SEMA Urges Senate to Pass Small Business Lending Bill

SEMA, the Specialty Equipment Market Association, urged the United States Senate to pass H.R. 5297, the “Small Business Jobs and Credit Act.” The House passed the bill in June. The legislation would create a $30 billion fund to provide banks with less than $10 billion in assets access to capital to lend to small businesses.

“During the past two years, banking relationships have changed for many of our SEMA member companies,” said Chris Kersting, SEMA president and CEO. “Businesses that have enjoyed years of profits and expansion have had loan requests rejected and credit limits restricted. The reduction in access to capital is prolonging a stagnant economy and producing unnecessary anxiety for businesses and consumers alike.”

In a letter to the Senate, SEMA supported an infusion of capital into smaller banks, with incentives for those banks to offer small business loans. The funds could be crucial in supporting job growth and economic expansion.

The bill also includes a SEMA-endorsed extension of the bonus depreciation program, which allows businesses to write-off 50 percen of the cost of newly purchased depreciable property. The depreciation was permitted in 2008 and 2009. A one-year renewal would encourage companies to invest in newer, more efficient equipment and spur sales and create jobs.

The legislation would also extend and expand the Section 179 provision, which allows companies to write-off up to $500,000 in capital expenditures in tax years 2010 and 2011. Coupled with the extended time period, this expansion would represent a doubling of the current limit.

“SEMA will continue to work with lawmakers, regulators and the banking industry to spur lending,” said Kersting. “Making money and credit available to industry is the lifeblood to this nation’s economic growth. Enacting H.R. 5297 into law is vital towards achieving this goal.”

About SEMA
SEMA, the Specialty Equipment Market Association founded in 1963, represents the $31.85 billion specialty automotive industry of 7,144 member-companies. It is the authoritative source for research, data, trends and market growth information for the specialty auto parts industry. The industry provides appearance, performance, comfort, convenience and technology products for passenger and recreational vehicles. For more information, contact SEMA at 1575 S. Valley Vista Dr., Diamond Bar, CA 91765, call (909) 396-0289, or visit www.sema.org or www.enjoythedrive.com.

When Your Shop Is Worth Much More Than You Thought

Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.

Case Study: Owner of San Francisco-based Import Service Shop Delighted to Discover Just How Valuable His Business is to Qualified Buyers
I sometimes share case studies of the clients I have been able to assist in my role as an aftermarket business broker and provider of intermediary and advisory services. I do that when I think the story will provide a reader in similar circumstances with new insights or helpful information.
In the case of Cowden Automotive, Inc., I acted in a consulting capacity assisting the owner and his broker in valuing the business, creating a marketing plan, finding a qualified buyer, and arranging financing for the sale.
Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.
Needless to say, delivering that kind of good news to a shop owner is a rewarding experience. Discovering that the sale of his business would result in his retirement nest-egg being substantially larger than he had ever thought was a fitting tribute to someone who had spent his entire working career as a busy automotive service shop owner.

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