Congressman Scott Supports Small Businesses
Today, Congressman David Scott continued his support for small businesses by voting for the Small Business Jobs Act (H.R. 5297). The bill passed the House and will be sent to the President to be signed into law.
"I am committed to help grow small businesses, which created two-thirds of the new jobs over the last 15 years," Congressman Scott said. "When small businesses grow, America grows. At this time, small businesses continue to face a lack of credit and tight lending standards. This bill will expand access to capital to Main Street businesses across the country."
There are several provisions to encourage lending and investing in small businesses as well as proving incentives for small businesses to make business investments. The Small Business Jobs Act will:
Expand Small Businesses Access to Capital
·The bill creates a $30 billion Small Business Lending Fund to provide community banks with capital to increase small business lending. The fund is limited to the smallest banks with $10 billion or less in assets.
·The bill invests $1.5 billion in grants to support $15 billion in new small business lending through successful state programs.
·It expands access to, and lowers costs for, small business to access SBA loans and also increases SBA loan limits.
·Investment in small businesses will be stimulated by a 100% exclusion from capital gains taxes on small business investments.
·Small business taxes will be decreased by allowing them to carry back general business tax credits to offset their taxes from the previous five years. Small businesses will also be able to count the general business credits against the Alternative Minimum Tax (AMT), which frees up capital for expansion and job growth.
Spur Small Businesses Investments & Growth
·The bill soubles small business expensing for immediate write offs of capital investments, such as equipment and machinery, in 2010 and 2011. It also expands purchases qualifying for expensing to include certain types of real property, such as leasehold, retail and restaurant improvements.
·The bill extends bonus depreciation, which allows businesses to immediately write off 50 percent of the cost of new equipment investments in 2010.
Promote Entrepreneurship and Small Business Exports
·Doubles to $10,000 the tax deduction for start-up expenditures for entrepreneurs looking to launch a new venture.
·Creates a variety of new tools to help small businesses gain international market access and export goods, including a new State Export Promotion Grant Program (STEP), which will leverage more than $1 billion in exports.
Promote Fairness in Competition
· Removes onerous requirements that complicate the ability to deduct costs of cell phone use as a regular business expense
·Allows self-employed individuals to deduct health insurance costs in paying the self-employment tax in 2010.
·Removes the red tape and closes loopholes that too often put government contracts into the hands of multinational corporations, instead of Main Street businesses.