SCORE Small Business Blog

Finance: Obama Signs Small Business Bill

What the New Legislation Means For You

On the 27th, President Obama signed the 40 billion plus bill to assist small businesses with easier credit and other incentives to expand and hire new employees.

A 30 billion dollar federal fund is established to assist smaller banks in providing loans to small business and for cutting 12 billion dollars in taxes over the coming decade. Do NOT confuse the tax cut, with the expiring tax cuts for all Americans at the end of the year, that is still not resolved.

In part the bill provides more unemployment checks for the jobless, relief from payroll taxes for companies that hire new employees and billions of dollars in aid for states and local schools.

The new loan fund would be available to community banks to enable funding to eligible small businesses. Supporters of the bill suggest this could provide up to 300 billion dollars in new loans.

The legislation would also assist SBA lenders and their borrowers by lowering program fees and and raising loan guarantees and lending limits.

Most of the tax relief is would go to larger businesses for write offs of facilities and equipment such as computers, trucks and machinery.

One important tax issue for small business is the availability of writing off costs of health insurance for owners and their families from self employment tax, but only for 2010.

It will be interesting to see how community banks respond to this initiative and I would be interested to hear of any loans being provided to our blog readers.

Have a great day!

Steve BloomChapter Chair & Business Mentor, SCORE Atlanta
Steve Bloom started several business ventures in mortgage banking, real estate development and management, importing and business consulting. He has invested in several startups and has been retained by owners to assist in “turning around” businesses. | @stevebloom | More from Steve

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