New York (CNNMoney.com) - After months of debate and significant pressure from the White House, the Senate on Thursday passed a $42 billion bill aimed at helping small businesses.
The House passed its own version of the bill about 3 months ago. The Senate's version of the Small Business Jobs Act will now have to go back to the House, where it's expected to pass, before President Obama can sign it into law.
The measure is expected to create 500,000 jobs, according to a Senate summary of the bill. Hiring by small businesses, considered a key driver of job growth, has been shrinking over the last two and a half years.
The bill aims to spur hiring by making credit more available to small businesses. The number of loans has dropped by 17.8% since the second quarter of 2008 and the total value of those loans plunged by $60 billion to $650 billion, according to data from the FDIC.
Without adequate credit, businesses can't grow and hire. The president started pushing for ways to get cheap capital to small businesses nearly a year ago.
What is in the bill: The Small Business Jobs Act authorizes the creation of a $30 billion fund run by the Treasury Department that would deliver ultra-cheap capital to banks with less than $10 billion in assets.
The idea is that community banks do the lion's share of lending to small businesses, and pumping capital into them will get money in the hands of Main Street businesses.
The bill would also provide a slew of tax breaks to encourage investment that will cost $12 billion over a decade, according to a preliminary estimate from the Joint Committee on Taxation.
And the legislation provides $1.5 billion in grants to state lending programs that in turn support loans to small businesses.
Wonder what strings will be attached to getting this money and if it will be another affirmative action type situation. Hope not.
Great we have given large banks free money allowing them to make huge profits by not making loans and now we want to give small banks the same ability for high profits by giving them money.
My wife applied for a small business loan to expand her store and was denied because I have too much money in my retirement account.
Yet they say the banks are cash flush.
Here's the joke in all of this.
We told the banks to get their loan procedures in line. They did and fewer loans are made.
When was it ever said that anyone wanting to start a business should be able to? When was a struggleing business an good loan risk?
We wanted change. We need change. There is a cost in the short term for long term benefits.
Start adjusting for the new economy. The Americna free ride is over.
What was the vote? How many of the republicans who were blocking the bill for months ended up voting for it? I imagine quite a few since they were shamed into voting on a bill that actually helped America instead of their standard of voting no on everything just to score points instead of helping the American people. Hypocrites!
Vote NO in NOvember to the party of NO.
I wonder how many members of the GOBP voted no to that good legislation!
Also if Obama raises the taxes like he and most of the liberal dems want, My wife will have to let 2 of her employees go.
Many thanks to the GOP that decided to help the American people.
Oh great.......they were originally going to throw away 39 billion. Now they are throwing away 42 billion.
Way to go Dems! Your waste is astounding!
Back in session and back to more spending. This Administration just doesn't get it. Most Small Business needs involve customers & sales. Taking out a loan is just another bill to pay. When will they learn that they can't spend their way out of this mess.
And yet ANOTHER accomplishment by President Obama!! Yes We Can!!
Keep COUNTING America and it won't be long before the non-believers and 'ship jumpers' and the 'Short Term Memory Syndrome' voters will realize that the MAJORITY of Americans put President Obama into office and it was for a REASON!!!
If you LQQK and LISTEN – the more 'moderate' RepubliCAN'Ts are beginning to realize that too – as they SEPARATE themselves from the TEA-PARTY far-right, fear mongering RepubliCAN'Ts that is trying to UPSET their WORLD!!
This is T'SAH from Virginia and I approve this message!!!
How nice. Small businesses are great but they don't provide the income necessary for their employees to live a quality life. We need the manufacturing jobs back from all those U.S. companies that are hiring overseas. We are slowly but surely becoming the nation of minimum wage for the average person....and we can thank the republicans for doing this.