Small Business in the News: Dec 12 - 18, 2015

We know there is too much to keep up with when you’re a busy entrepreneur, so we compile small business news highlights each week for you to read only what matters most. Here is a summary of the top stories for December 12 – 18, 2015.

Equipment Purchases Provide $500,000 Tax Break to Small Businesses

As part of the larger tax plan approved by Congress this week, one major provision would raise the deduction of equipment purchases from $25,000 to $500,000. This tax break in Section 179 would apply to depreciating equipment, like cars, computers and machinery. Accountants advise crunching the numbers before proceeding, in order to conduct long-term financial planning that was previously very challenging. Other provisions include a tax break through 2019 on research and development. Read more...

Demand for Small Business Capital is Down Even as Access Increases

A report from Dun & Bradstreet and Pepperdine University's Private Capital Access quarterly report reveals that access to capital for small businesses is at its highest level since 2012, but demand for funding is actually decreasing. This trend held true for mid-sized businesses as well. Despite this news, 87% of business owners expressed optimism about 2016 and expect to grow in the coming year. Jeff Stibel, Vice Chairman of Dun & Bradstreet said, "The momentum coming from small businesses will create stability in our overall economy and will continue to help reduce unemployment throughout 2016." Read more...

Interest Rate Hike Could Affect Small Business Lending

The Federal Reserve announced a small interest rate hike on Wednesday that could have a larger impact on small business lending. With higher interest rates, traditional banks that have pulled back from lending over the past several years might provide more loans moving forward. Marketplace lenders that entered the void left by traditional banks might have to revisit their algorithms as interest rates increase. While the Fed policies are only one factor in the small-business lending space, the interest rate hike could have an impact on the status quo as it begins to climb. Read more...

14 Marketplace Lenders Named in California's Inquiry Following San Bernardino Shooting

On Monday, 14 major players in the alternative lending space, including Lending Club, Prosper, OnDeck, Kabbage, Fundbox, PayPal and Square, were sent inquiries from the California state legislature. They will have to provide data about their loan volumes, the annual percentage rates they charge to borrowers, and their investor bases. Despite the timing , which was announced just days after reports revealed the San Bernardino shooters received a loan for $28,500 from Prosper, this inquiry was driven by the fact that the unsecured loans have topped over $25 billion in 2015. Read more...

 

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