Congressman Scott voted for two bills this week that will help grow American small businesses. He voted for the Small Business Lending Fund Act (H.R. 5297) and the Small Business Jobs Tax Relief Act (H.R. 5486). These measures will expand much needed lending to small businesses and offer tax incentives to help small businesses grow, hire, and fuel our economy.
"Small businesses are the engine of our economy. Yet, they continue to face a lack of credit and tight lending standards," Congressman Scott said. "It is necessary to expand credit to community banks and credit unions in order to open up lending to small businesses. Further, investment in new businesses needs to be encouraged with tax breaks."
The Small Business Lending Fund Act creates three separate programs designed to increase small business lending and increase jobs:
* Creates a small business loan fund. Establish a $30 billion fund to boost lending to small businesses looking to hire and expand their operations by providing additional capital to community banks.
* The State Small Business Credit Initiative Program provides $2 billion in funding for new or existing state lending programs. By supporting existing expertise in states around the country and using an easy to replicate model, this program will be able to quickly increase small business lending and create jobs.
* Small business financing. Provide $1 billion in financing through the SBA to support early stage small businesses in the form of true equity financing.
The Small Business Jobs Tax Relief Act includes the following provisions:
* Increases the capital gains tax cut for those who invest in small businesses this year. The bill would exclude 100% of capital gain income for stock in small businesses purchased through January 1, 2011.
* Increase in deduction for business start-up expenditures: Increases to $20,000 (from $5,000 in current law) the deduction for start-up expenditures in connection with investigating the creation of a business (but not capital or equipment), and allows more businesses to qualify for the maximum deduction.
Several bills that are written to help small businesses have passed the House with Congressman Scott's support, including Small Business Financing and Investment Act (H.R. 3854) and the Small Business Early Stage Investment Act (H.R. 3738). Many of these bills languished in the Senate.
For more information about small business programs, please visit the SBA website.