Senate Legislates $30 Billion Small Business Credit

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The Senate passed long-delayed legislation designed to open up credit to small businesses and award them with other incentives to hire new workers and expand.Joined by two Republicans, Democrats won a 61-38 vote to pass the legislation. The measure is scheduled to set up a $30 billion government fund to help open up lending for credit-starved small businesses, cut their taxes and boost Small Business Administration loan programs.The action gives President Barack Obama and his Democratic allies in Congress a political victory with less than seven weeks to go before Election Day.In order to encourage lending to small businesses, the new loan fund would be available to community banks.Also, this legislation would aid lending by lowering Small Business Administration loan program fees and increasing lending limits and loan guarantee.Senate Finance Committee Chairman Max Baucus, D-Montana stated, “This small business jobs bill would give small businesses $12 billion in tax cuts. It would increase small business lending. It would help small business owners to get private capital to finance expansion and hire new workers. And all these things would help small businesses to create as many as a half a million jobs.”For months, the measure had been delayed and was successfully filibustered by Republicans in July. Democrats recently cracked the filibuster with the help of two Republicans, Sens. George Voinovich of Ohio and George LeMieux of Florida.The bill would return the measure to the House after Senate passage, where Speaker Nancy Pelosi stated the chamber is scheduled to take the bill up to send it to the White House for Obama’s signature.Sen. Charles Grassley, R-Iowa stated, “There are many good things in this bill, but I believe it could have been better. Unfortunately, the Democratic leadership has been more interested in scoring political points than actually providing relief to small business.”Source: