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An increase in the business startup tax deduction would be positive for small business lending originations, benefiting SBA lenders, said Isaac Boltansky, director of Policy Research at BTIG, in a note.
Vice President Kamala Harris spoke about her proposal to increase the small business startup tax deduction from $5,000 to $50,000 during last night’s presidential debate. Boltansky said this proposal could spur new lending originations.
“While the ~$3B per year cost could result in some changes, we believe the odds of increasing the startup deduction during next year’s tax reform effort are high no matter the outcome in November,” he said.
This increase in the business startup tax deduction would be a positive for small business lending originations, he said, which would benefit large SBA lenders.
Among those possibly benefiting, he mentioned Live Oak Bancshares Inc. (NYSE:LOB), Huntington Bancshares Inc. (NASDAQ:HBAN), and NewtekOne Inc. (NEWT).
