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SMaRTi™ Process Overview
of Public Law 95-507
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OPTIMIZATION of Public Law 95-507 via SMARTI™ ("Patent Pending-63/813,316") -
Ford Enterprises Group LLC operates as a certified Research & Science non-asset based Fifth Party Logistics (5PL) entity- Public Law 95-507 under NAICS CODE 541614, specializing in process, physical distribution, and logistics consulting services. Their SMaRTi™ system represents a paradigm shift in invoice processing, converting traditional operational costs into financial assets through qualified research expense (QRE) identification and immediate tax credit application.
Public Law 95-507 was enacted on October 24, 1978, as an amendment to the Small Business Act and the Small Business Investment Act of 1958. Its primary objective was to expand the U.S. Small Business Administration’s authority to invest in or guarantee equity securities, and to adjust capital and dividend requirements for small business investment companies.
Key Provisions Relevant to Asset Conversion
Section 101 amends section 303(c)(1) of the Small Business Investment Act,
authorizing the SBA to purchase nonvoting stock or similar corporate securities
under specified conditions such as cumulative dividends, par-value thresholds,
and investment caps relative to paid-in capital and surplus.
Section 102 adjusts capital requirements,
allowing investment companies to invest idle funds
in short-term U.S. obligations or insured certificates of deposit,
improving liquidity management.
SMaRTi™ System Summary
The Ford Enterprises Group, LLC has developed the SMaRTi™ system,
a merit-based compliance solution that integrates Qualified Research Expense (QRE) automation
into invoicing workflows.
It converts every dollar of QRE into a dollar-for-dollar reduction of tax liability, bypassing
typical percentage limitations and caps. SMaRTi™ embeds provisions of the Internal Revenue Code and the Code of Federal Regulations directly into client billing processes to streamline compliance and maximize credit utilization.
Statutory Foundation Under Public Law 95-507
Public Law 95-507 provides the statutory foundation that empowers SMaRTi™
to reclassify operational spend as financial assets and optimize client capital structures.
- Equity Treatment Justification: Alignment with SBA’s enhanced equity authority under section 303(c)(1) allows SMaRTi™ to treat qualified research expenses as equity-analogous assets within client capital frameworks.
- Capital Liquidity Optimization: The permission to invest idle capital in short-term government obligations under
section 308(b) parallels SMaRTi™’s conversion of operational outlays to immediately available tax credits,
boosting liquidity and mitigating tariff impacts.
