New Small Business Loan Bill Passes

The Senate passed the Small Business Lending Fund Act of 2010 which will free up bank’s capital by allowing them to amortize or write down losses over a 6 to 10 year period. The new legislation will create a $30 billion fund designed to boost lending to small businesses which suffered over the past few years in the financial crisis.

This new program would provide the funds to local community banks that would extend a line of credit to small businesses. An addition $12 billion would aid small businesses to write off the costs of equipment and making renovations up to $500,000. Those who are self employed will be able to deduct health benefits.

“This is a bill that would cut taxes and help provide loans to millions of small-business owners, who create most of the new jobs in this country,” President Barack Obama said in a statement. “Small businesses across the country have been waiting for Washington to act on this bill for far too long.”