WASHINGTON (AP) - The Senate has passed a bill to create a $30
billion government fund to help open lending for credit-starved
small businesses, cut their taxes and boost federal loan programs
The 61-38 tally rewards President Barack Obama and his
Democratic allies of Capitol Hill with a long-sought victory and
sets the stage for a final vote in the House, which is likely to
approve it for Obama's signature.
The new fund would help community banks increase lending to
small businesses hurt by the recession and the 2008 Wall Street
crisis. The bill would also provide about $12 billion in tax breaks
over a decade to both large and small businesses and also boost the
Small Business Administration's lending programs.
(Copyright 2010 by The Associated Press. All Rights Reserved.)
NEWS RELEASE FROM SENATOR BURR'S OFFICE:
Washington, D.C. – The U.S. Senate today passed the Small Business Lending Act, a bill that Sen. Richard Burr (R-NC) opposed on the grounds that it uses taxpayer dollars to increase government regulation, and expand government intervention in the private sector without providing the help America’s small businesses need.
“This would have been a pretty good bill if we had just kept it simple by extending and expanding the loan programs currently available through the Small Business Administration, and enhancing loan fee reductions,” Senator Burr said. “However, the version we voted on today merely creates the appearance of doing something by establishing a new $30 billion lending facility, the effectiveness of which has been questioned by even the Congressional Oversight Panel. The result of this new lending facility is more government involvement in the private sector and a return to the same politicized bank lending that played a large role in the irresponsible loans that contributed to our current economic woes. This bill fundamentally ignores the lessons we have learned from the economic bust two years ago.”
“The title of this bill is a misnomer as it and fails to address the real needs of small businesses. If we want to really do something to help small businesses, we need to stop increasing taxes and imposing endless regulations on them,” he continued.
NEWS RELEASE FROM SENATOR HAGAN'S OFFICE:
WASHINGTON, D.C. – U.S. Senator Kay R. Hagan (D-NC) today supported legislation to help small businesses create jobs in North Carolina. The Small Business Jobs Act of 2010 includes a Small Business Lending Fund, cosponsored by Hagan, that will get credit flowing to small business owners in North Carolina and around the country. The bipartisan, fully paid-for bill passed the Senate today by a vote of 61 to 38.
“For our economy to recover, we must create a better climate for small businesses to create jobs, and this bill is a significant step in the right direction,” said Hagan, a member the Senate Small Business Committee. “I have spent the past year and a half meeting with North Carolina small business owners in every corner of the state, and I have seen firsthand the power of their determination and innovation. But they need access to capital. This Small Business Lending Fund is going to get credit flowing to the people with the ideas and the know-how to create jobs for North Carolinians, without raising the deficit.”
Hagan cosponsored the $30 billion small business lending fund included in the legislation, which will be available to community banks to supplement lending to small businesses. To incentivize these banks to lend more to small business owners, the dividend rate a bank pays would be reduced as it increases lending. Small businesses in North Carolina represent 98 percent of private sector employers, and nearly half of the state’s private-sector jobs.
The bill also includes $12 billion in tax breaks that will encourage small businesses to undertake capital spending projects. It will also enable the Small Business Administration to guarantee larger small business loans and will help ensure that small businesses are able to compete for federal contracts.
The package will extend the authorization for key Recovery Act provisions that expand the SBA guarantee on small business loans to 90 percent and waive fees associated with SBA-back loans. When funding to support these provisions expired on May 26, 2010, SBA-approved loans fell by two-thirds in June. In a meeting with SBA Administrator Karen Mills, Hagan pushed for the extension of these key provisions.
The Small Business Jobs Act of 2010 will:
· Create a $30 billion small business lending fund to get credit flowing to small business owners
· Provide small businesses with $12 billion in tax breaks
· Increase Small Business Administration (SBA) loan limits and improves access to SBA loans for small businesses
· Help small businesses create 500,000 new jobs nationwide
· Extend Bonus Depreciation—allowing taxpayers to immediately write-off 50 percent of the cost of new capital expenditures