President Bush didn’t leave Chicago last week before unwrapping a present to small-business owners.
Included in the president’s economic stimulus package is a proposal to triple the initial write-off small companies can take after buying equipment. This boost, to $75,000 from $25,000, would lower the firms’ taxable income.
The benefit would be available to companies that buy up to $325,000 in equipment annually, up from $200,000.
“You can purchase more equipment and still be subject to the first bite of the apple,” said Giovanni Coratolo, director of small-business policy at the U.S. Chamber of Commerce.
While the president’s plan still faces a battle in Congress, Coratolo expects the small-business provision to survive the fight. “You’d be hard-pressed to come out against small business. It’s like mom and apple pie.”
Association helps funding take wing
A new group has been formed to address the Midwest’s “angel” shortage.
The Midwest Angel Network Association hopes to attract potential investors into early stage investment funds and help steer entrepreneurs to angel groups.
“The result will be a larger investment community, making higher quality investments, and in turn, entrepreneurs will be able to identify a more organized group of angel investors capable of doing more deals,” said Barry Moltz, co-founder of Prairie Angels, in a press release.
The association will not make investments, but three angel groups are associated with the organization. Besides Prairie Angels, those include Northern Illinois Angels and Ceres Group.
The Illinois Coalition, PricewaterhouseCoopers, the Chicagoland Chamber of Commerce, and Mayer, Brown, Rowe & Maw also helped pull the group together.
“Seed stage investing is a lonely place in this region,” said Tom Churchwell, managing partner of ARCH Development Partners. “My hope is this association will spur qualified investors to extend the much-needed capital to fill the void of seed funding in the Midwest.”
For more information, visit www.midwestangelnetworks .org.
Applications for Springboard due
The deadline for female business owners to have a chance to participate in the Springboard Midwest competition is fast approaching.
Online applications must be submitted by Jan. 31. Those selected will make presentations at the Springboard forum April 23.
Springboard aims to connect women-owned businesses with venture capital investors.
For more information, visit the group’s Web site at www.springboardenterprises.org.
