Posted by Molly Nelson - Briefly noted:
- The extension of employer-sponsored health insurance coverage
under COBRA as part of the economic stimulus bill goes into effect this
week. Firms with 20 or more employees are responsible for 65 percent
of health insurance premiums for former employees for up to nine
months. The IRS has information to help employers claim credit for these payments.
- President Obama's task force may be looking into changing SBA guidelines so that car dealerships could qualify for SBA loans.
While tens of thousands of dealerships are at risk of closing, the
average dealer has revenues of $40-45 million and thus exceeds the
revenue cap of $29 million for SBA loan recipients. The American
Reinvestment and Recovery Act set aside $730 million for Small
Business Administration programs with the hope that these provisions
would spur lending to small businesses.
How will paying premiums under COBRA for former employees affect
your business? Do you think lending to small businesses has increased
since the passage of the stimulus? Do you think car dealerships should
be eligible for SBA loans?