The American Recovery and Reinvestment Act (ARRA) offers some interesting perks for small businesses.   For example, the 50% bonus depreciation created 2008 is now extended to the end of 2009.  This means that businesses making capital investments (computer systems, technology purchases!) can take and immediate 50% depreciation for their taxes.  Plus, businesses can write off up to $250,000 on total purchases up to $800,000, that’s up from $125,000 with a phaseout at $500,000 in 2007. 

Also benefiting is the Small Business Administration.  Some of the components of the Recovery Act that directly affect SBA programs are:

• Temporary elimination of loan fees to lenders on 504 loans.
• Provision of up to a 90 percent guarantee on all 7(a) loans except SBA Express.
• Expansion of SBA’s Microloan program providing enough for $50 million in new loans. SBA Microloans up to $35,000 each are delivered by nonprofit community-based intermediary lenders across the country, and come with technical assistance and training for each borrower.
• Expansion of Surety Bond Program limits to help small businesses compete for the billions of dollars in contracts that are needed to implement the Recovery Act.

For more information, check out the podcast from the SBA help center.