It is no surprise that the economic downturn in the U.S. has taken a significant toll on small businesses nationwide. Add in the pending tax hikes courtesy of Obamacare and the effects on these hardworking entrepreneurs are simply chilling. Many of you already know this first-hand, because you’re either a small business owner or employee. In fact, small businesses make up around 99.7 percent of all employers and they employ nearly half of Americans not working for the federal government.
Unfortunately, despite efforts to force Obamacare and Cap & Trade on the American people, the Democratic Majority has failed to address the biggest problem currently facing small businesses — access to capital. When meeting with entrepreneurs in my district, this is exactly what I hear.
To address this challenge, I have introduced a piece of legislation -- The Small Business Investment Penalty Relief Act of 2010 -- that would help small business owners make ends meet. Right now, small business owners are unable to access capital from traditional sources and are having to resort to withdrawing funds from their own retirement accounts, which entails a 10 percent penalty.
My bill would waive this penalty for up to two years, if the money withdrawn is reinvested into the business. A small business owner would be able to withdraw up to either $10,000 or 25% of the value of the retirement account without penalty. These limits, and the two-year rule, help to ensure long-term financial stability while still providing the ability for small business owners to access capital.
This bill would provide relief to the many hardworking owners of small businesses in my Georgia district, helping them to stay open and continue to provide jobs to the local community. I truly hope the Democratic Majority allows us to consider this bill, and puts a stop to their job-killing agenda.
Congressman Gingrey represents Georgia's 11th congressional district.