As seen on AOL
(Sept. 27) — President Barack Obama signs the Small Business Jobs Act in the East Room of the White House on Monday. The legislation provides $12 billion in tax incentives and establishes a $30 billion fund to increase credit access for small businesses.
- The maximum size of loans supported by the Small Business Administration would also increase, to $5 million from $2 million, and some manufacturing-related loans could reach up to $5.5. million
- The largest micro loans, often used by entrepreneurs and for start up capital, would increase to $50,000 from $35,000. And the SBA’s so-called express loans — usually tapped for working capital that companies use to buy new inventory and process new orders — would increase to $1 million from $35,000.
- The new tax cuts would let small businesses write off hundreds of thousands of dollars in equipment purchases while eliminating capital gains taxes for about 1 million companies, and many entrepreneurs would be allowed to deduct the first $10,000 in start up costs.
- The law also lets self-employed Americans deduct all health insurance costs for themselves and their families.