Wherever I go in Michigan, I hear from small business owners who are doing their best to weather this recession. These companies are the engines of job creation, which is why I worked so hard to pass the Small Business Jobs Act. The new law gives small businesses what they have been asking for; access to capital and tax cuts.
A new Small Business Lending Fund will be set up to help community banks increase loans. With stricter regulations imposed after the financial market collapse, many smaller banks have been unable to provide enough loans to local small businesses. This new $30 billion fund will be matched with private dollars to leverage $300 billion in increased loans for small companies. It also increases access to loans from the Small Business Administration, and it provides support for an innovative Michigan program, run by the MFDC, to help companies whose collateral has lost value.
The new law gives small businesses $12 billion in tax cuts and eliminates the capital gains tax on small business stock. It also expands tax cuts to allow small business owners to immediately write off up to 50 percent of qualifying investments and expands the use of Section 179 expensing, which now allows a company to write off up to $500,000 of the cost of qualifying property the year it was purchased, rather than waiting to recover the cost over several years.
The Small Business Jobs Act accelerates the rate at which all businesses can deduct capital investments through bonus depreciation. It changes rules so that the use of cell phones can be deducted without burdensome extra documentation - making it...