The Small business Jobs and Credit Act was proposed to deliver cheap capital to community banks for small business 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. Before August though, partisan bickering made it extremely hard for the act to be passed. September is when politicians could 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.
Tax relief and small company lending possible with bill
$ 30 billion could 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. Loan incentives would be extended while SBA loan limits would extend. More companies are encouraged with the tax cuts. Also, state governments with no money left will see $ 1.5 billion in grants.
Small company credit just a game
The House recessed July 30 after fighting about procedures of the Small business Jobs Act. Bizjournals.com reports that action on the bill was postponed in the Senate because of partisan maneuvering by Republicans over amendments unrelated to boosting small company credit. The $ 30 billion small business lending fund was stopped as the Republicans talked about the “another bank bailout” argument again. Two Republicans even voted with Democrats to give the lending fund a filibuster-proof 60 votes when it was considered as a separate amendment. Still, Republicans were strong in saying they didn’t want the whole bill to pass. Republicans wanted more amendments added to the bill than Democrats did.
The Interest-Free SBA Arc loan program will be expiring in September
Small companies that have managed to survive the credit crisis can nevertheless get a little help, for just a little while 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. Businesses dealing with immediate financial hardship that can show one year of profitability in the last two years qualify for SBA Arc Loans. Five years are allowed to pay back the loan. The loan can be received over a six month time frame. Businesses have to get the SBA Arc loan before the end of September when it ends.
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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