Congressman Scott Murphy (NY-20) today helped pass H.R. 5297, the Small Business Jobs Act, which will expand much needed lending to small businesses and offer tax incentives to help small businesses grow and hire during this tough economic time. Over the past 15 years, small businesses have been responsible for creating two-thirds of new jobs. This important legislation will now go to the President for his signature.
"As a businessman, I know that we need to help our small businesses hire new employees," said Murphy. "The provisions that we passed today will help small businesses across Upstate New York. I've been a leading advocate for expanding the SBA loan program, because it's public-private partnership between the government and our local businesses that helps businesses grow and our economy recover."
Using his business background, Murphy fought for many of the provisions included in the final legislation, including, 100% exclusion of small business capital gains, increased Small Business Administration (SBA) loan limits, and the temporary suspension of loan fees for SBA loans. In addition, the bill allows businesses to immediately write off 50 percent of the cost of new equipment investments in 2010 and allows self-employed individuals to deduct health insurance costs in paying the self-employment tax in 2010. Specifically, the legislation would:
* Eliminate the fees that small businesses are required to pay when they receive an SBA loan. Current fees can add up to $6,000 or even more;
* Increase SBA loan guarantees for small businesses to 90% from 75%;
* Increase the amount that small businesses could receive from the SBA up to $5.5 million;
* Increase the amount that small businesses could receive through microloans, which are designed to allow businesses to make vital improvements without taking on too much debt, to up to $50,000;
* Give more of New York's small businesses access to working capital by expanding the amount businesses can receive from Express Loans to $1,000,000.