Many small businesses are closely watching the impact of the newly passed “One Big Beautiful Bill” (BBB), which introduces several major tax changes designed to lighten the financial burden on entrepreneurs. The bill permanently enshrines the 20% pass-through deduction for small business income, allowing entities like LLCs, S-corps, and sole proprietors to retain a significant tax break. It also restores 100% “bonus” depreciation for qualifying assets, meaning companies can write off the full cost of new equipment, software, and vehicles purchased after January 2025. This provision makes it simpler for small businesses to invest in the infrastructure they need without waiting years to recoup those costs.
The BBB also offers enhanced flexibility for research and development spending by allowing immediate deductions. This change gives innovation-focused businesses improved cash flow, enabling them to reinvest with confidence. Additionally, the bill raises the IRS reporting threshold for income received via third-party payment platforms like PayPal and Venmo, reducing the paperwork burden on many small and gig-economy entrepreneurs. While these provisions offer important advantages, the legislation may also drive up the federal deficit, with the potential consequence of higher borrowing costs for small businesses.
The Cardiff Connection
Cardiff is actively helping small-business borrowers understand and respond to the implications of the BBB. CEO Dean Lyulkin advises business owners to model different financial scenarios, such as capital expenditures, R&D activities, or wage planning, to clearly project how the tax changes will affect their cash flow. Cardiff also encourages its clients to consider establishing a flexible business line of credit that can absorb unexpected costs and smooth out cash needs without locking them into inflexible repayment terms. By offering capital solutions that align with the bill’s opportunities, Cardiff provides small-business owners with more control, resilience, and the ability to make long-term investments while navigating this new tax landscape.
