But don’t expect to see a row of CEO’s lined up begging for money in front of a congressional hearing. The RVDA isn’t proposing bailout money. They just want a temporary change in the rules.
Here’s what they’re looking for. There’s something called the net operating loss period (NOL) during which small businesses can use profits from previous periods to generate operating cash. Right now NOL only goes back two years which, in these tough times, doesn’t help much.
So the RVDA is asking Congress to temporarily extend NOL a more beneficial five years. It’s something that’s been done before and has help small businesses survive previous recessions.
Will it work? I have no idea; I’m no economist. But it is satisfying to see an industry taking a more creative approach to the problem then just asking for a few billion dollars in bailout money.
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