Washington (PRESS RELEASE – September 19, 2010) – The United States Senate today passed a landmark small business jobs bill that aims to boost billions of dollars of lending and investment to America’s entrepreneurs and provides $12 billion in tax cuts to small businesses from coast to coast.
In addition, recognizing that less one percent of small businesses export, this small business bill expands trade and export opportunities, a real growth area for the near term. Finally, the bill increases small business access to Federal contracts and expands counseling and technical assistance programs by partnering with hundreds of non-profits throughout the country.
The bill passed the Senate by a significant majority, 61-38, with Senators George Voinovich, R-Ohio, and George LeMieux, R-Fla., joining Democrats in passage of the bill. United States Senate Committee on Small Business and Entrepreneurship Chair Mary L. Landrieu, D-La., made the following comment on the passage of the bill:
“The passage of this bill is a long-awaited victory for the 27 million small businesses in America. Upon signature by the President, these businesses will benefit from $12 billion in immediate tax cuts. $12 billion will transfer from the Federal treasury into the hands of small business owners to help them navigate these difficult financial times. It is the right thing to do and the smart thing to do. We could not have passed this legislation without the leadership of the Majority Leader, Harry Reid, Senators Cantwell, Boxer and Merkley and the entire Democratic Caucus who fought so hard for this legislation.”
“Specifically, we owe a special thanks Senators George Voinovich and George LeMieux for crossing the aisle and putting the country ahead of partisan politics. “
Specifically, the Small Business Lending Act will:
Provide $12 Billion in Targeted Tax Cuts for Small Businesses
- Allows for a 100 percent exclusion of capital gains tax on small business investments made in 2010
- Increases the maximum deduction for start-up expenditures in 2010 and 2011 from $5,000 – $10,000
- Extends the American Recovery and Reinvestment Act bonus depreciation provision for 1 additional year for qualifying property purchased and placed into service in 2010
- Allows self-employed taxpayers to deduct health care costs for payroll tax purposes on 2010 returns
Initiate a New Strategic Partnership with Healthy Community Banks
- Creates a $30 billion Small Business Lending Fund that utilizes healthy community banks as a conduit to increase lending to small business, a provision that will generate $1 billion for the treasury.
- Provides $1.5 billion in grants to support at least $15 billion in new small business lending through already successful state run programs
Strengthen the Core SBA programs
- Extends certain SBA American Recovery and Reinvestment provisions that eliminate borrow fees and increases the government guarantees on SBA loans from 75 percent to 90 percent.
- Permanently increases loan limits on SBA loans
- Expands the SBA’s trade and export finance programs