The latest Discover Small Business Watch of entrepreneurs reports that economic confidence among the Main Street business class has risen slightly in June, with its index rising to 80.9 from 78.1 last month.

The main culprit for the increase is cash flow, according to the data. The number of business owners who said they experienced temporary cash flow problems decreased from nearly half last month to 42 percent in June. read more...

The U.S. Department of Health and Human Services today released a report about the rising cost of health care. Among its conclusions: "Employer-sponsored health insurance premiums have nearly doubled since 2000."

That increase in health care costs grew three times as fast as wage growth and cost employers' $12,680 for the average family plan -- nearly the same as a minimum wage salary for one year, according to the HHS. read more...

This spring a bigger problem than the bank-loan freeze has emerged for entrepreneurs: Credit card companies are slashing their limits, and small business owners are suffering because a majority of them rely on plastic to bolster cash flow and sustain operations.

The pullbacks are especially tough because more and more entrepreneurs are depending on the cards as their main source of credit. According to the National Small Business Association (PDF) 59 percent of small business relied on plastic for daily operations, up from 44 percent last year. read more...

If you assign mobile phones to employees, they might be liable for a quarter of the applicable taxes if new IRS rules under consideration go into effect.

The idea is to take some of the burden off business owners' backs. Already, a notice issued this week allows employers to forgo "minute-by-minute" documentation of employees' company phone use. read more...

The House Committee on Small Business today held a hearing on the state of credit for the small business community. Chairwoman Nydia M. Velázquez, a congressional Democrat from New York, stated that despite stimulus funds and loosened rules for U.S. Small Business Administration-backed loans, credit for Main Street business is still moving slow.

"From the start-up in Silicon Valley to the mom and pop restaurant on Main Street, small businesses everywhere are struggling to find the capital they need to keep their doors open," Velázquez states. "While the Recovery Act took important steps to help fix the credit markets, entrepreneurs still can't find the loans they will need to get the economy moving forward again." read more...

Congressman Hank Johnson, a Georgia Democrat, is proposing new legislation that he says will close loopholes that allow federal contracts intended for small business to go to large corporations.

H.R. 2568 would update the definition of a small business in the Small Business Act by barring  publicly traded companies. It would also allow individuals to file complaints regarding small-business-focused federal contracts. read more...

Discover Small Business Watch's monthly survey of small business owners finds that, after a few months of rising expectations, their economic confidence is facing a dimmer reality.

Cash-flow concerns and lower business development spending contributed to a 10-point drop in the Discover Small Business Watch index, which fell to 78.1 for the month of May.
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Congressman Patrick J. Kennedy (D-R.I.) today introduced a bill that would allow small business owners to embark on a onetime deferral of income taxes in order to reinvest in their enterprises.

The Generating Reinvestment Opportunities With (GROW) America's Small Businesses Act of 2009 would allow the deferral to go unpaid for up to two years, with taxes due optionally spread out over installments if needed. The representative's office described the proposal as "interest-free, short-term loans" that "would strengthen small businesses at a minimal cost to the federal government." read more...

Banks aren't lending like they used to. Credit card companies are reeling in their lines. Even the in-laws are tapped. But there's still one outfit that's offering a lifeline to the startup hopeful: Shark Tank, a forthcoming reality show on ABC, is looking for entrepreneurs with original business concepts and exceptional drive. Participants will be competing for serious startup capital, advice and support from five deep-pocketed business owners. Winners won't get a new car or a trip to Hawaii, but they will get their dream operations off the ground with, in some cases, seven-figure investments. read more...

As the U.S. Senate considers legislation that would allow credit card users, including countless entrepreneurs, to return to their previously lower rates after six months on-time payments, a recent Business Week report found that JPMorgan Chase "suspended credit lines for a large number of business owners" in March.

It's good news and bad news for the struggling Main Street shopkeeper. Under the Senate proposal, credit card issuers couldn't raise rates until a customer is at least 60 days behind in payments. Terms would be reviewed every six months, too. read more...