Nearly every community talks about attracting more entrepreneurs. But aside from programs like SCORE, which assists entrepreneurs with business plans, and some efforts at growing venture-capital funds, most communities scratch their heads over how to
Nearly every community talks about attracting more entrepreneurs. But aside from programs like SCORE, which assists entrepreneurs with business plans, and some efforts at growing venture-capital funds, most communities scratch their heads over how to actually help small businesses.
An innovative nonprofit, SeedAmerica, encourages industrial companies to donate buildings that can then be used to house small businesses at lower-than-market rents. (The key is a tax credit for the donating company.)
"SeedAmerica uses what's called the 561 Exchange or the RIM (replacement, market, income) Exchange. Those terms refer to IRS Publication 561, which spells out appraisal rules for donated property. The big advantage for the donor is a tax break that can be greater than what the property would sell for, and can be spread out over five years. Completing the 561 Exchange takes a few months. Trying to sell used industrial property can take years."
Thanks to Otis White
FULL STORY: Nonprofit turns donated properties into space for small businesses
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