The COVID-19 pandemic has had a major impact on businesses around the world and the U.S. is no exception. In order to help businesses survive during this difficult time, the government is offering bonus depreciation, which allows companies to deduct capital investments from their taxable income more quickly, further reducing the cost of investment. This has had a major impact on businesses, spurring investment in new equipment and creating more jobs.
Last year, businesses spent nearly $21 billion in capital investments, a five-year high, and this trend is expected to continue. Vacuum and abatement equipment in the semiconductor industry alone spurred nearly $212 million in capital investments and created more than 340 jobs.
An important source of capital investments for businesses is the 13F report, which details which stocks were in a guru's equity portfolio at the end of the quarter. Investors should note that these filings are only a snapshot of the portfolio and should not be used as a sole source of investing advice.
One of the major players in capital investments is MIM, which invests the capital generated by Metlife and other institutional Investors, such as endowments, foundations, pension funds, and insurance companies. MIM has helped finance billions of dollars in capital investments since its founding in 2007.
Merchants Capital New York is one of Merchants' six production hubs, which provide capital investments for businesses. Merchants Capital investments, LLC, Merchants Capital Servicing, LLC, and Merchants Capital Funding, LLC are all part of the Merchants Capital family, providing capital investments for businesses across the country.
Q4 2022 saw investment capital inflows of $2.3 billion, continuing the trend since April sparked by the collapse of Terra and subsequent market volatility. This influx of capital investments is expected to continue as the economy begins to recover from the pandemic.
The additional $250 million investment capital from Workday into Workday Ventures, the strategic capital arm of Workday Inc., will further help businesses invest in new technologies. This investment is expected to help businesses grow and innovate, improving their competitiveness in the marketplace.
Root Capital is another major player in capital investments, helping to address the root causes of migration by investing in small and growing businesses in Central America and the Caribbean. In partnership with USAID, Root Capital has committed to investing $150 million in capital investments over the next five years.
Overall, the increased availability of capital investments is helping businesses to grow and create jobs. Bonus depreciation is making it easier and more affordable for businesses to invest in new equipment, while traditional sources of capital investments, such as MIM, Merchants Capital, and Root Capital, are providing businesses with additional resources to succeed.
