Today, Delaware Congressman and senior Member on the House Financial Services Committee, Mike Castle introduced the Small Business Assistance and Relief Act, to help small businesses succeed in the current economy by extending tax breaks for small businesses, reducing regulatory burden, and increasing the number of loans being made to small businesses. Small businesses make up over 93 percent of Delaware's employers, with over 72,000 employing approximately half of private-sector employees in the state.
"Small businesses are the backbone of our economy and it has been made clear to me through hearings before the Financial Services Committee, as well as meetings with Delaware small business owners across the state, that taking measures to help small businesses grow should be one of Congress' top priorities," said Rep. Castle. "This bill highlights some specific needs that we can address to encourage entrepreneurship and remove some of the burdens on small businesses."
Specifically, the Small Business Assistance and Relief Act would:
* Extend until 2012, tax relief for small businesses including the 5-Year Net Operating Loss Carryback, the 15-year recovery period for qualified leasehold improvement, restaurant, and leasehold property, and bonus depreciation
* Enhance Section 179 Expensing Limits which provides an incentive to invest in the business
* Increase the new business start-up deduction from $5,000 to $20,000
* Reduce regulatory burden by ensuring any federal regulation does not require a small business to spend more than 200 man-hours annually on paperwork, applications, or petitions, and requiring a GAO Report on the burden federal regulations impose on small businesses
* Improve lending to small businesses by increasing the maximum loan size in the 7(a) program, creating a direct lending Capital Backstop program for small businesses, and enhancing the microloan program.