Provisions of the legislation
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.