Giannoulias, Durbin Helping Illinois Small Business Grow

Press Release

On the third day of their Illinois Jobs Tour, U.S. Senate nominee Alexi Giannoulias and U.S. Senator Dick Durbin joined Carbondale-area small business owners at the Dunn Richmond Economic Development Center to discuss their plans to help small businesses grow and gain access to capital. This stands in stark contrast to Congressman Mark Kirk who has consistently supported the failed Bush economic policies that have hurt small businesses.

"Small businesses are the back bone of our economy and have been hardest hit by the failed Bush economic policies that Congressman Kirk supports. It is imperative that we help small businesses by increasing their access to capital and help them to attract and retain employees so they can grow," said Giannoulias. "Unlike Congressman Kirk, I have a record of helping Illinois small businesses. As Treasurer, my office helped create hundreds of small business jobs through the Employ Illinois program, which has deposited $17 million of the state's portfolio into banks that agreed to loan to businesses at reduced rates. The best way to get small businesses to open and expand is to tie strings to the capital by requiring job creation and a mandate to lend."

Only half of the small businesses that tried to borrow last year got all or most of what they needed, according to a survey by the National Federation of Independent Businesses. A central element to Giannoulias' FutureWorks plan includes a proposal to stimulate immediate financial recovery by providing tax breaks to small business owners and low- to middle-income people who are most likely to put their savings back into the economy and curb overseas outsourcing of American jobs by closing tax loopholes.

Senator Durbin has sponsored federal legislation to help Illinois small businesses create jobs and get access to capital.

"My bill will help get people back to work by giving small businesses access to capital to help them create private sector jobs through private sector banks that lend to private sector businesses," said Senator Durbin. "I need Alexi as my partner in the United States Senate because he understands what Illinois small businesses are going through and will work night and day to support them. Congressman Kirk only offers more of the same failed Bush policies that have hurt our economy severely."

According to the latest data from the Small Business Administration, there were 258,000 small business employers in Illinois in 2006 and small businesses accounted for over 98 percent of the employers in Illinois. These small businesses added 93,000 jobs in 2006 -- three times as many jobs added by Illinois companies with more than 500 employees.

The Dunn Richmond Economic Development Center at the Southern Illinois University Carbondale is home to SIUC Small Business Incubator, which began in 1991. Its mission is to "accelerate the start-up and expansion of small business in Southern Illinois." It provides a range of services and events for current and prospective small business owners. The Center has a full-time staff of counselors that provide free counseling assistance on things such as cash flow and financial analysis, legal structure and e-commerce.

During the tour, Giannoulias has highlighted his plans to create the next generation of good-paying jobs, help small businesses access capital so that they can grow, and root out the corporate special interests that plague Washington. Giannoulias' FutureWorks plan can be read in full at www.alexiforillinois.com.

Senator Durbin is joining the tour for select stops on August 19 and August 20. Giannoulias will visit the following cities and towns in Illinois: Bloomington/Normal, Cairo, Carbondale, Chester, Decatur, Du Quoin, Alton, East St. Louis, Effingham, Harrisburg, Mascoutah, Metropolis, Mt. Vernon, Pana, Springfield, and Waterloo.

GIANNOULIAS PLAN TO HELP ILLINOIS SMALL BUSINESSES CREATE JOBS

* Extend the tax credit for first-time homebuyers. The tax credit for first-time homebuyers has helped middle-income Americans afford their first home and helped stabilize the housing market and home values. Allowing it to expire would hurt home sales just as the market is expected to pick up. Alexi supports an extension of the $8,000 first-time homebuyer tax credit through December 1, 2010.
* Create a payroll tax holiday for low- and middle-income Americans. Alexi wants middle-class tax relief that will go straight into the pockets of working Americans so that they can pay their mortgage, put food on the table, and keep the economy moving. He supports a one-year payroll tax holiday on the first $20,000 of individual income for those making up to $75,000. Under his proposal, qualified workers would see an extra $125 a month in their paychecks. Alexi is calling for a "job creation tax credit" for small businesses with less than 50 employees to help incentivize job creation among small businesses, which are responsible for 65 percent of jobs created in America.
* Establish a job creation tax credit. Making it less expensive for employers who hire within a 90-day timeframe would encourage businesses to start hiring now. Alexi is calling for a "job creation tax credit" for small businesses with less than 50 employees to help incentivize job creation among small businesses, which are responsible for 65 percent of jobs created in America.
* Offset the costs of these proposals by repealing the corporate tax loophole that rewards the shipping of jobs overseas. The U.S. tax code currently rewards companies that ship jobs overseas. Alexi wants to ensure that those companies pay their fair share by eliminating the tax loophole that allows them to defer paying U.S. taxes on overseas profits. This proposal would raise nearly $200 billion and deter companies from moving American jobs abroad.

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