The President signed a new bill into law yesterday called the Small Business Jobs Bill, intended to provide a jumpstart to hiring by small businesses. I am not able to add to the punditry on the economic theory underlying these initiatives. For example, the hiring act credit provided to businesses that added new workers has been largely ignored.
This initiative may address one of the reported root problems, however, that of obtaining credit. The bill provides more funding to SBA, and reduces the fees. In addition, there are tax incentives offered to small businesses, which may make the difference in small businesses deciding to make capital investments.
There are also some tax breaks, including an increase in the amount of business equipmetn expenses that may be deducted immediately, and increase the deduction for start-up expenses. In addition, this bill permits self-employed people to deduct the cost of their personal health insurance during 2010.
Three of the people invited to attend the signing ceremony are Maryland business owners who are in hiring mode, and expect to use the provisions of this new law to grow further.