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Small business is state’s rural economic backbone

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In order for New Mexico’s rural cities and small towns to contribute fully to the nation’s economic recovery, we must enable small, mainstreet businesses to build a better future for themselves, their community, state and nation.
Rep. Ron Kind, D-WI and Rep. Wally Herger, R-CAhave introduced legislation to do just that.  Their Rural Microbusiness Investment Credit Act (HR 5990) is the first federal tax credit designed to meet the needs of small business in rural areas.  It would provide a 35 percent tax credit up to $10,000 to start or expand owner-operated businesses with five or fewer employees.
In rural America, creating your own job is a way of life.  During recession, the reluctance of large businesses to add workers makes small businesses and self-employment even more important.  
During the 2000-2003 recession, microenterprise employment in New Mexico grew by 18 percent, while larger firms were still shedding jobs. Microenterprise led the economy out of recession.  It can happen again, but entrepreneurs need and deserve the support of federal policy as much as larger businesses.
The rural micro tax credit is tailor made to encourage micro enterprise investment during recession.  


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