On January 31, 2011, the White House announced its plan to launch Startup America, an initiative focusing on fostering “high-growth entrepreneurship across the country with new initiatives to help encourage private sector investment in job-creating startups and small firms, accelerate research, and address barriers to success for entrepreneurs and small businesses.”
Here are some of the key incentives being proposed as part of the Startup America plan:
- The President’s new budget will propose making permanent the elimination of capital gains taxes on key investments in small businesses, which was passed as a temporary provision in 2010 as part of the Small Business Jobs Act the President signed in September. The budget will also propose expanding the New Markets Tax Credit to encourage private sector investment in startups and small businesses operating in lower-income communities.
- The Small Business Administration (SBA) will direct $2 billion in existing guarantee authority over the next 5 years to match private sector investment funding for startups and small firms in underserved communities, as well as seed and early-stage investing in firms with high growth potential, through its Small Business Investment Company (SBIC) program.
- Together SBA and the Department of Energy will boost high-quality mentorship for cleantech startups, while the Veterans Administration is launching new training programs for Veterans who want to start new businesses.
- The Department of Commerce will expand the i6 Challenge to help foster the commercialization of clean technologies, and are finalizing a plan to allow entrepreneurs to request faster review of their patents, an initiative that should lower patent pendency times overall and speed the deployment of new ideas to the marketplace.
More information is available at the White House’s press office page here.