Tax Breaks, Greater Access To Credit Made Available To California Small Businesses Under Recently Enacted Small Business Jobs Act
Today, Congresswoman Lucille Roybal-Allard (CA-34) announced that the Treasury Department is poised to allocate more than $168.6 million in federal funds to increase community bank loans to small businesses in California.
"Small businesses are the engine of our economy, creating two-thirds of the new jobs over the last 15 years in our country. America's 27 million small businesses continue to face a lack of credit and tight lending standards, with the number of small business loans down nearly 5 million since the financial crisis hit in 2008," Congresswoman Lucille Roybal-Allard said. "The additional credit for small firms made available under the Small Business Jobs Act, which I was pleased to support, will help our small businesses access the credit they need to stay afloat, grow and create jobs during these challenging economic times," Congresswoman Lucille Roybal-Allard continued.
Through the State Small Business Credit Initiative under the Small Business Jobs Act, states have the opportunity to apply for federal funds for programs that partner with private lenders to extend credit opportunities to small businesses. States are required to demonstrate a minimum "bang for the buck" of $10 in new private lending for every $1 in federal funding. Accordingly, the $1.5 billion investment from the federal government nationwide is expected to support $15 billion in additional private lending through innovative local programs that help entrepreneurs expand their businesses and create new jobs.
In addition to expanding much-needed lending, the Small Business Jobs Act will help small businesses with eight tax cuts totaling $12 billion that went into effect this month.
"The Small Business Jobs Act is estimated to create 500,000 new jobs by providing much-needed lending to millions of small businesses, and offering eight new tax incentives to companies to help them expand, hire, and ultimately fuel our economy," Congresswoman Roybal-Allard said. "Small businesses are the foundation of our economy. We owe it to them to ensure that they have a business environment in this country that helps them grow and flourish. Increased access to capital and new tax cuts will not only keep jobs in America, it will allow small businesses to make it in America."