Gov. Perdue last week called on the General Assembly to pass a legislative package designed to assist small businesses in creating and maintaining jobs. The package includes tax incentives, grants and an expansion of the small business preference for companies seeking contracts with state government. Gov. Perdue made the announcement as part of a three-stop JobsNOW tour of small businesses in Asheville, Lexington and Fayetteville.

“Small businesses are the backbone of North Carolina’s economy, and a major driver in our economic recovery,” said Perdue. “They put our friends, neighbors and family members to work. They anchor our communities. Supporting small businesses means supporting jobs for North Carolinians.”

The JobsNOW Small Business Package is focused on three areas of assistance:

1. Tax relief and tax incentives to boost the bottom line for small businesses

• Small Business Start-up Tax Relief – encourages investment in innovative small businesses by allowing favorable capital gains treatment of the founding interests in the business.
• Small Business Health Insurance Credit – provides a credit of $250 per employee to businesses that provide health insurance to employees making less than $45,000. Applies to businesses with fewer than 25 employees. The credit was previously enacted and expired this year.
• Qualified Business Venture Tax Credit – expands this credit by raising the cap from $7.5 million to $10 million to spur more investments in entrepreneurial businesses.
• State tax break for small business equipment purchases.

2. Statewide support for small businesses

• Community Colleges – restore funding to the statewide Small Business Assistance Network within the state’s 58 community colleges.
• “InSource NC” – helps North Carolina businesses find the goods and services they need from other North Carolina businesses, through web-based buyer-supplier networks.
• Help North Carolina businesses capitalize on federal Small Business Innovation Research/Small Business Technology Transfer contracts by providing a matching state grant.
• Main Street Solutions – expanded grant funding for the revitalization of downtown districts in small towns, supporting small business growth.
• North Carolina Tourism Promotion – increased investment in marketing and advertising of North Carolina as a national tourism destination.
• Help small businesses get credit by funding the N.C. Small Business Assistance Fund that helps guarantee the remaining 5% on qualifying 95% SBA-backed small business loans.
• N.C. Farm Innovation Fund -- provides direct assistance to small family farms to improve energy efficiency, develop new markets and cultivate new value-added products.

3. Expand the N.C. Business Preference so more small businesses can compete for state contracts

• Codify Governor’s price-matching preference for North Carolina businesses in Executive Order No. 50.
• Further improve the chances of a qualified North Carolina small business to win a state contract during these tough economic times by temporarily allowing a 5% deduction from its bid price.
• Reserve state construction projects under $500,000 for small businesses and raise bonding threshold from $300,000 to $500,000.