Today, after months of Republicans refusing to even allow a vote on a critical Small Business jobs bill, the Senate cleared the measure by a 61-38 vote. The bill now heads back to the House for final passage. The Small Business Jobs Act will help create an estimated 500,000 jobs by providing small businesses with access to capital, tax incentives for investment, and support for innovation and entrepreneurship. It will guarantee an estimated $300 billion in lending and $12 billion in tax cuts for small business that have been hard hit by the economic recession and lost more than six million jobs since December of 2007.
As part of the legislative package, Senator Menendez secured inclusion of the Full Faith and Credit in our Communities Act, legislation he authored, which will ensure communities and small businesses have access to the capital they need to grow. Specifically, this provision authorizes the U.S. government to guarantee bonds issued by qualified Community Development Financial Institutions (CDFIs) in order to decrease the cost and increase the availability of credit on Main Street. At virtually no cost to the taxpayer, this provision will help create approximately 40,000 new jobs."
U.S. Senator Robert Menendez (D-NJ) voted for and hailed today's vote:
"This legislation could been have approved much earlier if Republicans had not stood in the way, but I am pleased we were able to ensure passage and continue moving forward with our economic recovery. Giving small businesses tax relief and increased access to credit is critical to our job creation and economic recovery efforts. With this assistance, small business entrepreneurs will be able to continue recovering, growing, and hiring, leading the way to a full economic recovery. I'm pleased that the bill included my legislation to get more investment flowing to Main Street and communities hit hardest by the economic downturn. By investing in these communities, we will create jobs, help small businesses, and improve communities." Said Senator Menendez.
Senate Finance Committee Fact Sheet on the Small Business Jobs Act:
? Gives small businesses $12 billion in tax cuts
? Helps small businesses create 500,000 new jobs
? Incentivizes and increases small business lending
? Helps small business owners access private capital to finance an expansion and hire new workers
? Rewards entrepreneurs for investing in new small businesses
? Helps Main Street businesses compete with large corporations
Helps Small Businesses Access Capital
* Incentivizes investors by giving 100% exclusion from capital gains taxes on small business investments.
* Creates a targeted $30 billion Small Business Lending Fund to provide small community banks with capital to increase small business lending.
* Gives $1.5 billion in grants to support $15 billion in new small business lending through already successful state programs.
* Reduces the tax burden for small businesses by allowing them to carry back general business tax credits to offset their tax burdens from the previous five years. Small businesses will also be able to count the general business credits against the Alternative Minimum Tax (AMT), freeing up capital for expansion and job growth.
* Increases Small Business Administration (SBA) loan limits and improves access and lowers costs for small business to access SBA loans.
Increases Small Businesses' Ability to Make Investments
* Increases Section 179 expensing -- permitting up to $500,000 in capital investments that businesses can expense.
* Extends Bonus Depreciation -- allowing taxpayers to immediately write off 50 percent of the cost of new equipment.
* Increases to $10,000 the tax deduction for start-up expenditures -- doubling the current levels.
* Creates new tools to help small businesses export goods, which will leverage more than $1 billion in exports.
* Establishes a new State Export Promotion Grant Program (STEP), which would increase the number of small businesses that export goods to other countries.
Promotes Fairness in Competition
* Improves tax fairness by preventing small businesses from incurring large tax penalties aimed at large corporations and wealthy individuals investing in tax shelters.
* Improves small business contracting by clarifying that no single contracting program receives priority over another program when competing for federal contracts.
* Allows self-employed individuals to deduct health insurance costs for purposes of paying the self-employment tax.
Fact Sheet on Menendez's Community Development Financial Institutions (CDFIs) provision:
* Amendment is estimated to create approximately 40,650 new jobs with no paygo implications.
* CDFIs are the most effective way to infuse capital in low-income communities because the capital goes directly to communities.
* CDFIs have a proven track record of job creation and community development.
* There are no paygo implications (informal CBO staff determination).
* Amendment would add provision to the bill that fosters much needed lending to small businesses and for economic development purposes.