Governor Granholm At White House
Governor Jennifer Granholm will be at the White House when President Barack Obama signs a bill designed to help small businesses create jobs.
The president is scheduled to sign the bill Monday afternoon.
Part of the measure is patterned after the Michigan Supplier Diversification Program, which made money available to auto suppliers to shift into other types of manufacturing when the auto industry downsized. The bill also includes tax breaks and funds to encourage community banks to lend to small businesses.
It's unclear how many jobs it will create. Some bank executives say their customers don't want to take out loans because the sluggish economy has made them reluctant to expand their businesses.
According to a release from The White House, the bill immediately extends "successful SBA Recovery Act provisions," meaning that within a few days, it will restart the SBA's Recovery lending, beginning with the more than1,300 small businesses that have been waiting to get the credit they need – with thousands more benefitting in the coming weeks.
The bill includes eight new small business tax cuts – all effective as of Monday, and applying to small businesses' taxes for this year – providing an immediate incentive for businesses to make new investments and expand.
For example:
• if you are a small business and you buy new equipment, you can immediately write off the first $500,000 of your investments;
• if you are one of over one million eligible small businesses, key long-term investments in your company will be subject to zero capital gains taxes;
• if you are an entrepreneur and take a chance on a new idea, you can deduct the first $10,000 of your start-up costs;
• and if you are self employed you can deduct 100 percent of the cost of health insurance for you and your family from your self-employment taxes.
Copyright 2010 by WWJ Radio. All Rights Reserved. The Associated Press contributed to this report.
