Those who understand Congress expected lawmakers to succeed in passing a small business bill prior to the November midterm elections. But 2 Republican senators who are not seeking re-election crossed party lines to give Democrats the votes they needed. Thursday, U.S. Senate passed a small business bill, after fighting all summer over it. The legislation aims to improve access to credit and provide tax relief for small businesses, which policymakers say create a majority of new jobs. The bill will probably move within the House fast. It is headed there now. Article source – Two Senate Republicans defect to help pass small business bill by Personal Money Store.
Tax breaks while lending with smaller businesses
Regional banks for small company lending may be getting a $30 billion lending fund that would come from the small business bill that passed Thursday in Senate. Republicans think that, much like the Troubled Asset Relief Program, the fund is another taxpayer bailout. TARP is different than this, of course, since banks actually volunteered to work with the small business lending program, reports the Wall Street Journal. Interest rates for banks to charged are being determined. This will happen by evaluating how much the bank is willing to increase small company lending. The small business bill also contains about $12 billion in business tax breaks, including an instant write-off of 50 percent for new equipment purchases in 2010 for all companies. There could be a double in the amount of new investment small businesses can make in 2010 and 2011. This number is now $500,000.
As a retiring Republican, votes are more on principle
The House worked earlier this year on a plan. This bill was a different version of the small company bill. The National Federation of Independent Business and the United States Chamber of Commerce were both expected to support the bill. Of course, instead they have chosen to Use the legislation to weaken the health care reform law, reports the Los Angeles Times. Republicans filibustered the small business bill in July, demanding to add amendments unrelated to the objectives of the legislation. Within the Senate chamber, House members staged a sit-in at one point. This was done to protest the delays going on. Republicans George LeMieux of Florida and George Voinovich of Ohio are U.S. senators not seeking re-election who were the ones that modified their minds. Two independents joined the Democrats helping pass the bill. The measure passed 61-38 after the two Republicans joined.
Further reading
Wall Street Journal
online.wsj.com/article/SB10001424052748703440604575495882236157048.html
Los Angeles times
latimes.com/news/nationworld/nation/la-pn-small-business-bill-20100917,,2992847.story
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