The House has 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.
