President Obama's FY 2011 Budget Includes Assistance to Michigan Small Businesses
U.S. Senator Debbie Stabenow today praised President Barack Obama for including in his fiscal year 2011 budget important provisions that she has championed to help Michigan small businesses create jobs in Michigan.
"Small businesses across our state are ready to expand their operations and create new jobs but cannot get the capital to do so," said Stabenow. "That's why I am pleased President Obama has included provisions in his new budget to help the manufacturers, suppliers, retailers, and service providers on Main Street. They continue to struggle during these difficult economic times. As a member of the Senate Finance and Budget Committees, I am committed to making sure that businesses are able to invest in our communities and create jobs in Michigan."
President Obama's budget:
* Provides community and local banks with $30 billion in repaid TARP funding to lend to small businesses
By providing community and local banks with repaid TARP funds, our banks will be able to resume lending to serve the business needs of their local customers to create jobs. This proposal is similar to legislation that Senator Stabenow has co-sponsored.
* Extends Stabenow AMT/R&D tax credits
Many of our manufacturers require assistance to revamp and modernize their facilities, so they can create American jobs and stay competitive globally. The President's budget calls for an additional extension of a Stabenow provision in the American Recovery and Reinvestment Act, allowing companies to use accumulated tax credits to invest in the economy and create jobs here at home.
* Eliminates small business capital gains
The President's budget eliminates the capital gains tax on small business stock to encourage investment and job creation. This provision will save small business owners nearly $1 billion over 10 years.
* Supports Small Business Administration (SBA) loan guarantees
The President's budget increases support for SBA loan programs to provide much-needed capital to small businesses. His budget also proposes increasing the maximum loan size available to small businesses.
* Extends investment incentives for small businesses
The Recovery Act allowed small businesses to immediately write off up to $250,000 of qualified investments in 2008 or 2009. This provided a direct incentive for small businesses to invest in facilities and equipment to create American jobs. The President's budget will extend this incentive to encourage additional economic growth.