Small Business Lending and Loan News; Senate Republicans Vote on Bill to Aid Small Business Lending; Tax Breaks Possible
Posted on | July 31, 2010 | No Comments
Small business loans were expected to increase if legislation touted by President Obama made its way through the Senate. Tax Breaks were part of the bill that would have benefited small business owners. The economic recovery has not been going so well for President Obama and the Democrats and election time is right around the corner. Small business lending and bank loan increases could boost the recovery and boost the number of Democratic votes come election time this fall. The Federal Stimulus is dwindling and the little bit of boost that it initially gave the economy is beginning to erode as well. The housing market is slumping and small business owners are finding it next to impossible to receive financing for their small business costs.
The economy is not very stimulated right now and President Obama and the Democratic party are attempting to do something about it. Consumer and investor confidence in the economy is teetering and so President Obama is initiating momentum and leverage so that banks could access a $30 billion government fund to help them increase lending to small businesses. Current regulations are putting a damper on funding and loan provisions and Democrats are now saying that the small business lending bill would have allowed banks to use the lending fund to leverage up to $300 billion in loans to small businesses. This would have been a vital step toward increasing the strength of the current economic recovery across the nation. The Republicans of the U.S. Senate recently blocked the bill however. The bill was known as the Small Business Jobs Act and was stalled primarily because Republicans reported that the bill was too similar to the recent bailout of large banks.
Author: Frank Matto