Stimulating Your Search for Stimulus

Bill BatesBates Public Affairs Consulting

BatesLLC@gmail.com816-868-0297

Today’s Key Takeaways

• Stimulus bill (and government, generally) offers small businesses many grant, contract and loan opportunities for those dedicated to pursuing them

• Best opportunities may not be winning the business, but partnering with the winners

• Government bureaucracy is daunting – relationships can make it productive

ARRA at 20,000 Feet

• Stimulus Bill = American Recovery and Reinvestment Act (“ARRA”)

• ARRA Goals: Jobs, Economic Growth & Transparency• Enacted 2/19/2010 for implementation over many years• www.recovery.gov• $787 billion of federal spending (65%) & tax relief (35%)

Tax relief - $288 B available/$93 B paid out Agencies/Entitlements - $224 B/$109 B Grants/Contracts/Loans - $275 B/$77 B

• State & local governments are big recipients

ARRA at 10,000 Feet

Selected Business Tax Incentives• Bonus Depreciation – faster/bigger write-off for

2009 new capital expenditures for all businesses• Enhanced Business Expensing – even

faster/bigger expensing for new and used capital expenditures; was for small business, now all

• 5-Year Carryback of Net Operating Losses for Small Businesses

• New Incentives to Hire Unemployed Vets & Disconnected Youth – 40% of 1st $6,000 wages

• Energy Incentives for individuals & businesses

ARRA at 10,000 Feet

• Roads, Bridges & Transit

• Water, Wastewater & Environmental Infrastructure

• Clean & Renewable Energy

• Housing• Small Business &

Economic Development

• Job Training & Employment Services

• Healthcare• Childcare• Education• Public Safety & Law

Enforcement• Arts• Nutrition Assistance• Telecom

Where ARRA spends:

Stimulus for Small Business Administration

• $375 million to lift fees on SBA loans and raise loan guarantee rate to 90%

• $255 million for new loans to small businesses needing to pay existing debt

• $30 million to expand microloans• If you’re in loan queue, you’re probably

okay for ARRA treatment

ARRA on Runway“Where the Rubber Meets the Road”

Advice on going after stimulus:1. Use industry association information to

avoid wading through statute2. Use congressional offices3. Build agency knowledge & relationships4. Grants.gov & Fedbizopps.gov (fbo.gov)5. Use SBA to get educated on the “art” of

government contracting

Healthcare Stimulus Strategy Example

Client question: “Are we missing out?”Starting point: What business sectors can client serve, and

what specific projects might merit research?Next step: Industry association summaries revealed $35 billion

healthcare information technology (“HIT”) spending - $19 billion in incentives to hospitals & healthcare providers for HIT that supports “meaningful use” of “certified-electronic health records”.

Deeper ARRA and industry research indicate client’s products are outside “certified-EHR” and that winners/losers will be determined by future regulations on HIT interoperability and certification

But, agency information and Grants.gov reveal impact of stimulus-funded Regional HIT Extension Centers and state Healthcare Information Exchanges

Healthcare Example

So…with client outside ARRA coverage, how does it profit from stimulus?

Indirectly, by becoming a supplementary system provider of choice to certified-EHR providers and healthcare providers, a result advanced by helping the Extension Centers and Healthcare Information Exchanges

Directly, by discovering a future agency projectAnd, client has recognized tsunami starting this year in

healthcare delivery. It is finding opportunity in threat.

HOW WILL YOU PROFIT FROM THE STIMULUS? WHAT’S YOUR STRATEGY?

Questions???

Bill BatesBates Public Affairs Consulting

BatesLLC@gmail.com816-868-0297