Congressman Steve Kagen, M.D. is working to bring real help to small businesses in Northeast Wisconsin.
Today, Dr. Kagen applauded passage of the Small Business Jobs and Credit Act. This measure provides $30 billion to community banks to make it easier for small businesses to take out loans. The Independent Community Bankers Association estimates that this new fund will help to leverage up to $300 billion in new credit for small businesses across the country.
"At no cost to taxpayers, this bill secures credit to the real economic engines of our economy - privately owned small businesses that will create the jobs we need to work our way back into prosperity," Kagen said.
The independent, non-partisan Congressional Budget Office (CBO) estimates that this legislation will save taxpayers $1 billion over ten years.
"This is an important step to providing help where help is most needed," Kagen, Co-Chair of the Congressional Business Owners Caucus, said. "But there's more work to do; we need to continue to find creative ways to help our middle class and invest in Northeastern Wisconsin."
Wisconsin is home to over 900 community banks that help to serve more than one hundred thousand small businesses across the state.
Kagen pledged to continue the fight for additional legislation to amortize existing small business debt, as a means to provide additional relief to small business.
The legislation approved today includes provisions to enhance Small Business Administration (SBA) lending by increasing guarantees on loans from 75% to 90%, to increase loan limits from $2 million to $5 million for standard borrowers, and $4 million to $5.5 million for manufacturers and eliminating certain fees.
Having already been approved by the Senate, the legislation now goes to the President for his signature.