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UPDATED: Senate passes small business credit measure; Hagan votes yes, Burr votes no

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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
for them.

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.)

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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.

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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

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Burr

Republicans talk about extending tax cuts for the rich mainly because they say it will hurt small businesses but they vote against something that will help them.Even if what Burr says is true this would still help so why vote no? We all know the answer to that.All they want is tax cuts for the rich.We seen how that worked the last 10 years.

Tax cuts "for the rich?"

Okay, first of all, the Bush tax cuts helped people in every single tax rate, across the entire economic spectrum. The lowest tax rate (15%) received the largest reduction in the rates. (To 10%)

Now, let's talk about extending them....

By the Democrats' own admission, not extending the tax cuts for those making over $250k will impact only 2% of the population. (That right there tells you that 98% of the tax cuts benefitted the "un-rich.")

I won't bother to rehash the fact that the "rich" are getting raked over the coals when it comes to paying taxes in this country. (If you're not familiar with the stats, check with the IRS.) I won't other to rehash that this is America, founded on the premise that all men are created equal and possessing a constitution that promises "equal protection of law." Taxing Mister Smith at one rate and Mister Jones at a different rate should make any TRUE American physically ill. "Equal protection unless you're rich?"

How many poor people have ever given you a job? If we don't extend the tax cuts for those making over $250k, we will be raising taxes on tens of thousands of small businesses. The LAST thing we need to do is effectively raise taxes on the very people who will help to get the employment numbers rising again.

BTW, if you haven't actually read the bill, don't fault Burr for voting no. Any time the government starts telling banks how and where to lend money, we're risking another nightmare.

Poor People

There are more than 40 million poor people who,when they can,purchase things,and that gives people jobs.The government may be helping them with money and other things to do this,but without them there would be less jobs.The ones that drive even makes you richer with your oil stocks.

Great point

Nowhere, however, have you seen me arguing to take away their tax cuts, have you?

**ALL** the 2001 and 2003 tax cuts need to be extended. We make up for it by cutting spending and the focus of cutting spending needs to be entitlements. We should start by ordering an immediate 50% cut in TANF and Medicaid. The people who should be feeling the pain shouldn't be the productive members of society - it should be those who are sucking the system dry.

Jobs

I'll give you the part of not taxing people the same rate but your wrong on the rest of it.You talk about small businesses but something that will help you spin it and say it won't.I see you got your talking points down pretty good.My favorite "how many poor people have ever given you a job?".The answer is a few.I would like you to tell me how many jobs did the tax cuts create the last ten years.I never said not extending the cuts for the rich was right,I'm saying the reason you and Burr give is it will hurt small businesses and then you are against something that may help them. The only thing the tax cuts did was put us deeper in debt.

I guess Burr and I should have explained.....

...exactly what he meant by "politicizing lending."

Read the bill. Here are but a few of the "benefits."

* Requires applicants to file documentation of how their application will "linguistically and culturally benefit the community." Obviously we are talking left-wing politics in this bill, not economics.

* Requires participating institutions to explain how they will reach out (once again) "linguistically and culturally" to attract minorities, women, and veterans. (I have no pronlem with the one EARNED status of those three.)

* It requires that consideration for loans be focused foremost on areas of high unemployment beyond the national average. Interestingly enough, the areas of this country with the chronic highest unemployment rates are inner-city ratholes.

* Limits management salaries in participant organizations to twenty percent of on the profit. ("We're from the government - we're here to tell you how to run your business.")

So just like the CRA of 1977, which led directly to selling houses to people who couldn't afford houses and are now being foreclosed upon in record numbers, we are once again politicizing lending policy. Mister Smith may not be able to expand his restaurant in Palm Springs but Mister Washington will be able to open that interpretive dance studio in East L.A.

It's a bad bill and it will make a bad, bad law.

Is it possible Senator Burr...

voted against this bill because there's no way of funding it without increasing the national debt? Need I remind you when the Feds talk about funding a bill the funding comes from us...the taxpayers. Unless you've been under a rock, the Federal Government is broke...not just slightly overdrawn in their checking account, but broke! Our national debt, under the current administration, has now surpassed the entire national debt combined between George Washington's administration through Ronald Reagan's administration. And what do we have to show for it?

Here's a fine example of what the stimulus program did:
_________________________________
The Los Angeles City Controller said on Thursday the city's use of its share of the $800 billion federal stimulus fund has been disappointing.

The city received $111 million in stimulus under American Recovery and Reinvestment Act (ARRA) approved by the Congress more than year ago.

According to the report, the Los Angeles Department of Public Works generated only 45.46 jobs (the fraction of a job created or retained correlates to the number of actual hours works) after receiving $70.65 million, while the target was 238 jobs.

Similarly, the city’s department of transportation, armed with a $40.8 million fund, created only 9 jobs in place of an expected 26 jobs.

________________________________

So much for jobs "saved or created".

Sen. Burr

AMEN!! I'm glad he has the courage to say NO

Oh, but don't foget the $800k we sent to UCLA

It will fund an outreach effort in Africa to teach men how to wash their genitals after sex to prevent STD transmission....

...and yes, it was funded with Stimulus money that they took from your paycheck!

(I wonder how many Americans that program will employ.....and for God's sake, who would want the job anyway?)