U.S. Rep. Bob Etheridge (D-Lillington) today met with bank officials and small business owners about federal assistance to increase the ability of community banks to lend to small businesses. Etheridge recently helped pass the Small Business Jobs bill which will provide $30 billion in capital to enable up to $300 billion in lending at our community banks who know local needs best and open the flow of credit to small businesses.
"As a former North Carolina small businessman, I know that small businesses are the engine of our economy, creating two-thirds of the new jobs over the last 15 years," said Etheridge. "Credit is the lifeblood of these businesses, and getting credit flowing will help small businesses grow, hire workers, and fuel our economy."
The Small Business Jobs and Credit Act creates jobs by expanding credit and cutting taxes for small businesses. Two years after the big bankers on Wall Street nearly collapsed the financial sector, North Carolina's nearly 780,000 small businesses continue to face a lack of credit, with the number of small business loans down nearly 5 million nationwide since 2008.
In addition to the $30 billion lending fund, the bill also includes $12 billion in tax cuts. It is estimated to help small businesses create 500,000 new jobs.
The Small Business Jobs bill will work along with the HIRE Act, which Etheridge also helped pass, to continue putting people to work in North Carolina. The HIRE Act included Etheridge's proposals to provide a hiring tax credit for businesses that hire new workers or expand payroll.
"Opening credit and cutting taxes makes it easier for small business to get loans, pay bills, make investments and cut paychecks," said Etheridge. "That means new jobs and a stronger economy."