Small Business Succession Planning Act

The Small Business Succession Planning Act directs the Small Business Administration to create a program and toolkit to help small business owners develop plans for transferring ownership upon retirement or death. To support this initiative, the bill requires the agency to train partners, educate business owners, and assign specific staff to provide counseling, while also allowing for workshops and reporting on progress. A key financial incentive is a new tax credit offering $250 for establishing a succession plan and another $250 for successfully completing the transfer of responsibilities, provided the business remains small. The legislation includes safeguards that require the repayment of these credits if the business is sold to a non-small entity within three years of receiving the award.