The Small business Jobs and Credit Act was made so that small banks would be able to get cheap capital. Persistent high unemployment has put pressure on the Obama administration to do something about job creation. The Small business Jobs and Credit Act came from that pressure. However, partisan bickering prevented Congress from doing anything about the bill before it went on its August trip. Business credit and tax relief has to wait until September now to be looked at by any politicians. One more bill for small company called the Small business Association Arc Loan Program is going to expire in September though. Article resource – Small business lending bill is latest victim of partisan politics by Personal Money Store.
Bill promotes small business lending and tax relief
The bill is called the Small business Jobs Act also, and will allow $ 30 billion to be put into a lending fund. Banks with less than $ 10 billion in assets tend to be the ones lending to small business, reports CNNMoney.com. Companies should be able to get some more money with capital going into community banks. The bill also would make between 2010 and 2020 some tax relief for small businesses possible. It increases SBA loan limits and extends loan incentives through the end of the year. Small business tax cuts are there so more people will venture to make companies. $ 1.5 billion in grants will be given to numerous of the state governments with no money left to be seen.
Small business credit just a game
Chances of the Small business Jobs Act being enacted before September ended with Senate bickering over a procedural dispute before the House recessed July 30. As outlined by Bizjournals.com, partisan maneuvering by Republicans about things that weren’t related to small business credit slowed the Senate. The Republicans argued this was “another bank bailout” which is why they didn’t want the $ 30 billion small business lending fund to go through. When considered a separate amendment, 60 votes were given for filibuster-proof with two republicans helping. All of the Republicans stopped the Senate from passing the whole bill with their votes though. Republicans wanted more amendments added to the bill than Democrats did.
September is an expiration date for the Interest-Free SBA Arc loan program
Help is accessible to small businesses for just just a little when longer. While waiting for a decision from Congress, check out SBA Arc loans. All small businesses unless they are just now starting up can qualify for up to $ 35,000 in 100 percent guaranteed, interest-free loans, reports Helium. SBA Arc Loans are only accessible to companies that can prove at least one year of profitability has happened within the last two years of business. Five years are allowed to pay back the loan. In six months, the whole loan will be given out. Companies have to get the SBA Arc loan before the end of September when it ends.
Further reading
CNN Money
money.cnn.com/2010/08/06/smallbusiness/small_business_bill_stalemate/index.htm
Bizjournals
denver.bizjournals.com/denver/stories/2010/08/02/daily78.html
Helium
helium.com/items/1915352-sab-arc-loan-program
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