Small Business Lending Bill Is Latest Victim Of Partisan Politics
The Small business Jobs and Credit Act was proposed to deliver cheap capital to community banks for small company lending. Unemployment creates a kind of pressure on the Obama administration to make more jobs available. The Small business Jobs and Credit Act was conceived for that purpose. Before August though, partisan bickering made it impossible for the act to be passed. September is when politicians will be able to discuss the business credit and tax relief. Meanwhile, an underused program designed to boost small company credit — the Small business Association Arc Loan Program — expires in September.
Bill promotes small company 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. CNNMoney.com reports that community banks, those with less than $ 10 billion in total assets do most small business lending. Community banks that receive capital should then turn around and put that money into small businesses. The bill would also provide $ 12 billion in small companies tax relief between 2010 and 2020. Loan incentives would be extended when SBA loan limits would extend. To encourage entrepreneurship, it offers numerous small businesses tax cuts. Also, state governments with no money left will see $ 1.5 billion in grants.
Politicians play games with small company credit
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. The Senate was slow to respond because there was so much partisan maneuvering coming from the Republicans side that didn’t have to do with small company credit, reports Bizjournals.com. Republicans used their “another bank bailout” talking point to oppose the $ 30 billion small company lending fund. There were two republicans that had to vote for filibuster-proof so 60 votes could be had after they considered it a separate amendment. But Republicans were united in blocking the Senate from moving forward on the entire bill. Evidently Democrats were stopping them from adding more amendments to the bill.
September is an expiration date for the Interest-Free SBA Arc loan program
Small companies are only going to be able to get help with their business for a short when longer. Rather than waiting for Congress to get its act together, they can investigate an SBA Arc loan. Helium reports the SBA Arc Loan Program is only to available to established businesses and not start-ups, but it provides 100 percent guaranteed, interest-free loans of up to $ 35,000. To get the loan, a business must show that within the last two years, profit has been made for at least a year. Businesses can take up to five years to repay the loan. The loan could be received over a six month time frame. The program will be ending at the end of December meaning businesses wanting SBA Arc loans should hurry.
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