Small business owners across the country breathed a collective sigh of relief as President Barack Obama signed the Small Business Jobs Act into law on Monday and the NGLCC was able to celebrate one of its top legislative priorities now being a reality.
With many small business owners in attendance, including NGLCC-certified business owner, Larry Poltavtsev, and NGLCC co-founders Justin Nelson and Chance Mitchell, the president made clear the importance of the bill, which will help boost the financial capacity of the nation's small businesses.
"I don't have to tell folks here that small businesses still face hardships, and it's still too difficult for many creditworthy small business owners to get loans. So there is more we can do to help them grow and to help them hire. And that's why I began fighting for months to pass this jobs bill-the most significant step on behalf of our small businesses in more than a decade," Obama said in his remarks before signing the bill. "And once I sign it, it's going to speed relief to small businesses across this country right away."
The NGLCC has been a strong champion of the bill and was a leading organization among a coalition of small business advocacy organizations that had heavily focused efforts on passage.
"America's small businesses need relief and the Small Business Jobs Act will undoubtedly help small businesses gain the access to credit they need to start hiring again," said Nelson, NGLCC co-founder and president.
The bill, which Obama signed into law in the East Room of the White House on Monday, includes eight new small business tax cuts, all of which are effective immediately. Under the new legislation, small businesses can write off the first $500,000 they spend on new equipment. Additionally, key long-term investments will be subject to zero capital gains taxes, allowing small businesses to start making new investments and expanding immediately. Entrepreneurs can deduct the first $10,000 of their start-up costs, and self-employed individuals can deduct 100 percent of the cost of health insurance for themselves and their families from self-employment taxes.
The new legislation will also improve access to credit for small businesses. Under the bill's SBA loan limit provision, the limits for 7(a) loans—the most commonly used business loan, which guarantees a portion of loans provided by commercial lenders—will increase from $2 million to $5 million. Limits for a 504 loan—a long-term financing tool for economic development within a community—will increase from $1.5 million to $5.5 million. Limits for micro loans will jump from $35,000 to $50,000.
"The signing of this bill is a longtime coming," said Mitchell, NGLCC co-founder and CEO. "The NGLCC could not be happier about the benefits the bill will bring to the nation's small businesses, including the nearly 1.5 million LGBT-owned small business, and we're confident that these changes will spur the growth these small businesses so desperately need and in turn boost the country's overall economic well-being."
For a full transcript of remarks from the Small Business Jobs Act signing, click here.
For more background on the Small Business Jobs Act, click here.
