Small Business Bill

Posted on Friday, September 17th, 2010 at 6:23 am.

Small Business Bill on the Rise.

The Small Business Jobs Act is poised for a full Senate vote this week after amendments are approved as expected. The package includes plenty of added bonuses for small business owners, including tax breaks and a $30 billion Small Business Lending Fund, but also measures that could have some small-business owners worried. Before it becomes law, the bill must be resolved with the small-business legislation passed by the House of Representatives in June.

“We do expect the bill to pass on Tuesday night, but it still has a long way to go to become law,” says Molly Brogan, vice president of public affairs for the National Small Business Association, a small-business advocacy organization in Washington, D.C.

Still, the legislation has widespread support from a host of small-business interests and is expected to become law before midterm elections in early November. Here’s a look at what the bill, if passed, could mean for your business, including the potential problems that you could be facing down the road.

Small Business Lending Fund: You might have better luck getting a loan from a smaller lender. A Small Business Lending Fund would provide up to $30 billion in capital to financially sound small banks with less than $10 billion in assets to encourage them to lend money to small businesses. Participating banks would have an incentive to lend to small business: If they increase lending to small business 10 percent over the previous year, they would pay as little as 1 percent on the capital they acquire from the fund.

State Small Business Credit Initiative: This provision could help you out if you live in a state that has a successful small-business lending program and can show how your loan could help create jobs. States with such programs facing cutbacks due to tight state budgets may be eligible for funding to continue them. The grant pool would total $2 billion, but states would need to show that there has been at least $10 in new lending for every $1 in federal grant money they receive. In addition, they would be required to use their funding to work with private lenders to extend more credit to creditworthy small businesses and manufacturers who need the money to create jobs. The administration estimates that the $2 billion pool could generate $20 billion in new lending.

To learn more about small business credit or to receive financial advice for your new or small business including tax advice visit Precision Corporate Services at www.precisioncorpsvcs.com and start growing your small business today!

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