Staten Island may be a small borough, but it recently passed some legislation that could bring big changes to small businesses. According to StatenIslandLive.com, Representative Michael McMahon is sponsoring two bills that will help entrepreneurs gain access to working capital.To start, the Express Loans and Improvements Act of 2010 would increase the maximum loan value to $1 million in an effort to increase funds for developing small businesses. The money would be used to fund operational and job expansions in companies.
Additionally, the Small Business Formation and Job Creation Act would increase startup tax deductions for small businesses, freeing up capital that can be used to create jobs and reinvest.
In an effort to raise support for the proposed legislation, the source quotes McMahon as saying, “we all know that small businesses are the backbone of our economy.”
It seems many local governments understand small business formation is essential to recovering community economies. Recently, Massachusetts officials proposed legislation that will offer a tax credit for new business formation.
Additionally, new small businesses are expected to boost the national economy. According to a report from the Kauffman Foundation, young businesses create a disproportionate share of new jobs.