I 
111TH CONGRESS 
2D SESSION 
H. R. 4637 
To amend the Internal Revenue Code of 1986 to increase the amount allowed 
as a deduction for start-up expenditures, to provide a standard home 
office deduction, to increase the amount allowed as a deduction for 
meals and entertainment expenses of small businesses, and to extend 
bonus depreciation, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 22, 2010 
Mr. HALL of New York introduced the following bill; which was referred to 
the Committee on Ways and Means, and in addition to the Committee 
on Small Business, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to increase 
the amount allowed as a deduction for start-up expendi-
tures, to provide a standard home office deduction, to 
increase the amount allowed as a deduction for meals 
and entertainment expenses of small businesses, and to 
extend bonus depreciation, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Help Small Businesses Start and Grow Act of 2010’’. 
(b) TABLE OF CONTENTS.—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 busi-
nesses. 
Sec. 104. Two-year extension of bonus depreciation. 
TITLE II—SMALL BUSINESS LOANS 
Sec. 202. Small business direct lending program. 
TITLE I—TAX RELIEF 
SEC. 101. INCREASE IN AMOUNT ALLOWED AS DEDUCTION 
FOR START-UP EXPENDITURES. 
(a) IN GENERAL.—Subsection (b) of section 195 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following: 
‘‘(3) SPECIAL RULE FOR TAXABLE YEARS BE-
GINNING IN 2009, 2010, OR 2011.—In the case of a 
taxable year beginning in 2009, 2010, or 2011, 
paragraph (1)(A)(ii) shall be applied— 
‘‘(A) 
by 
substituting 
‘$50,000’ 
for 
‘$5,000’, and 
‘‘(B) 
by 
substituting 
‘$75,000’ 
for 
‘$50,000’.’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after the date of the enactment of 
this Act. 
SEC. 102. STANDARD DEDUCTION FOR BUSINESS USE OF 
HOME. 
(a) IN GENERAL.—Subsection (c) of section 280A of 
the Internal Revenue Code of 1986 (relating to disallow-
ance 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: 
‘‘(7) STANDARD HOME OFFICE DEDUCTION.— 
‘‘(A) IN GENERAL.—In the case of an indi-
vidual 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 indi-
vidual shall be allowed a deduction equal to the 
standard home office deduction for the taxable 
year in lieu of the deductions otherwise allow-
able under this chapter for such taxable year by 
reason of being attributed to such use. 
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‘‘(B) STANDARD
HOME
OFFICE
DEDUC-
TION
AMOUNT.—For purposes of this para-
graph, the standard home office deduction is 
the lesser of— 
‘‘(i) $2,500, or 
‘‘(ii) the gross income derived from 
the individual’s trade or business for which 
such use occurs. 
‘‘(C) INFLATION
ADJUSTMENT.—In the 
case of any taxable year beginning in a calendar 
year after 2010, the dollar amount in subpara-
graph (B)(i) shall be increased by an amount 
equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘2009’ for 
‘1992’ in subparagraph (B) thereof. 
Any increase determined under the preceding 
sentence shall be rounded to the nearest mul-
tiple of $100.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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SEC. 103. INCREASED MEALS AND ENTERTAINMENT EX-
PENSE DEDUCTION FOR SMALL BUSINESSES. 
(a) IN GENERAL.—Subsection (n) of section 274 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(4) INCREASED
PERCENTAGE
FOR
SMALL 
BUSINESS EXPENSES.— 
‘‘(A) IN
GENERAL.—In the case of ex-
penses 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 ‘80 percent’ for ‘50 
percent’. 
‘‘(B) ELIGIBLE TRADE OR BUSINESS.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A), the term ‘eligible trade 
or business’ 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 busi-
ness days during the taxable year. 
‘‘(ii) 
CONTROLLED
GROUPS.—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.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to expenses paid or incurred after 
the date of the enactment of this Act. 
SEC. 104. TWO-YEAR EXTENSION OF BONUS DEPRECIATION. 
