Today, Rep. Lois Capps (D-Calif) voted in favor of the Small Business Jobs Act to ease the credit crunch by increasing much-needed lending to small businesses on the Central and South Coasts. The bill also enacts 8 new tax incentives for small businesses, so that they may expand and hire. The legislation passed by a vote of 237-187. President Obama is expected to sign the bill into law this week.
"The small businesses on the Central and South Coasts continually impress me with their creativity and ingenuity. I know firsthand, from my visits to small businesses up and down the coast, that they are the engine of our economy, but need greater access to capital to help them grow and expand," said Capps. "Small businesses have created two-thirds of new jobs over the last 15 years, making their ability to access credit critical to the health of the economy. In the wake of the financial crisis, banks large and small are still not lending as much as they should. This legislation will incentivize small, community banks to increase lending to local small businesses, giving them the capital they need to create jobs and continue to serve as on the country's hubs of economic growth and innovation."
The Small Business Jobs Act will help small businesses grow by providing $12 billion in tax cuts including: doubling and enhancing small business expensing and extending bonus depreciation, allowing for 100% exclusion of capital gains on investments in small business, doubling the deduction for start-up expenditures, and allowing self-employed taxpayers to deduct health costs for payroll tax purposes.
The legislation will make small businesses more competitive with big corporations by leveraging up to $300 billion in private sector lending, along with state grants for small business lending. With tax cuts and access to more capital, Central and South Coast small businesses will be able to put more Americans back to work. The bill is fully paid for and will not add to the deficit.
The bill has been endorsed by the National Small Business Association, the Small Business Majority, National Association of Realtors, the Conference of State Bank Supervisors, the American Bankers Association, Biotechnology Industry Organization and the National Bankers Association.