We have help for banks now. Why not help for small businesses and startups?

The senior senator of NY, Charles Schumer, has proposed a $700 million small-business stimulus plan.

The proposed program would help businesses in several ways including:

• waive bank service fees on loans
• give the Small Business Administration (SBA) more money for staff and loans
•  raise the limits on SBA and let the SBA offer loans for refinancing.

According to the Senator, the program would allow the SBA to help with up to $25 billion in “affordable” loans and generate about 700,000 jobs nationwide. The SBA doesn’t make loans but guarantees payment to a bank if a business defaults.

Schumer will be pushing his stimulus package in the Senate, after elections on November 4.

Do you think Senator Schumer is doing the right thing? Is a stimulus package needed? Should it involve the SBA?

When the new stimulus package becomes checks in May, many small business owners will find the month one of the more flush ones.

You see, once taxpayers get their hands on their checks, they are most likely going to spend it, especially for products and services that small  businesses provide.

In addition, some other benefits passes by the resolution that President Bush will soon sign into law, will give companies a 50 percent bonus deduction on new equipment that would normally be depreciated over many years. It also increases the limit on expenses that small businesses can deduct from annual income, with a total cap of $800,000.

So what are you going to do with your check?