(a) IN GENERAL.—Paragraph (2) of section 168(k) 
is amended— 
(1) by striking ‘‘January 1, 2011’’ and insert-
ing ‘‘January 1, 2014’’, and 
(2) by striking ‘‘January 1, 2010’’ each place 
it appears and inserting ‘‘January 1, 2013’’. 
(b) CONFORMING AMENDMENTS.— 
(1) The heading for subsection (k) of section 
168 of such Code is amended by striking ‘‘JANUARY 
1, 2010’’ and inserting ‘‘JANUARY 1, 2013’’. 
(2) The heading for clause (ii) of section 
168(k)(2)(B) of such Code is amended by striking 
‘‘PRE-JANUARY 1, 2010’’ and inserting ‘‘PRE-JANU-
ARY 1, 2013’’. 
(3) Paragraph (5) of section 168(l) is amended 
by striking subparagraph (B), by adding ‘‘and’’ at 
the end of subparagraph (A), and by redesignating 
subparagraph (C) as subparagraph (B). 
(4) Subparagraph (C) of section 168(n)(2) of 
such Code is amended by striking clause (ii), by add-
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ing ‘‘and’’ at the end of clause (i), and by redesig-
nating clause (iii) as clause (ii). 
(5) Subparagraph (B) of section 1400N(d)(3) 
of such Code is amended by striking ‘‘January 1, 
2010’’ and inserting ‘‘January 1, 2013’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2009. 
TITLE II—SMALL BUSINESS 
LOANS 
SEC. 202. SMALL BUSINESS DIRECT LENDING PROGRAM. 
(a) ESTABLISHMENT.—The Administrator of the 
Small Business Administration shall establish and carry 
out a program under which the Administrator is author-
ized to make loans directly to eligible small business con-
cerns (in this section referred to as the ‘‘program’’). 
(b) ADMINISTRATION.—Except as otherwise provided 
under this section and to the extent practicable, the Ad-
ministrator of the Small Business Administration shall 
carry out the program— 
(1) using the administrative resources of the 
Small Business Administration; and 
(2) in a manner similar to the loan program 
under section 7(a) of the Small Business Act (15 
U.S.C. 636(a)). 
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(c) USE OF LOAN FUNDS.—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)). 
(d) LOAN AMOUNT.—The maximum amount of a 
loan made under the program shall be $1,500,000. 
(e) LOAN TERM.—The maximum term for repayment 
of a loan made under the program shall be 25 years. 
(f) LOAN INTEREST RATE.—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). 
(g) ACCOUNTABILITY.— 
(1) SBA REPORTS.—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 Com-
mittee on Small Business of the House of Rep-
resentatives and the Committee on Small Business 
and Entrepreneurship of the Senate a report de-
scribing— 
(A) the number of loans made under the 
program; 
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(B) the amounts of loans made under the 
program; 
(C) the uses of loans made under the pro-
gram; 
(D) repayment progress with respect to 
loans made under the program; 
(E) the default rate with respect to loans 
made under the program; and 
(F) other relevant information with respect 
to the program. 
(2) GAO REPORTS.— 
(A) REVIEW.—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 relat-
ing to the program. 
(B) REPORTS.—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 Busi-
ness of the House of Representatives and the 
Committee on Small Business and Entrepre-
neurship of the Senate a report describing the 
results of the review conducted under subpara-
graph (A). 
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(h) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) ELIGIBLE
SMALL
BUSINESS
CONCERN.— 
The term ‘‘eligible small business concern’’ means a 
small business concern that the Administrator of the 
Small Business Administration determines— 
(A) is economically healthy; 
(B) has good credit; and 
(C) is unable to obtain a loan on reason-
able terms from a non-Federal source (which 
may be demonstrated with respect to a small 
business concern by evidence that a lender dis-
continued a line of credit of such concern not-
withstanding the good credit of such concern). 
(2) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning given 
such term under section 3(a) of the Small Business 
Act (15 U.S.C. 632(a)). 
(i) AUTHORIZATION OF APPROPRIATIONS.—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 per-
sonnel. 
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(j) TERMINATION.—The program shall terminate on 
the date that is 2 years after the date of enactment of 
this Act. 
Æ 
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