Small Business Jobs Act of 2010 – Almost One Year Later
Aug
11
Written by:
8/11/2011 1:18 PM
I have always believed that small businesses will keep us on the road to economic prosperity and are the key to leading American out of this double-dip recession. As I mentioned on the Cheryl Casone show on Fox Business last Wednesday, July 28th, 2011 – small businesses are our ticket out of this jobless recovery. The government needs to do all it can to help our fledgling small businesses.
The Obama administration has taken note – on September 27th, 2010 the Small Business Jobs Act of 2010 was signed into law, and now in August, it’s well under way. So what does that mean for you, the small business owner? If you weren’t already aware of them, here are a few important provisions in the bill that a small business owner can take advantage of to help your business stimulate the economy.
Enhanced Loan Provisions
The new bill has provided over $12 billion dollars in lending support with 90% guarantee for SBA loan provisions and reduced fees. It also increased maximum loan sizes in top loan programs such as 7(a) and 504. It also permanently increased microloan limits from $35,000 to $5,000 – a crucial point for entrepreneurs who have startup costs or business professionals in low-income areas.
The bill also expanded the number of small businesses eligible for SBA loans, and as of spring 2011, allows some small businesses to refinance owner-occupied commercial real estate mortgages into the 504 loan program. This provision expires in September of 2012, so act quickly if it sounds like a solution for you!
Competing for Contracts
The new bill specifically calls for “parity among federal small-business contracting programs”. The Competitiveness Demonstration Program, which had a negative effect of limiting opportunities for small businesses that specialize in per diem work, such as contractors and landscapers. The new law also makes it difficult for government agencies to bundle contracts, making it easier for small businesses to compete for those contracts.
Training and Counseling
Another major provision of the bill was a substantial investment in Counseling and Training. The new law has provided up to $50 million in grants to Small Business Development Centers across the US since January 2011. Find your local center by clicking here.
Tax Relief
The bill provided over $12 billion dollars in tax relief, hopefully prompting small businesses invest in their firms and create jobs. Specific tax relief provisions include the increase of the small business expensing limit to $500,000, allowing small businesses to carry back general business credits to offset five years of taxes, the temporary elimination of all capital gains taxes for small business investors, and the temporary increase of the amount of deductible start-up expenditures, among many more.
More specific information about the Small Business Jobs Act of 2010 can be found on the Small Business Administration website. Have you taken advantage of any of these provisions? How has this bill made a difference in your business?