- Small Businesses Add 25,000 New Jobs in May: MarketWatch reports that “[s]mall business employment grew 0.1 percent in May, equating to a 1.6 percent annual growth rate.” This isn’t quite as strong as April, but Dr. Susan Woodward, creator of the Intuit Index, still calls the growth an “unambiguous” sign that “recover is underway.” Compensation per worker also grew over the past month, although hours worked declined.
- Money Runs Out for Small Business Loan Breaks: As funding for small businesses through the Recovery Act is about to run out, the Small Business Administration has again opened the Recovery Loan Queue, keeping a list of those who want a share before the money’s completely gone, according to CNNMoney.com. The money so far has been used to lower fees for borrowers and increase bank guarantees made through SBA lending programs; President Obama would like to see the incentives continue at least through September, but it’s up to Congress to move on it.
- Investors Tap Into 401(k) Money Tax-Free for Business Startups: Bloomberg BusinessWeek reports on a “loophole in the U.S. tax law” that had allowed entrepreneurs to roll over money from 401(k) retirement plans to buy shares in a new company and avoid taxes and penalties that would have applied had they cashed out the plans. The IRS calls these “ROBS,” Rollovers as Business Startups, though, and are investigating them as possible violations of the law.
- For Businesses, Bully Lawsuits May Pose New Threat: The Wall Street Journal reports on a recently passed New York law that “would allow workers who’ve been physically, psychologically or economically abused while on the job to file charges against their employers in civil court.” This law has no exemption for small businesses, so employers of any size could be sued based on allegations of bullying. Could this become a trend across the nation? One legal expert says yes.
As always, please let us know your opinions on these stories and also about what is happening with your small business this week.