[StBernard] House Approves Legislation to Help Small Businesses and Create Jobs

[Westley Annis]

House Approves Legislation to

Help Small Businesses and Create Jobs

 

WASHINGTON, D.C. - The House gave final approval today to key legislation
that helps small businesses across the country get access to the credit they
need to expand and hire new employees.

 

The legislation, the Small Business Jobs Act (H.R. 5297), is part of the
ongoing effort by Congress and the Obama administration to put Americans
back to work and strengthen the economy. The legislation passed the House by
a vote of 237-187, and now heads to President Obama's desk for his
signature. The House first passed the legislation in June, but it was held
up by Republicans in the Senate until this month.

 

The Small Business Jobs Act provides $30 billion in capital to community
banks to help them boost lending to creditworthy small businesses looking to
hire and expand their operations. The legislation is intended to help small
businesses that are struggling to gain access to credit due to the financial
crisis. It calls for community banks to repay the capital over time. 

 

"This bill offers concrete help, at no cost to taxpayers, to small banks and
businesses that want to collaborate to expand economic activity," said Rep.
Barney Frank (D-MA), chairman of the Financial Services Committee. "Banks'
participation is entirely voluntary. There are no possible negative
consequences for the economy. I regret the fact that Republican opposition
held this bill up, particularly since our Republican colleagues advanced no
substantive arguments against it, but were simply engaged in a political
fight to prevent the Obama administration from making progress on the
economic front."

 

"For over a year I have been talking to small business owners on Main Street
who are ready to add jobs but cannot because Wall Street banks refuse to
give them the loans they need. Their stories are the driving force behind
this legislation," said Rep. Gary Peters (D-MI).  "Putting capital in the
hands of our small businesses and entrepreneurs is one of the best things we
can do to spur job growth.  The new lending will allow small businesses to
put people back to work."

 

"Jobs in our community are created by businesses in our community, and
providing an environment for small business growth is key to Congress'
mission to strengthen our ongoing economic recovery," said Rep. Melissa Bean
(D-IL). "Small business owners in my district and across the country tell me
that access to credit remains their top barrier to growth. These initiatives
- supported by the Obama Administration, the Chamber of Commerce, and other
business groups - are an intelligent way to leverage taxpayer dollars into
greater private investment in our small businesses."

 

The legislation includes an initiative put forth by Rep. Peters to provide
federal funding for state lending programs that use small amounts of public
resources to generate substantial private bank financing. Such programs are
designed to address many of the reasons banks are having trouble increasing
lending to small businesses, including lenders' desire to hold greater
reserves against certain loans and concerns about collateral shortfalls on
the part of borrowers.

 

The $30 billion lending facility is completely separate from the Troubled
Assets Relief Program and mandates accountability and oversight by Congress,
the Government Accountability Office, and the Treasury Department's
Inspector General.  

 

The legislation also includes small business tax cuts and improvements to
Small Business Administration loan programs. For more information on these
provisions, visit the websites of the Ways and Means Committee
<http://waysandmeans.house.gov/>  and the Small Business Committee
<http://www.house.gov/smbiz/> . The Committee on Financial Services approved
the legislation
<http://financialservices.house.gov/press/PRArticle.aspx?NewsID=603>  on May
19, and the full House first approved it on June 17.

 

 

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