Congress is considering a bill that would give small businesses tax relief and help accessing capital.
H.R. 5297 would allow businesses to expense up to $250,000 of the cost of certain capital expenses. The provision would free up cash restaurants could invest elsewhere in their businesses. “Those capital expenditures would ripple throughout the economy, spurring job growth in other industries,” says David Koenig, tax and profitability director, NRA.
President Obama discussed the bill today at the Tastee Sub Shop in Edison, N.J. He met with the shop’s co-owner, the owner of a family-owned Italian restaurant and other small business operators.
H.R. 5297 would allow businesses to expense up to $250,000 of the cost of certain capital expenses. The provision would free up cash restaurants could invest elsewhere in their businesses. “Those capital expenditures would ripple throughout the economy, spurring job growth in other industries,” says David Koenig, tax and profitability director, NRA.
President Obama discussed the bill today at the Tastee Sub Shop in Edison, N.J. He met with the shop’s co-owner, the owner of a family-owned Italian restaurant and other small business operators.
The bill also would extend the bonus depreciation tax incentive.
The incentive, which expired last year, allows businesses to deduct
half the cost of certain equipment purchases up front instead of writing
off the entire cost over several years. The bonus depreciation
provision applies to kitchen equipment, furniture, fixtures, computers,
stereo systems or other personal property, as well as land improvements.
The legislation also would update some Small Business Administration programs and extend loan guarantees and fee reductions. Specifically, it would increase the maximum SBA 7 (a) loan to $5 million from $2 million. It would increase the 504 loan maximums to $5.5 million from $1.5 million. The bill would eliminate fees on those loans and extend guarantees on most loans through year-end.
An amendment to the bill would create a $30 billion small business lending fund to help small banks lend money to small businesses.
The Association believes expanding access to capital will help restaurant operators make necessary investments, hire and retain workers, and, in some cases, keep their doors open.
The legislation also would update some Small Business Administration programs and extend loan guarantees and fee reductions. Specifically, it would increase the maximum SBA 7 (a) loan to $5 million from $2 million. It would increase the 504 loan maximums to $5.5 million from $1.5 million. The bill would eliminate fees on those loans and extend guarantees on most loans through year-end.
An amendment to the bill would create a $30 billion small business lending fund to help small banks lend money to small businesses.
The Association believes expanding access to capital will help restaurant operators make necessary investments, hire and retain workers, and, in some cases, keep their doors open.
