The US Stimulus Package and The Hosting Industry

The article is pretty interesting about how the economic stimulus package may impact sales in the web hosting market.   This is off of the whir blog last week.


Stimulus I – Hosting Money

I am writing a synoposis on how to increase your hosting business by taking advantage of the “stimulus package H.R.679″ , – American Recovery and Reinvestment Act of 2009.

I am focusing on some $200 billion of funds that in the background many be interesting to the hosting industry. Currently this bill, as of this hour stands at $920 billion. A bill that is supposed to add jobs, put people to work and turn around an economy.

So as I go almost line by line through almost a trillion dollars to find those nuggets for the web-hosting industry. I stopped in midtrack.

I get a lot of calls from hosting firms wanting to expand their business. I had come to the heart of the bill, something past over in the press and something to immediately pass on. I came into the funds for the Small Business Administration… after reading the stimulus detail, I did about 40 seconds of research which I thought I would pass on. This is directly from the SBA:

How important are small businesses to the U.S. economy?

Small firms:

• Represent 99.7 percent of all employer firms.

• Employ about half of all private sector employees.

• Pay nearly 45 percent of total U.S. private payroll.

• Have generated 60 to 80 percent of net new jobs annually over the last decade.

That is great. The odds are it describes your business.

So as the stimulus package mutates what does it say about the SBA:

Small Business Administration: …the Administrator may guarantee not more than $3,000,000,0000 of pools under this authority. Thats a lot of zeros. That’s $3 billion.

Friends, Romans – That is less than 1/3 of 1% of the bill. The “direct” portion of the bill that your company could effectively put to use within months.

Small business represents some 50% of all United States wages – get in line for your portion of 1/3 of 1%. It is really not much money.

I am finding the bill most enlightening and hopefully will be able to find some additional direction to take advantage of this…well what ever it is.

You can support this legislation, or outline your disagreement, it is in the Senate.

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Tags:  web hosting data center M&A finance stimulus

Tom Millitzer provides merger and acquisition services to Internet service firms including Web Hosting, Data Centers and similar sectors. In 1994 he founded and is President of  NCC – New Commerce Communications, Inc. He has been involved in almost 200 mergers and acquisitions , finance an… (Read full bio)