Through provisions under the new Small Business Jobs Act of2010, the SBA said effective Oct. 8, it has permanently increasedthe 7(a) loan limit from $2 million to $5 million and 504 loans to$5.5 million.

The changes are permanent for general small business loans underSBA's 7(a) guaranteed loan program, fixed-asset loans through the504 Certified Development Company program, microloans, andInternational Trade, Export Working Capital and Export Expressloans.

The SBA said it also permanently increased microloan limits from$35,000 to $50,000, raised the limit on Export Express loans from$250,000 to $500,000, and made the program permanent. SBA Expressloan limits have been temporarily raised from $350,000 to $1million for one year, the agency said.

The Jobs Act also includes additional resources to help increaselending to small businesses, including the State Small BusinessCredit Initiative announced by the Department of Treasury, whichwill support $15 billion in lending through local programs, and theSmall Business Lending Fund, which will provide capital tofinancial institutions to increase their lending efforts.

Additionally, the new law contains $12 billion in tax creditstargeted to small businesses, including higher deductions forinvesting in new machines and equipment, zero capital gains forthose who buy and hold small business stocks for five years, and adoubling of the maximum deduction for startups to $10,000. It alsoallows self-employed Americans to completely deduct healthinsurance costs for themselves and their families.

–[email protected]