Senate Approves Legislation to Help Michigan Small Businesses

Press Release

Senate Approves Legislation to Help Michigan Small Businesses

U.S. Senator Debbie Stabenow today announced that the Senate passed the American Workers, State, and Business Relief Act . The legislation includes a bipartisan provision that she authored to make much-needed capital available to struggling American companies. The bill will also help small businesses by extending lending programs and critical tax cuts to create jobs in Michigan.

"Michigan businesses need immediate assistance to make new investments here at home and create jobs," said Senator Stabenow. "The American Workers, State, and Business Relief Act includes a bipartisan provision that I authored to provide capital for struggling companies. This bill will also ensure that additional loans are available to small businesses across our state and extend important tax cuts for Michigan companies to put people back to work."

Stabenow American Job Creation and Investment Provision

The Stabenow provision will allow companies in 2010 to utilize existing tax credits to provide a boost to the economy. In order to be eligible, companies must use the credits to make investments in manufacturing facilities/equipment. The total amount of tax credits that can be utilized will be based on a percentage of new investments. The provision has the support of the U.S. Chamber of Commerce, National Association of Manufacturers (NAM), Association for Manufacturing Technology (AMT), Association of Equipment Manufacturers (AEM) and Motor & Equipment Manufacturers Association (MEMA).

Small Business Administration (SBA) Lending Programs

Small businesses have struggled to secure capital during this global credit crisis, which has prevented many from making investments in the economy and creating jobs. The American Workers, State and Business Relief Act extends two SBA enhancements to its loan guarantee programs, to provide much-needed capital to small businesses. These programs increase the amounts that the SBA can guarantee and waives or reduces loan fees for borrowers. SBA estimates that this extension will support $18.5 billion in loans to small businesses nationwide.

Tax Cuts and Assistance for Businesses

Extending important tax cuts is critical for our businesses and our economy. This legislation extends tax cuts that promote research and development, spur community investments, and support the development of alternative vehicles and fuels. It will also provide relief for employer pension plans that suffered significant losses to ensure retired workers get the benefits they deserve.

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