Pro­vi­sions of the leg­is­la­tion

Los Angeles Times - - Business -

Leg­is­la­tion ap­proved by Congress on Thurs­day seeks to make more loans avail­able to small busi­nesses through the Small Busi­ness Ad­min­is­tra­tion and other agen­cies. Pres­i­dent Obama said he would sign the bill Mon­day. The leg­is­la­tion would:

Set aside $30 bil­lion for a fund to pro­vide fi­nan­cial in­cen­tives to com­mu­nity banks to make to small-busi­ness loans.

Al­low the SBA to guar­an­tee up to 90% of small-busi­ness loan amounts, an in­crease from up to 75% now al­lowed. This makes loans less risky for banks.

Pro­vide $12 bil­lion in tax breaks to help com­pa­nies in­vest and hire, in­clud­ing tax de­duc­tions for new busi­nesses, new equip­ment and new head­quar­ters. Cap­i­tal gains taxes also would be elim­i­nated for in­vest­ments by small busi­nesses.

Waive SBA loan fees charged to many bor­row­ers.

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