Small Business Jobs Package: What it Means for MDOs and Entrepreneurs October 5, 2010

Panelists Jody Raskind Small Business Administration Chief, Microenterprise Development Branch Bill Zavarello House Committee on Financial Services Senior Professional Staff Kristie Arslan National Association of the Self-Employed Executive Director

Small Business Jobs Package Highlights: SBA Microloan & WBC Changes Max microloan = $50,000; Max Intermediary loan = $5m; Intermediaries & WBCs may apply to SBA to have federal match requirements lowered or waived. Intermediary Lending Fund Three-year pilot program; Direct loans to nonprofits; Authorized at $20 million/year; Limited to 20 Intermediaries/year; Maximum entrepreneur loan = $200,000.

Small Business Jobs Package Highlights: Treasury Small Business Lending Fund Creates a $300 million Small Business Lending Fund at Dept of Treasury; Allows CDFI loan funds to access equity equivalent capital at a rate of 2% per year for eight years; Designed to leverage additional investment in small business, particularly in communities hardest-hit by the economic downturn.

Small Business Jobs Package Highlights: Entrepreneurs Tax Cuts for the Self-Employed Extension of 50% bonus depreciation for capital expenditures; Health Insurance: allows 2 million self-employed individuals to receive a tax deduction for the cost of health insurance for themselves and their family members; Cell Phone Deductions: use of cell phones can be deducted without extra documentation; Deduction for Start-Up Expenses: temporary increases the amount of start-up expenditures entrepreneurs can deduct from their taxes, from $5,000 to $10,000; Limitations on Penalties for Errors in Tax Reporting: changes the penalty for failing to report certain tax transactions from a fixed dollar amount to a percentage of the tax benefits from the transaction.

For More Information: Andrea Wuebker Communications & Policy Director Michelle Levy-Benitez National Policy Advisor www.aeoworks.org