The Specialty Equipment Market Association (SEMA) applauded the signing into law of the “Small Business Jobs and Credit Act” (H.R. 5297), including $12 billion in tax incentives for small businesses and creating a $30 billion resource to activate greater lending to small businesses by community banks.
“For months, our member companies and small businesses across the country have struggled to gain access to capital and credit,” said Chris Kersting, SEMA’s president and CEO. “In many cases, tougher credit access has nothing to do with the SEMA member’s business and everything to do with the bank’s difficulties in meeting current lending to capital ratio requirements. Under this new law, funding for loans will be infused into community banks nationwide that are positioned to lend, helping small businesses to become an engine for economic growth and recovery.”
The law includes an extension of the bonus depreciation program, which allows businesses to write-off 50% of the cost of newly purchased depreciable property. Limited depreciation was permitted in 2008 and 2009. The law also expands and extends the Section 179 program, allowing companies to write-off up to $500,000 in capital expenditures in tax years 2010 and 2011, double the current limit for 2010.
“While SEMA appreciates the enactment of this legislation, we now urge bank regulators to quickly implement the lending program,” said Kersting. “It is time to get basic working credit available and help small businesses to become an engine of economic recovery.”