NEW YORK, April 8, 2019 PRNewswire/ — A new survey of more than 1,200 small business owners by OnDeck (NYSE: ONDK), the leader in online lending to small business, finds 37 percent of those surveyed expect the tax changes in the Federal Tax Cuts and Job Act to have a positive impact on their businesses. Forty-one percent of small businesses expect no change and 21 percent said they expected the tax cuts to have a negative impact on their business.
“The new survey from OnDeck indicates that it may be too early to truly assess the benefits of the tax changes to small businesses,” said Andrea Gellert, Chief Revenue Officer, OnDeck. “The reality is that there are many types of small businesses in hundreds of different industries. The impact of the tax changes will undoubtedly be different in some of those industries.”
The overall $1.5 trillion tax cut package went into effect in January 2018 and represents the biggest overhaul of the U.S. tax code in more than 30 years.
The OnDeck survey indicates that 88 percent of small business owners are continuing to invest in their businesses, with 43 percent of respondents saying they would be investing more as a result of the tax cuts, while 45 percent said they would continue to invest the same.
Snapshot: Where Are Small Business Owners Investing In 2019?
- New Equipment Purchases/Leases – 63 percent
- Hire More People – 46 percent
- Pay Down Existing Debt – 46 percent
- Marketing and Advertising – 41 percent
- Opening New Locations/Refurbishing Existing Locations – 18 percent
As the April 15 deadline for submitting annual tax returns for 2018 approaches, there is strong consensus among small business owners on which one of the 2018 tax changes they see as best for their businesses. Forty-seven percent of respondents said the new 20 percent qualified business income deduction would have the most positive impact. The revised depreciation method followed at 19.9 percent with expanded options for expensing business property and the business credit for small business employers who provided paid family and medical leave tied for third place at 10 percent.
The OnDeck survey also indicates that a majority of small business owners remain optimistic that the federal tax changes will help them grow their business in 2019. Fifty-two percent of respondents report being either very optimistic or somewhat optimistic the changes will help them grow this year.
Snapshot: Will Tax Changes Help You Grow Your Business in 2019?
- Very Optimistic – 21 percent
- Somewhat Optimistic – 31 percent
- Neither Optimistic or Pessimistic – 27 percent
- Somewhat Pessimistic – 12 percent
- Very Pessimistic – 9 percent
“With insight from the OnDeck Survey, we see continued optimism from a majority of small business owners,” said Ms. Gellert. “The degree to which the federal tax changes help small businesses however remains to be seen. We need to listen closely to small businesses to understand how policy decisions in Washington and at the state level may or may not be impacting them. ”
OnDeck’s survey of small business owners and their opinions on the tax changes that resulted from the Tax Cuts and Jobs Act was conducted via email between March 21 and March 28, 2019. The survey was sent to approximately 21,000 small business owners.
OnDeck (NYSE: ONDK) is the proven leader in transparent and responsible online lending to small business. Founded in 2006, the company pioneered the use of data analytics and digital technology to make real-time lending decisions and deliver capital rapidly to small businesses online. Today, OnDeck offers a wide range of term loans and lines of credit customized for the needs of small business owners. The company also offers bank clients a comprehensive technology and services platform that facilitates online lending to small business customers through ODX, a wholly-owned subsidiary. OnDeck has provided over $10 billion in loans to customers in 700 different industries across the United States, Canada and Australia. The company has an A+ rating with the Better Business Bureau and is rated 5 stars by Trustpilot. For more information, visit www.ondeck.com.
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SOURCE On Deck Capital, Inc.