Small Business Succession Planning Act

HR 5939, the Small Business Succession Planning Act, creates a new program within the Small Business Administration (SBA) to help small businesses develop succession plans. The SBA will provide a public toolkit, train advisors, and offer counseling to help business owners plan for transitions due to retirement or death. Small businesses that establish and successfully execute a certified succession plan receive a $250 tax credit for each step, with repayment required if the business is later acquired by a non-small business entity within three years. The bill directly affects small business owners (as defined by SBA rules), particularly those from disadvantaged backgrounds, by providing concrete financial incentives and resources to ensure business continuity.