Business

American Recovery and Reinvestment Act ~ Veteran Provision Highlights

The Economic Stimulus package, the American Recovery and Reinvestment Act of 2009, became law in February. The $787 billion dollar economic stimulus package contains a mix of government spending on infrastructure and public works projects, financial assistance for home buyers, the unemployed, and state governments, and provides tax incentives for individuals and businesses. The provisions in the bill will reportedly result in the creation or retention of approximately 400,000 jobs and provide nearly $25 billion in tax relief to small businesses.

The Greater Philadelphia Chamber of Commerce believes that, while the legislation has some flaws, it serves as a positive step forward. It offers spending initiatives as well as tax reduction remedies that will help struggling employers, hard-pressed workers and those unemployed because of the crumbling economy. Imperfect though it may be, the American Recovery and Reinvestment Act still offers the potential to provide stimulus, create jobs and get our economy moving.

Highlights of the Economic Stimulus’ provisions for veterans and businesses include:

• Small Business Administration Lending. SBA loan fees are dramatically reduced under this legislation while raising the loan’s guarantee to as much as 90% for 7(a) loans. In addition, existing SBA borrowers under financial duress or hardship are eligible for a 100% guaranteed SBA deferred-payment loan of up to $35,000 over five years.
• Extension of Business Depreciation. The ARRA extends the 2008 temporary benefit of immediately depreciating 50% of certain capital investments made and put into service in 2009. Businesses of all sizes can recover the costs of capital expenditures faster than the original depreciation schedule.
• Net Operating Loss Carry-back. Small businesses struggling with annual receipts of less than $15 million can carry-back losses on their taxes for five years instead of the current two years. Small businesses that lost money last year can apply those losses to profitable years before, qualifying them for refunds paid on taxes.
• Tax Credits for Businesses Hiring Unemployed Veterans. Businesses are eligible for the tax credit for hiring any veteran who was discharged or released from active duty from the Armed Forces during the previous five years and received unemployment benefits for more than four weeks before being hired.
• Tax Relief for Disabled Veterans. The Economic Stimulus provides a payment of $250 to all disabled veterans currently receiving benefits from the Department of Veteran Affairs.

Click here for more information related to Small Business Tax and Spending provisions

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Veteran-Owned Small Business Promotion Act of 2009

On January 8, 2009, the Veteran-Owned Small Business Promotion Act was introduced in the U.S. House of Representatives and referred to the House Committee on Veterans Affairs. If passed, this legislation would provide for the reauthorization of the U.S. Department of Veterans Affairs’ small business loan program, which was terminated in 1986. Under this Act, the Secretary of Veterans Affairs may provide loans to veteran-owned small businesses for:

• financing plant construction, conversion, or expansion
• financing the acquisition of equipment, facilities, machinery, supplies, or materials
• supplying working capital

The legislation would also allow such loans to be made to veterans who have a disability rating of 10%. Under current law, eligible veterans must have a disability rating of 30% or higher and are limited to Vietnam-era veterans and veterans discharged or released due to a disability incurred or aggravated in the line of duty.

You can read a copy of the bill by clicking here

If you are interested in learning more about the Veteran-Owned Small Business Promotion Act, please contact your U.S. Representative in Washington, D.C. or the office of Congressman Steve Buyer (R-IN), the bill’s original sponsor. Congressman Buyer is ranking member of the House Veterans’ Affairs Committee and continues to serve as a Colonel in the Army Reserve.

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Bill Would Improve Opportunities for Veteran-Owned Businesses

The Chamber’s effort to promote procurement goals for Pennsylvania’s Veteran-Owned businesses is looking brighter. Senate Bill 162, legislation designed to promote the growth and success of Pennsylvania’s veteran-owned businesses, was referred to the Senate Veterans Affairs and Emergency Preparedness Committee, reported out, and re-referred to the Senate Appropriations Committee on March 23, 2009.

The bill would set an annual goal of 5% participation by veteran-owned businesses in all contracts awarded by the Commonwealth’s purchasing agencies. Such targets currently exist for businesses owned by women and minorities, but not for veterans. Under the measure, the Department of General Services would promote and assist veteran-owned businesses in learning how to do business with the state and other large corporate entities. The Department would also compile a list of veteran-owned businesses to encourage procurement.

Introduced by Senator Robert "Tommy" Tomlinson (R-PA) and a bipartisan list of co-sponsors from across Pennsylvania, the measure was passed at the last session by the Pennsylvania State Senate, 50-0, but unfortunately the session came to an end before the bill received final consideration in the House.

We encourage you to contact your representative in the Senate by clicking here

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Vetwork Networking Event at Lockheed Martin, 5/14

As part of Vetwork’s focus on providing networking opportunities, veteran-owned businesses are invited to join us for an exclusive networking breakfast at Lockheed Martin – a leading systems integrator and information technology company. The breakfast begins at 8:15 a.m. on Thursday, May 14 at Lockheed Martin’s facilities in King of Prussia, PA.

Attendees will have the opportunity to meet one-on-one with purchasing executives to discuss potential business opportunities, while networking with fellow veteran business owners.

Lockheed Martin has been the recipient of many awards and honors for its supplier diversity program. Considered one of the world’s top corporations in subcontracting with small business, Lockheed is ensuring that all types of small business are afforded a fair and equitable opportunity to participate in its subcontracting process.

If you would like to attend this next event, you must register by May 12.

Please click here for more information

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