The extension of provisions which have the capacity to support $14 billion in loans to small businesses: Extending these Recovery loan enhancements – which increase guarantees for SBA’s largest loan program (the 7(a) program) to 90% and reduce fees for the 7(a) and 504 program – has the capacity to support $14 billion in lending to small businesses. Already, SBA Recovery loan provisions have supported $30 billion in lending to over 70,000 small businesses.
The bill also increases the maximum loan size for SBA loan programs, which in the coming weeks will allow more small businesses to access more credit to enable them to expand and create new jobs. The bill; Permanently raises the maximum loan size for the SBA’s two largest loan programs, increasing maximum 7(a) and 504 loan size from $2 million to $5 million and the maximum 504 manufacturing related loan size from $4 million to $5.5 million. Permanently raises the maximum loan size for SBA microloans, increasing it from $35,000 to $50,000 and strengthening a critical tool for entrepreneurs and business owners in underserved markets to access start-up capital.Temporarily raises the maximum loan size for SBA Express loans from $350,000 to $1 million, providing greater access to working capital loans that small businesses use to purchase new inventory and take on their next order – allowing them to create new jobs. And the bill includes eight new small business tax cuts – all effective as of Monday, and applying to small businesses’ taxes for this year – providing an immediate incentive for businesses to make new investments and expand.
If you are a small business and you buy new equipment, you can immediately write off the first $500,000 of your investments;
If you are one of over one million eligible small businesses, key long-term investments in your company will be subject to zero capital gains taxes;
If you are an entrepreneur and take a chance on a new idea, you can deduct the first $10,000 of your start-up costs;
If you are self employed you can deduct 100 percent of the cost of health insurance for you and your family from your self-employment taxes.