Washington, D.C. -- Today, U.S. Representative Rick Larsen (WA-02) voted to increase lending to small businesses so they can create jobs in Northwest Washington. The Small Businesses Job and Credit Act will help community banks provide much-needed capital to local small businesses.
"I have spent hours walking the Main Streets of our communities talking to small business owners who are still fighting their way out of this economic crisis," said Rep. Larsen. "Small businesses are the number one source of new job growth in this country, but the credit crunch has prevented them from accessing the capital they need to grow and create jobs."
"Our nation's community banks play a vital role in small business lending, but the financial crisis has hamstrung their ability to make those loans," said Rep. Larsen. "This bill will help community banks provide much-needed capital to local small businesses so they can access the tools and resources they need to grow and start hiring again."
This legislation establishes a $30 billion lending fund which uses performance-based incentives and safeguards to ensure that the funds go to American small businesses. The fund is full paid for and will save taxpayers $1 billion over the next ten year. The Small Business Jobs and Credit Act also offers tax incentives to spur investments in American small businesses. These reforms will lower the capital gains taxes on small business investments, and increase tax deductions to help entrepreneurs to recover more start-up expenses.