Last week, on a 61-38 vote, lawmakers pass the bill, which would create a $30-billion small-business lending fund and give $12 billion in tax breaks to encourage companies to invest and hire. The bill now heads to the House, where it is expected to pass swiftly.
Small businesses remain the backbone of our economy, so it stands to reason that small businesses are the ones needed to ignite an economic recovery. [Why it has taken this long for the White House and Congress to realize this remains a mystery. Too little, too late?] While tight business credit has many small businesses hamstrung right now, help may soon be on the way. Last week the Senate passed a bill to create a $30 billion small-business lending fund. According to the LA Times, the bill offers $12 billion in tax breaks to businesses to encourage investment, entrepreneurship, and hiring. Businesses also would be able to write off more of their costs of buying equipment or making shop improvements. Those who are self-employed could deduct healthcare costs from the self-employment tax. The bill also would continue to waive SBA loan fees that had been cut as part of the 2009 recovery package.
What does this mean for you? If you own a small business, stay tuned. The bill is expected to pass the House swiftly, and could be signed into law soon. If it becomes law, we will want to take a careful look at the opportunities this legislation may offer to help grow your business and minimize your tax burden.