A family-run shop, contractor or local manufacturer can hum along for years and still be one unexpected loss away from chaos. In Washington, federal lawmakers are trying to make that handoff less improvised by giving small businesses help planning who takes over.
The Small Business Succession Planning Act would direct the Small Business Administration, or SBA, to build a program for developing and implementing succession plans. The idea is simple: if a founder retires, dies or steps away, the business should not have to invent its future in the middle of the crisis.
More than a webpage
The bill goes beyond posting advice online. The SBA would have to create a toolkit with help from resource partners, put it on a public website, train those partners to use it and make sure district offices and certain partners have staff whose job is to counsel owners in person or virtually.
It would also direct the agency to educate small businesses about the program through that same mix of online tools and hands-on support. The point is to make succession planning something owners can actually use, not just something they are told to think about someday.
- Public toolkit posted on the SBA website
- Training for resource partners
- Dedicated counseling staff in district offices and partner sites
A small credit for finishing the job
The proposal also tries to nudge owners toward the finish line with a $250 tax credit when the SBA certifies that a business has established a succession plan and another $250 when the succession of responsibilities is completed. If the business is acquired by a non-small-business concern within three years, the credit can be taken back.
For owners, the practical question is not abstract. A plan can mean the difference between a clean handoff, a sale or a company that simply fades when the founder is gone.
Sources
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