Small Businesses Seen as Engine for Economic Recovery

The Specialty Equipment Market Association (SEMA) applauded the signing into law of the "Small Business Jobs and Credit Act" (H.R. 5297), including $12 billion in tax incentives for small businesses and creating a $30 billion resource to activate greater lending to small businesses by community banks.

The Specialty Equipment Market Association (SEMA) applauded the signing into law of the “Small Business Jobs and Credit Act” (H.R. 5297), including $12 billion in tax incentives for small businesses and creating a $30 billion resource to activate greater lending to small businesses by community banks.

“For months, our member companies and small businesses across the country have struggled to gain access to capital and credit,” said Chris Kersting, SEMA’s president and CEO. “In many cases, tougher credit access has nothing to do with the SEMA member’s business and everything to do with the bank’s difficulties in meeting current lending to capital ratio requirements. Under this new law, funding for loans will be infused into community banks nationwide that are positioned to lend, helping small businesses to become an engine for economic growth and recovery.”

The law includes an extension of the bonus depreciation program, which allows businesses to write-off 50% of the cost of newly purchased depreciable property. Limited depreciation was permitted in 2008 and 2009. The law also expands and extends the Section 179 program, allowing companies to write-off up to $500,000 in capital expenditures in tax years 2010 and 2011, double the current limit for 2010.

“While SEMA appreciates the enactment of this legislation, we now urge bank regulators to quickly implement the lending program,” said Kersting. “It is time to get basic working credit available and help small businesses to become an engine of economic recovery.”

For more information, contact SEMA at 1575 S. Valley Vista Dr., Diamond Bar, CA 91765, tel: (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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