On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law — and it’s living up to its name for America’s small business owners. This sweeping legislation makes permanent several popular tax benefits from the 2017 Tax Cuts and Jobs Act, while introducing new incentives designed to help entrepreneurs invest, grow, and simplify their financial planning.
If you own a small business or are dreaming of starting one, here’s what the OBBBA means for you.
Permanent Tax Relief for Small Businesses
One of the most powerful wins in OBBBA is certainty. Provisions that were set to expire in 2026 are now locked in for the long term, giving entrepreneurs the stability they need to plan and invest with confidence.
- Qualified Business Income Deduction (QBI): The 20% deduction for pass-through entities (LLCs, sole proprietorships, S Corps) is now permanent, with a guaranteed $400 minimum deduction for businesses earning at least $1,000.
- Bonus Depreciation: Businesses can fully deduct the cost of new equipment, vehicles, and technology in the year they buy it — through 2030.
- Section 179 Expensing: Deduction limits are expanded, allowing small business owners to write off up to $2.5 million in qualifying purchases.
Why it matters: You can reduce your taxable income immediately, putting more cash back into your business to hire, expand, or modernize operations.
More Capital, Less Complexity
Accessing funding and navigating taxes has always been a pain point for entrepreneurs. OBBBA addresses both.
- Simplified Tax Filing: Businesses under $500K in annual revenue can now opt for semi-annual tax reporting instead of quarterly. The 1099 reporting threshold has been raised, reducing paperwork headaches.
- Expanded Access to Capital: A new Main Street Microloan Program offers up to $50,000 in low-interest loans for businesses with fewer than 10 employees. SBA loan limits have been raised, fintech lenders can now process SBA loans, and application processes are being streamlined.
Why it matters: Whether you’re applying for an SBA loan or managing your books, OBBBA reduces friction so you can spend less time on compliance and more time on strategy.
New Incentives That Support Growth
Beyond tax savings, OBBBA introduces new credits and deductions that encourage business investment, employee support, and innovation.
- R&D Expense Deduction: Businesses can once again deduct research and development costs immediately, instead of spreading them out over years.
- Employer Childcare Credit & Paid Family Leave Credit: Helping employees balance work and family life now comes with direct tax benefits.
- Retirement Plan Incentives: Small businesses offering SIMPLE IRAs or SEPs get enhanced tax credits, making it easier to attract and retain talent.
- Green & Community Investments: Tax credits reward businesses that invest in renewable energy, sustainability, or underserved communities.
Why it matters: These changes don’t just save money — they also position small businesses as competitive employers and community leaders.
Big Wins for Entrepreneurs and Startups
Startups and second-act entrepreneurs get a particular boost under OBBBA:
- Qualified Small Business Stock (QSBS): The capital gains exclusion is raised from $10M to $15M, with a shorter holding period (just 3 years for partial exemption).
- Domestic Manufacturing Credit: Incentives for U.S. production make it easier for makers, builders, and manufacturers to thrive.
- Home Office Deductions: Broader eligibility means even detached structures like backyard studios can qualify for deductions.
Why it matters: Whether you’re launching a new venture or scaling an existing one, these provisions make entrepreneurship more accessible and rewarding.
The Bottom Line
The One Big Beautiful Bill Act truly delivers on its name. By extending tax relief, simplifying compliance, and expanding access to capital, OBBBA gives small business owners the financial breathing room to dream bigger and plan longer term.
Of course, every business is unique. Maximizing the benefits of OBBBA requires thoughtful planning — especially for those near income thresholds or in capital-intensive industries.
At Guidant Financial, we’re here to help entrepreneurs navigate these opportunities. Whether you’re funding your business with retirement savings, exploring SBA loans, or planning for long-term growth, our experts can help you take full advantage of the OBBBA. If you would like to see the full memorandum on the OBBBA from Guidant legal counsel, Tanner Wright, check it out here.
