Tax deductible savings accounts for business owners?

U.S. Senator Gary Peters (MI) today announced bipartisan legislation that would help provide new avenues for small businesses across Michigan to expand and create good-paying jobs. The Small Business Start-up Savings Account Act, which Peters recently introduced with Senator Cory Gardner (R-CO), would allow small business owners to create tax-deductible savings accounts in order to launch or grow their companies.

“Small businesses across Michigan not only help power our economy through innovative entrepreneurship and critical job creation – they often serve as bedrocks for their communities,” said Senator Peters. “I am proud to partner with Senator Gardner on this bipartisan legislation that would allow small business owners who are starting up or expanding the opportunity to set up tax-deductible savings accounts. I urge the Senate to advance this commonsense bill that would help address a challenge many of our Michigan entrepreneurs and small businesses face.”

“Having grown up in a family-owned business, I’ve seen firsthand how difficult it can be to run a small business, make payroll, build capital, and comply with a complex regulatory system,” said Senator Gardner. “A frequent concern I hear from small business owners on my Main Street Walking Tours across the four corners of Colorado is how tough it is to start a new business. It is my hope that being able to set up a small business savings account will at least make it a little bit easier for entrepreneurs and small business owners to save money and build their company.”

Peters’ bipartisan bill has also received broad support.

“Small businesses are our job creators. When they succeed, the mid-Michigan region also succeeds. That’s why the Lansing Regional Chamber of Commerce is committed to doing everything we can to support local entrepreneurs and help businesses thrive in their communities,” said Tim Daman, president and CEO, Lansing Regional Chamber of Commerce. “Senator Peters’ legislation lets small businesses focus on serving customers and creating local jobs while cutting through bureaucratic red tape. I am proud to support this bipartisan effort and partner with Senator Peters in highlighting mid-Michigan as a great community to start and grow a business.”

“Many great business ideas fail simply because the entrepreneur does not have access to proper funding to get the from the idea stage to the launch stage,” said City of Norton Shores Mayor Gary Nelund. “With this new program, the ability of Norton Shores entrepreneurs to set money aside tax-free early will help them to successfully launch their ideas and grow them into viable and successful businesses.  This program will help to grow businesses right here in Norton Shores.”

“For many entrepreneurs, the primary barrier to starting and growing their business is access to capital. This is especially true for women, low-income, persons of color, and veterans,” said Stephanie Scott-Sims, Director, Entrepreneurship at Cornerstone Alliance. “As one of three SBA-funded Women’s Business Centers in the State of Michigan, Cornerstone Alliance provides small business owners in Southwest Michigan with training, counseling, and resources necessary to support their business. Senator Peters’ bipartisan legislation will be yet another tool that contributes to the economic empowerment of entrepreneurs and the strengthening of Michigan communities.”

“Throughout Southwest Michigan, small businesses have a huge impact on the vitality of our community’s economy,” said Ron Kitchens, Chief Executive Officer and Senior Partner at Southwest Michigan First.  “The Small Business Start Up Savings Account Act promises to greatly impact the ability of these types of businesses to be flexible and accelerate to better serve the needs of their customers in the ever-changing global economy.”

“Traverse Connect’s mission is to advance the economic vitality of the Grand Traverse Region through the growth of family-sustaining job opportunities,” said Warren M. Call, President & CEO, Traverse Connect.  “Small business formation and entrepreneurship are a vitally important facet of our economic growth strategy in the region – these enterprises are often the key provider of new job opportunities and many add dozens of new employees over the course of just a few years.  Business formation is very capital intensive and entrepreneurs need all available avenues to access capital.  We support the Small Business Start Up Savings Account Act and believe it will provide a new and unique tool to aid in business creation and job growth.”

“Small businesses not only help drive local economies across northern Michigan – they often serve as the backbone of our communities,” said Andy Hayes, President, Northern Lakes Economic Alliance. “This bipartisan bill would help more small businesses succeed at every stage of their development, and I sincerely appreciate Senator Peters’ bipartisan efforts to help provide small business owners more opportunities to grow their companies and bolster our workforce.”

“The creation and survival of small businesses not only results in more jobs and stronger communities — it can also transform economies and industries,” said Casey Cowell, Principal, Boomerang Catapult. “Senator Peters’ bipartisan legislation would allow offsets to the cost and risk of starting up a business and give needed support to entrepreneurs in regions that lack access to investment and high-risk credit.”

“In addition to job creation, the growth of small businesses leads to community revitalization, wealth generation, and a path to jobs that provide wages which meet beyond basic needs,” said Pamela D. Lewis, Director, New Economy Initiative. “The many different small business entrepreneurs in our communities are also points of inspiration and hope, reminding us that our state is a state of opportunity for anyone.  Lowering the barriers to capital and resources will accelerate these outcomes and increase growth opportunities across our diverse communities.”

“Small businesses are playing a key role in creating economic growth in communities across Detroit,” said Chanell Scott Contreras, Director, Southwest Solutions’ ProsperUS Detroit. “Senator Peters’ bipartisan legislation would help spur entrepreneurship and allow small businesses in Detroit to invest more in training and hiring workers, equipment and supplies. We sincerely appreciate Senator Peters’ efforts on this bill, and we look forward to continuing to work with him on initiatives to support small businesses in our city.”

“We believe local independently owned small businesses are the backbone of our economy,” said April Jones Boyle, Founder & Executive Director, BUILD Institute. “They create jobs, keep wealth and ownership in our community, redevelop commercial corridors and neighborhoods, and preserve our culture.  Senator Peters’ Small Business Start-up Savings Account Act would be a game-changer and would help eliminate some of the barriers to starting a small business. We are excited to support this bill and continue to grow our economy from the inside out.

“NFIB appreciates Senator Gardner and Senator Peters for thinking of small business and introducing the Small Business Start-Up Savings Account Act of 2019 (S. 3136),” said Kevin Kuhlman, Senior Director of Federal Government Relations at NFIB. “This legislation would create a new tax-deductible financing option for small businesses to help with cash flow, expenses, and investment; encouraging economic growth. NFIB looks forward to working with Senators Gardner and Peters to advance this legislation and provide permanent tax relief for our country’s job creators.”

According to the Small Business Administration, the over thirty million small businesses across the country are responsible for providing more than two-thirds of all recently created jobs. This bill would provide the small-business owners responsible for driving such a large portion of our economy another opportunity to finance their passion projects’ start-up or expansion costs outside of either personal or family savings accounts.

Peters has led numerous efforts in Congress to help Michigan small businesses. Peters’ legislation to help small businesses to protect their intellectual property and patents was signed into law by President Trump. Peters also recently introduced bipartisan legislation to expand opportunities for small businesses to contract with the federal government.

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