Small businesses are the backbone of our national economy and they create 60 to 80 percent of new jobs every year. The 14th Congressional District is famous for its innovative small businesses, whose products have literally changed the world.

Rep. Eshoo continues to work to pass legislation that will ensure small businesses remain viable, productive, and innovative.

Small Business Lending Fund Act of 2010

This legislation offers $15 billion in small business tax relief and creates a $30 billion fund to loosen lending from community banks to small businesses. It is expected to support up to $300 billion in small business lending, which could create as many as a half million jobs. This bill was passed by the House on September 23, 2010 and was signed into the law by President Obama on September 27, 2010.

Key provisions of the bill:

• Creates a $30 billion Small Business Lending Fund to encourage lending by community banks with less than $10 billion in assets and establishes a $1.5 billion fund to assist state and local government programs that help businesses receive capital;
• Increases the size of Small Business Administration general business loans from $2 million to $5 million and microloans from $35,000 to $50,000;
• Permits self-employed business owners to deduct their family’s health insurance benefits from their self employment tax income in 2010;
• Temporarily increases to 100% the capital gains exclusion for stock issued by some small businesses through the end of the year;
• Allows general business credits of eligible small businesses for 2010 to be carried back five years.

Small Business Financing and Investment Act

This legislation enhances lending opportunities for small business by overhauling the Small Business Administration’s capital access programs, extending key provisions in the American Recovery and Reinvestment Act (ARRA), and will support an estimated $44 billion a year in lending and investment for smaller firms. It also increases available loan sizes, helps rural businesses and veteran-owned businesses obtain loans, encourages local banks to lend to small businesses, and expands the Small Business Administration’s ability to facilitate loans. This bill was passed by the House on October 29, 2009.

Small Business and Infrastructure Jobs Tax Act

This legislation provides tax relief to small businesses and extends effective financing measures to create jobs. It also assists America’s cities and towns by extending the Build America Bonds to help finance the rebuilding of schools, hospitals, roads, bridges, and rail lines. This bill was passed by the House on March 24, 2010.

The Small Business Jobs and Credit Act

This legislation leverages $300 billion in private bank loans, primarily for small businesses so they can grow and hire, and provides additional tax relief for small businesses. This bill was passed by the House on June 17, 2010.

Sixteen tax cuts have been enacted for small business so far by the 111th Congress:

1. Provide a payroll tax holiday for businesses that hire unemployed workers and an income tax credit of $1,000 for businesses that retain these employees. (HIRE Act)
   
2. Provide $40 billion in tax credits for small businesses to help them offer employee health insurance coverage – if they choose to do so. (Affordable Care Act)
3. Allow businesses to use net operating losses to offset profits from five previous years, up from two years. (Recovery Act)
4. Spur small business investment by providing enhanced small business expensing, doubling the amount small businesses can immediately write off their taxes for capital investments and purchases of new equipment made in 2009 (extended through 2010 in the HIRE act). (Recovery Act)
5. Help businesses quickly recover costs of new capital investments by providing increased bonus depreciation for businesses that made investments in new plants and equipment in 2009. (Recovery Act)
   
6. Provide an exclusion of 75 percent (up from 50 percent) of capital gains from taxes for investors in small businesses who buy stock (in 2009 and 2010) and hold it for more than five years. (Recovery Act)
7. Reduce the required estimated tax payments for certain small businesses in 2009. (Recovery Act)
8. Provide tax relief for taxable corporations converting into S corporations in 2009 and 2010 by reducing the built-in gains holding period from 10 years to 7 years (with gains held for the holding period exempt from tax).(Recovery Act)
9. Eliminate capital gains taxes on key small business investments. (Lending Fund Act)
10. Raise the small business expensing limit up to $500,00--the highest limit ever. (Lending Fund Act)
11. Extend 50% bonus depreciation. (Lending Fund Act)
12. Create a new deduction for healthcare expenses for the self-employed. (Lending Fund Act)
13. Provide simplification and tax relief for cell phone deductions. (Lending Fund Act)
14. Increase deductions for entrepreneurs start-up expenses. (Lending Fund Act)
15. Allow a five-year carryback fo general business credits. (Lending Fund Act)
16. Limit penalties for errors in tax reporting that disproportionately affect small business. (Lending Fund Act)