Loan, tax help aimed to boost small business - bizjournals:

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On June 15, the will begin administering a $300 milliom America’s Recovery Capital loan program whichprovides interest-free loans of up to $35,000. The re-paymentg plan is spread out overfive “It’s like a bridge loan until the economy says Clint Smith, district directo r for the Tennessee SBA. “It easesw the cash flow burden for the smalk business owner fora year, when hopefullyg the economy will The program is designed for businesses that have been profitabls at least one of the past threer years but are facing immediats hardship. The money can be used to make busines mortgage payments or pay down busineses related credit card expensse and homeequity drawdowns.
The SBA guarantees all loansz made underthe program, which will distributse the money on a first first served basis. The program will last until Septembet 30, 2010, or until fundw run out. The also is offerinvg relief, in the form of provisionsw to help businesses improve cash flow and lower their tax The American Recovery and Reinvestment Act includedd a number of new deductions and extended some from last yearinto 2009. “Thse whole premise is to try to give small businessesa more flexibility and speed at which they may be able to take certain saysJoel Abbott, stakeholder liaison for the Internal Revenue Service.
Some of the tax breaks and benefitw are only availablethis year, so businesses have seveb months to take advantage of breaks on capitalp purchases such as company vehicles. Here are the provisions targetecd tosmall business: • Capita expense write-offs: Business owners are encourageed to invest in new property and equipment under a provision which extendds the 50 percent bonus depreciation allowance for capitaol expenditures. Under the new law, half the cost of qualifying purchases can be writtenoff immediately, whereas such investmentsz are ordinarily written off over several years througjh annual depreciation deductions.
Also, with the extension of the section179 deduction, small businessese can deduct up to $250,000 of equipment and vehiclesz that are placed in service this year, when the totakl investment is $800,000 or less. • Transit Through the end of the employers can deduct upto $230 a monthg from their employment taxes when they provided commuter transportation and/or transift passes for their employees. Thesse benefits are excluded froman employee’s wageas for income tax and payroll tax purposes, qualifying them as a businesa expense.
• COBRA credit: Employers that pay a 65 percentg subsidy for COBRA health insuranc e premiums to eligible former employees can recove the money by writing it off on their tax or can deduct the amount from their employmenf tax depositsin advance. This benefit applies to employees terminatesafter Aug. 31, 2008, and beforre Jan. 1, 2010, who keep their health insurancee coverageunder COBRA. • Loss carry Small businesses that lost money last year can carry losses back for up tofive years, extended from two That could result in a tax refund for smallo businesses that were profitable in the past but not in 2008.
To be a business must average no morethan $15 millioh in gross receipts over a three-year • Investment credits: As an incentive for future individuals who invest in small businesses over the next year and a half can excludes 75 percent of the gain when they sell the if the qualified business stock is purchased between Feb. 17, and Jan. 1, 2011, and held for more than five This exclusion has been raised from50 • Estimated tax deferral: Small businessesw can now defer paying some of theifr taxes until the end of the Qualifying individuals can make quarterly estimated tax paymentsd equal to 90 percent of their 2009 tax or 90 percen of their 2008 tax, whichever is less.