The Economic Stimulus Package
provided money for small businesses
. The FY 2011 budget
allocated $64 billion, broken out as follows:
- $33 billionin tax credits for small businesses that add new workers or give raises beyond a cost-of-living increase.
- Raise the limit on SBA loan guarantees from $2 million to $5 million.
- $30 billion from the TARP program for 8,000 community banks (assets under $10 billion), which do half of all small business lending.
- $700,000 to eliminate capital gains taxes for investors in small businesses.
In 2009,stimulus money was made available to small businesses for the following:
Deductions for machinery and equipment, such as computer and office equipment, signs, and vehicles was raised to $250,000 (except SUVs which were limited to $25,000). Property that didn't qualify for the tax credit coulc be depreciated by 50%.
Investors in small, publicly-held businesses who held their stock for more than five years received a capital gains tax cut. Small businesses could delay paying the 3% withholding tax on goods and services sold to governments.
Small businesses that hired unemployed veterans and students who looked for work for more than six months received tax credits.
The Small Business Administration 7(a) loan guarantee was raised from 75% to 90% of the value of the loan. Fees were eliminated on the SBA's 504 program, which guaranteed $4 million worth of economic development loans to small businesses.
For more, see Benefits of the Economic Stimulus Package for Small Business
from the About.com Guide to Business Finance, Rosemary Peavler.