President Obama signs Small Business Jobs and Credit Act

The United States Treasury Department created a small business fund of $30 billion, in an effort, to have affordable loans and tax incentives for small businesses.

President Barack Obama, signed the “H.R. 5297: Small Business Jobs and Credit Act” into law, on Sept. 27.

According to the Small Business Lending Fund Act of 2010, it will create 500,000 new jobs, give small businesses $12 billion tax cuts and incentives, and set aside leverages of $300 billion for private sector lending for small businesses without adding a penny to the national deficit.

The Act also supports young entrepreneurs that have desire to own a business.

“Starting a new business is scary and expensive, but worthwhile when a person can get paid for what they love to do,” said Jason Smith, 23, a fourth year graphic design student and owner of COPA Living Inc. “My business is a t-shirt company. I hope, I can right off my expenses on my taxes because I spend a lot of my money on ink and shirts.”

“Small businesses are the engine of our economy,” said Nancy Pelosi, house speaker congresswomen. “Small businesses created two-thirds of the new jobs over the last 15 years.”

According to the Small Business Lending Fund Act of 2010, there are several requirements that need to be met before a person is eligible for the small business loans or tax incentives.

For example, assets of the business must be equal to or less than $1 billion; no company, credit union or bank can own the institution. A blueprint of the business plan must be provided of the short and long term goals of the business, and the small business must consult with a Federal banking agency to verify their eligibility of government assistance, according to the Small Business Lending Fund Act of 2010.

“It has been a little over three weeks, since the bill has been passed and signed,” said business owner, Jerome Harris of Show Time Costumes. “I am doing my research about the bill and I am highly interested in the tax incentives than the loans.”