New Hope for Small Businesses

By Devin Scott Tuesday, February 8, 2011

The government has recently put some policies in place that can be of help to the small business owner. In addition to a new tax credit for healthcare costs, there is also more money available to help businesses secure financing. There is an extra $13 million in loan guarantee money that businesses could potentially access. That money could translate into $131 million in new lending. In addition to those benefits, the Small Business Association  has also implemented higher maximum loan sizes. These were all made possible by the Small Business Jobs Act.

The Small Business Jobs Act was signed into law last year. The Jobs Act, among other things, gives lenders incentive to loan money to small businesses by offering peace of mind that the loan will be repaid. The Jobs Act also includes 8 new small business tax cuts that will hopefully offer incentive for business growth and new investments.

Small Business Association Administrator Karen Mills says, "Today’s vote by the House to send the Small Business Jobs and Credit Act to the President for his signature is a key step forward in making sure small businesses have the resources they need to do what they do best – create jobs and drive economic growth. This bill includes billions in tax cuts specifically targeted to small businesses so they can put more of their own resources into growing their business. At the same time, this bill ensures those very businesses have access to the capital they need by extending SBA’s successful recovery loan enhancements and putting local, community banks in a position to be a real partner for small businesses and entrepreneurs. This bill is the right step forward for our nation’s small businesses and our economy.”

At a time when many businesses are struggling, the Small Business Jobs Act is significant. There are many business owners who, with a little more credit, could grow their business quite a bit. The goal is to create jobs and add to productivity. “Additionally, temporarily increasing the cap on SBA Express loans from $350,000 to $1 million will allow more small businesses to take advantage of the streamlined approval process for working lines of credit and other capital they need,” Mills said.

The Small Business Assocition's web site offers more information on this, as well as a treasure trove of ideas, links, videos and event listings for small business owners.

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