Mar 06, 2009

Stimulus Package Helps Small Business

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The stimulus package contains several provisions aimed at helping small businesses. The higher Section 179 deduction limit of $250,000 that was passed in 2008 is extended another year, as is the 50% first-year bonus depreciation from 2008. Also, businesses with net operating losses in 2008 can carry those losses back for the prior five years, to get a refund against old taxes paid. And another tax measure provides that the amount of estimated taxes that has to be paid by small business owners is now just 90% of the previous year's taxes (rather than the 110% most small business owners had to pay last year). Lastly, the stimulus package provides $730 million to the Small Business Administration's loan program, which should stimulate small business bank loans and nonprofit microloans to small businesses. For more information on all of these, as well as a few other provisions in the stimulus package not mentioned here, see Nolo's new article on How the Stimulus Package of 2009 Can Help Your Small Business.