The President last
week signed into law the Small Business Jobs and Credit Act, which gained
notoriety for establishing a $30 billion loan fund. However, there is more to the Act that could
help small businesses. USA
Today last week highlighted some of these lesser-known provisions:
·
Sole
proprietors can write off health insurance premiums as business expenses
this year. Note: Don’t miss this one
because it lapses after one year!
·
No fees
on SBA loans and increasing SBA guarantee to 90% (from 75%). This should make SBA loans cheaper, and
somewhat easier to get.
·
Substantial
increase in SBA loan amounts, which should help medium-size and larger
small business gain access to bigger loans under the SBA program.
·
Zero
capital gains taxes on investment in small business. If you’re looking for investors in your
business, this could be a BIG selling point. Note: this only applies to C-corporations and
stock h as to be acquired by January 1, 2011 – so act fast!
·
Doubling
the write-off of certain investments and allowing “expensing” of some real
estate improvements. This is most
likely to benefit mid-size businesses buying more than $250,000 of new
equipment or software. Also, restaurants and retailers making property
improvements can now use the Section 179 expensing rules for those
improvements.