Community banks that don’t lend very often are intended to get cheap capital with the Small business Jobs and Credit Act. 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 escape. September is when politicians will be able to discuss the business credit and tax relief. An additional bill for small company called the Small business Association Arc Loan Program is going to expire in September though. Article source – Small business lending bill is latest victim of partisan politics by Personal Money Store.
Business lending and tax relief
$ 30 billion can be put in a lending fund with the bill that is also called by some the Small business Jobs Act. Banks with less than $ 10 billion in assets tend to be the ones lending to small business, reports CNNMoney.com. Businesses 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 companies possible. It increases SBA loan limits and extends loan incentives through the end of the year. More companies are encouraged with the tax cuts. $ 1.5 billion in grants can 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. Bizjournals.com reports that action on the bill was delayed within the Senate because of partisan maneuvering by Republicans over amendments unrelated to boosting small company credit. 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. Two Republicans even voted with Democrats to give the lending fund a filibuster-proof 60 votes when it was considered as 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
Help is available to small businesses for just just a little when longer. Rather than waiting for Congress to get its act together, they can investigate an SBA Arc loan. As outlined by Helium, 100 percent guaranteed, interest-free loans up to $ 35,000 are available to businesses that are already up and running. To get the loan, a business must show that in the last two years, profit has been made for at least a year. The loan can be paid back in five years at the most. The loan could be received over a six month time frame. The program can be ending at the end of December meaning companies wanting SBA Arc loans should hurry.
Find more information on this subject
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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