Small Business Jobs Act of 2010

It took months to finally get the Senate and the House on the same page, but once they did, look out! This bill passed!

Here’s a quick summary of the items that might effect your business. We will be going over the 8 tax cuts in greater detail this week.

Small Business Loans Under New Small Business Jobs Act of 2010

Recovery Act Loans Extension

The law will extend SBA Recovery loans (with the 90% guarantee and reduced fees) through December 31, 2010.. More than 1,400 small businesses that have been in a queue waiting for this bill to become law are hoping to finally get funded. SBA says it will happen soon. Hope so.

Higher Loan Limits

The law will permanently increase 7(a) and 504 limits from $2 million to $5 million (for manufacturers in 504 loan program, up to $5.5 million).

The law will permanently increase microloan limits from $35,000 to $50,000, helping larger entrepreneurs with start-up costs and small business owners in underserved communities.

Alternative Size Standards (or how “big” biz gets “small” biz benefits)

A biz with up to $15 million in net worth and $5 million in average net income is now eligible for these loans. Guess the gvt got tired of bail-outs.

Temporary Enhancements to Help with Working Capital, Commercial Real Estate Refinancing

The law will increase maximum amount of SBA Express loans from $350,000 to $1 million (expires 9/27/2011).

The law will allow some small businesses to refinance their owner-occupied commercial real estate mortgages into the 504 loan program (expires 9/27/2012).

And…. 8 Tax Cuts

• The highest Section 179 small business expensing limit ever - $500,000
• Carry-back provisions on net operating losses of up to 5 years
• Accelerated/bonus depreciation
• Zero capital gains taxes for those who invest in small businesses
• Increased deductions for start-ups
• Deductions for employer-provided cell phones
• Deductions for health insurance costs for the self-employed
• Limitations on penalties for errors in tax reporting that disproportionately affect small business