3 Things You Should Know About Small Business: April 11
NEW YORK (MainStreet) - What's happening in small business today?
1. The International Franchise Association says the "Buffett Rule" would hurt franchisees. Franchise business owners could be stifled in their efforts to grow and create jobs if President Barack Obama's "Buffett Rule" passes, according to the organization.
The Buffett Rule is a tax increase on individuals -- and small-business owners that file their income on personal tax returns -- that make more than $1 million per year, proposed by the president on Tuesday.
More than 80% percent of franchise business owners are pass-through entities such as S corporations, LLCs and partnerships, according to an October survey by IFA. A permanent 5.6% income tax increase on households earning more than $1 million annually, such as the bill suggests would negatively impact 72% of franchisors and 43% of franchisees, the IFA says.
2. Here's another crowdfunding small business success story. Paul Sammut, a 25-year-old engineer, invented what The Associated Press calls the "world's most exasperating alarm clock" after trying to find a solution for his own troubles getting up in the morning.
The Ramos Alarm Clock essentially forces a person to get out of bed because the only way to shut it off is to punch in the day's date into its keypad.
Sammut made a video and posted it on Kickstarter to fund his project. So far he's raised more than $150,000 through the crowdfunding strategy and has more than 400 orders for the clock.
3. Banks increase lending to small businesses. Banks that participated in the Small Business Lending Fund boosted lending to small companies by $1.3 billion in the fourth quarter compared to the prior quarter.