President Barack Obama signed a $30-billion small business lending bill into law. The House had agreed to the Senate version of 'The Small
Business Jobs and Credit Act of 2010,' H.R. 5297, by a vote of
237-187. The bill originally passed the U.S. House of
Representatives June 28, 2010, and then passed in the Senate
Sept. 16 by a vote of 61-38 with changes.
This legislation creates a $30 billion lending fund that will be
distributed to regional banks, which will in turn lend to small
businesses. It also authorizes $12 billion in tax cuts for small
businesses. Advocates for the lending bill believe it will have
a large impact on the U.S. economy, as small businesses employ
approximately half of all Americans and account for almost 60
percent of gross domestic product.
Rep. Melissa Bean, D-Ill., commented on the passage of
the bill by saying, "Jobs in our community are created by
businesses in our community, and providing an environment for
small-business growth is key to Congress’ mission to strengthen
our ongoing economic recovery."
The U.S. Department of Treasury will be responsible for the
small business lending fund. Some of the key provisions of Title
1 of the bill include:
Requiring an applicant institution to provide
information to the appropriate federal banking agency, as well
as a small business lending plan, outlining how its business
strategy and operating goals would allow it to address the needs
of small businesses in the areas it serves;
Setting forth financial incentives for small business
lending by such institutions;
Requiring capital investment recipients to provide
outreach and advertising in the appropriate language of the
applicant pool using media outlets that target organizations,
trade associations and individuals who represent or work within
or are members of minority communities;
Establishing the Small Business Lending Fund Program as
separate and distinct from TARP;
Directing the secretary to study and report to Congress
on the number of women-owned and minority-owned businesses that
receive assistance as a result of the program.
To view a complete summary of the legislation, along
with the full text, visit ASA’s legislative website at
www.TakingTheHill.com.
