A bill that offers economic relief to small businesses passed the Senate today 61-38, after being stuck in limbo for several months.
The proposal proffered by President Obama and his Democrat supporters would establish a $30 billion federal fund that aims to help loosen credit, increase various federal loan programs and ease their tax burden.
President Obama issued a statement yesterday that sums up his hopes for the effectiveness of this bill, â€œAt a time when small business owners are still struggling to make payroll and they’re still holding off hiring, we put together a plan that would give them some tax relief and make it easier for them to take out loans.â€
The new government fund would enable community banks to access and leverage higher amounts for lending to small businesses. Another component to the bill would lower the fees from various Small Business Administration programs and increase that agency’s lending limits and loan guarantees.
Tax cuts included in the proposal would give credits to restaurant and retail store owners that remodel or expand. Certain investors in small businesses would be exempted from capital gains taxes.
The small business owners would be able to get credited for the cost of health insurance for themselves from their self-employment taxes but this part of the bill is specific for only 2010.
The proposal will now have to pass the House floor before being sent to President Obama to sign the bill into law. There has been no time frame specified for that to happen but opponents to the Obama administration seem to think it will be before the elections in November because they say it’s a last ditch effort on the administration’s part to score â€œpolitical pointsâ€.