Small Businesses to qualify for new small loans

With an estimated cost of $ 7 billion over 10 years, Congress has passed a package of small business stimulus measures. This should increase tax cuts, spur lending, and provide new equity financing. This bill is in response to the increasing costs that come from beginning a business, and can be overseen by the Treasury's inspector general.Article Resource: Small Businesses to qualify for new small loans Taxes cut by small business billThe small business bill is a combined bill that closes all of the tax loopholes and renews the tax cuts for small businesses. There would be $ 3.6 billion in tax breaks for small businesses to be implemented over the next decade. A tax increase on large businesses is how the tax breaks could be paid for. Small businesses would also be able to deduct startup expenditures from their taxes. This provision of the bill began as a separate measure that was in Congress, but is being combined as it is sent to the Senate.Small businesses to see additional moneyThe small business lending bill will likely create three major avenues for small businesses to get money. First, there would be a $ 30 billion fund of "preferred stock" that banks would be allowed to tap depending on their lending to farms and small businesses. There would also be $ 2 billion given to states to help increase state-funded loans to small businesses. Third, the Small Business Administration would be allowed to try and match $ 1 billion of private investment in startups.Paying for the small business billIn order to pay for the estimated $ 7 billion cost of the small business loans bill, the government will probably be increasing some taxes. Specifically, tax breaks for Grantor-Retained Annuity Trusts – which are really trusts set up to avoid taxes on gifts -- will be rescinded. Taxes on the sale of some stock would be increased to the point of standard income taxes as opposed to capital gains taxes.Vote on the small business billOn a 241-182 vote, the small business bill passed. The bill is now being combined with the $ 3.6 billion tax-cut bill that is for small businesses and will go to the Senate. The Senate is expected to pass the bill. Some Senate Republicans are arguing that this bill is really "another bank bailout" masquerading as a small business stimulus package. Democrats counter the bill takes a balanced approach to traditional and non-traditional lending for all of the new businesses.