The dust has settled a bit on the American Recovery and Reinvestment Act of 2009 - the official name of the recently passed $787 billion economic stimulus package. 

There are a number of good articles on the package and how it impacts small business:

1. SBA Advocacy Chief Economist Chad Moutray covers the small business impact of the stimulus package at a high level on the SBA's Small Business Watchdog blog. 

It covers both specific small business measures and provides a good overview of the infrastructure spend.  If you are interested in small business and just want to read one article on this topic, read this one.

2. Businessweek has a good article on the small business tax provisions in the stimulus package. 

3. Technology Review says battery makers are big stimulus package winners.  $2 billion in grants, substantial tax credits for plant and equipment and a share of the broader green energy spending.

4. Speaking of green energy spending, it will tally $79 billion according to LA Times. 

5. Health related IT gets a big boost - $19 billion according to the Wisconsin Technology network.

6. The International Herald Tribune covers the $7.2 billion in broadband infrastructure spend.   

7... read more >>

Sigh.

Ford Motors has decided to implement some of the fuel-saving tricks it's had on its shelves since.... the '50's. Crazy tricks like:

• Direct-injection engines
• lighter-weight steel body parts.

These crazy tricks were implemented in overseas models... but not here.

"Detroit hasn't so much lacked innovation as it has lacked the resolve or mandate to apply it," says David Friedman, research director of clean vehicles at UCS.

As far as I can see, no one demanded Ford's management forgo the application of any innovative idea like... lighter-steel body parts, in favor of heavier, more expensive trucks with bigger, less fuel-efficient engines. 

But, they did have the resolve and mandate (and budget) to advertise and create the demand for SUVs and heavy trucks among urban dwellers... And they did have the resolve, mandate and budget to lobby against increased fuel economies that they were able to deliver. And look where it got them. Look where it got us.

Ford: what did you know and when did you know it?

Link: Business Week

Of the nearly $800 billion of relief in the American Recovery and Reinvestment Act, signed into law on February 17, 2009 (of which about 35% are tax breaks), only a very small percentage will benefit small business owners. Most of these breaks have a one-year life, making it impossible for owners to plan ahead.

Here are key breaks in the final version of the recovery package:

1. Expensing (Sec. 179 deduction)—up to $250,000 for equipment purchased placed in service by December 31, 2009.
2. Bonus depreciation—50% of the cost of new property placed in service this year, in addition to any expensing and regular depreciation.
3. Net operating loss carryback—a choice of three-, four-, or five years (instead of the usual two-year carryback) for businesses with gross revenue of $15 million or less. This applies only to 2008 losses (another law would be required to extend the longer carryback period for 2009 losses).
4. Small business stock—gain from the sale of stock acquired after February 17, 2009, and before January 1, 2011, which is held for at least five years is only 25% includible in income; the other 75% is excluded (the usual exclusion limit is 50% of gain).
5. Estimated tax relief—sole proprietors ...

The Chicago Tribune reported this morning that Acco Brands was cutting most of its workforce of 2,000 people’s pay by 47% to “improve its first quarter results.” A spokesperson for the company said this was an alternative to permanent layoffs.

Cutting employees pay is never a good business strategy. If your company needs to cut employee expenses, you need to cut people not payroll. In my businesses, I have done it both ways. I have learned that it is better to cut people and keep the employees that are working hard at full pay...  I