The U.S. Senate has passed the Small Business Jobs and Credit Act. The legislation would create a $30 billion fund to provide small banks access to capital for the purpose of lending to small businesses.
Banks with assets of less than $10 million would be qualified to tap into the fund.
The legislation also would provide for tax incentives to encourage business development. In addition, it includes $12 billion in tax cuts, plus stronger government loan guarantees.
"We commend the U.S. Sente for taking this critical step toward providing small business with access to lending," says Chris Kersting, CEO and president of the Specialty Equipment Market Association (SEMA), which is urging President Obama to sign the act into law.
"As the key to our nation's economic recovery, small businesses must be given every opportunity to expand and prosper."
The legislation also would extend bonus depreciation through 2010. "In 2008 and 2009, all businesses were permitted to immediately write off 50% of the cost of new equipment. The depreciation expired at the end of 2009. SEMA contends the depreciation write-off encourages companies to invest in newer, more efficient equipment and spurs sales and creates jobs.
"The bill also would expand and extend the Section 179 program, allowing companies to write off up to $500,000 in capital expenditures in tax years 2010 and 2011, the current limit for 2010."
