Proposal wins praise

A small business in South Carolina that does house repair work is likely to be an early winner if President Barack Obama's new, multibillion-dollar stimulus and jobs proposal goes through.

That's because part of the package calls for new tax breaks for consumers who invest in energy-efficient retrofits inside their homes.

The proposal has been dubbed "Cash for Caulkers" and is modeled on the popular "Cash for Clunkers" program of tax rebates for drivers who turned in poor-mileage cars for ones more fuel efficient.

Frank Knapp, president of the S.C. Small Business Chamber of Commerce, said the effort likely would be a quick boost for the state because crews would be hired as quickly as work is scheduled and inventory would be needed of all sorts, ranging from screws to insulation to energy-efficient windows.

"Anything that gets people to buy something is good for the economy," he said, adding "there are plenty of heating and air-conditioning people out there."

Knapp did express concerns over whether Obama's plan of tax cuts for small business that hire in 2010 would be of widespread help.

The reason most small businesses aren't hiring now isn't because of the current tax system, he said, but because demand for work and more employees has stalled in the current economic slowdown.

On the financial side, Obama also proposed eliminating fees on loans to small businesses, and federal guarantees of those loans through the end of next year.

Covering the politics of the Lowcountry, South Carolina and the nation.

Knapp said any effort that frees up cash for business investment is good because the lending climate is excessively tight-fisted.

"We just can't get the banks to lend any money," he said.

Otis Rawl, chief executive officer and president of the S.C. Chamber of Commerce, agreed that lowering lending hurdles is a good step. "More important right now is access to capital; that's what we're hearing is the main issue," he said.

The Chamber defines a small business in South Carolina as one that has 50 employees or fewer, which is about 73 percent of all the businesses in the state, he said.