The Small business Jobs and Credit Act was made so that small banks would be able to get cheap capital. Persistent high unemployment has put pressure on the Obama administration to do something about job creation. The Small business Jobs and Credit Act was conceived for that purpose. However, partisan bickering prevented Congress from doing anything about the bill before it went on its August getaway. 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 business lending possible with bill
The bill is called the Small business Jobs Act also, and will allow $ 30 billion to be put into a lending fund. CNNMoney.com reports that community banks, those with less than $ 10 billion in total assets do most small business lending. Community banks that receive capital should then turn around and put that money into small businesses. The bill would also provide $ 12 billion in small businesses tax relief between 2010 and 2020. There would be an extension of SBA loan limits and also an extension of loan incentives till the year is up. Small business tax cuts are there so more individuals will venture to make companies. Also, state governments with no money left will see $ 1.5 billion in grants.
Politicians play games with small company credit
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. According to Bizjournals.com, partisan maneuvering by Republicans about things that weren’t related to small business credit slowed the Senate. The $ 30 billion small company lending fund was stopped as the Republicans talked about the “another bank bailout” argument again. There were two republicans that had to vote for filibuster-proof so 60 votes could possibly be had after they considered it a separate amendment. All of the Republicans stopped the Senate from passing the whole bill with their votes though. Republicans wanted more amendments added to the bill than Democrats did.
The Interest-Free SBA Arc loan program could be expiring in September
Small businesses are only going to be able to get help with their business for a short when longer. When waiting for a decision from Congress, look into SBA Arc loans. Helium reports that the SBA Arc Loan Program is only to accessible to established businesses and not start-ups, but it provides 100 percent guaranteed, interest-free loans of up to $ 35,000. 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 could be paid back in five years at the most. Funds can be disbursed over a six month period. The program could 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
