This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

3 Things You Should Know About Small Business: Feb. 29

NEW YORK ( MainStreet) -- What's happening in small business today?

1. The president's 2013 budget is a mixed bag for small business. While it's commendable that President Barack Obama is seeking to reduce the federal deficit to $901 billion in his 2013 budget, the changes he is proposing to the Small Business Administration are a mixed bag for small businesses, says Biz2Credit's Rohit Arora.

Obama plans to raise taxes on households making more than $250,000 a year. This could be a drain to small-business owners who pay taxes on their profit at the individual level.

On the other hand, Obama proposed a 3% increase in the Small Business Administration's budget, with the bulk of the money going toward guaranteeing more loans to small business. The president is proposing to lower the cap on the SBA's flagship 7(a) loan program to $16 billion from $17.5 billion. The proposals, which give more money to entrepreneurship training for veterans, would also reduce funding to its network of Small Business Development Centers.

The budget also proposes a tax credit to small businesses with fewer than 50 employees that add jobs.

2. House Republicans introduce small-business legislation. House Republicans on Tuesday introduced six bills to facilitate small-business capital and job creation. According to The Associated Press, the legislation would ease regulation to "make it easier for small businesses and entrepreneurs to attract investors and go public."

The legislation comes at a time when both parties are looking to convince voters they have the best solution to job creation.

3. The home care industry may have to raise pay.The elder care industry is one of the fastest-growing industries, and dominated by small businesses. Health and personal care aides are one of the least glamorous jobs to do and among the lowest paid.

According to an analysis by FranData, there are about 22,000 home health care establishments, with the largest controlling less than 5% of the market. Franchisors are clamoring to capture more business, but they might have to start paying their employees more. Many employers have been exempt from providing home care workers minimum wage and overtime due to a loophole in a federal law that considers them "companions" -- a law not originally meant for professional care workers. Critics wonder how repealing the law might affect access to home care.

Written by Laurie Kulikowski in New York.

To contact Laurie Kulikowski, send an email to:

To follow Laurie Kulikowski on Twitter, go to:!/LKulikowski


Follow TheStreet on Twitter and become a fan on Facebook.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $126.37 2.53%
FB $83.20 -0.13%
GOOG $552.03 0.67%
TSLA $190.57 3.01%
YHOO $44.95 -0.33%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs