1.Short title; table of
contents
(a)This Act may be cited
as the Help Small Businesses Start and
Grow Act of 2010
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Tax Relief
Sec. 101. Increase in amount allowed as deduction for start-up
expenditures.
Sec. 102. Standard deduction for business use of
home.
Sec. 103. Increased meals and entertainment expense deduction
for small businesses.
Sec. 104. Two-year extension of bonus depreciation.
Title II—Small Business Loans
Sec. 202. Small business direct lending program.
<enum>I</enum><header>Tax
Relief</header>
<section id="HFCF49C1F8D9B4A668139D9C62A58C306"><enum>101.</enum><header>Increase in
amount allowed as deduction for start-up expenditures</header>
<subsection id="H1998F9F69C33471DA35F9E13680EDB92"><enum>(a)</enum><header>In
general</header><text>Subsection (b) of section 195 of the Internal Revenue
Code of 1986 is amended by adding at the end the following:</text>
<quoted-block id="H4E2C92B761C341BB9C9E1FA6BC8957B5" style="OLC">
<paragraph id="H317F0CD8F6F24A4397413EDBC9F39EC5"><enum>(3)</enum><header>Special rule for
taxable years beginning in 2009, 2010, or 2011</header><text display-inline="yes-display-inline">In the case of a taxable year beginning in
2009, 2010, or 2011, paragraph (1)(A)(ii) shall be applied—</text>
<subparagraph id="H825CA724319D426D976112541B928319"><enum>(A)</enum><text>by substituting
<quote>$50,000</quote> for <quote>$5,000</quote>, and</text>
</subparagraph><subparagraph id="H8E0279D115B74104ADC7AF30B10679AA"><enum>(B)</enum><text>by substituting
<quote>$75,000</quote> for
<quote>$50,000</quote>.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H2D01839FE9F84AA5B5D487782FAE7853"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to amounts paid or incurred in taxable years beginning
after the date of the enactment of this Act.</text>
</subsection></section><section id="H2BABC08744204F74B15D1783F24F7754"><enum>102.</enum><header>Standard
deduction for business use of home</header>
<subsection id="H0C0D113B522946D7B2C2CE53BB820045"><enum>(a)</enum><header>In
General</header><text>Subsection (c) of section 280A of the Internal Revenue
Code of 1986 (relating to disallowance of certain expenses in connection with
business use of home, rental of vacation homes, etc.) is amended by adding at
the end the following new paragraph:</text>
<quoted-block id="H244D10A993D5431CB57F5B569C93DA03" style="OLC">
<paragraph id="HC7739CEB1E5B4057BA6DE040DCD37A25"><enum>(7)</enum><header>Standard home
office deduction</header>
<subparagraph id="HE60ADF0EDC564A28B8409F296E1786FA"><enum>(A)</enum><header>In
general</header><text>In the case of an individual that is allowed a deduction
for the use of a home office because of a use described in paragraphs (1), (2),
or (4) of this subsection, notwithstanding the limitations of paragraph (5), if
such individual elects the application of this paragraph for the taxable year,
such individual shall be allowed a deduction equal to the standard home office
deduction for the taxable year in lieu of the deductions otherwise allowable
under this chapter for such taxable year by reason of being attributed to such
use.</text>
</subparagraph><subparagraph id="HE4D341F14B8A4A879E77E8031DD41A0F"><enum>(B)</enum><header>Standard home
office deduction amount</header><text>For purposes of this paragraph, the
standard home office deduction is the lesser of—</text>
<clause id="HF6BD36552F234ACC898464C32AA865AA"><enum>(i)</enum><text>$2,500, or</text>
</clause><clause id="H2DFF51A56FBD4C8CBEC61BD3E0FD413B"><enum>(ii)</enum><text>the gross income
derived from the individual’s trade or business for which such use
occurs.</text>
</clause></subparagraph><subparagraph id="H85D1240E88D94692B97B0B768E92C076"><enum>(C)</enum><header>Inflation
adjustment</header><text>In the case of any taxable year beginning in a
calendar year after 2010, the dollar amount in subparagraph (B)(i) shall be
increased by an amount equal to—</text>
<clause id="HE382BBE66BC24587AA046973856E62C4"><enum>(i)</enum><text>such dollar
amount, multiplied by</text>
</clause><clause id="H94960FB6337748EF8FBBA2F344829ED5"><enum>(ii)</enum><text>the
cost-of-living adjustment determined under section 1(f)(3) for the calendar
year in which the taxable year begins, determined by substituting
<quote>2009</quote> for <quote>1992</quote> in subparagraph (B) thereof.</text>
</clause><continuation-text continuation-text-level="subparagraph">Any
increase determined under the preceding sentence shall be rounded to the
nearest multiple of
$100.</continuation-text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5A5F3CAAD48A4DEA931E5CBBC42B7E69"><enum>(b)</enum><header>Effective
Date</header><text>The amendment made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.</text>
</subsection></section><section id="H4BB8AB485D054B1183D297F37FEE322F"><enum>103.</enum><header>Increased meals
and entertainment expense deduction for small businesses</header>
<subsection id="H93BF0BD1AC364C82A895462C3E87B302"><enum>(a)</enum><header>In
general</header><text>Subsection (n) of section 274 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HAA3817DB66A943DEA553EF3F03BAEEB3" style="OLC">
<paragraph id="H4EC129A419D6460A94B02B8B806A2B84"><enum>(4)</enum><header>Increased
percentage for small business expenses</header>
<subparagraph id="H2DA9633C94784BADB40457C1565BA6F3"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of
expenses or items described in paragraph (1) paid or incurred by the taxpayer
in carrying on an eligible trade or business, such paragraph shall be applied
by substituting <quote>80 percent</quote> for <quote>50 percent</quote>.</text>
</subparagraph><subparagraph id="H3377F8086DED4891ADA28BBD87801979"><enum>(B)</enum><header>Eligible trade
or business</header>
<clause id="H7AD26C3877A3407CA6DAA545253B8B5E"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of
subparagraph (A), the term <quote>eligible trade or business</quote> means,
with respect to any taxable year, a trade or business (whether or not
incorporated) which employed an average of less than 50 employees on business
days during the taxable year.</text>
</clause><clause id="H87A8519427BE41BABAC27CE9A11E0063"><enum>(ii)</enum><header>Controlled
groups</header><text display-inline="yes-display-inline">For purposes of clause
(i), all persons treated as a single employer under subsection (b), (c), (m),
or (o) of section 414 shall be treated as a single
employer.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5068BFFBDA6D438F8680B6407607F513"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to expenses paid or incurred after the date of the
enactment of this Act.</text>
</subsection></section><section id="H0DF159B00D0B4CECBFDEB8C6B47B9948"><enum>104.</enum><header>Two-year
extension of bonus depreciation</header>
<subsection id="H4D7DCBB3D0604CD4B8CA67DB7EFA7D33"><enum>(a)</enum><header>In
general</header><text>Paragraph (2) of section 168(k) is amended—</text>
<paragraph id="H3BE88036E2C84C35B51B4BBA4B0AECF1"><enum>(1)</enum><text>by striking
<quote>January 1, 2011</quote> and inserting <quote>January 1, 2014</quote>,
and</text>
</paragraph><paragraph id="H7990EA1F0899463D8F42EAB0F8F2059E"><enum>(2)</enum><text>by striking
<quote>January 1, 2010</quote> each place it appears and inserting
<quote>January 1, 2013</quote>.</text>
</paragraph></subsection><subsection id="H8961ADDBA59A48BEAC6F134CB067EACE"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph display-inline="no-display-inline" id="HA987F4CABEB74873AC87A746386553EF"><enum>(1)</enum><text>The heading for
subsection (k) of section 168 of such Code is amended by striking
<quote><header-in-text level="subsection" style="OLC">January 1,
2010</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">January 1, 2013</header-in-text></quote>.</text>
</paragraph><paragraph display-inline="no-display-inline" id="HF2CE5AE7C64B45E3AFF010E988AA96F3"><enum>(2)</enum><text>The heading for
clause (ii) of section 168(k)(2)(B) of such Code is amended by striking
<quote><header-in-text level="clause" style="OLC">pre-January 1,
2010</header-in-text></quote> and inserting <quote><header-in-text level="clause" style="OLC">pre-January 1, 2013</header-in-text></quote>.</text>
</paragraph><paragraph id="H8615C707C32447D885CEEAFEFCED14C1"><enum>(3)</enum><text>Paragraph (5) of
section 168(l) is amended by striking subparagraph (B), by adding
<quote>and</quote> at the end of subparagraph (A), and by redesignating
subparagraph (C) as subparagraph (B).</text>
</paragraph><paragraph id="H66DEE11B12B24619AA2BE0572DFD5A3D"><enum>(4)</enum><text>Subparagraph (C)
of section 168(n)(2) of such Code is amended by striking clause (ii), by adding
<quote>and</quote> at the end of clause (i), and by redesignating clause (iii)
as clause (ii).</text>
</paragraph><paragraph id="HDA562173133549E9825DD7A5CD482290"><enum>(5)</enum><text>Subparagraph (B)
of section 1400N(d)(3) of such Code is amended by striking <quote>January 1,
2010</quote> and inserting <quote>January 1, 2013</quote>.</text>
</paragraph></subsection><subsection id="HD146F1C6BAA14182AD4651F140D0C9AA"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to property placed in service after December 31,
2009.</text>
</subsection></section><enum>II</enum><header>Small Business
Loans</header>
<section display-inline="no-display-inline" id="H9CC1F2457D2F404AAB017B3D443DB403" section-type="subsequent-section"><enum>202.</enum><header>Small business
direct lending program</header>
<subsection id="H6AB0D060CF2240F7845CE60792BD163B"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Administrator of the Small Business
Administration shall establish and carry out a program under which the
Administrator is authorized to make loans directly to eligible small business
concerns (in this section referred to as the <quote>program</quote>).</text>
</subsection><subsection id="HA71FE95FCF31454EBA6C2FB38DD6806E"><enum>(b)</enum><header>Administration</header><text>Except
as otherwise provided under this section and to the extent practicable, the
Administrator of the Small Business Administration shall carry out the
program—</text>
<paragraph id="HE0E9FD0184164A8383A7A68BB524C1C2"><enum>(1)</enum><text>using the
administrative resources of the Small Business Administration; and</text>
</paragraph><paragraph id="H8B47065D4F574494AA500790D1CF4876"><enum>(2)</enum><text>in a manner
similar to the loan program under section 7(a) of the Small Business Act (15
U.S.C. 636(a)).</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H1DAA5EAFE92449F0B729AE5D1E4C96F0"><enum>(c)</enum><header>Use of loan
funds</header><text>Amounts from a loan made under the program may be used by a
small business concern for the operation or expansion of such concern or for
any other purpose allowed under section 7(a) of the Small Business Act (15
U.S.C. 636(a)).</text>
</subsection><subsection id="H975321244F2B4D4BAB2B48847AB52F34"><enum>(d)</enum><header>Loan
amount</header><text>The maximum amount of a loan made under the program shall
be $1,500,000.</text>
</subsection><subsection id="HA213087D16DE41DB994F77CA74BC61F5"><enum>(e)</enum><header>Loan
term</header><text display-inline="yes-display-inline">The maximum term for
repayment of a loan made under the program shall be 25 years.</text>
</subsection><subsection id="H1FFCA1E727494885BD842D8AB5AD21D3"><enum>(f)</enum><header>Loan interest
rate</header><text>The interest rate with respect to a loan made under the
program shall be the prime rate (as determined by the Administrator of the
Small Business Administration).</text>
</subsection><subsection display-inline="no-display-inline" id="HB1794CF10EA9425B9C8CAD24E1597A3F"><enum>(g)</enum><header>Accountability</header>
<paragraph id="HDA14BF9DE2DE4228BDE212CAA60625EB"><enum>(1)</enum><header>SBA
reports</header><text display-inline="yes-display-inline">Not later than 30
days after the date of enactment of this Act and every month thereafter, the
Administrator of the Small Business Administration shall submit to the
Committee on Small Business of the House of Representatives and the Committee
on Small Business and Entrepreneurship of the Senate a report
describing—</text>
<subparagraph id="H8552175185EC4DB9AB138AAEF64B5BD5"><enum>(A)</enum><text>the number of
loans made under the program;</text>
</subparagraph><subparagraph id="H0F0957351A994B94975F4B2054375AAA"><enum>(B)</enum><text>the amounts of
loans made under the program;</text>
</subparagraph><subparagraph id="H7AB9DF8610F9456A92961121B69E880E"><enum>(C)</enum><text>the uses of loans
made under the program;</text>
</subparagraph><subparagraph id="H2D1E60BDB92D4232B6B03856DFFEBEDB"><enum>(D)</enum><text display-inline="yes-display-inline">repayment progress with respect to loans
made under the program;</text>
</subparagraph><subparagraph id="H014E1F27804240A5B82A9526BC4A9693"><enum>(E)</enum><text>the default rate
with respect to loans made under the program; and</text>
</subparagraph><subparagraph id="H19697DCFF4A54FCCA1FB8B0C26501CD1"><enum>(F)</enum><text>other relevant
information with respect to the program.</text>
</subparagraph></paragraph><paragraph id="H6DB8EBD6CBCD4E74B8AFE609C34B8AEA"><enum>(2)</enum><header>GAO
reports</header>
<subparagraph id="H599018328B254EBEB36EA9730D3FA78F"><enum>(A)</enum><header>Review</header><text display-inline="yes-display-inline">The Comptroller General of the United
States shall conduct a review of the program to evaluate the effectiveness of
the program and identify any waste or abuse relating to the program.</text>
</subparagraph><subparagraph id="H558B65285F074F8689011FEA52974449"><enum>(B)</enum><header>Reports</header><text display-inline="yes-display-inline">Not later than 90 days after the date of
enactment of this Act and quarterly thereafter, the Comptroller General shall
submit to the Committee on Small Business of the House of Representatives and
the Committee on Small Business and Entrepreneurship of the Senate a report
describing the results of the review conducted under subparagraph (A).</text>
</subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="H5ED959D6E8E94B9B9B8FBC9B8058D623"><enum>(h)</enum><header>Definitions</header><text>In
this section, the following definitions apply:</text>
<paragraph id="H324A345401584F75AA8C18B1E2D693E1"><enum>(1)</enum><header>Eligible small
business concern</header><text>The term <term>eligible small business
concern</term> means a small business concern that the Administrator of the
Small Business Administration determines—</text>
<subparagraph id="HD276BC91673749589DC83AA0A738DF73"><enum>(A)</enum><text>is economically
healthy;</text>
</subparagraph><subparagraph id="H68138547EF254BEBAD7568A5B75C0CED"><enum>(B)</enum><text>has good credit;
and</text>
</subparagraph><subparagraph id="H8A9A742651EB4481BDDE80201C4A3C0E"><enum>(C)</enum><text display-inline="yes-display-inline">is unable to obtain a loan on reasonable
terms from a non-Federal source (which may be demonstrated with respect to a
small business concern by evidence that a lender discontinued a line of credit
of such concern notwithstanding the good credit of such concern).</text>
</subparagraph></paragraph><paragraph id="H7FDF47FCECB14FCA8F91B2FA422E3F9C"><enum>(2)</enum><header>Small business
concern</header><text>The term <term>small business concern</term> has the
meaning given such term under section 3(a) of the Small Business Act (15 U.S.C.
632(a)).</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H5C2C82F067D444D2B5F05532221CE525"><enum>(i)</enum><header>Authorization of
appropriations</header><text display-inline="yes-display-inline">There is
authorized to be appropriated to the Administrator of the Small Business
Administration $10,000,000,000 to carry out the program, including the hiring
of necessary personnel.</text>
</subsection><subsection id="H6F7ACB5F117A479A954496637A6E1ECB"><enum>(j)</enum><header>Termination</header><text>The
program shall terminate on the date that is 2 years after the date of enactment
of this Act.</text>
</subsection></section>