Small and medium businesses look out at a world where bank credit is tightening in the wake of the Silicon Valley Bank failure (and collateral damage) – and with a potential recession on the horizon coupled with increased labor costs and pressure from global competitors. However, it is vital that small and medium businesses in this country – the wellspring of innovation in this country – continue to invest in R&D for new products and manufacturing processes. In particular, the efforts to increase reshore manufacturing and move the supply chain to this country are spurring significant R&D efforts in manufacturing. Policymakers in Washington, DC need to support this effort.

Hopefully it will be brighter days sooner rather than later for innovative companies as the Congress addresses the issue of amortization and research and development expenses. In the meantime, the R&D tax credit continues to provide meaningful benefits to small and medium businesses.