What Issues Should Small-Business Owners Be Thinking About in 2018?

by Debi Enders

It can be difficult for time-squeezed small-business owners to step back and consider how legislative changes and industry trends might impact their operations. But it’s worth the effort this year — particularly in two key areas:

1. Tax reform. Major corporations aren’t the only businesses expected to benefit from the Tax Cuts and Jobs Act, signed into law on Dec. 22, 2017. Some small businesses may save taxes too.

Before the law change, small businesses were allowed to immediately deduct 50% of qualified new property purchased under the first-year bonus depreciation rules. Under the new law, that percentage increased and small businesses will now be eligible to deduct 100% of the cost of qualified property purchased and placed in service after Sept. 27,2017, and before 2023.

2. A favorable lending environment. Small-business lending has rebounded in recent years and is expected to remain strong in 2018, the Small Business Administration reports. During its 2017 fiscal year, the SBA saw an increase in its 7(a) and other loan programs, including loans to women, veterans and emerging communities.

Available through SBA-affiliated banks like Commerce, SBA loans typically require lower down payments and lower monthly payments than a conventional loan might. Because they are guaranteed by the government, SBA loans also provide working capital that some small businesses might not otherwise be eligible to access.

The bottom line: SBA’s lending outlook continues to be strong for 2018. But — like business incorporation — an SBA loan isn’t right for everyone. If your business needs financing to operate and grow, your banker can guide you to the best source for you. All you have to do is ask.

Debi Enders (debi.enders@commercebank.com) is vice president, small business banking at Commerce Bank.