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. That is why they made the Small business Jobs and Credit Act. The act has yet to go through or even be looked at because of partisan bickering. Business credit and tax relief has to wait until September now to be looked at by any politicians. September is when the Small business Association Arc Loan Program can be expiring.
Bill helps tax relief and small business lending
$ 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. By pumping capital into community banks, the idea is it will get in the hands of businesses. The bill also would make between 2010 and 2020 some tax relief for small businesses possible. It increases SBA loan limits and extends loan incentives through the end of the year. To encourage entrepreneurship, it offers numerous small companies tax cuts. $ 1.5 billion in grants will be given to many of the state governments with no money left to be seen.
Politicians make small business credit a game
The Small business Jobs Act wasn’t passed before July 30 when the House left for trip after bickering for days. According to Bizjournals.com, partisan maneuvering by Republicans about things that weren’t related to small company credit slowed the Senate. Republicans used their “another bank bailout” talking point to oppose the $ 30 billion small company lending fund. Two Republicans even voted with Democrats to give the lending fund a filibuster-proof 60 votes when it was considered as a separate amendment. Nevertheless, Republicans were strong in saying they didn’t want the whole bill to pass. They complained Democrats would not let them offer enough amendments to the bill.
September is when Interest-free SBA Arc loan program expires
Small businesses that have managed to survive the credit crisis can nevertheless get a little help, for a little when longer. SBA Arc loans could be received rather than waiting to hear from Congress. Helium reports that 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. Businesses dealing with immediate financial hardship that can show one year of profitability within the last two years are eligible for SBA Arc Loans. Five years are allowed to pay back the loan. In six months, the whole loan will be given out. The program will be ending at the end of December meaning businesses wanting SBA Arc loans should hurry.
Further reading
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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