What Does the Small Business Jobs Act Mean to You? On September 27, 2010, President Obama signed the Small Business Jobs and Credit Act into law. The act is designed to provide improved access to financing, as well as tax incentives, for small business owners. How might it impact you if you don't own a business? While the direct impact will certainly be felt among small businesses, the broader intent of the legislation is to buoy the economy. The bulk of jobs in the U.S. are created by small businesses, so helping these shops improve their bottom lines may also bolster employment opportunities and additional business growth—which could impact your bottom line as well. Key provisions These lofty goals aren't necessarily out of reach. Understanding the act's two basic sections—financing and taxes—may shed light on how it will put more money into the hands of business owners and other entrepreneurs to ultimately benefit the economy. Loan provisions. Here are a few of the many provisions designed to loosen lending standards, as well as to incentivize bank lending to small businesses. The 2009 Recovery Act Loan provisions have been extended with an additional $14 billion in lending support. This addition has already supported 1,400 businesses. Certain types of loans have permanently increased their caps from $2 million to $5 million, and micro loan caps for start-ups and newly established businesses have increased from $35,000 to $50,000. The Treasury will administer a Small Business Lending Fund of $30 billion, which will provide small community banks with additional low-cost capital. Tax cuts. Incentives like these are designed to offer tax breaks to businesses. Capital investments made by a small business can immediately be written off as expenses. The maximum amount that can be written off has increased to $500,000 for 2010 and 2011. Key small business investments that are held for five or more years will be exempt from capital gains taxation for the rest of 2010. New and simpler deductions for business expenses, such as health insurance and cell phones, are included for 2010. A call to action It's clear that many small businesses have the opportunity to see an infusion of capital into their businesses, which may encourage them to do some spending of their own. Time will tell if this ultimately acts as a stimulus for the economy in the form of new jobs, greater business spending, or other improvements. Nevertheless, it's a good reminder to take a look at your own financial situation to ensure that you are taking advantage of any taxation and investment strategy opportunities. And small business owners in particular should keep tabs on their financial well-being by contacting their tax and investment professionals to learn about their options. © 2010 Commonwealth Financial Network