U.S. Rep. Nick Rahall (D-W.Va.) voted in favor of the Small Business Jobs and Credit Act to create a $30 billion lending fund for small businesses and create jobs by expanding much-needed lending to small businesses and offering tax incentives to help America's small businesses grow.
"Small businesses are the engine of our economy, creating two-thirds of the new jobs over the last 15 years, yet they continue to face a lack of credit and tight lending standards," said Rahall. "This bill works to tackle these lending issues and help small businesses get the credit that they need."
The Small Business Jobs and Credit Act will help small businesses expand through investments in states and small banks that focus on lending to local small businesses. This new $30 billion lending fund is expected to leverage up to $300 billion in loans for small businesses and is monitored with tough performance-based incentives and safeguards to ensure that funds go to American small business and spur job creation across America. The bill will also help cultivate American innovation through a new public-private partnership designed to channel early stage investment capital to promising new start-ups.
The Small Business Jobs and Credit Act offers tax incentives to spur immediate investments in America's 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.
"Federal dollars can go a long way to generate substantial private bank financing--especially our small local banks, who provide much of the lending needs to our rural and smaller communities," said Rahall. "This legislation is making funds available to get our small businesses the funds they need today while adhering to pay-go rules. Furthermore, by allowing entrepreneurs to recover more start-up expenses, small business owners can focus more on hiring new workers and growing their businesses."
The Small Business Jobs and Credit Act has been endorsed by a variety of organizations, including the National Small Business Association, the Small Business Majority, National Association of Realtors, the Conference of State Bank Supervisors, the American Bankers Association, Biotechnology Industry Organization and the National Bankers Association.
The Small Business Jobs and Credit Act (H.R. 5297), which passed the House by a vote of 241 to 182 late Thursday, and the Small Business Jobs Tax Relief Act (H.R. 5486), which passed by a vote of 247 to 170 earlier in the week, have now been sent to the Senate for consideration as one bill. The combined bill creates a completely paid for small business lending package that will assist small businesses and create job opportunities throughout West Virginia.