For Immediate Release:
June 17, 2010
(202) 225 - 3130
Today the House passed the Small Business Lending Fund Act, following passage on Tuesday of its companion measure, the Small Business Jobs Tax Relief Act. Both of the measures passed this week respond to what Democrats have heard from Americans across the country: that job creation continues to be their top focus. These two bills will help small businesses grow and expand so that they can continue to serve as the engine of job growth for our economy.
The Small Business Lending Fund Act addresses the concern that even as our economy starts to recover, small businesses still cannot access the credit they need to grow their business. This legislation encourages more lending to small businesses by investing capital in community and smaller banks under terms that become more favorable to participating banks as they increase their total loans to small businesses.
To further ensure small businesses have every opportunity to succeed, the Small Business Jobs Tax Relief Act will help businesses expand and create new jobs through a 100% exclusion of small business capital gains; small business penalty relief; and increased deductions for start-up expenditures.
Independent Community Bankers of America: “ICBA…firmly supports the central purpose of the program to spur further lending to small businesses by means of community banks. We applaud the new program focused on getting funds to Main Street small businesses using Main Street community banks.” [June 15, 2010]
American Bankers Association: “This legislation will serve as another tool for community banks to meet the needs of small businesses in their communities.” [June 9, 2010]
Small Business Majority: “We strongly endorse HR 5297, which would help get credit flowing to small businesses and consumers by getting capital to community banks…. With 28 million small businesses and their many varied needs for types of loans to operate and grow their businesses we need many sources of loans to meet their capital needs. Community banks loans for small business are one of the key strategies to getting our economy back to normal.” [June 16, 2010]
Building on Previous Action
As Americans remain focused on job creation, Democrats have responded to their concerns by passing multiple measures this Congress to boost small businesses. Despite the American people clearly calling for us to focus on getting people back to work, every measure has passed with little to no support from Republicans. Several have been signed into law, including:
Hiring Incentives to Restore Employment (HIRE) Act – Enacted 3/18/10
• Exempts employers from paying the employer share of Social Security employment taxes for wages paid in 2010 for any new employee that was previously unemployed and does not replace another employee.
• Provides employers a $1,000 income tax credit for every new employee they employ for 52 weeks.
• Extends through 2010 the Recovery Act provision that would allow small businesses to write-off capital expenditures up to $250,000.
Worker, Homeownership & Business Assistance Act – Enacted 11/06/09
• Extends the Recovery Act small business provision allowing small businesses to use the extended carryback period for a net operating loss incurred in 2008 or 2009.
American Recovery and Reinvestment Act – Enacted 2/17/09
• Allows small businesses to extend the carryback period for up to five years for net operating losses incurred in 2008.
• Enables small businesses to expense up to $250,000 for capital expenditures in 2009.
• Provides work opportunity tax credits to employers who hire unemployed veterans and disconnected youth.