Business Intelligence
September 17, 2010
New Legislation Could Make it Easier for Small Businesses to Get Loans
Yesterday, the Senate passed a bill designed to make more credit available to small businesses as well as to encourage expansion and hiring. So what does this mean for your business?
The new legislation includes some of the following benefits for businesses:
- A $30 billion government fund will be made available to community banks to help make credit more available to small businesses. This fund is expected to result in up to $300 billion in total loans.
- Small Business Administration loan program fees will be lowered and loan guarantee and lending limits will be raised.
- The measure includes $12 billion in tax cuts for qualifying small businesses and small-business investors. For example, restaurant and retail owners who remodel stores or build new ones could qualify for tax breaks. In addition, capital gains exemptions will be offered to some long-term investors who make funds available to small businesses.
- Small businesses will be allowed to deduct the cost of health insurance for themselves and their families from self-employment taxes for the 2010 tax year.
No matter what your political affiliation is, this new bill could create some real opportunities for your business if you qualify for any of the loans or tax breaks. The focus of this legislation is on small businesses, which the federal government usually defines as 500 workers or less for manufacturers and $7 million and under in annual sales for non-manufacturers. However, there are lots of exceptions, so don’t assume you won’t qualify for a program that could help your business succeed.
More information will be available on these initiatives should the bill be passed into law when the house votes on the measure. The House has already approved similar legislation and is expected to vote in favor of the bill without delay.
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