What Clinton's small-business plan says about her: She understands

Hillary Clinton rolled out a plan for small businesses on Tuesday that seemed to say: I get your pain, and if you elect me, I'll make your life easier.

Her initiative shows she does her homework.  Clinton's proposals aren’t going to make anyone swing from the rafters in excitement, and they don’t lend themselves to flashy slogans or bumper stickers. But her proposals could have a big impact. They could cut paperwork for many small businesses, improve access to funding and, better yet, save some money.

Of course, the devil is in the details, and the proposal's impact depends on how the regulations actually get written.

Here’s how Clinton’s small-business plan is likely to affect small businesses, including yours:

• It would create a standard deduction for the smallest businesses. I’ve been advocating this for a long time. In my early years in business, it was frustrating to keep receipts for every paper clip I bought just to claim a few hundred dollars as a write-off. It’s crazy for a very small business to have to deal with a whole pile of paperwork for a small deduction. With more people in the “gig economy,” this proposal could make life easier and put some money in your pocket, especially if you’re an Uber or Lyft driver, rent your place on Airbnb, do business on Etsy or eBay or are self-employed.

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• It would improve access to financing/capital by cutting red tape for community banks and credit unions. The economic collapse in 2008 brought more stringent lending regulations, making it harder for small businesses — even those with good credit — to get loans. In the last couple of years, many “alternative” lenders in the “fintech” industry have sprung up to help fill this void, but, frankly, many of them are predatory.

• It would let entrepreneurs with student loans defer their payments interest-free while they're launching start-ups. This is an interesting idea and is likely to lead to an explosion of start-ups — at least on paper — as a means of deferring student loans.

• It would streamline the start-up process by offering incentives to local and state governments.  Virtually all licensing and permitting roadblocks happen at the local and state level. If you want to start a consulting business, just print up some business cards and perhaps pay for a local business license. But if you want to open a restaurant, you’re going to face a lengthy permitting process.  And many state licensing requirements are never going to be eliminated. Last year, when I needed a new gas line, I’m glad my plumber was licensed and knew what he was doing. Despite the constraints, as president, Clinton wouldn't be entirely powerless. For example, the Obama administration launched the “Startup in a Day” initiative to encourage local governments to digitize and streamline their permitting process. But much more could be done under a Clinton administration, such as providing more funds and technical assistance to municipalities.

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• It would let businesses use cash accounting. Small businesses usually operate on a cash — not accrual — basis, and it’s frustrating and costly to have to file taxes on an accrual basis. (This is already boring you, right?) But allowing companies with less than $25 million in gross revenue to use cash accounting is one of those issues that can make a big difference to many small companies.

• It would simplify the health care tax credit. With the Affordable Care Act, aka Obamacare, there’s a tax credit for employers that provide health care for their employees. But the formula and process is so complicated and restrictive, few actually qualify. If Clinton does, indeed, make this simpler and apply it to more businesses, it would save many small employers money.

• It would make the federal government more responsive. The proposal would guarantee a response in 24 hours to questions from small businesses. Good luck with that one, Hillary.

Clinton’s proposals may not make you salivate with excitement, but they show that she understands some of the problems and realities of running a small business.

Rhonda Abrams is the author of 19 books including “Successful Business Plan: Secrets & Strategies” now in its sixth edition. Connect with Rhonda facebook.com/RhondaAbramsSmallBusiness and twitter: @RhondaAbrams. Register for Rhonda’s free business tips newsletter at www.PlanningShop.com