President Obama shined a light on the important work of small businesses in his State of the Union address, highlighting a series of initiatives to revive the American economy by jumpstarting small business employment and growth.
"President Obama put the small business community and its concerns in the spotlight during his State of the Union address," said Justin Nelson, president and co-founder of the National Gay & Lesbian Chamber of Commerce®. "I believe the President is serious about giving small businesses the tools they need to survive and thrive in this economy. We hope that Congress follows the President's lead."
The State of the Union address was a particularly special experience for one NGLCC small business member. Trevor Yager, principal of Indianapolis-based TrendyMinds, an NGLCC-certified business, sat in Michelle Obama's box during the speech.
"It was a humbling experience," Yager said. "I'm proud to be an LGBT business owner and I'm hoping that others will see this experience as a possibility and that this administration is willing to reach out to the LGBT community and LGBT business owners through the NGLCC."
The White House selected Yager after talking with the NGLCC. As a part of the continued relationship with the NGLCC, the White House was seeking the names of NGLCC-certified companies that best illustrate the challenges and opportunities of today's economy. NGLCC leaders gave Obama's staff the names of several small business owners.
During the address, the President also reconfirmed his longstanding commitment to allow LGBT individuals to serve openly in the military and to repeal the Pentagon's controversial "don't ask, don't tell" policy.
"This year, I will work with Congress and our military to finally repeal the law that denies gay Americans the right to serve the country they love because of who they are," Obama said. "It's the right thing to do."
Chance Mitchell, CEO and co-founder of the NGLCC, called the President's commitment to equality a vital step forward for LGBT members in the military. "President Obama understands the important contributions LGBT members of the military make to our nation, and he's determined that they be honored for their patriotism and not eschewed for being themselves," Mitchell said.
While the State of the Union is usually a laundry list of initiatives and proposals, President Obama spent much of his first address on the economy. At the forefront of those sections was the President's plan to enact a series of small business tax incentives and breaks.
"Jobs must be our number one focus in 2010," Obama said. "We should start where most new jobs do—in small businesses, companies that begin when an entrepreneur takes a chance on a dream, or a worker decides it's time she became her own boss."
The NGLCC outlined several items from the address the organization feels is key to the economic recovery of America's 25 million small businesses, of which nearly 1.5 million are LGBT owned and operated. One such plan includes diverting $30 billion of the TARP funds repaid by Wall Street banks to community banks for a lending program for small businesses and consumers. "Access to credit is not just an important piece to reviving small businesses, it's the most important piece," Nelson said.
The president also called for eliminating the capital gains tax for small businesses for one year. "The proposed one-year elimination of the tax on capital gains will provide added incentive to invest in small businesses," Mitchell said. Mitchell noted that this would be up from the temporary 75-percent exclusion currently in place.
Other proposed small business incentives include:
- A tax credit for businesses hiring new employees or for those that raise wages;
- An extension and expansion of tax breaks to small businesses that invest in new plants and equipment; and
- Enhancing export opportunities so small businesses can more easily sell their products and services around the globe.
