HOUSE PASSES SMALL BUSINESS LENDING BILL
The House of Representatives recently passed the Senate version of H.R. 5297, the Small Business Loan Fund and Tax Breaks Bill; also called the Small Business Lending Bill. The bill was sent to the White House and the President signed it into law on Monday, September 27.
The Small Business Jobs Act provides immediate incentives for businesses to make new investments, expand, and hire new employees. Millions of small business owners are now eligible for new tax cuts, and within weeks, thousands of businesses will have easier access to the credit they desperately need.
The legislation will extend the Small Business Administration’s (SBA) Dealer Floor Plan (DFP) Program for marine and other product dealers to 2013 from its current expiration date later this month, raise loan caps from $2 million to $5 million, and enable a 100 percent advance rate.
NMMA worked closely with House and Senate offices, the White House, and Treasury Department officials since early this year on the SBA DFP provisions.
“An expanded and enhanced SBA DFP Program will more effectively serve those already participating while allowing other businesses the opportunity to take advantage of what it has to offer,” NMMA President Thom Dammrich said in a statement. “Congress has now provided a great deal of certainty with this program, and we strongly encourage lenders to utilize this important program to get credit flowing again to responsible marine companies throughout the United States.”
The new law also provides several tax relief changes that benefit small businesses. The tax changes in the law are temporary and apply to tax years 2010 and 2011.
The Bill includes some key provisions for small businesses:
- Tax Write-Off - Small businesses receive a tax write-off on the first $500,000 of new equipment investments
- Temporary General Business Credit Changes - In 2010, businesses with less than $50 million in gross receipts will be able to carry back general business credits to offset tax liabilities for five years; those credits could be applied against the alternative minimum tax.
- Bonus Depreciation - The law will restore through 2010 the 50 percent first-year depreciation for some kinds of property.
- Deduction for Health Insurance Costs - The law will permit self-employed business owners to deduct their family's health insurance expenses from self-employment tax income in 2010.