Small Business Bill
Date:
September 23, 2010
Maximum Amount:
$85.38 billion
Amount Spent:
$56.80 billion
Deficit Impact:
-$0.46 billion Congress passed the Small Business Jobs and Credit Act of 2010 (HR 5297) on September 23rd, 2010. The bill will create a $30 billion lending fund that will buy preferred stock in community banks ($10 billion or less in assets) with varying dividend rates based on how much the bank increases small business lending. It also creates a $1.5 billion State Small Business Credit Initiative, increases the loan limit for the Small Business Administration, and provides numerous tax incentives for small business, including a 100% exclusion from capital gains of the sale of small business stock and an increased deduction for start-up expenditures.
The cost of the bill is offset by increasing reporting requirements, tightening the cellulosic biofuels tax credit, and allowing more rollovers into Roth IRAs, among other things.
CBO's latest cost estimate has the cost of the bill at -$500 million from 2011-2020.
Source:
Notes:
Maximum amount represents the peak gross cost of the bill--in other words, the cost of the bill in 2011. Deficit impact is based on CBO's estimate of the cost of the bill from 2010-2020. Amount spent based on CRFB extrapolations of revenue provisions, Treasury transaction reports for the Small Business Lending Fund as of 2/29/2012, and Treasury press releases for the State Small Business Credit Initiative.